Construction and ownership of real estate
IN Construction Law, We deal with construction from the conception of construction plans, to their permitting, to the actual implementation and subsequent resolution of any disputes.
The main areas where we help our clients resolve processes or disputes related to construction are divided into the following areas:
1. Proceedings before the building authority
We represent builders in dealing with permits, binding opinions and consents of the state administration authorities concerned (DOSS), whereby it is not only necessary to convince the administrative authorities that the construction complies with the requirements of the Building Act, but also to defend the intended construction against the objections of the owners of surrounding properties.
However, we often find ourselves on the opposite side, defending the rights of the existing owners affected by the development, who have the opportunity in the zoning or subsequent construction proceedings to object to the pending changes to the zoning plan or construction plan and thus influence the final form of the intended zoning change or development.
2. Judicial review of the decision of the building authority by the court
The owners concerned can claim their rights not only in a multi-stage proceeding before the administrative authorities, but also request the review of administrative decisions before the administrative courts. Defence already in administrative proceedings is often a condition of raising objections even before a court, which guarantees independent judicial review of the decisions issued as well as all the underlying opinions.
The appellate and judicial review of administrative decisions can significantly delay the implementation of a construction project to the detriment of investors, but also protect the existing rights of owners, which is why we are also contacted by both investors and affected owners.
3. Disputes arising during construction or reconstruction
The relations between investors and contractors of buildings or renovations are stipulated by law to a minimum, and therefore it is necessary to conclude an appropriate contract for the work, which should adequately describe the entire course of construction and the eventualities that may arise during it.
In the event that a dispute arises, we are able to assess on whose side the law is on and also what is the most effective solution — which is usually not the case. However, the most important thing is the timeliness of the solution — when a problem in construction already arises, it is highly advisable to solve it legally from the beginning, or at least to respond in time, i.e. before the expiry of the relevant statutory deadline for exercising rights.
4. Project preparation and contract documentation for all phases of construction
As already mentioned, quality preparation is the best way to either prevent disputes or at least improve your position considerably if disputes do arise. Here more than anywhere else: “Clear contracts make good friends.”
We then apply our experience from disputes already in preparation of the relevant contractual documentation (works contract, license agreement for project documentation, construction financing contracts) and also provide legal assessments on critical parts of the project documentation for construction projects.
In the construction process itself, the completion and handover of the work is then critical, the form of which is left entirely to the contracting parties by law, and therefore it is necessary to agree on the procedure in advance. Our experience shows, for example, that the fatal flaw is an insufficiently or ambiguously described duty of cooperation between the contracting parties.
Due to insufficient contractual processing, even in larger projects, unnecessary disputes arise due to different ideas of the parties about how to solve a situation that was not envisaged by the brief contract. Legally unenforceable obligations (often e.g. assignment of builder's rights or binding of third parties who are not parties to the contract) are also a common shortcoming. On the other hand, contractual penalties, a lien with the possibility of outright sale or the possibility of a punitive withdrawal from the contract can be functional tools to enforce rights.