How to claim construction defects in Switzerland after handover
- Simon Käslin
- May 18
- 11 min read
Updated: 15 hours ago
Summary
A construction defect is annoying. But a defect that is reported incorrectly or too late is costly. In Switzerland, buyers and building owners regularly lose their warranty claims because the notice of defects is not given correctly: too late, too vaguely, in the wrong form, or sent to the wrong address. This article explains what a notice of defects is, how to report construction defects in Switzerland correctly, what deadlines apply, how to formulate the notice in a legally valid manner, what you can demand, and what to do if the other party does not respond.
Table of contents
Unsure whether your notice of defects was submitted correctly?
Attention to detail is crucial when it comes to deadlines and form. A brief assessment will safeguard your rights.
1. What is a notice of defects?
A notice of defects is the formal notification to the other party that a work has a defect and that you are asserting your warranty claims. It is not a complaint, a notification, or a request; it is a legally relevant action that triggers deadlines and secures claims.
Without a proper notice of defects, you cannot demand rectification, enforce a price reduction, or, in the worst case, claim damages. The notice of defects is the prerequisite for everything that follows.
That sounds formal. And it is. Anyone who discovers construction defects and thinks they can mention them verbally at the next site meeting risks their rights. Not because of any malice on the part of the other party, but because the law sets clear requirements for a notice of defects, and because the courts interpret them strictly.
2. What legal frameworks apply in Switzerland?
In Switzerland, notices of defects in the construction sector rest on two legal bases, which apply depending on the contractual situation:
The Swiss Code of Obligations (CO) contains the general warranty rules. For contracts for work and services (CO Art. 368), the following applies: The client must report defects as soon as they are discovered or should have been discovered with due diligence. A notice given too late can lead to the complete loss of warranty claims. The warranty period for immovable buildings is five years (CO Art. 371), while for sales contracts, a two-year period generally applies.
SIA Standard 118
Many construction contracts in Switzerland are subject to SIA Standard 118, which contains specific rules on notices of defects and the warranty inspection. The SIA Standard stipulates a two-year notice period for hidden defects after acceptance, as well as a formal warranty inspection after two years, at which defects are systematically recorded.
Important for practical purposes: Whether the Swiss Code of Obligations (CO) or SIA Standard 118 applies depends on the contract. If the construction contract does not specify otherwise, the CO applies. If the contract refers to SIA Standard 118, its specific regulations apply, which are more favorable to the client in some respects.
Purchase agreements for condominiums or single-family homes off-plan often involve both legal frameworks, which complicates the situation. A specialist can assess which framework is applicable to your specific case.
3. What defects can be reported?
The law distinguishes between different categories of defects, which trigger different deadlines and notification rules:
Visible defects at the handover
Defects that were apparent during the acceptance inspection and recorded in the report must be raised at the handover itself. Anything not recorded on that day is generally deemed accepted, with the exception of hidden defects.
Hidden defects after the handover
Defects that were not visible at the handover and only become apparent later can also be reported afterwards, but only within the warranty period and immediately upon discovery. In practice, "immediately" means within a few days to weeks, not months.
Defects fraudulently concealed
If the contractor or seller has deliberately concealed a defect, they cannot invoke the statute of limitations or forfeiture. In these cases, the limitation period is ten years from the handover (Swiss Code of Obligations, Art. 371 para. 3). However, fraudulent concealment has to be proven, and that is rarely easy in practice.
Defects resulting from planning errors
If a defect is not due to the execution but to an error in the planning, the notice of defects is directed against the planner, not the contractor. In this case, the deadlines and the contractual basis are assessed differently.
4. What deadlines apply?
Deadlines are the most critical element of any notice of defects. A missed deadline cannot be repaired.
Visible defects: at the handover
Visible defects must be reported during the acceptance inspection. This means: they must be included in the acceptance protocol, countersigned by the other party, and confirmed in writing. A verbal mention during the inspection is not sufficient.
Hidden defects: immediately upon discovery
The period for reporting a hidden defect begins as soon as you discover it. What exactly constitutes "immediate" is not legally defined. Courts have interpreted this differently depending on the individual case. As a rule of thumb: report the defect within seven to fourteen days of discovery, but no later than one month.
Warranty period: two or five years
The warranty period limits how long after the handover a notice of defects can be given. According to SIA Standard 118, this period is two years for defects reported at the formal warranty inspection. According to Article 371 of the Swiss Code of Obligations (CO), the warranty period for defects in immovable buildings is five years. Defects fraudulently concealed are subject to a ten-year warranty period.
Important note: The two-year deadline under SIA Standard 118 is not the same as the two-year period under the Swiss Code of Obligations (CO). Missing the SIA deadline results in the loss of any claims, even if the CO deadline is still running. Both deadlines must be actively monitored.
More information about the deadlines and what specifically applies after two, five and ten years can be found in the article on warranty and defect periods in Switzerland.
5. How should a notice of defects be formulated?
A notice of defects must meet three requirements to be legally valid:
1. Written form
The notice of defects must be submitted in writing. A verbal notice, whether given at a site meeting, by telephone, or in passing, is not sufficient. This also applies if the other party verbally agrees or promises to address the issue. As long as there is nothing in writing, you have nothing in hand if it comes to a dispute.
Sending by registered mail to the correct address is recommended. An email can suffice if receipt is confirmed, but it carries less evidential weight than a registered letter.
2. Specific description of the defect
The notice of defects must describe the defect so precisely that the other party knows exactly what is being objected to. Vague formulations such as "various defects" or "incomplete workmanship" are insufficient. Describe: What is the defect? Where is it located? When was it discovered? Which contractual clause or standard are you basing your claim on?
3. Assertion of the claim
It is not enough to describe a defect. You must also clearly state what you are demanding: rectification, price reduction, damages, or rescission of the contract. In construction, rectification is usually the first step.
Sample notice of defects (simplified):
"We refer to the construction contract dated [date] concerning [project]. During the inspection on [date], we discovered the following defect: [detailed description]. This defect contradicts [building specification item X / SIA standard / contract clause]. We hereby notify you of this defect within the prescribed time limit and demand rectification by [date]. We request written confirmation of receipt of this notification."
6. To whom is the notice of defects addressed?
Notices of defects are always addressed to your direct contractual partner. In the general contractor model, this is the general contractor, not the subcontractors who actually carried out the construction work. In the architect model, the notice of defects is addressed to the contractor (construction defects) or the architect (planning defects), depending on the nature of the defect.
If you purchased a property off-plan, the seller/developer is your contractual partner, not the construction companies. Any notice of defects must be addressed to the developer. The developer is then obligated to assert their warranty claims against the contractors.
Condominium ownership: Common areas
If the defect affects common areas of the condominium (roof, facade, stairwell), the condominium owners' association as a whole is responsible, not the individual owner. A notice of defects from a single owner is not sufficient. A resolution by the association is required.
7. What can you demand after a notice of defects?
After a legally valid notice of defects, various legal remedies are available to you:
Rectification (primary right)
Rectification is the most common first step. You demand that the other party remedy the defect at their own expense. The other party has the right to carry out the rectification themselves. You may not simply hire a third party and pass on the costs as long as the contractor is not in default or has refused to rectify the defect.
Price reduction
If rectification is impossible or unreasonable, or if the other party refuses rectification, you can demand a price reduction. The reduction corresponds to the decrease in the value of the work due to the defect.
Damages
If you have suffered damages due to the defect (e.g., moisture damage to inventory, loss of rental income, emergency measures), you can claim damages. This requires fault on the part of the other party.
Rescission (unwinding the contract)
For practical reasons, rescission is generally excluded for immovable structures. It is limited to cases where the work is useless to you or you have no reasonable interest in its rectification.
8. What to do if the other side doesn't respond?
Set a clear deadline in writing, combined with a formal reminder: "We refer to our notification of defects dated [date]. As we have received no response to date, we are setting a deadline of [date] for you to rectify the defects. If you fail to act, we reserve the right to engage a third-party contractor at your expense."
This reminder must also be delivered in writing and in a verifiable manner.
Substitute performance after the deadline
If the other party fails to respond after the deadline, you can, under certain conditions, engage a third-party contractor and pass on the costs to the other party. However, be careful: the legal requirements are strict, and an error in the procedure can jeopardize your claims. Seek legal or professional advice at this stage.
Conciliation proceedings
In many cantons, conciliation proceedings offer a faster and cheaper alternative to court action. Many disputes about defects are settled this way.
Legal proceedings
As a last resort, legal action remains an option. In cases of construction defects, the facts are often complex, the burden of proof is high, and the proceedings are lengthy. It is almost always worthwhile to seek a settlement before initiating legal proceedings.
9. The most common mistakes when giving notice of defects
Verbal notice instead of written notice
"I mentioned it during the walk-through" is not enough. Anything not documented in writing has no legal standing. Even if the other party verbally promises to put things right, without written confirmation you have nothing in hand.
Notice of defects given too late
A defect was discovered, but the owner waited, thinking "it might resolve itself." The law requires immediate notification after discovery. Those who wait for months may lose their rights.
Too vague a description
"The apartment has various quality defects" is not a legally valid notice of defects. List each defect individually, specifically, and with a description of its location.
Notice of defects sent to the wrong party
A notice of defects sent to site management, even though the general contractor is your contractual partner, does not interrupt any deadlines with the general contractor. Always address notices of defects to your direct contractual partner.
Letting rectification start without a record
You let the other party carry out rectification without having documented the initial condition and without a written agreement on the scope of the work. If the rectification is inadequate, that will be hard to prove.
Deadline not monitored
The two-year warranty period according to SIA standard 118 also applies if the defect has not yet become apparent. Anyone who fails to carry out a systematic inspection at the warranty inspection forfeits their warranty claims.
10. Three practical examples from Switzerland
Practical example 1: Moisture defect after moving in, Canton of Zurich
Three months after the handover, damp patches appear on an interior wall. The owner mentions this verbally during the next contact with the developer. Six months later, the damage worsens. The written notice of defects is only given one year after the discovery.
Result: The developer disputes that the notice of defects was given in time. A lawyer notes that the prospects in the dispute are uncertain due to the long period between discovery and written complaint.
What would have been better: A written notice of defects within two weeks of discovery, with photographic documentation of the damage.
Practical example 2: Different floor covering, Canton of Bern
During the final inspection, the specialist notices that the installed flooring does not match the brand specified in the building specification. The defect is immediately recorded in the acceptance report and countersigned by the site management. The developer offers a price reduction, as removing the already installed flooring would be disproportionately expensive. The price reduction corresponds to the difference between the agreed-upon and installed product.
Practical example 3: Two-year warranty inspection, Canton of St. Gallen
A couple who had bought a property used the two-year warranty inspection under SIA Standard 118. With the assistance of a specialist, ten issues were documented: cracks in plasterboard, leaky window connections, a slope problem on the balcony, and other defects in workmanship. All issues were reported correctly and forwarded to the general contractor. Six were rectified, and a price reduction was agreed for the remaining four.
11. Conclusion and next steps
A notice of defects is not an attack on the contractor. It is the proper assertion of rights expressly granted to you by law. Those who handle it correctly have a strong case. Those who give notice too late, formulate it too vaguely, or send it to the wrong address forfeit claims that would otherwise be justified.
The most important points: give notice immediately after discovery, always in writing, describe the defect specifically, address the correct contractual partner and state a clear demand. Handled this way, construction defects in Switzerland can be enforced; handled carelessly, the claim is lost.
12. Frequently asked questions about construction defects in Switzerland
Is it sufficient to report a construction defect verbally? No. The notice of defects must be submitted in writing; a verbal notice at a site meeting or by telephone is not enough. Sending it by registered mail to the correct address is recommended. An email can suffice if receipt is confirmed, but it is less reliable as proof.
How quickly must you report a hidden defect after discovering it? The period for reporting a hidden defect begins as soon as you discover it, and the law requires immediate notification. What exactly constitutes "immediate" is not legally defined; courts have interpreted this differently depending on the individual case. As a rule of thumb: report the defect within seven to fourteen days of discovery, but no later than one month.
How long after acceptance can you still claim defects? According to SIA Standard 118, there is a two-year period for reporting defects at the formal warranty inspection. Under Article 371 of the Swiss Code of Obligations (CO), the period for defects in immovable buildings is five years, while defects fraudulently concealed are subject to a ten-year period. You must actively monitor both deadlines, because missing the deadline under SIA Standard 118 means losing your claims, even if the period under the CO is still running.
To whom should you address your notice of defects if a general contractor has carried out the construction? Notices of defects should always be addressed to your direct contractual partner. In the general contractor model, this is the general contractor and not the subcontractors who actually performed the construction work. If you purchased a property off-plan, the seller or developer is your contractual partner. A notice of defects addressed to the site management does not interrupt any deadlines with the general contractor.
Who reports defects in common areas of a condominium? If the defect concerns common areas such as the roof, facade, or stairwell, the condominium owners' association as a whole is responsible, not the individual owner. A notice of defects from a single owner is not sufficient. A resolution from the association is required.
Are you allowed to hire a third-party contractor if the other party doesn't respond? Not necessarily. The other party has the right to carry out the rectification themselves, as long as they are not in default or refusing to do so. Therefore, first set a deadline in writing and with proof of delivery, including a formal reminder. If the other party doesn't respond after the deadline has passed, you can, under certain conditions, hire a third-party contractor, although the legal requirements are strict.
Unsure whether your notice of defects was submitted correctly?
Attention to detail is crucial when it comes to deadlines and form. A brief assessment will safeguard your rights.
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