H05E - Building Contractors
Category : Housing
H05E - Building Contractors
A number of afpop bulletins provide information about the process of building a house in Portugal, these include those in series H about Housing and those in series P related to Paperwork. This Bulletin provides information for those considering whether to contract a building company.
Licensed builders and types of licence (alvará)
Except for small maintenance and cosmetic jobs, all construction related works require the builder to be registered. In Portuguese this is called the Alvará do Empreiteiro de Construção Civil. This registration specifies the type and size of construction works that the contractor is capable of carrying out. It depends on the company having the minimum number of qualified technicians, equipment and certain other conditions. Electrical and gas installers require special registration, see below.
How to find contractors
For individual houses, it is generally advisable to hire a local contractor rather than someone from a different area. Local companies will be able to provide more frequent supervision of the site and will generally be easier to contact both during and after completion of the work. afpop’s advantage directory maintains a list of contractors and other services that provide some sort of benefit to our members. Other sources of contractors are the Yellow Pages, the local Portuguese and foreign language press, local directories, and the owners of new buildings in your area. Be sure that the building contractor has a valid license.
The process of building a house usually requires considerable negotiation. Choosing a building contractor with whom you are able to communicate well is therefore a high priority.
The legal code and building contractors
The Civil Code includes regulations about contracting for building works. However, afpop recommends that a formal contract be drawn up with the contractor with professional legal advice. The contract should include as annexes as much detail as possible of the works to be carried out. These will include the design and the specialist designs submitted to the Municipal Council for the building licence, as well as details of materials and building techniques to be used in the construction. The contract should specify the price, the payment schedule, and a work programme or date of completion. A penalty for late completion may be included. The contract should specify how changes to the works are to be authorised and included in the contract.
Licensed specialists (electricians, gas installers)
Specialist such as electricians and gas installers must have the appropriate qualifications and registration in Portugal. Utility suppliers will require that the installations are certified by a registered contractor before making the connection. Gas installations also require inspection by a registered independent inspector.
Guarantees
The Portuguese civil code provides for certain minimum periods of guarantee against defect, in accordance with the following table, whoever these periods can be negotiated and must be part of the contract.
Type of work | Type of defect | Guarantee |
| Construction works | Visible defect, accepted without reservation. | No guarantee |
| Construction works | Visible defect, accepted under reservation. | One year from acceptance for correction, compensation or termination of contract. |
| Construction works | Hidden defects | There is a period of five years after completion of the work during which defects may be identified. * The builder must be notified within one year of observation of the defect. The builder then has one year to correct or compensate for the defect. |
| Fittings & fixtures | Visible defect, accepted without reservation. | No guarantee |
| Fittings & fixtures | Visible defect, accepted under reservation. | One year from acceptance for correction, compensation or termination of contract. |
| Fittings & fixtures | Hidden defects | There is a period of two years after completion of the work during which defects may be identified. After notification, the builder then has one year to correct or compensate for the defect. |
*Since January 2022, the warranty period for real estate has been extended to 10 years in relation to defects that affect structural building elements. In other situations, the period of five years remains.
The guarantee of a house is a right foreseen in the legislation, more specifically in Decree-Law n. º 67/2003, of April 8th. According to the law, a property is covered by a guarantee that can and should be activated if the property or the household goods does not comply with what is established in the purchase and sale contract. If you purchased a new house and it has construction defects within the warranty period, the owner must contact the builder to have these defects repaired, preferably in writing.
In case you do not see your problem resolved due to lack of agreement or not getting an answer, then it is best to go to a Tribunal or Julgado de Paz (court or justice of the peace), depending on the value that the reparation represents. For example, if the compensation exceeds 15,000 euros, you will have to appeal to a court, since the Julgado de Paz is only competent to assess and decide on actions with amounts below 15,000 euros.
Another essential detail is that the action must be filed within a period of 3 years from the communication of the defect to the seller/contractor. If you let the situation drag on and take no action, the seller is free from the obligation to repair the defects that the house has. Therefore, it is essential that you try to reach an agreement.
Finally, another solution is to file a complaint with IMPIC (Institute of Public Real Estate and Construction Markets). If your case can be presented to IMPIC, you must identify the entity concerned, a complete description of the facts, provide evidence or other relevant elements. When the complaint is related to construction defects, it must always be accompanied by an expert report, carried out by an accredited technician.
Please keep in mind that the most important thing is to act within the legal deadlines and present as much evidence as possible to prove the defects you have found in your home.
More detailed information can be checked here:
