When is there a defect?
According to Art. 367 CO, a defect exists if one of the obligations of the contractor or the customer is breached. If the work has been delivered to the customer, the customer must inspect the condition of the work as soon as possible in the normal course of business and report any defects to the contractor.
What are my options if my ordered work suffers from a defect?
According to Art. 368 para. 1 CO, the customer can refuse to accept the work if the work suffers from such significant defects or otherwise deviates from the contract to such an extent that it is unusable for the customer or that he cannot reasonably be expected to accept it. If the contractor is also at fault for the defect in the work, the customer can also claim damages on the basis of Art. 97 CO or, if an auxiliary person has created the work for him, Art. 101 CO.
If the defects or deviations from the contract are not so significant, the customer can adjust the wage or demand that the work be improved. Here too, if the contractor is at fault, compensation can be claimed via Art. 97 OR or Art. 101 OR.
Note: However, the customer loses these rights if he has issued instructions that contradict the contractor’s express warnings or if he is otherwise at fault for the defects (see Art. 369 CO). According to Art. 370 CO, the contractor is also released from his liability obligation if the customer has expressly or tacitly accepted the work delivered. It is therefore incumbent on the customer to give notice of defects in the work as soon as they are discovered – and preferably in writing.
When do my claims become time-barred?
Art. 371 of the Swiss Code of Obligations regulates the limitation period for contracts for work and services. Accordingly, the customer’s claims for defects in the work expire two years after acceptance.
What happens if the contractor suddenly demands much more money than agreed?
The amount of remuneration depends on whether the parties have determined it precisely in advance (Art. 373 CO) or whether it is determined according to the value of the work and the contractor’s efforts (Art. 374 CO).
If the contractor has undertaken to carry out the work at the previously agreed price, he may not demand an increase even if he has had more work or greater expenditure than envisaged. Conversely, according to para. 3, the customer must pay the agreed price even if the work has caused less work than anticipated.
If the price has not been agreed in advance, it is to be determined according to the value of the work and the expenses incurred by the contractor.