Contractor’s Liability for Defects and Compensation Claims Against the Contractor

Having a house or workplace built by making a contract with a contractor is a significant investment. In return for this investment, it is the right of every buyer to receive a flawless and contract-compliant work. However, things may not always go as planned and the delivered work may contain a defect, i.e. a flaw or deficiency. In this case, the contractor’s liability for the defect comes into play.

Definition and Types of Defects

According to Article 475 of the Turkish Code of Obligations; “If the work was not made in accordance with the contract or is defective, the employer may use the following optional rights:”

Price Discount: The employer may request a price discount according to the proportion of the defect.
Repair: The employer may request the contractor to repair the defect free of charge.

Withdrawal from the Contract: If the defect is fundamental, the employer may withdraw from the contract.

Defects may be visible or hidden. Visible defects are those that can be noticed at the time of delivery or within a reasonable inspection period. Latent defects are those that occur during normal use after delivery.

Contractor’s Liability Period

The statute of limitations for visible defects is one year from delivery. The statute of limitations for latent defects is one year from the date the defect is discovered, and in any case, five years from the date of delivery.

Compensation Case Against the Contractor

The contractor may also be liable to pay compensation to the employer for delivering a defective work. In a compensation case, the employer may compensate for material and moral damages arising from the defect.

Things to Do Before Filing a Compensation Case

Before filing a compensation case, the defect must be notified to the contractor in writing. The notification must explain the defect in detail and state what is requested from the contractor. If the contractor agrees to repair the defect, the employer may wait for the repair to be completed before filing a compensation case.

Process for Filing a Compensation Lawsuit

A compensation lawsuit must be filed within one year from the date the defect was reported. The lawsuit can be filed in the court of the place where the business owner resides or in the court of the place where the work is located.