The Legal Basis of a Construction Dispute
A dispute arising from a construction contract — unpaid remuneration, damaged materials or a defect discovered within the warranty — is resolved under the contract-for-work norms of the Civil Code. Knowing these norms determines who may demand what and within which period. The ordering party is obliged to pay the contractor the remuneration after the completion of the work, unless the contract provides for payment in instalments — thus, as a general rule, the money follows the completed work, and advance settlement is possible only by agreement. This excludes the argument that cancellation or delay of the order automatically releases the ordering party from payment: the payment obligation attaches to the completed result.
The Contractor's Liability and the Warranty Period
The contractor answers for the loss or damage of the ordering party's property even where caused by negligence — a benevolent attitude to the materials does not release from liability. The warranty norm is the second pillar of the dispute: where the contractor assumed a warranty period for the work product, a defect discovered within that period gives rise to the corresponding rights — the ordering party acquires the right of claim in respect of the defect that was recognised as the object of the warranty. The warranty period is determined by the contract, and where it exists the moment of discovery of the defect is decisive: a defect revealed within the period is protected by law, beyond it — no longer.
Limitation Periods
A claim based on a defect of performance may be advanced by the ordering party within one year, and a claim concerning a building — within five years from the day of acceptance of the completed work. The type of defect thus determines the length of the period: one year for general defects, five years for defects touching a building, and both periods run from the acceptance of the work. In a construction dispute the acceptance act is therefore not a merely technical document — it is the starting point of the limitation period, and fixing its date often decides the fate of the claim. Letting the period lapse means that even a legally sound claim deserves rejection. Therefore, upon discovery of a defect, its documentary fixation and the filing of the claim should be planned together.
Security Devices
Georgian law knows no automatic construction lien of the builder — an institution that exists in some other legal orders. The Code recognises only two kinds of pledge: possessory pledge and registered pledge. This means that a contractor awaiting payment can secure his claim only by a pledge created by contract: by transfer of possession or by registration. Until a pledge is created, the claim is unsecured and its satisfaction depends solely on the ordering party's solvency. Therefore, at the conclusion of a construction contract the question of security must be settled in advance — establishing it after the dispute has begun may prove too late.
How the Dispute Runs and the Evidence
The practical course of a construction dispute rests on three pillars. The first is the content of the contract: the payment procedure, the scope of the work and the warranty undertakings are read precisely from that document, and verbal agreements are secondary beside it. The second is the documentation of performance and acceptance: the act of acceptance of the work is at once the starting point of the defect claim and the confirmation of the completed result; without it the dispute remains a contest of verbal positions. The third is the recording of damage: where materials are lost or damaged, the decisive proof is when, how and by whose fault it happened — the parties' written correspondence, photographic records and expert examination form here the common apparatus of proof. Analysing these three pillars before the dispute begins determines whether the claim has any prospect at all.
Frequently Asked Questions
Below we answer the questions most frequently asked on this subject.
When must the ordering party pay the remuneration?
After completion of the work, unless the contract provides for payment in instalments.
Who answers for damage to the ordering party's materials?
The contractor — for loss and damage of the property even where caused by negligence.
Within what period can a defect be claimed?
Generally within one year; for a defect concerning a building — within five years from acceptance of the work.
Does a construction lien exist?
The law recognises only two kinds of pledge — possessory and registered; there is no special construction lien, and security must be created by contract.
How We Help on Legal.ge
A construction dispute demands a combined analysis of the contract, the acceptance acts and the periods. On Legal.ge you can consult a contract-law lawyer who will assess your claim and protect your interests. Submit a request on the site and receive qualified assistance.