---
title: "Construction Contract Disputes"
url: "https://legal.ge/en/service/real-estate-law-en/construction-contract-disputes-en"
field: "Real Estate Law"
description: "Construction contract disputes: cost overruns, damages, termination and acceptance; limitation periods of one and five years. Legal.ge."
reviewed: "2026-07-09"
updated: "2026-10-14"
publisher: "legal.ge"
---

# Construction Contract Disputes

> Source: legal.ge, https://legal.ge/en/service/real-estate-law-en/construction-contract-disputes-en

## Cost Estimate Overruns and Their Consequences

One of the most common grounds of construction disputes is the overrun of the cost estimate. Article 631 regulates this situation clearly: if the contractor significantly exceeds the approximate cost estimate, it may claim only the agreed remuneration, except where the excess could not have been foreseen in advance. This rule places the risk of overspending on the contractor and obliges it to plan precisely.

Where the cost estimate increases in a way that could not have been foreseen at the conclusion of the contract, the contractor must notify the customer immediately. If the customer terminates the contract because of the increase in the estimate, it is obliged to pay for the work performed according to the approximate cost estimate. A timely and documented notice of the overrun is in this situation the foundation of the contractor's position, and its absence may cost the contractor the entire excess.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/real-estate-law-en/construction-contract-disputes-en

### Who bears the risk of an estimate overrun?

The contractor: on a significant overrun it may claim only the agreed remuneration, unless the excess could not have been foreseen.

### What follows from the customer's failure to accept the work?

The contractor may claim compensation of loss, calculated from the duration of the delay, the remuneration and the possible alternative income.

### How is the contract ended at the customer's will?

At any time before completion, at the price of compensating the work performed and the loss caused.

### What is the limitation period for a structural defect claim?

Five years from the day of acceptance of the work; as a general rule, claims for defective performance must be brought within one year.