Execution of Works contract in Spain

Today Spanish lawyer in Marbella, Ms. María Teresa Arcos, is are going to analyze the Spanish contract for Execution of Works, to be granted between the builder and the owner of the land. In the event that you have acquired a plot of land in Spain and you have the intention to build a structure over the same, we recommend you to take into account the following matters:

Execution of Works contract in Spain

-In the Execution of Works contract, the builder undertakes to carry out the work in accordance with what was agreed in the Spanish contract, and the owner agrees to the reception of the work and the payment of the price.

-Price can be agreed by units or on a global basis, and should be fixed at the formalizing of the contract, known in Spanish as “El contrato de ejecución de obras.”

Documentation relating to the works to be carried out, such as the technical project, measurements and drawings of the building, must be attached.

In terms of the content of the Spanish contract, it is essential to collect the following information:

a) Precise definition of the object of the contract, i.e. if the execution of the works include the materials, administrative licenses, fees and documentation for supplies, fees for technical direction and any material or human resources for the execution of the works;

b) Agreed price and method of payment;

c) Guarantee for damages or defects in the execution affecting the completion of the work, according to the legislation in force;

d) Deadline for finalization of the construction and details about the provisional and definitive reception of the works. In this way, in case of discrepancies with the professional manager about the status of the works, you may resolve the problems by rectification of the works and thus proceed with the final acceptance of the same;

e) The English speaking lawyers of our firm in Marbella, Málaga, Spain also recommend establishing a penalty for the construction company in the event of delay in the term of execution, when delays are not justified;

f) To require the corresponding insurance for the construction in Spain as well as that the builder be up to date in their tax and labour obligations, and to adopt all safety measures established by legislation to avoid accidents.

Should you need information or advice related to your Spanish contract for Execution of Works, please do not hesitate to approach any of the multilingual lawyers of our offices in Spain. Arcos & Lamers Asociados, your lawyer and accountant under one roof, will make sure that your interests are protected and will advise you on the tax consequences that arise from the construction process in Spain.

Please do not hesitate to click here to read other blogs previously published on the  subject “property in Spain”.

María Teresa Arcos, Lawyer in Spain

Wim Lamers, Accountant (economist) in Spain