08 May 2025

New Construction Contract Law from 2026: Strengthening the Rights of Building Owners and Property Buyers

  • Articles
  • Legal
  • Real Estate

Starting January 1, 2026, the revised construction contract law will take effect: the rights of property owners and buyers in cases of defects will be strengthened – even despite unfavorable contract clauses.

  • Corina Noventa

    Senior Legal Associate

Clear Deadlines for Notification of Defects

A key component of the reform is the binding introduction of clear deadlines for the notification of defects. Buyers of real estate and clients commissioning construction works will, in future, have 60 days to notify defects. This period begins upon acceptance of the work or—in the case of latent defects—upon their discovery. This statutory requirement is mandatory: any contractual reduction of this period is explicitly excluded (cf. Art. 219a para. 1, Art. 367 para. 1bis, Art. 370 para. 4 revised CO).

Strengthening of the Right to Rectification

Another central aspect of the revision concerns the right to free rectification of construction defects. In future, it will be impermissible to contractually limit or exclude this right in advance (Art. 368 para. 2bis revised CO). This new rule applies not only to contracts for work and services but also to real estate purchase agreements involving newly constructed buildings—specifically where the structure is yet to be built or was newly constructed within the two years preceding the sale (Art. 219a para. 2 revised CO).

Mandatory Five-Year Limitation Period

In addition to the notification period, the five-year limitation period for defect-related claims concerning immovable works has also been strengthened. Going forward, this limitation period may no longer be contractually modified to the detriment of the client or buyer (Art. 219a para. 3 and Art. 371 para. 3 revised CO).

Substitute Security under the Construction Lien

The Swiss Civil Code is also being amended to introduce a practically relevant innovation that promotes legal certainty and uniform application of the law. The revised law will now explicitly provide that the furnishing of substitute security to avert the registration of a construction lien must cover the principal amount claimed but also default interest for a period of ten years (Art. 839 para. 3 revised CC). This amendment originates from Parliamentary Initiative Burkhart (Motion 17.4079) and the Federal Supreme Court decision 5A_323/2022 of 27 October 2022, which clarified the requirements for adequate security under Art. 839 para. 3 CC with regard to interest.

Conclusion

These amendments to construction contract law enhance legal certainty and establish a more balanced framework between contracting parties in the construction and real estate sectors. Planners, contractors, and contractual parties are well advised to familiarise themselves with the new legal parameters at an early stage. Our Construction and Real Estate Law team is available to provide you with expert legal support.
Back