Guaranteed delivery of a detached house

Verified 08 June 2023 - Legal and Administrative Information Directorate (Prime Minister)

You have your house built by a builder. If he has not completed the work or has not lifted the reservations (defects of conformity or malfunctions indicated at the delivery requiring repair), do you have a remedy?

We are taking stock of the regulations.

The delivery guarantee is a assurance which is used to protect yourself against the risk ofnon-performance or improper execution of work under your contract for the construction of a detached house (CCMI).

It also covers the risks of non-execution or poor execution in the manufacture, the laying and theassembly of prefabricated parts.

The delivery guarantee must obligatory be subscribed by the manufacturer. A delivery guarantee certificate must be attached to your CCMI.

The delivery guarantee shall consist of a joint and several guarantee given by a bank, a financing business or an insurance company approved for that purpose.

The risks covered by the delivery guarantee are as follows:

  • Failure to perform or improper performance of the work provided for in the contract
  • Non-performance or poor performance in the manufacture, fitting and assembly of prefabricated components
  • Cost of overruns of the agreed price if necessary for completion of construction
  • Manufacturer’s fault leading to advance payment or price surcharge
  • Flat-rate penalties provided for in the contract in the event of late delivery exceeding 30 calendar days (allowances are calculated and payable from 1er day late).

Step 1: Instruct the builder to complete the work

If your house is not completed within the time frame set out in the contract or if it is poorly executed, you must first give formal notice the manufacturer.

You are asking them to complete the work and to pay you the penalties for delay set out in the contract.

A sample letter is available:

Give notice to the builder to finish his house

Step 2: Contact the manufacturer's guarantor

If the manufacturer fails to react within 8 calendar days once the formal notice has been sent, the manufacturer's guarantor (bank, financing business or insurer) must be contacted.

The contact details can be found on the delivery guarantee certificate attached to your CCMI.

A sample letter is available:

Implement the delivery guarantee

The guarantor shall give notice to the builder to complete the work.

If the manufacturer fails to react within 15 calendar days under this formal notice, the guarantor shall designate the person who will complete the work.

If your house has reached the stage of waterproofing (covering and sealing works completed), the guarantor may also offer to contact a company who will take care of completing the work. In this case, the guarantor shall pay the company directly the sums for which he is liable.

You can put the delivery guarantee at risk upon finding that the delivery deadline is not respected or that the work necessary to lift the reservations is not carried out.

Reservations are defects in conformity or malfunctions that you may have formulated in the minutes drawn up on the day of delivery of your house.

You have until 8 days after receipt of the work. If you have reservations, you can put the delivery guarantee at risk until the reservations are lifted.

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