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Apr 09, 2026

Legal liability for construction defects | How to file a claim?

Construction defects are among the most common problems faced by buyers of newly built apartments, individual homeowners, and those commissioning commercial properties. Issues such as water leakage, cracks in walls, roof failures, or foundation settlement can lead to serious financial damage.

According to Azerbaijani legislation, the construction company or contractor bears legal responsibility for defects in the work performed. In such cases, the client or buyer may file a claim within a specified period to demand elimination of the defect, compensation for damages, or a refund of the paid amount.

 

What is a construction defect?

A construction defect refers to any deficiency arising from the failure to perform construction work in accordance with the contract, design, or technical standards.

The most common construction defects include:

  • Water leakage in apartments or roofs
  • Cracks in walls and ceilings
  • Improper installation of windows and doors
  • Malfunctions in electrical and plumbing systems
  • Heating system failures
  • Foundation settlement or structural issues
  • Poor-quality finishing and cladding works

In such cases, it is possible to bring legal claims against the construction company.

 

Types of construction defects

From a legal perspective, construction defects are divided into two main categories:

Apparent defects

Apparent defects are visible at the time of handover. For example:

  • Poor-quality painting or plastering
  • Windows not closing properly
  • Uneven flooring
  • Non-functioning electrical sockets

These defects must be recorded before signing the acceptance certificate.

Hidden defects

Hidden defects are not visible at the time of handover but appear later. For example:

  • Water leakage from walls or ceilings
  • Hidden electrical wiring issues
  • Malfunctions in sewage or piping systems
  • Foundation settlement or structural cracks

Such defects must be reported in writing to the construction company immediately after discovery.

 

What is the limitation period for claims related to construction defects?

The law establishes specific time limits for filing claims regarding construction defects.

Article 776. Limitation period under a contract of work:

776.1. The client may submit claims regarding defects in the work within one year from the date of acceptance of the work, and claims related to buildings within five years.

776.2. If the work has been accepted in parts according to the contract, the limitation period for claims regarding defects begins from the date when the work is fully accepted.

 

What claims can be made against the construction company?

If a construction defect is identified, the client or property owner has the following rights:

1. Free устранation of the defect

The contractor must fix the defect at their own expense.

2. Price reduction

If the defect cannot be fixed or the contractor refuses, partial reimbursement may be demanded.

3. Reimbursement of repair costs

If you fixed the issue yourself, you can claim compensation for expenses.

4. Compensation for damages

If additional damage occurred (e.g., furniture damaged due to leakage), compensation can be claimed.

 

How to file a claim?

1. Document the defect

Take photos/videos and, if possible, obtain an expert report.

2. Send a written claim (pretense)

Include:

  • Description of the defect
  • Date of discovery
  • Your demand
  • Deadline for response

Send it via registered mail or notarized delivery.

3. Conduct expert evaluation

Determine the amount of damage.

4. Apply to court

Required documents:

  • Contract
  • Acceptance certificate
  • Photos/videos
  • Expert report
  • Written claim and proof of delivery
  • Expense documents

 

Common mistakes

  • Failing to document defects on time
  • Relying on verbal complaints
  • Not checking contract or warranty terms
  • Signing acceptance documents without noting defects
  • Going to court without expert evaluation

 

Legal assistance

Proper documentation and legal justification are essential. Professional legal support is often required for contract analysis, claim preparation, expert involvement, and court proceedings.

If you have identified construction defects, it is recommended to seek legal advice promptly. Timely action helps prevent further damage and ensures compensation.

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