Yes, but the claims must be kept distinct. What can be obtained through defect remedies, such as repair, a price reduction or replacement performance, cannot be claimed again as damages. Consequential losses not covered by the reduction, such as profits lost during production downtime or costs caused by the defect in dealings with your customers, are claimed separately as damages. Note the statutory limit: a price reduction excludes lost profits arising from the very missing characteristic to which the reduction relates.
Defects in works can cause further losses. While a defect is being rectified, production stops, delivery to your customer is delayed and costs accumulate that were not in the budget. The Commercial Code (Act No. 513/1991 Coll.) draws a fairly clear line on whether these losses can be recovered alongside a price reduction.
One defect, two groups of claims
Under Section 564 of the Commercial Code, the provisions on defective goods in Sections 436 to 441 apply as appropriate to defects in works. Section 440 is central to the relationship between the two groups of claims:
Claims arising from defects in goods do not affect an entitlement to damages or a contractual penalty. A buyer entitled to a reduction in the purchase price may not claim compensation for profits lost because of the absence of the characteristic of the goods to which the reduction relates.
— Section 440(1) of the Commercial Code (unofficial English translation)
Satisfaction obtainable by exercising any of the defect claims under Sections 436 and 437 cannot be obtained by pursuing a claim on another legal basis.
— Section 440(2) of the Commercial Code (unofficial English translation)
In practice, the defect itself, meaning that the works lack the characteristics they should have, is addressed exclusively through defect remedies. A damages claim cannot be used to bypass those remedies for rectification costs or reduced value. Conversely, losses that cannot be remedied through defect claims remain fully recoverable as damages.
What is a defect, and what is consequential loss?
Defect remedies include repair, replacement performance, a price reduction and the associated costs of rectifying the defect. Consequential loss, by contrast, covers effects beyond the works themselves: production downtime and resulting lost profits, penalties and additional costs in dealings with your customers, damage to other assets or temporary arrangements during repairs. In case 29 Cdo 1044/2024, the Czech Supreme Court recently confirmed this distinction under newer Czech law: the cost of rectifying the defect itself cannot be awarded as damages, but lost profits and other harm not covered by defect remedies can. It expressly followed the logic that Slovak law still retains in Section 440.
Remember the limit in the second sentence of Section 440(1): someone who chooses a price reduction cannot claim profits lost precisely because of the missing characteristic for which the reduction was granted. Choosing a defect remedy is therefore more than a formality; it affects which consequential losses remain actionable.
How to reflect this in the claim
Separate the two areas in the claim: quantify the defect remedy separately from each item of consequential loss, with its own factual account and evidence of causation. Defect remedies require proper and timely notification to the contractor, so always send a specific description through a method that proves delivery. We explain how loss itself is calculated and proved in damages and unjust enrichment.
How we can help
We quantify, distinguish and pursue defect claims and consequential losses through disputes over defects in works, and build damages claims through damages and unjust enrichment. To ensure that your next project does not rely solely on the statutory minimum, we set out warranties, penalties and liability limits directly in the works contract.
If a defect has just stopped operations, seek advice before choosing a specific defect remedy: the choice is difficult to change later.
This answer provides general information on the law as at 29 August 2026. It does not constitute legal services or replace an assessment of an individual case. The details of your situation may differ. Book a consultation to discuss them.
