Legal Q&A · Construction & Development

We built exactly to the employer’s design and the works are defective. Are we liable?

Law as at 5 September 2026

Short answer

Yes, if you failed to warn that the design or instructions were unsuitable although professional care would have revealed this. The defence “we followed the design” is not enough: the Commercial Code exempts a contractor only where it warned the employer, who then insisted in writing on using the items or instructions. Work must be suspended as necessary until the employer decides. A provable warning and the employer’s written insistence are therefore crucial; the site diary is the natural place to record them.

“We merely followed the design” is the contractor’s most common defence in a defects dispute, and it is insufficient on its own in court. The Commercial Code (Act No. 513/1991 Zb.) protects a contractor that spoke up, not one that built in silence.

Contractors are professionals and must speak up

The contractor must warn the employer without undue delay of unsuitable items received from it and instructions it gave, including design documentation, if professional care would have revealed their unsuitability. If unsuitable items or instructions prevent proper performance, work must be suspended to the necessary extent until the items are replaced, the instructions changed or the employer confirms in writing that it insists on them. The completion period is extended by the suspension, and the contractor is entitled to reimbursement of the related costs (§ 551(1) of the Commercial Code).

When you are not liable for defects

A contractor that has fulfilled the obligation under paragraph 1 is not liable for inability to complete the works or for defects in completed works caused by unsuitable items or instructions where the employer insisted in writing on their use in performing the works.

§ 551(2) of the Commercial Code (unofficial translation)

Exemption requires two conditions: you gave a warning, and the employer nevertheless insisted on use in writing. A contractor that gave no warning is liable for defects caused by unsuitable items or instructions (§ 551(3)). A contractor also avoids liability if even professional care could not have revealed the unsuitability, for example a hidden error in structural calculations that a construction company could not detect (§ 561).

What makes a warning stand up as evidence?

The law does not prescribe the warning’s form, but the contractor bears the burden of proof, and the employer’s insistence must expressly be in writing. Oral discussions at a site meeting are therefore insufficient in a dispute. A tried and tested approach is to enter the warning in the site diary and also send it by letter or email with confirmation of delivery, identify precisely what is unsuitable and the likely consequences, and ask the employer to decide. If the employer insists on the original solution, request a written statement; do not restart the affected work until it is provided. Email is usable evidence if you can prove sending and who acted on behalf of the sender; with contentious employers, a letter with proof of delivery or a signature in the diary is more reliable.

Our disputes experience is clear: what matters is what was recorded and delivered, not what the parties remember.

Remember the employer’s defect notification deadlines

If the employer nevertheless raises defects, it must meet the applicable deadlines: notification without undue delay after discovering them or when they should have been discovered, and within two years, or five years for buildings, of handover (§ 562). We explain defect remedies and warranties in construction contracts in our answer on defects and warranties under a construction contract.

How we can help

We structure your construction contract to give warnings, work suspension and variations clear procedures and records. In an existing dispute, we assess whether the warning and the employer’s insistence stand up as evidence and handle the defective works dispute. We maintain construction companies’ documentation and procedures through ongoing legal services for construction companies.

If you are currently facing an unsuitable instruction from the employer, contact us before carrying it out: a warning cannot be written retrospectively.

This answer provides general information on the law as at 5 September 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.

More legal questions

All questions and answers
  1. We are converting a hotel into flats. How is this reflected in the Land Register? Changing the building type updates cadastral data and does not itself change the owner. The initial division of a building into flats and non-residential premises must be distinguished from their sale: if the owner remains unchanged, an owner’s declaration and the relevant building and technical documents may provide the basis for declaratory registration. Acquisition under a construction, internal-construction or extension agreement and the subsequent transfer of a flat, which is entered by constitutive registration, follow a different regime. The number and order of submissions must be determined from the particular documents; there is no general prohibition on submitting the supporting materials together.
  2. We demolished a building. How do we remove it from the title sheet if it is mortgaged? It is not removed automatically. Removing a building is a change to cadastral data made at the owner’s request and supported by evidence, usually a municipal confirmation of demolition and a survey plan. A mortgage terminates when all the assets it covers cease to exist, but its entry is not deleted automatically either. If the loan remains outstanding, the bank will usually require replacement security, so speak to it before demolition, not afterwards.
  3. We want to extend our flat into the loft. Is consent at the owners’ meeting enough? No. If alterations change the size of a flat, non-residential premises or appurtenances at the expense of common parts or facilities, the person carrying out the project must define reciprocal rights and obligations in a contract with the other owners of flats and non-residential premises in the building. The contract and its amendments are registered in the Land Register, supported by documentation showing the area and location of the premises.
  4. An old house has no occupancy approval and is absent from the Land Register. How do I register it? It depends on when it was built. Since 1 April 2024, the law treats a house built before 1 October 1976 as lawful without further requirements. For houses from 1976 to 1989, continuous use for their intended purpose and the owner’s ownership or other right to the land on 1 April 2024 are required. Registration is not automatic: apply with a municipal notice, a survey plan and, for the later buildings, evidence of land rights.

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Mgr. Patrik Tulinský, LL.M. Czech and Slovak attorney · SAK 300422 · ČAK 19654

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