How to Properly Conduct Building Inspections and Identify Defects

During a building acceptance inspection, many construction defects can be identified and objected to. This can save building owners and clients a lot of trouble later on. Generally, building owners are also subject to a duty of inspection and complaint: It is their responsibility to inspect the delivered work and immediately report any defects. Defects discovered during the building acceptance inspection must be reported immediately by the client. These should always be recorded in writing, for example, in a defect report. If this is not done, any defects may be considered accepted and, in the worst case, cannot be subsequently objected to.

Exceptions exist for defects that are not discovered or cannot be identified. In this case, building owners and property owners can also complain about defects retrospectively within a certain limitation period.

During a building inspection, both exterior and interior facilities should be inspected. The actual condition is compared with the target condition specified in the contract. Clients and purchasers should consider the following points, among others:

SIA Standard 118 is typically applied to construction contracts. In some cases – if SIA Standard 118 has not been established as the legal basis – the Swiss Code of Obligations applies. SIA Standard 118 stipulates a joint building inspection. Both contracting parties – the client and the contractor – are present and inspect the structure together. Some defects are obvious, while others are not so easily detected by laypersons. It may therefore be advisable to consult an expert or surveyor.

If an entire building is involved, the exterior facilities are often inspected first, followed by the interior spaces. During this process, any noticeable construction defects are addressed and recorded in the defects report. The acceptance or defects report should always be kept in writing for evidential purposes. It not only lists all discovered construction defects, but also specifies what action is to be taken to address them. Deadlines are set for when the defects must be remedied or how alternative measures should be taken (e.g., if the contracting parties agree to a price reduction instead). Finally, the report is signed by both parties. One of the following two scenarios is typical for the outcome:

1. Minor defects are recorded in the report and acknowledged by the construction company, which thereby undertakes to remedy the defects within an agreed deadline. The project is thus considered accepted; after they have been remedied, no further joint inspection is necessary.

2. If serious defects are discovered, the acceptance process can be interrupted and postponed. This gives the construction company the opportunity to remedy the construction defects or add any missing features. In this case, acceptance will be carried out again at a later date.

The warranty and limitation periods begin after acceptance or handover.

Special case: The legal basis is somewhat different if the Swiss Code of Obligations applies instead of the SIA standard. In this case, more responsibility falls on the building owner. After completion, the building is handed over by the contractor. Article 367 of the Swiss Code of Obligations stipulates that the contractor must subsequently carry out the inspection independently. This must be done “as soon as practicable in the normal course of business,” as stated in Article 367, Paragraph 1 of the Swiss Code of Obligations. Defects discovered during this inspection must be reported immediately. Depending on the nature and severity of the construction defect, the client can reduce the payment, demand that the defect be remedied, or claim damages. Furthermore, in the case of significant defects, the client is not obligated to accept the building (see Article 368 of the Swiss Code of Obligations).

• Are windows and doors installed correctly and functioning properly?
• Are walls and ceilings as agreed and undamaged (correct wall color, cracks)?
• Do the electronics work? Can the lights be turned on?
• Have appliances and other items been installed correctly, such as a kitchen?
• Are floors and tiles laid correctly?

Generally, the building inspection determines whether the structure complies with the agreements and is usable. Any construction defects that may occur can be divided into the following types:

• Workmanship defects: These occur when a feature is missing from the structure that should have been present according to the contract, or when the structure lacks a feature that the client could have expected even without a specific agreement. This can be the case, for example, if a wall was not built.
• Obvious defects: These types of construction defects are usually easy to detect because they are immediately apparent during the building inspection. An example: A wall is painted the wrong color.
• Concealed or hidden defects: These defects are often referred to as hidden defects because they are not immediately apparent, but only become apparent later. This could be the case, for example, if the roof leaks—this would only become apparent when it rains.

If the client fails to inspect the property after delivery, this is considered tacit acceptance according to Article 370 of the Swiss Code of Obligations. Defects can then no longer be reported retrospectively. An exception applies only in the case of hidden defects or if the contractor intentionally conceals something. Tacit acceptance is also possible based on SIA Standard 118. Accordingly, acceptance or inspection must take place within 30 days.

According to the SIA standard, the client or construction manager and the contractor must inspect the property together. The OR does not specify this. In any case, it is advisable for you, as the client, to consult an expert who has the necessary experience and can identify construction defects immediately.