Our property lawyers in France can advise you on construction & real estate law
Construction and property law in France is very specific. Conflicts often arise because construction companies operating in France are subject to different deadlines and documentation requirements than those in other countries.
French and international construction companies therefore consult our property lawyers at an early stage in the construction process in order to be well prepared for a dispute with clients, subcontractors or insurance companies. We also provide construction and property law advice to international clients wishing to fulfil their dream of owning their own home in France.
Alaris lawyers are well versed in French legislation and can provide you with comprehensive advice on French construction law in three languages: English, German and French. Our services include negotiating and drafting contracts between construction companies, subcontractors or private clients. We can represent you in court and provide expert opinions in and out of court.
As lawyers specialising in public and private construction and property law in France, we can also assist you with construction contracts and specifications. Our real estate lawyers will guide you through your construction project and relieve you of the burden of dealing with a wide range of insurance policies and bank guarantees.
Have questions about property law in France?
This is what our real estate attorneys do:
- Legal advice for construction companies: Contract negotiation & payment guarantees
- Rights & obligations in the employment of subcontractors
- Warranty in France
- Mediation of Décennal insurers
- Negotiation & advice on commercial leases
Legal advice for construction companies in France
The right contract under the right conditions: Our experts in French real estate law will explain what rights and obligations apply to international construction companies in France. In France, the burden of proof lies with the construction company, which is why legal advice is recommended in advance.
In the event of a dispute, contractors need to be able to prove that they have complied with the Building Regulations and the important duty of information. For larger construction projects, we advise our clients to communicate in writing and by registered mail in order to have the necessary correspondence in the event of a dispute.
French construction law also requires a payment guarantee not only between the general contractor and the subcontractor, but also between the client and the general contractor. According to Art. 1799-1 of the Civil Code, the client must provide a payment guarantee for the full amount to the party involved in the construction work. In the absence of this guarantee, construction companies or subcontractors may stop working.
Alaris lawyers not only explain the specific requirements of French construction law, but also use their expertise in French contract law to ensure that contracts are legally secure.
Property law: advice on subcontractors’ rights & obligations
Using subcontractors in France also carries the risk of litigation: French subcontractors are protected by French construction law. Subcontractors must be registered in writing and approved by the client. Subcontractor contracts are also mandatory. Alaris property lawyers review the contracts and avoid misunderstandings about contractual obligations and different understandings of warranty.
However, late payment or non-payment are also frequent causes of litigation: In private construction contracts, payments to subcontractors are secured by a payment guarantee (Loi n° 75-1347 du 31 décembre 1975). Under French construction law, the subcontractor cannot waive this protection mechanism. As long as the payment guarantee has not been provided, the subcontract is suspended and can be terminated unilaterally by the subcontractor. In the absence of such a payment guarantee, the subcontractor may, at its request, stop working and claim damages. The fixed price is also cancelled.
This special payment bond is not required for public works contracts. Under French public works law, the contracting authority is obliged to pay the first-tier subcontractor.
However, suppliers are exempt from this obligation. Distinguishing between suppliers and subcontractors providing specialised services – and covered by the Subcontractors Protection Act – is not always easy. Here, too, our property lawyers in France can help. We can provide you with standardised templates for subcontractor contracts, which can be downloaded free of charge from the FFB/FNTP, and we can also give you quick advice over the phone.
Do you have any questions about French construction law?
We are here to help you!
Contact
Warranty law in France: what construction companies need to know
Unlike in other countries, three different statutory warranty periods begin after acceptance of the construction work in France: Garantie de Parfait achèvement, Garantie Biennale and Garantie Décennale. It is not only the different duration of the warranty periods, but also the definition of defects that often leads to problems when construction companies work together in France.
In the area of French construction law, our real estate attorneys often mediate between all parties involved in the construction process, such as construction companies, architects, client representatives and planning offices, all of whom are affected by the French warranty guarantees.
These are the differences between the various french warranty periods:
- Firstly, there is the one-year warranty period, known as the Garantie de Parfait achèvement. During this period, the parties involved in the construction work are obliged to remedy, at their own expense, any defects listed in the acceptance report and any hidden defects, of whatever nature, which are not merely a result of wear and tear.
- For a period of two years after acceptance, the so-called Biennial Guarantee applies. In accordance with this statutory guarantee, the company that has carried out the work is obliged to repair or replace, at its own expense, any faulty parts. The fixtures and fittings are components that can be removed from the building without damaging it (e.g. roller shutters).
- In France, there is also the so-called Garantie Décennale, i.e. the ten-year warranty period. According to this French guarantee, the party involved in the construction is liable for any damage to the building that affects its solidity or its intended use.
Compulsory Décennale insurance: insurance for construction companies
The so-called Décennale insurance is a compulsory guarantee insurance that also affects international construction companies and architects working in France. Construction companies and architects in France are obliged to take out civil liability insurance to cover the ten-year guarantee. However, this insurance is expensive and must be taken out before construction work begins. This often leads to conflicts when foreign parties are unaware of the need for insurance and do not consider it until later.
Finding Décennal insurance in France
It is not always easy for foreign contractors to find a decennial insurer. It can take up to 6 to 8 months for a foreign construction company to obtain the insurance. Our English speaking law firm in Paris assists international construction companies in finding a suitable insurer and advises on insurance obligations and liability issues.
In the case of multiple construction sites in France, the cost of insurance is calculated on the basis of the company’s annual turnover. The possible insolvency of the company does not affect the insurer’s ten-year guarantee obligation.
Protection against future property damage
In addition to the Décennale insurance, the builder must take out an insurance policy called Dommage-ouvrage. This insurance covers future damage after acceptance. Pre-funding insurance allows the client to be compensated quickly without having to make any advance payments. This means that the client does not have to wait for a court decision or an expert report to determine liability.
Looking for the right insurance?
We can advise you on Décennale insurers & more!
Contact us
Property lawyers help with commercial leases in France & as landlord & tenant lawyer
When renting commercial property in France, it is also important to know the differences to international law: As property lawyers in France, we are often confronted with the fact that rental contracts in France are less flexible than international companies are used to.
Under French commercial law, the commercial lease is regulated as part of the ‘fonds de commerce’, which is particularly protected in France. It is usually concluded for a minimum of 9 years. The tenant can terminate the lease after 3 or 6 years. This is why it is known as the 3-6-9 rule. The landlord can only terminate the lease in exceptional cases.
To terminate the commercial lease, the tenant must send the landlord a written notice of termination by registered mail at least 6 months before the end of the 3 or 6 year period. The landlord and tenant may conclude a contract for a longer period than 9 years. However, it is not possible to conclude a contract for an indefinite period. The landlord must pay the tenant compensation for eviction if the commercial lease is terminated.
Do you need lawyers to draft a lease or evict a tenant? The landlord and
tenant eviction lawyers are at your service!