Summary

Inexpensive and favourable loans lead to an economic boom in Eastern Europe, resulting in a remarkable increase in construction volume between 2005-2008. The global economic downturn that followed and which hit the construction industry particularly hard has lead to a significant increase in disputes arising from contracts for construction services. Among other issues, the courts have tried disputes regarding when the obligation to accept work arises and the liability of contractors. In this article, the author focuses on when the obligation to accept work arises for the customer, the legal meaning of the completion and acceptance of work and the implications thereof for the liability of the contractor toward the customer, the extent of the liability of the contractor and differences in various liability models. The authors seek to determine how to define when work has been completed, whether the liability of a contractor must be deemed to be such that the contractor is liable unless non-performance is excused, and the effect of a customer’s instructions and owner supervision on the contractor’s liability. The authors compare Estonian and German law and court practice as well as the provisions of the Draft Common Frame of Reference for a European Private Law (DCFR).

Due to the limited length of this article, the authors do not specifically address the legal remedies available to customers in case of violation of a contract for services by a construction contractor. The obligation of a customer to examine the work and give notice of any deficiencies is also omitted.