Practice areas
Construction Law
Projects of every size, with solutions that work on site as well as on paper.
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How can we help?
design contracts
construction contracts
supervision contracts
construction disputes
defects in the execution of the works
design defects
accidents at work
legal opinions
Team
Our people in this area
Maja Koršič Potočnik
Attorney-at-law (specialist), head of the firm
Maja Koršič Potočnik, LL.M., is an attorney-at-law and partner at Potočnik in partnerke Law Firm and a specialist in public procurement, construction and commercial law. She advises and represents contracting authorities, tenderers and economic operators in demanding public procurement procedures, commercial disputes and construction projects, with a particular focus on FIDIC contracts. She is the author of the Slovenian handbook on the use of the FIDIC Red and Yellow Books, a member of the national list of FIDIC adjudicators, and a recognised lecturer and author of professional publications.
Urša Žnidaršič
Lawyer – construction, commercial and civil law
Urša Žnidaršič is a lawyer at Potočnik in partnerke Law Firm, working mainly in construction, commercial and civil law. She advises on construction projects and investments and on the drafting and negotiation of contracts. A significant part of her experience comes from working for an investor and developer of construction projects and from many years in a notary's office, which has given her a sound command of property law and of land registry and corporate status procedures.
Daša Zeme
Trainee attorney
Daša Zeme is a trainee attorney. At the firm she works in depth on public procurement law and construction law. In construction law she supports clients in drafting contracts and in resolving the legal challenges that arise during the delivery of construction projects.
Questions and answers
Frequently asked questions
What should a good construction contract contain?
A good construction contract must clearly define the subject matter and scope of the works, the design documentation, the price or the method by which it is determined, the time limits, the method of measurement and payment, the responsibilities of the parties, the conditions for additional works, contractual penalties, securities and the method of dispute resolution. On larger projects it is important that the contract governs not only price and time, but also the way in which variations and claims are managed.
Can the contractor claim a higher price because of an increase in material prices?
Yes, but not automatically. It depends on the price clause in the contract, on the actual increase in costs, on the circumstances that caused the increase, and on the rules of the Obligations Code (Obligacijski zakonik) and the Special Construction Usages (Posebne gradbene uzance). Where a fixed price has been agreed, it must be examined separately whether the conditions for changing it are met.
What are additional works, increased quantities and unforeseen works?
These are different situations and the law treats them differently. Increased quantities are larger quantities of works already provided for in the contract, whereas additional works are works that were not originally within the contractual scope. With unforeseen works, what matters is why they arose, who ordered them and whether they could have been foreseen. In every case the contract and the method of measurement and payment must also be examined.
Does the investor have to pay for additional works if no addendum has been signed?
The answer depends on the circumstances. What matters above all is whether the investor ordered the additional works or consented to them, whether the works were actually carried out, and what the original contract provides. As a rule, a contractor should not carry out works it considers to fall outside the original contract without a clear instruction or an agreement on their status and payment. In public procurement the restrictions are stricter still.
Who is liable for defects in the construction works?
Liability may rest with the contractor, the designer, the supervisor or another participant, depending on the origin of the defect. It is therefore not enough to establish that a defect exists. It must be established why it arose, who was under a duty to prevent it, and what that party's specific contractual or statutory duty was.
Who is liable for defects in the design documentation?
The designer may be liable for defects in the design documentation if the documentation was prepared contrary to the contractual or professional requirements. Defects that only emerge during construction, or even after it has been completed, are particularly difficult. In a design contract it is therefore important to settle in advance the scope of the service, the liability and the investor's rights in the event of defects.
Can the investor refuse to take over the structure?
Yes, where the contract or the law allows it. However, not every defect justifies a refusal to take over. Where the defects are minor and do not materially affect the use of the structure, a refusal may be unjustified. An unjustified refusal can have significant consequences for the running of delay, for costs and for other contractual rights.
What should the investor check before taking over?
The investor should check the actual condition of the structure, any outstanding shortcomings, the conformity of the works carried out with the contract and the documentation, and the documentation that must be handed over on completion. It is important that the defects identified and the time limits for remedying them are recorded precisely in the taking-over record.
What should you do if the contractor is behind schedule?
The first step is to establish the reason for the delay and to check the contract programme. Not every delay is automatically the contractor's responsibility. It is important to establish whether the delay was caused by the contractor, the investor, the designer, an administrative procedure or some other circumstance, and whether the contract provides for a right to an extension of time.
How should the investor document variations and claims during construction?
Every variation should be documented as soon as possible: who requested it, why it was necessary, what is being changed, what effect it has on price and time, and which documents support it. On more demanding projects, keeping records as the work proceeds is often decisive in later proving an entitlement to additional payment or to an extension of time.
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