Revised Warranty Law – What Building Contractors, Employers and Purchasers Need to Know
On 1 January 2026, the partial revision of the warranty provisions in sales contracts and contracts for work entered into force. The amendments are aimed in particular at strengthening the legal position of building owners/employers and real estate purchasers in the event of construction defects. Especially in the construction and real estate sector, the revision introduces significant changes that companies and contracting parties should be aware of.
Extended 60-Day Notification Period for Defects
Under the former legal regime, defects generally had to be notified immediately. Under the revised law, a defect notice period of 60 days now applies for both apparent and hidden defects in certain constellations. This notification period applies in particular to:
- purchase contracts relating to movable items that have been integrated into an immovable work in accordance with their intended purpose and that have caused the immovable work to be defective (Art. 201 para. 4 CO);
- real estate purchase contracts (Art. 219a para. 1 CO);
- notification of defects in relation to an immovable work (Art. 367 para. 1bis and Art. 370 para. 4 CO);
- defects of a movable work that has been integrated into an immovable work in accordance with its intended purpose and that have caused the immovable work to be defective (Art. 367 para. 1bis a and Art. 370 para. 4 lit. a CO);
- defects of a work created by an architect or engineer and used, in accordance with its intended purpose, as the basis for the construction of an immovable work, where such defects have caused the immovable work to be defective (Art. 367 para. 1bis b and Art. 370 para. 4 lit. b CO).
The 60-day notification period for defects is partially mandatory. Any contractual agreement providing for shorter notification periods is invalid. However, the parties may agree on a longer notification period.
Mandatory Right to Rectification
The revision grants purchasers of real estate with a building that is yet to be constructed or that was newly constructed less than two years prior to the sale a right to free rectification (Art. 219a para. 2 CO). This right to rectification is governed by the provisions applicable to contracts for work. A contractual exclusion of the right to rectification is not permitted.
Any prior agreement restricting or excluding the right to free rectification of defects in buildings under contracts for work law is invalid (Art. 368 para. 2bis CO).
Partially Mandatory Limitation Periods
The five-year limitation period for asserting claims due to defects of real estate, for contracts for work relating to immovable works, and for contracts for work relating to movable works that have been integrated into an immovable work in accordance with their intended purpose is now partially mandatory. Accordingly, this limitation period may not be amended to the detriment of the purchaser or employer (Art. 219a para. 3 CO and Art. 371 paras. 1–3 CO).
Impact on SIA Standard 118
To the extent that the SIA Standard 118, which is frequently agreed in construction contracts, conflicts with the (partially) mandatory provisions of the Swiss Code of Obligations, it does not apply. This is the case – at least until the SIA Standard 118 is amended – with respect to Art. 179 para. 2 of the SIA Standard 118. Consequently, hidden defects are no longer subject to an immediate notification requirement; instead, the statutory 60-day notification period as of the day of discovery applies.
Amendment to the Contractor’s Lien
Together with the revision of the Swiss Code of Obligations, an amendment to the Swiss Civil Code (CC) was adopted, which entered into force on 1 January 2026. Under the revised law, security must be provided for the registered claim under a contractor’s lien (“Bauhandwerkerpfandrecht”), including default interest for a period of ten years (Art. 839 para. 3 CC).
Transitional Provisions
As a general rule, the new provisions apply to contracts concluded on or after 1 January 2026.
An exception applies with respect to the newly mandatory limitation periods: these also apply to contracts concluded under the former law, provided that a shorter limitation period was agreed and had not yet expired as of 1 January 2026. In addition, the new provisions of Art. 839 para. 3 CC apply irrespective of the date of conclusion of the contract or performance of the works.
For further information, please contact:
Simon Hohler, Partner
Jelto Simnacher, Junior Associate
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