| RAMZI CHAMAT | OAKS GROUP
For several years, the construction sector in Switzerland has been evolving in an increasingly demanding legal, technical, and economic environment. The growing complexity of real estate projects, the rise in quality standards, and heightened sensitivity to construction defect risks have led legislators to strengthen the legal framework governing construction and real estate sales contracts. Entering into force on 1 January 2026, the partial revision of the Swiss Code of Obligations is part of this dynamic. It aims to rebalance relations between buyers, project owners, and construction companies, while ensuring the long-term security of real estate assets and the practice of property development in Switzerland.
| RAMZI CHAMAT | OAKS GROUP
Since 1 January 2026, the partial revision of the Swiss Code of Obligations governing warranty rights has entered into force. This reform marks a profound shift in the contractual balance between buyers, project owners, and construction companies. It reflects the legislator’s clear intent to strengthen buyer protection, enhance construction quality, and ensure the long-term security of real estate assets in Switzerland.
Beyond technical adjustments, this legislative development fundamentally reshapes contractual practices in the construction sector and Swiss construction law, with direct implications for real estate developments, general contractors, architects, engineers, and all stakeholders across the value chain.
Until now, the obligation to report defects immediately represented a significant source of legal uncertainty for project owners and property buyers. The reform now introduces a mandatory legal notification period of 60 days, applicable to both apparent and hidden defects, for the majority of construction contracts and real estate sales agreements.
This period better reflects the reality of construction sites and the increasing complexity of modern buildings. It allows for proper technical assessment of defects and prevents construction companies from relying on abusive contractual clauses that artificially shorten notification deadlines.
The reform enshrines a fundamental principle of Swiss construction law: the right to repair construction defects becomes mandatory.
In the case of new constructions, buyers may now require free repair of defects, without this right being contractually excluded or limited. This principle is also extended to contracts for work, rendering void the clauses that previously restricted or excluded this right in common practice.
This change imposes higher standards on general contractors, Swiss construction companies, and technical consultants, particularly regarding execution quality, site supervision, and defect management, while significantly strengthening the legal protection of project owners.
Another major advancement concerns limitation periods. The five-year limitation period applicable to construction defects now becomes mandatory.
Any contractual reduction of these periods to the detriment of buyers or project owners is now prohibited. This measure enhances legal predictability, aligns contractor liability with the actual life cycle of buildings, and secures real estate development projects over the medium and long term.
The reform also affects the regime governing the legal mortgage of contractors and craftsmen, a key mechanism in the financing and securing of construction works.
Guarantees intended to prevent or replace such a legal mortgage must now cover both the principal claim and default interest for a maximum period of ten years. This legislative clarification, rooted in Swiss Federal Supreme Court case law, simplifies practical implementation and strengthens legal security for both property owners and construction companies.
These new rules require a comprehensive revision of construction contracts:
general terms and conditions, contracts for work, real estate sale agreements, guarantee mechanisms, defect management, and liability provisions must be promptly updated.
Companies that fail to anticipate these changes expose themselves to increased legal risks, while project owners benefit from a more protective, clearer, and better-balanced legal framework aligned with current standards of the Swiss real estate market.
The 2026 revision of warranty law represents a major turning point for the Swiss construction sector. While significantly strengthening protection for buyers and project owners, it simultaneously raises the level of requirements imposed on construction professionals, general contractors, and Swiss builders.
Within this strengthened regulatory environment, OAKS GROUP places particular emphasis on the selection of top-tier Swiss consultants, general contractors, and construction companies, recognized for their technical excellence, financial strength, and in-depth mastery of Swiss construction law. This approach ensures high-quality execution, legal security for projects, and long-term protection of buyers’ and project owners’ interests at the core of every real estate development carried out by the Group.
