The work is done, everything's been paid, and six months later cracks appear in the walls, the roof starts leaking, or the floor begins lifting. The contractor says "that's normal" or, worse, stops answering the phone. Are you entitled to a warranty? For how long? What can you demand?
The short answer: yes, you have a legal warranty, and the periods are generous. The long answer is in this article.
One important note up front: this article covers two common situations that have slightly different legal regimes. The first is buying a new property from a professional developer (mainly governed by Decreto-Lei n.º 84/2021). The second is hiring a construction company directly to execute a project (governed by the construction contract regime in the Civil Code). Your rights exist in both cases, but notification deadlines and the responsible parties can differ.
The legal framework for construction warranties
Construction warranties in Portugal are protected by several complementary legal instruments:
- Civil Code, articles 1218 to 1226 - construction contract regime. Defines the contractor's obligations regarding construction defects, with a general 5-year period for structural defects in long-life properties.
- Decreto-Lei n.º 84/2021 - transposes EU directives on the sale of goods, with specific periods for properties purchased in consumer transactions. This decree-law replaced the older DL 67/2003 regime.
In practice, this means that even without a warranty clause in the contract, the law protects you.
Warranty periods: what the law says
10 years — structural defects
For defects related to structural elements (foundations, pillars, beams, slabs, roof structure), the warranty period is 10 years from delivery. This includes:
- Structural cracks (not merely cosmetic)
- Stability problems
- Foundation deficiencies
- Collapse or deformation of structural elements
5 years — non-structural defects
For defects in non-structural elements that affect habitability, the period is 5 years. This includes:
- Water infiltration and waterproofing problems
- Defects in plumbing, electrical, or gas installations
- Thermal or acoustic insulation problems
- Defects in exterior finishes (facades, roofing)
- Drainage system problems
Equipment, finishes, and cosmetic defects
This category is best handled case by case. Flooring, doors, windows, paint, and built-in equipment can fall under different regimes depending on the situation: whether they form an integral part of the property, are sold as separate movable goods, are equipment with their own manufacturer warranty, or whether the issue is normal wear or misuse. The safe rule is this: structural defects have a 10-year period, other property non-conformity has, as a rule, 5 years in consumer contracts. For equipment sold as movable goods, the general DL 84/2021 period is 3 years. In borderline situations, legal advice is the safer path.
Legal warranty vs. contractual warranty
The legal warranty is established by law and cannot be reduced by contract. Even if the contractor says "our warranty is 1 year," that doesn't eliminate the legal periods. Any contractual clause that reduces warranty periods below the legal minimum is void.
A contractual warranty can add protection beyond what the law already provides, but never reduce it. A good contractor offers contractual warranties that go beyond the legal minimum precisely because they trust the quality of their work.
How to claim construction defects
Step 1: Report the defect in writing
As soon as you detect a defect, communicate it to the contractor in writing (registered letter with return receipt or email with read confirmation). In construction contracts (Civil Code), notification should generally be made within 1 year of discovering the defect. In consumer contracts under DL 84/2021, the communication itself suspends time limits from the moment it's sent. Either way, the practical rule is the same: communicate in writing as soon as you spot the problem, because timely communication is what proves dates and protects your rights.
In your communication, include:
- Detailed description of the defect
- Dated photographs
- Date the defect was discovered
- Request for repair within a reasonable timeframe
Step 2: Demand repair
The contractor is obligated to repair defects covered by the warranty at no additional cost. If repair isn't possible or the contractor refuses, you can demand:
- Price reduction proportional to the defect
- Contract termination if the defect is serious
- Compensation for damages caused by the defect
Step 3: Use formal mechanisms if necessary
If the contractor doesn't respond or refuses to repair:
- Complaints book (Livro de Reclamações) - companies with a physical establishment or direct public-facing service must provide one. In construction, temporary worksites are usually not required to have one, but offices and customer service locations are. The complaint is forwarded to regulatory authorities.
- Consumer arbitration centre — faster resolution, generally free for the consumer.
- Small claims courts (Julgados de Paz) — for disputes up to €15,000, faster and cheaper than regular courts.
- Legal action — for higher amounts or complex situations, with a lawyer's support.
What if the company closes or goes insolvent?
This is the scenario nobody wants to face: serious defects appear, but the company that did the work no longer exists. It closed, was dissolved, or entered insolvency proceedings.
When this happens:
- If the company was dissolved, there's nobody to claim from (except in exceptional cases of shareholder liability)
- If it's in insolvency proceedings, your claim typically enters the estate as a common credit, behind secured creditors (banks with mortgages) and privileged creditors (employees, tax authorities). In practice, the probability of recovering the full amount is reduced
- If the company simply disappeared (de facto closure without formal dissolution), you can try to hold the directors personally liable, but it's a complex legal process
This is why checking the company's financial health BEFORE hiring is so important. A 10-year warranty is worth nothing if the company won't exist in 2 years.
Check the contractor's financial health on ObraXRAY — in less than 2 minutes, we cross-reference 9 official sources. The director-history cross-reference against previous failed companies - the strongest signal that a new company may repeat the same pattern - does not exist in any public source in isolation. We did that work.
Practical tips to protect your warranties
- Require a written contract — without one, proving the delivery date and agreed conditions is much harder.
- Do a formal inspection at delivery — note all visible defects in a handover report. Defects identified at delivery should be corrected before final payment.
- Keep all documentation — contract, quotes, emails, photographs of construction at different phases, material invoices, licenses.
- Negotiate a 5-10% retention in the contract - agree in writing to withhold a percentage of the final payment for 1-2 years to cover defects that only show up after delivery, or another form of guarantee. Important: the retention must be set out in the contract. Withholding payment unilaterally without contractual basis can be treated as non-payment.
- Request the Housing Technical File — for new builds, the builder is required to deliver this document.
Checking before is cheaper than claiming after
Claiming construction defects is an exhausting, time-consuming, and uncertain process. Even when you're legally right, the company may not have the financial capacity to repair. The legal warranty is important, but it doesn't replace prevention.
Before hiring, check if the company has a valid IMPIC license, no court proceedings or insolvencies, clean directors, and up-to-date tax obligations. It takes 2 minutes and can save years of headaches.
Check your contractor for free on ObraXRAY — we cross-reference 9 official sources and do the work none of them does in isolation: director history cross-referenced to previous failed companies (CITIUS indexes by company NIF, not director NIF - we built that link from scratch), daily accumulation of 197 civil courts beyond CITIUS's 6-month window, and insolvency phase classification so you know whether proceedings are filed, declared, or closed.
Read also
- Construction Stalled: What to Do When Your Contractor Disappears
- Housing Technical File: Buyer's Guide
- What to Check Before Hiring a Contractor
- How to Check if a Contractor Has an IMPIC License
- Contractor Insolvency — What to Do in the First 30 Days
Important note: this article is informational and does not replace professional legal advice. Legislation and procedures may vary. Always consult a lawyer for specific situations.