Spain’s Building Act (Law 38/1999 of 5 November, known as the LOE) sets out the legal framework governing building construction and related activities such as major refurbishments and rehabilitation works. Its core purpose is to ensure quality, safety and habitability, while protecting property owners and end users.
Below is a practical overview of the key points that are most relevant for clients:
1) Scope of the Act
The LOE applies to all stages of the building process, including:
- New construction
- Refurbishment or renovation works that affect a property’s safety, durability or habitability.
- Any intervention that may compromise the building’s structural integrity or occupant safety.
It also covers technical design, site supervision, quality controls and final acceptance of the works.
2) Key stakeholders and liability (Articles 9 a 14 LOE)
The Act clearly defines who may be held liable for defects arising during the construction process, without limiting any contractual liabilities. These include:
- Developer: Initiates, plans and finances the project and ensures regulatory compliance.
- Designer (architect or engineer): Prepares the technical design and ensures it meets safety, quality and planning requirements.
- Contractor: Executes the work and is responsible for construction quality and materials.
- Site manager: Oversees the project from a technical, planning and environmental standpoint.
- Works execution manager: Supervises on-site execution and monitors both construction quality and quantities.
Liability is only joint and several when individual responsibility cannot be clearly identified. Recent Supreme Court rulings confirm that liability is usually apportioned based on each party’s actual involvement and may include compensation for temporary relocation costs during remedial works.
3) Warranty periods
Liability periods depend on the seriousness of the defect and run from the date the work is formally handed over:
- 10 years for structural defects affecting stability.
- 3 years for defects affecting habitability, such as installations or insulation.
- 1 year for finishing defects, for which only the contractor is liable.
In these cases, keeping full documentation and a clear timeline of events is critical.
If defects arise, seeking advice from a specialist lawyer is strongly recommended to assess liability, identify responsible parties and consider direct claims against insurers. Recent case law confirms that, where repairs are not carried out, financial compensation may be claimed instead.
This overview reflects the legal analysis carried out by the addwill team, who can advise on these matters and on Spanish civil litigation more broadly.