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ARTICLE · 05 MAY 2022

Resorting To A Right Of Replacement Is Not Without Risk

DSM Avocats à la Cour
DSM Avocats à la Cour
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DSM Avocats à la Cour

DSM Avocats à la Cour

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When construction works are blocked due to a contracting party's failure to perform or refusal to remedy defects, is it possible, in the absence of specific contractual provisions,...

LuxembourgReal Estate and Construction

When construction works are blocked due to a contracting party's failure to perform or refusal to remedy defects, is it possible, in the absence of specific contractual provisions, to have completed/resumed the works by a third party (or oneself) at the expense of the defaulting contracting party?

1) First, it is necessary to send the defaulting contracting party a formal demand letter (mise en demeure) by registered mail with acknowledgement of receipt, requesting that the party cure the failures within a set timeframe. The timeframe must be reasonable. Also, that contracting party should be informed that should it fail to perform within the timeframe, the right of replacement (faculté de remplacement) will be resorted to, meaning a third-party will be sought to do the work at the defaulting party's expense.

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