What does site abandonment mean? What steps should you follow? What recourses for the project owner? Guarantees, risks, concrete examples and legal advice to respond effectively to an abandonment of construction site and to anticipate the corresponding disputes.
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Site abandonment corresponds to the unjustified and lasting interruption of work by the contractor, except in cases of force majeure or prior agreement with the project owner. It is often a stoppage of work without legitimate reason, which endangers the completion of the project. Jurisprudence considers abandonment when the work is stopped, the workers are absent, and no valid explanation is given.
Concrete example: An SME requests a complete renovation of its premises and the contractor stops the construction site, no longer answers calls or emails, while the schedule foresees 2 remaining months of work.
In addition to the delay or paralysis of the project, the abandonment of the site involves the risk of additional costs, immobilization of premises, bank proceedings (if loan is in progress) and, if necessary, unrepaired defects. It can also lead to long and costly legal disputes to obtain the resumption or finalization of the work site, or even compensation for the damages suffered.
Common causes include:
Example: A company that renovates a store has cash flow problems, which prevents it from buying the necessary materials and stops any intervention without notice.
Cases where the client SME itself commits a serious breach (non-payment of an invoice, obstacle to access the site) may result in the legitimate suspension of work by the contractor.
Educational framework:
“The suspension of work for non-payment is legally allowed, provided, however, that the contractor has given formal notice to the SME to pay the amounts due.”
There is no specific legal deadline; case law uses a few weeks (generally 1 to 3 weeks of unjustified inactivity) to characterize abandonment, as long as the silence or desertion is prolonged for no reason. Only a legal professional will be able to assess the severity according to the context.
A company does not return to the construction site for 10 days despite several written reminders and there is no credible explanation justifying this stop. Abandonment may be characterized, subject to compliance with the formal notice procedure.
First, contact the contractor in order to obtain an explanation and a voluntary resumption of the work.
Send a registered letter with acknowledgement of receipt to the contractor. The formal notice must:
Formula example:
“I give you formal notice to resume the execution of the work provided for in the contract of [date], within [x] days from the receipt of this document, otherwise I will draw all legal consequences.”
A bailiff will be able to:
This document is essential in the event of legal proceedings or if the construction site is taken over by another company.
No longer pay deposits or payments until the situation is clarified under cover of a report of abandonment and an unanswered formal notice.
If the entrepreneur does not react, several actions are possible:
After an official assessment and termination, the SME may have the work completed by another company at the expense of the defaulting contractor, with the authorization of the judge.
The contracting authority must continue to repay the loan and cannot interrupt it without a court decision; however, negotiations with the bank are possible to temporarily suspend the deadlines in the event of abandonment.
Favour the amicable solution to avoid litigation and additional costs, by mobilizing the contractor and partners (architect, insurer).
Some insurances (construction damage, delivery guarantee, ten-year liability) cover all or part of the consequences of the abandonment for the project owner, subject to the conditions stipulated in the contracts.
“In the event of an unjustified suspension of work for more than 15 days, the contracting authority may, after a formal notice that has remained unsuccessful, terminate the contract by operation of law, mandate a third party to complete the work at the expense of the defaulting contractor, and claim compensation for any direct or indirect damage resulting from this non-performance.”
As soon as the unjustified inactivity exceeds 8 to 15 days and no credible explanation, force majeure or amicable solution has been found.
Example:
” Madame, sir,
I note that the construction site at [location] has been stopped since [date]. Under the contract signed on [date], I give you formal notice to resume performance within 8 days from receipt of this contract, otherwise I will draw all the consequences provided for in the contract and in law. In accordance with contractual provisions, and in the absence of recovery, I will consider terminating the contract, using a third party company, and claiming amounts unduly paid and late penalties.
Please agree...”
See the previous dedicated section and remember that judges are particularly vigilant to prove abandonment and damage suffered by the SME.
In the most serious cases (payments received and no intention of carrying out the work), the company manager may initiate proceedings for breach of trust, a criminal offence characterized by the misappropriation of funds or deposits received without compensation.
Construction site abandonment litigation is complex, subject to strict regulations and frequent changes in case law. Only the use of a lawyer specialized in contract law and commercial litigation makes it possible to anticipate, secure your procedures and optimize the management of the dispute. It is strongly recommended to consult a professional before any legal or contractual commitment. Each company and each situation thus benefits from specific and adapted advice to protect its interests.