Construction & Delivery
Convert the approved and funded project into a controlled construction programme.
At a glance
- Indicative duration
- 12–30 months
- The decision
- How will the project be procured, contracted, built, completed and handed over as a legally usable asset?
- Documents
- Construction contract with programme, milestones and liquidated damages.
- Health and safety plan and site notification.
- As-built drawings and the technical file for the use licence.
The decision this phase helps you make
How will the project be procured, contracted, built, completed and handed over as a legally usable asset?
At the end of this phase, you should be able to determine:
- which procurement route is appropriate;
- whether the design is sufficiently complete for tender;
- which party carries design responsibility;
- whether the contractor is legally and technically qualified;
- whether the construction price is fixed, measurable, capped or adjustable;
- which documents define the contractual scope;
- how changes will be instructed and valued;
- how progress payments will be certified;
- how delay and extensions of time will be managed;
- which guarantees, retentions and insurance policies are required;
- how safety and environmental obligations will be controlled;
- how quality will be inspected and tested;
- what constitutes contractual completion;
- which documents are required before use and operation;
- how defects will be identified and remedied;
- and whether the project can be handed over to purchasers, tenants or an operator as intended.
The objective is not merely to finish the physical works. It is to deliver a legally usable, technically compliant, documented and commercially functional asset.
01Legal transition on 1 October 2026
Portuguese urban-planning legislation is currently in transition.
As at 21 August 2026, the completion and use of buildings remain governed by the current version of the RJUE resulting principally from Decree-Law 10/2024.
Decree-Law 108/2026 introduces a revised RJUE framework, including changes to:
- construction titles;
- communications before works commence;
- changes made during construction;
- completion submissions;
- use of buildings;
- municipal control;
- and procedural documentation.
Its main provisions are scheduled to enter into force on 1 October 2026 following the postponement established by Decree-Law 155-B/2026.
Projects reaching commencement, amendment, completion or use on or after that date must be reassessed under:
- Decree-Law 108/2026;
- Decree-Law 155-B/2026;
- the applicable transitional provisions;
- the implementing regulations and forms then in force;
- and the practice of the competent municipality.
The RGEU has not yet been replaced merely because the date of 1 June 2026 has passed. Following the amendment made by Decree-Law 108/2026, its revocation will take effect when the future diploma establishing the new technical rules for buildings enters into force.
Do not rely on an outdated completion checklist or assume that a procedure commenced under one regime will necessarily be completed under the same rules.
02Start with construction readiness
The project should not mobilise simply because planning approval has been obtained or the contractor is available.
Before the construction contract becomes unconditional, confirm the following.
Property and site
- the project company owns or controls the site;
- access is legally and physically available;
- the boundaries and construction area are established;
- rights required over neighbouring land are documented;
- existing occupants have vacated where necessary;
- utilities affecting the works are identified;
- site conditions have been sufficiently investigated;
- and any demolition, contamination, asbestos or archaeological risk has been assessed.
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Urban-planning status
- the applicable licence, communication, exemption or other route is confirmed;
- all conditions required before construction have been satisfied;
- applicable municipal taxes and charges have been paid;
- the approved or submitted design is identified;
- the authorised construction period is understood;
- the required information concerning commencement will be submitted;
- and any phased construction structure is legally and technically coordinated.
Design
- the construction scope is sufficiently defined;
- the architectural and engineering designs are coordinated;
- design assumptions have been verified;
- specifications and schedules are complete;
- unresolved design matters are identified;
- the party responsible for completing each design element is named;
- and the change-control procedure is operational.
Finance
- equity required before the first debt drawdown is available;
- the construction contract is compatible with the finance documents;
- lender conditions precedent can be satisfied;
- the drawdown process matches the payment programme;
- contingency is available;
- and the cost-to-complete position has been tested.
Project team
- the director of works is appointed;
- the director of works supervision is appointed where required or appropriate;
- safety coordinators are appointed where applicable;
- the project authors remain available for technical assistance;
- the employer's representative has defined authority;
- and the cost, programme and document-control functions are established.
03Choose the procurement route
The procurement structure determines how design, construction, interface and price risk are allocated.
Traditional procurement
Under a traditional structure, the developer's design team completes the design before a main contractor is appointed. The contractor builds in accordance with the employer's design.
This route may provide:
- stronger design control;
- clearer comparison between tenderers;
- direct access to the design team;
- and greater certainty over the required product.
Its effectiveness depends on the completeness and coordination of the tender design. Incomplete design can result in qualifications, provisional amounts, variations, extensions of time, disputes over responsibility and loss of price certainty.
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Design and build
Under a design-and-build structure, the contractor accepts responsibility for both construction and defined design obligations.
The employer should prepare clear requirements covering:
- planning parameters;
- performance criteria;
- materials and finishes;
- areas and dimensions;
- technical standards;
- sustainability targets;
- operator standards;
- completion tests;
- and documents required at handover.
The phrase “design and build” does not automatically transfer every design risk to the contractor. The contract must establish which existing designs the contractor accepts, whether it assumes responsibility for their adequacy, which designs remain with the employer, the standard of design responsibility, the approval procedure, professional qualifications, intellectual-property rights and responsibility for planning amendments.
Construction management
Under a construction-management structure, the developer appoints individual trade contractors and retains more direct responsibility for coordination.
This may provide flexibility and early commencement but exposes the developer to greater:
- interface risk;
- coordination risk;
- cost uncertainty;
- programme risk;
- and insolvency risk across several contracts.
The developer requires an experienced management and technical team capable of administering multiple packages.
Management contracting
A management contractor may be appointed to procure and coordinate works packages.
Responsibility for package performance, price and programme depends on the contract and should not be inferred from the title given to the arrangement.
Turnkey or EPC-style structure
A turnkey structure may seek to place broad responsibility for design, procurement, construction, testing and completion with one contractor.
This can be appropriate for technically integrated projects, but the contract must still define:
- the required output;
- excluded works;
- employer-supplied information;
- planning responsibility;
- utility interfaces;
- performance testing;
- completion criteria;
- and relief events.
“Turnkey” does not mean that every unforeseen risk has legally or commercially transferred to the contractor.
Multiple direct contracts
The developer may appoint separate contractors for:
- demolition;
- excavation;
- structure;
- façades;
- mechanical and electrical installations;
- fit-out;
- landscaping;
- or specialist systems.
This can improve access to specialist suppliers but requires an express interface matrix and a single coordinated programme.
Early-works package
An early-works contract may cover demolition, site preparation, excavation, temporary works or enabling works before the main contract is executed.
The package should not begin unless:
- it has its own lawful construction basis;
- scope boundaries are clear;
- safety responsibilities are established;
- insurance is in place;
- design information is adequate;
- and the consequences of the main contract not proceeding are understood.
04Prepare a complete tender package
The contractor should tender against a coherent set of documents.
The tender package may include:
- invitation and tender instructions;
- proposed contract conditions;
- architectural project;
- engineering projects;
- technical specifications;
- bills of quantities;
- room data sheets;
- finish schedules;
- equipment schedules;
- surveys and investigations;
- site constraints;
- planning conditions;
- construction programme;
- phasing requirements;
- access and logistics plan;
- safety information;
- sustainability requirements;
- testing and commissioning requirements;
- BIM or digital-information requirements;
- handover requirements;
- warranty requirements;
- and the form of pricing document.
The tender documents should state which document prevails if there is an inconsistency. Without an order of precedence, differences between drawings, specifications, quantities and contractor proposals can generate disputes concerning scope and price.
05Run a controlled tender process
A structured tender process may include the following stages.
Prequalification
Assess potential contractors before issuing the full tender. Review:
- legal identity;
- IMPIC status;
- relevant habilitation;
- financial standing;
- comparable projects;
- technical team;
- current workload;
- safety record;
- claims history;
- proposed subcontractors;
- and capacity to provide the required security.
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Tender period
Give tenderers sufficient time to:
- review the project;
- visit the site;
- identify qualifications;
- price the works;
- consult subcontractors;
- develop the programme;
- and submit required technical information.
An unrealistically short tender period may produce an apparently competitive price that is based on exclusions, assumptions or incomplete subcontractor coverage.
Clarifications
All material clarifications should be issued through a controlled process and, where appropriate, shared with every tenderer. Verbal answers should not alter the tender scope.
Tender comparison
Compare more than the total price. The evaluation should reconcile:
- scope inclusions;
- exclusions;
- qualifications;
- provisional sums;
- design assumptions;
- programme;
- payment profile;
- proposed subcontractors;
- alternatives;
- guarantees;
- insurance;
- and commercial departures.
A lower tender may be materially more expensive once omissions and qualifications are normalised.
Preferred-bidder stage
Before contract signature:
- resolve qualifications;
- agree the final contract sum or pricing mechanism;
- confirm scope responsibility;
- close design gaps;
- agree the baseline programme;
- obtain insurance evidence;
- agree the security documents;
- and identify every condition to commencement.
Do not issue an unrestricted letter of intent merely because the full contract is not ready.
06Verify the contractor's legal qualification
Construction activity in Portugal is regulated by Law 41/2015.
The contractor must hold the applicable IMPIC alvará, certificate, registration or other legally recognised entitlement, appropriate to the:
- type of work;
- contract value;
- categories or specialist works where applicable;
- and contractor's legal status.
The position should be verified directly through the IMPIC contractor registers.
A contractor should not be appointed solely because it previously held a valid alvará. Its current status, class, capacity and any suspension or cancellation must be checked.
Foreign contractors may require registration or recognition before carrying out construction activity in Portugal.
07Written construction contracts
Under Article 26 of Law 41/2015, Portuguese-law private construction and subcontracting contracts exceeding 10% of the statutory limit for class 1 must be in writing.
The written contract must include at least:
- complete identification of the parties;
- identification of applicable contractor permits, certificates or registrations;
- identification of the works, including written and drawn documents where applicable;
- contract value;
- and execution period.
Failure to comply with the statutory form can affect the validity of the contract. For a development project, the contract should be substantially more detailed than the statutory minimum.
08Private works and public works are not governed identically
A privately procured development is generally governed by:
- the agreed construction contract;
- the Portuguese Civil Code;
- Law 41/2015;
- the RJUE;
- professional-qualification legislation;
- health-and-safety legislation;
- technical building rules;
- environmental legislation;
- and other project-specific regimes.
The Portuguese Public Contracts Code applies where the employer, procurement or project falls within its scope. A developer should not copy public-works procedures or warranty periods into a private contract without confirming their intended legal and commercial effect.
Similarly, a private contract using international forms such as FIDIC should be adapted to:
- Portuguese mandatory law;
- Portuguese construction terminology;
- local urban-planning procedures;
- the project's technical roles;
- tax;
- security;
- insurance;
- and dispute-resolution requirements.
09What the construction contract should cover
A complete contract should address at least the following.
Parties and authority
- employer;
- contractor;
- representatives;
- authorised instructions;
- notice addresses;
- and limits of delegated authority.
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Contract documents
- conditions;
- employer's requirements;
- contractor proposals;
- drawings;
- specifications;
- quantities;
- schedules;
- tender clarifications;
- and order of precedence.
Scope
- permanent works;
- temporary works;
- design;
- demolition;
- utilities;
- testing;
- commissioning;
- approvals;
- samples;
- mock-ups;
- manuals;
- training;
- and handover documentation.
Price
- lump sum;
- measurement;
- target cost;
- guaranteed maximum price;
- cost reimbursable elements;
- provisional sums;
- dayworks;
- taxes;
- and price-adjustment rules.
Programme
- commencement;
- completion;
- sectional completion;
- milestones;
- design dates;
- procurement dates;
- access dates;
- testing;
- and required updates.
Payment
- valuation dates;
- contractor applications;
- supporting documents;
- certification;
- payment period;
- retention;
- set-off;
- disputed amounts;
- and final account.
Variations
- who may instruct;
- required form;
- valuation;
- programme consequences;
- supporting evidence;
- and emergency work.
Delay
- notices;
- extensions of time;
- concurrent delay;
- mitigation;
- delay damages or contractual penalties;
- and acceleration.
Quality
- standards;
- samples;
- inspection;
- testing;
- rejection;
- remedial works;
- and access to fabrication locations.
Completion
- contractual tests;
- completion notice;
- inspection;
- outstanding items;
- phased possession;
- use documentation;
- handover;
- and final completion.
Default and termination
- contractor default;
- employer default;
- insolvency;
- abandonment;
- prolonged suspension;
- termination procedure;
- valuation;
- site security;
- documents;
- materials;
- and replacement contractor rights.
Disputes
- notices;
- senior negotiation;
- expert determination;
- mediation;
- arbitration or court;
- governing law;
- and jurisdiction.
10Define the scope precisely
The contractor's scope should identify responsibility for:
- construction;
- temporary works;
- setting out;
- site establishment;
- protection of existing structures;
- protection of neighbours;
- temporary utilities;
- cranes and access equipment;
- testing;
- commissioning;
- connections;
- permits allocated to the contractor;
- statutory inspections;
- samples;
- mock-ups;
- shop drawings;
- coordination drawings;
- builder's work;
- specialist designs;
- operating manuals;
- training;
- spare parts;
- and as-built information.
Commonly disputed interfaces include:
- structure and façade;
- waterproofing and finishes;
- architecture and mechanical systems;
- pools and plant;
- landscape and drainage;
- kitchens and utility connections;
- operator equipment and landlord works;
- lifts and electrical supply;
- fire systems and commissioning;
- and interior-design packages and base-build works.
Every interface should have one party responsible for final coordination and performance.
11Design responsibility during construction
Construction normally produces further design information, even where the project was substantially designed before tender.
This may include:
- shop drawings;
- fabrication drawings;
- temporary works;
- reinforcement detailing;
- façade engineering;
- waterproofing details;
- mechanical coordination;
- specialist systems;
- equipment selections;
- and installation methodologies.
The contract should distinguish between:
- developing an existing design;
- selecting products within an approved specification;
- designing a defined specialist element;
- correcting an employer-design defect;
- and assuming responsibility for the entire design.
Review or approval by the employer, architect or engineer should not inadvertently transfer or release contractual design responsibility.
The review process should establish:
- submission dates;
- reviewer;
- response period;
- permitted status codes;
- resubmission;
- effect of comments;
- and whether work may proceed before approval.
12The price mechanism
Lump-sum price
A lump-sum contract can provide price certainty where the scope is complete and coordinated.
It does not eliminate:
- variations;
- employer risk;
- unforeseeable events;
- errors in employer information;
- changes in law;
- or claims expressly permitted by the contract.
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Re-measurement
Under a re-measurement contract, the final price depends on the quantities actually executed at agreed rates. This may be appropriate where quantities cannot be reliably established before construction, but it provides less final-cost certainty.
Guaranteed maximum price
A guaranteed maximum price may cap defined costs, subject to stated adjustments.
The contract must explain:
- which costs are included;
- which events adjust the cap;
- treatment of savings;
- contractor fee;
- open-book records;
- and excluded risk.
Cost-reimbursable structure
The employer pays defined actual costs plus an agreed fee. Strong audit, procurement and cost-approval controls are essential.
Provisional sums
A provisional sum is not a fixed price for fully defined work.
The contract should state:
- who develops the scope;
- how it is instructed;
- how contractor attendance and margin are calculated;
- and whether omission is permitted.
Price escalation
The contract should address whether the price can change due to:
- inflation;
- labour costs;
- materials;
- energy;
- exchange rates;
- taxes;
- tariffs;
- or changes in law.
Silence on inflation does not create a predictable allocation of price risk.
13Programme and delay
The baseline programme should show:
- commencement;
- design submissions;
- procurement;
- long-lead items;
- statutory steps;
- structural milestones;
- enclosure;
- services installation;
- testing;
- commissioning;
- external works;
- completion;
- and handover.
The contract should require regular programme updates showing:
- actual progress;
- remaining duration;
- critical path;
- delay events;
- mitigation;
- procurement status;
- and forecast completion.
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Extension of time
Define events that may entitle the contractor to additional time, such as:
- employer variations;
- late access;
- late information;
- specified authority delays;
- exceptional weather where contractually recognised;
- force majeure;
- suspension;
- or other employer-risk events.
The contractor should be required to give timely notice identifying cause, affected activities, expected delay, critical-path impact, mitigation measures and the requested extension.
Delay damages or contractual penalty
The contract may provide a predetermined amount payable for culpable delay.
The provision should identify:
- completion date;
- sectional dates;
- amount or calculation;
- applicable cap;
- any grace period;
- and relationship with termination and other damages.
Portuguese rules applicable to penalty clauses must be considered, including the possibility of judicial reduction in legally relevant circumstances.
Acceleration
Acceleration should identify:
- revised completion date;
- required measures;
- additional price;
- responsibility for failure;
- and interaction with existing delay claims.
An instruction to “recover the programme” should not be treated as an agreed acceleration arrangement without clarification.
14Security for performance
Depending on the project, the employer may require the following.
Performance bond
Security for defined contractor defaults.
Confirm:
- issuer;
- amount;
- expiry;
- extension;
- demand conditions;
- governing law;
- and reduction or release.
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Advance-payment guarantee
Where an advance is paid, the guarantee may secure repayment until the advance has been progressively recovered.
Retention
A percentage may be retained from interim payments until completion and final release.
Define:
- percentage;
- maximum;
- first release;
- final release;
- replacement by bond;
- and use against defects or other liabilities.
Parent-company guarantee
A parent company may guarantee the contractor's obligations. The value of the guarantee depends on the parent's financial capacity and the enforceability of the document.
Subcontractor and supplier security
For critical packages, the employer may require:
- collateral warranties;
- direct agreements;
- assignment rights;
- product warranties;
- vesting arrangements;
- or step-in rights.
Security should remain valid for the period during which it is intended to respond. A guarantee that expires automatically before delayed completion may provide no effective protection.
15Insurance
The insurance programme may include:
- contractor's all-risks insurance;
- erection all-risks insurance;
- public liability;
- employer's liability and mandatory work-accident insurance;
- professional indemnity;
- plant and equipment;
- motor insurance;
- environmental liability;
- latent-defects cover where available;
- and existing-structures cover for refurbishment projects.
The project should define:
- policyholder;
- insured parties;
- insured works;
- existing property;
- exclusions;
- deductibles;
- territorial scope;
- period of cover;
- testing and commissioning;
- maintenance period;
- waiver of subrogation;
- notification of claims;
- and evidence of premium payment.
Portuguese-qualified directors, designers and supervisors are subject to professional-liability insurance requirements under Law 31/2009.
Insurance should be reviewed before the site is handed over. A certificate of insurance should not replace review of the policy terms where the risk is material.
16Statutory and technical roles
Portuguese law distinguishes several technical functions.
Director of works
The director of works is associated with the contractor's execution responsibility. The role includes directing and coordinating construction and ensuring that the works comply with the execution design, the applicable urban-planning conditions and legal and regulatory requirements.
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Director of works supervision
The director of works supervision acts with technical independence and verifies the execution of the works, checking conformity with the execution design, applicable urban-planning conditions and legal and regulatory requirements.
The director of works supervision should not be confused with the contractor's director of works. Subject to the applicable statutory incompatibilities, works supervision should remain independent from the companies carrying out the construction.
Project coordinator and design authors
The design team may remain involved through:
- technical assistance;
- clarification of the design;
- review of contractor submissions;
- evaluation of proposed alternatives;
- inspection of specified work;
- and preparation or approval of amendments.
Employer's representative
The employer's representative is a contractual role.
Its powers should be defined expressly and may include:
- issuing instructions;
- certifying payment;
- assessing extensions of time;
- agreeing variations;
- and certifying completion.
A contractual appointment does not replace statutory technical roles.
17Commencement and mobilisation
Before allowing the contractor to mobilise, complete a construction-start checklist.
Confirm:
- lawful authority to commence;
- payment of applicable charges;
- required municipal submissions;
- contractor identification and qualification;
- statutory technical appointments;
- professional insurance;
- construction insurance;
- safety plan or procedures;
- site access;
- possession protocol;
- condition survey;
- utility arrangements;
- temporary-work approvals;
- programme;
- security documents;
- lender approval;
- and emergency contacts.
A possession or site-handover protocol should record:
- date;
- site boundaries;
- keys and access devices;
- existing structures;
- visible condition;
- stored materials;
- utility readings;
- environmental conditions;
- and any excluded areas.
18Health and safety
Construction-site safety is governed principally by Decree-Law 273/2003 and general occupational health-and-safety legislation.
The legal structure may involve:
- the developer or owner;
- project authors;
- safety coordinator during design;
- safety coordinator during construction;
- executing entity;
- contractor;
- subcontractors;
- employers;
- and self-employed workers.
Appointment of a safety coordinator does not automatically release the other participants from their own obligations.
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Safety and health plan
The project must determine whether a safety and health plan is required and ensure that:
- it is prepared at the appropriate design stage;
- it is developed for the construction stage;
- it reflects the actual works and risks;
- and the required approval is obtained before the affected work begins.
For smaller works presenting particular risks, safety-procedure sheets may be required.
Prior notification of the construction site
The owner must make a prior notification to the labour inspectorate where the works are expected to involve:
- more than 30 days and, at any time, more than 20 workers simultaneously; or
- more than 500 worker-days in total.
Changes to the notified information must be managed in accordance with the applicable legislation.
Construction safety records
Maintain:
- contractor and subcontractor identification;
- worker records;
- insurance evidence;
- training;
- inductions;
- method statements;
- risk assessments;
- equipment inspections;
- accident records;
- safety meeting records;
- and corrective actions.
19Site administration
Effective contract administration depends on contemporaneous records.
The project should maintain:
- executed contract documents;
- approved design;
- revision register;
- site instructions;
- requests for information;
- contractor submissions;
- meeting minutes;
- progress reports;
- photographs;
- testing records;
- inspection records;
- non-conformity reports;
- payment applications;
- payment certificates;
- variation register;
- claim notices;
- delay records;
- weather records;
- labour and equipment records;
- safety records;
- and correspondence.
The site meeting should distinguish between:
- information;
- discussion;
- instruction;
- approval;
- commercial agreement;
- and matters requiring further authority.
Meeting minutes should not inadvertently approve a variation or waive a contractual right.
20The construction book
The construction book remains an important project record under the RJUE framework.
It may record matters including:
- commencement;
- technical responsibility;
- relevant site events;
- instructions;
- requests for design assistance;
- suspension;
- changes in technical personnel;
- and completion.
Under the current rules, the construction book is not itself an element to be submitted to the municipality at the end of the works. That does not mean it can be ignored or replaced by informal messaging, and the requirements should be rechecked for works affected by the RJUE changes entering into force on 1 October 2026.
21Progress reporting
A monthly report may include the following sections.
Executive status
- overall progress;
- forecast completion;
- current contract sum;
- forecast final cost;
- principal risks;
- and decisions required.
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Programme
- planned progress;
- actual progress;
- critical path;
- delay;
- recovery measures;
- long-lead items;
- and upcoming milestones.
Cost
- original contract sum;
- approved variations;
- pending variations;
- anticipated variations;
- certified payments;
- retention;
- claims;
- contingency;
- and forecast final account.
Design
- outstanding information;
- contractor submissions;
- overdue responses;
- design changes;
- and authority-related amendments.
Quality
- inspections;
- tests;
- non-conformities;
- defects;
- remedial work;
- and mock-up approvals.
Safety and environment
- incidents;
- observations;
- corrective actions;
- waste records;
- complaints;
- and regulatory visits.
The report should be consistent with information supplied to investors and lenders.
22Payment control
The contractor should submit a structured payment application supported by:
- valuation of completed work;
- measurements;
- invoices where required;
- evidence of stored materials;
- approved variations;
- updated programme;
- progress photographs;
- insurance evidence;
- tax or compliance documents where contractually required;
- and any lender-specific documentation.
The certifier should verify:
- work actually completed;
- contractual rates;
- materials properly stored;
- title or vesting of off-site materials;
- deductions;
- retention;
- advance recovery;
- previous payments;
- and disputed items.
Payment certification should not automatically constitute:
- acceptance of defective work;
- approval of a variation;
- confirmation of design compliance;
- or waiver of later rights.
The payment process should allow sufficient time for contractor submission, technical review, certification, lender monitoring, drawdown and payment by the contractual due date.
23Variations and change control
Construction changes are a major source of cost and delay.
A variation procedure should require:
- identification of the proposed change;
- confirmation of the person authorised to instruct it;
- description of the required work;
- contractor quotation;
- programme impact;
- design and planning review;
- lender or investor approval where required;
- written instruction;
- execution;
- verification and inclusion in the final account.
Emergency changes
The contract should define when the contractor may act without a prior written instruction to protect life, property, the works or the environment. The contractor should still provide immediate notice and supporting records.
Changes to the approved or submitted project
A contractual instruction does not determine whether a change is lawful under the RJUE.
Before altered work is executed, confirm whether the change:
- is exempt;
- can be communicated later;
- requires prior communication;
- requires amendment of the licence or other title;
- affects external consultations;
- affects the property-horizontal structure;
- affects use;
- or alters lender and buyer commitments.
The legal treatment must be established under the regime applicable when the change occurs.
24Claims and notice provisions
The contract should require prompt notice of events that may affect:
- price;
- time;
- quality;
- access;
- design;
- safety;
- or completion.
A claim should normally identify:
- contractual basis;
- event;
- date;
- cause;
- effect;
- contemporaneous records;
- mitigation;
- requested time;
- and requested amount.
A claim register should distinguish between:
- notice received;
- information outstanding;
- employer assessment;
- amount claimed;
- amount agreed;
- time claimed;
- time awarded;
- and dispute status.
Claims should not remain unresolved until the end of the project.
25Quality control
Quality should be managed during construction rather than inspected only at completion.
The quality plan may address:
- material approval;
- samples;
- mock-ups;
- inspection and test plans;
- hold points;
- witness points;
- factory inspections;
- delivery checks;
- installation checks;
- concealed-work inspections;
- laboratory testing;
- commissioning;
- non-conformity;
- corrective action;
- and final records.
Mock-ups
Use mock-ups for material or interface-sensitive elements such as:
- façades;
- waterproofing;
- windows;
- balconies;
- bathrooms;
- kitchens;
- hotel rooms;
- landscaping;
- and external paving.
The contract should define whether an approved mock-up establishes the required quality standard.
Concealed work
The contractor should give adequate notice before covering work that requires inspection. Opening completed work for inspection should be regulated by the contract, including responsibility for the associated cost where the work is compliant or defective.
Non-conformity
A non-conformity procedure should identify:
- the requirement not met;
- affected work;
- immediate protection;
- proposed correction;
- design approval where necessary;
- retesting;
- close-out;
- and cost responsibility.
26Testing and commissioning
Testing should be planned before the final stage of construction.
The commissioning programme may cover:
- electrical systems;
- water and drainage;
- heating, ventilation and air conditioning;
- fire-detection and protection systems;
- lifts;
- security and access control;
- telecommunications;
- pools and water-treatment systems;
- renewable-energy systems;
- irrigation;
- building-management systems;
- acoustic performance;
- airtightness;
- and equipment supplied by the operator.
Define:
- applicable standard;
- responsible party;
- prerequisites;
- test method;
- attendance;
- acceptance criteria;
- failure procedure;
- retesting;
- records;
- and training.
Systems should be tested as an integrated building, not only as isolated items.
27Utilities and infrastructure
Completion may depend on third parties that are not controlled by the contractor.
Track:
- electricity;
- water;
- drainage;
- gas;
- telecommunications;
- road access;
- public lighting;
- fire-service access;
- and municipal or private infrastructure.
For each connection, identify:
- application;
- design approval;
- payment;
- physical works;
- inspection;
- energisation or activation;
- metering;
- and permanent contract.
Temporary supply should not be assumed to satisfy permanent completion or operational requirements.
28Environmental and waste management
Construction and demolition waste is governed by the General Waste Management Regime and specific rules applicable to construction and demolition waste.
The project should identify:
- the waste producer;
- contractor responsibilities;
- waste categories;
- hazardous materials;
- on-site separation;
- storage;
- authorised transport;
- licensed destination;
- electronic tracking documents;
- reuse;
- recycling;
- and completion evidence.
Materials that cannot be reused and become construction and demolition waste must generally be separated on site into the applicable material streams for recycling or other recovery.
Records should reconcile waste removed from the site with the authorised recipient and applicable electronic transport documentation.
Special procedures may be required for:
- asbestos;
- contaminated soil;
- hazardous waste;
- groundwater;
- protected species;
- archaeological discoveries;
- noise;
- dust;
- and construction near water resources or protected areas.
29Neighbours and third-party rights
Before construction, determine whether the project requires:
- crane oversailing rights;
- scaffold licences or agreements;
- temporary access;
- party-wall arrangements;
- underpinning access;
- protection works;
- utility easements;
- road closures;
- traffic management;
- or use of neighbouring property.
Carry out condition surveys where the works may affect adjoining property.
The contract should establish responsibility for:
- complaints;
- damage;
- vibration;
- dust;
- noise;
- working hours;
- access obstruction;
- and third-party claims.
Planning approval does not automatically create private rights over neighbouring property.
30Lender monitoring during construction
Where development finance is used, the lender may appoint a monitoring surveyor or technical adviser.
The monitoring process may review:
- progress;
- cost incurred;
- approved budget;
- variations;
- contingency;
- programme;
- quality;
- planning status;
- insurance;
- sales;
- and cost to complete.
The lender's monitoring does not replace:
- the employer's supervision;
- the contractor's responsibility;
- the statutory director of works;
- or the statutory director of works supervision.
The contract-administration timetable should accommodate lender review before payment becomes due.
31Contractor distress and insolvency
Warning signs may include:
- reduced labour;
- unpaid subcontractors;
- requests for accelerated payment;
- delayed material orders;
- withdrawal of credit insurance;
- failure to renew guarantees;
- repeated programme slippage;
- unexplained changes in management;
- and abandonment of parts of the site.
The employer should maintain current records of:
- work completed;
- payments;
- materials on site;
- off-site materials;
- subcontractors;
- design documents;
- plant;
- temporary works;
- security;
- and site access.
The contract should establish what happens following default or insolvency, including:
- notice;
- suspension of payment;
- protection of the site;
- termination;
- use of designs;
- assignment or novation of subcontracts;
- ownership of materials;
- calling security;
- removal of equipment;
- and completion by others.
Termination should not be issued without checking the contractual procedure, finance documents, security instruments, insolvency rules and practical completion strategy.
32Completion is not a single event
The project should distinguish between the following milestones.
Physical completion
The works are substantially constructed.
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Contractual completion
The contractual completion criteria have been satisfied and the relevant certificate or acceptance document is issued.
Completion with outstanding items
Minor items may remain where the contract permits completion notwithstanding those items. They should be recorded in a dated list with responsibility and deadlines.
Sectional or phased completion
Identified parts of the project may be completed and handed over separately.
The contract should address:
- access;
- insurance;
- utilities;
- shared systems;
- security;
- maintenance;
- testing;
- and responsibility for damage.
Completion for use
The required municipal submission or procedure has been completed and any other sector-specific requirements for the intended activity are satisfied.
Handover
Possession, keys, systems, documents and operational responsibility pass to the employer, buyer, tenant or operator.
Final completion
Outstanding defects are remedied, the final account is agreed, remaining retention or security is released and the contractual close-out requirements are completed.
These milestones should not be treated as interchangeable.
33Current completion and use procedure
As at 21 August 2026, where a building or fraction has been completed following an urban operation subject to prior control, Article 62-A of the RJUE generally requires delivery to the municipality of a responsibility statement signed by the director of works or director of works supervision declaring that the works are complete and were executed in accordance with the project, together with final drawings where changes to the project occurred, with the changes appropriately identified.
Under the current regime, the intended use may generally begin immediately after the required documents are submitted.
This procedure should not be interpreted as:
- confirmation that every technical requirement has been satisfied;
- approval of unlawful project changes;
- replacement of sector-specific operating requirements;
- replacement of fire-safety, energy, utility or technical certification;
- or immunity from municipal inspection and enforcement.
From 1 October 2026, Decree-Law 108/2026 will alter the procedural framework and supporting documentation. Each project approaching completion after that date must follow the regime and forms then applicable.
34Completion inspections
Before contractual completion, conduct a coordinated inspection covering:
- architecture;
- structure;
- waterproofing;
- façades;
- mechanical systems;
- electrical systems;
- fire safety;
- lifts;
- pools;
- landscaping;
- roads;
- drainage;
- common areas;
- individual units;
- operator areas;
- and external infrastructure.
The inspection should record:
- incomplete work;
- defects;
- damage;
- missing documents;
- failed tests;
- outstanding approvals;
- and items preventing safe use.
The contract should state who decides whether the completion standard has been achieved. Taking possession or allowing occupation without a written reservation may affect the parties' legal and evidential position.
35The handover package
The contractor's handover obligations may include the following.
Legal and administrative documents
- contractor details;
- technical responsibility statements;
- completion submissions;
- authority correspondence;
- certificates;
- and evidence relating to project changes.
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Design and construction records
- final architectural drawings;
- final engineering drawings;
- as-built drawings;
- coordinated service drawings;
- specifications;
- product data;
- and BIM or digital models where required.
Testing and commissioning
- test certificates;
- commissioning reports;
- balancing reports;
- inspection reports;
- and system acceptance records.
Operation and maintenance
- operating manuals;
- maintenance schedules;
- warranties;
- supplier contacts;
- spare-parts lists;
- consumables;
- and recommended replacement periods.
Safety
- technical safety file;
- residual-risk information;
- emergency procedures;
- equipment records;
- and information required for future maintenance or alteration.
Asset information
- equipment registers;
- serial numbers;
- warranties;
- keys;
- access credentials;
- software licences;
- and building-management-system data.
Training
- operator training;
- facilities-management training;
- emergency training;
- and attendance records.
The employer should define the required format, language, digital structure and review process before the works reach completion.
36Technical and operational certifications
Depending on the project, completion may require documents relating to:
- energy performance;
- fire safety;
- electrical installations;
- gas;
- telecommunications;
- lifts;
- acoustic requirements;
- water systems;
- pools;
- equipment;
- accessibility;
- environmental conditions;
- tourism use;
- healthcare use;
- commercial use;
- or another regulated activity.
A municipal completion submission does not automatically authorise every business or operational activity intended for the building. The operator's requirements should be integrated into the completion matrix from the beginning of construction.
37Defects and contractor liability
The Portuguese Civil Code regulates defects in construction contracts.
The contractor must execute the works:
- in accordance with the contract;
- without defects that exclude or reduce their value;
- and without defects that prevent ordinary or contractually intended use.
Before accepting the works, the employer should verify whether they comply with the contract and are free from defects. Acceptance without reservation, particularly where defects are known or apparent, can affect the employer's rights.
General defects
Depending on the circumstances, the employer's rights may include:
- elimination of defects;
- reconstruction where legally applicable;
- reduction of price;
- termination where the legal conditions are met;
- and compensation.
Statutory notice and limitation periods can be short and must be monitored immediately when a defect is discovered.
Buildings and other long-duration immovable works
Article 1225 of the Civil Code contains a specific regime where a building or other long-duration immovable work collapses, partially collapses, presents serious defects or creates a risk of collapse, due to a defect in the ground, construction, modification or repair.
The statutory period is generally five years from delivery, unless a different contractual warranty period applies. The associated notice and action periods must also be observed.
The construction contract should not merely state that “the legal warranty applies”. It should define:
- contractual defect periods;
- notification process;
- response times;
- emergency intervention;
- access;
- investigative responsibility;
- remedial programme;
- repeated defects;
- recovery of costs;
- and effect on security and retention.
38Contractor warranties and buyer warranties are different
The developer's rights against the contractor are not necessarily identical to the rights of a future purchaser against the developer.
Where a professional sells a residential property to a consumer, Decree-Law 84/2021 provides a separate conformity regime. The professional may be responsible for non-conformities manifesting within 10 years for structural construction elements and five years for other non-conformities.
The construction contract should therefore be designed so that the developer can, where legally and contractually possible, recover from the responsible contractor, designer or supplier. Review:
- warranty duration;
- assignment;
- third-party rights;
- direct recourse;
- product guarantees;
- contractor survival;
- professional insurance;
- evidence preservation;
- and contractual limitation provisions.
A two-year contractor defect period may not protect a developer that remains exposed to purchasers for a substantially longer period.
39Defects management after handover
Establish a defects system that records:
- date reported;
- location;
- description;
- photographs;
- affected buyer or operator;
- urgency;
- responsible contractor;
- response deadline;
- access arrangements;
- remedial action;
- retesting;
- close-out;
- and repeated occurrence.
Separate:
- emergency defects;
- safety defects;
- water ingress;
- system failures;
- common-area defects;
- individual-unit defects;
- cosmetic items;
- misuse;
- maintenance failures;
- and design defects.
The developer should not wait until the end of the contractual defects period to issue a consolidated list if immediate notice is required.
40Indicative construction and delivery sequence
- Step 1 — Confirm construction readiness: verify planning, design, land, finance, utilities and project-team requirements.
- Step 2 — Select the procurement route: determine how design, price, programme and interface risk will be allocated.
- Step 3 — Prepare the tender package: complete and coordinate the design, scope, pricing documents and proposed contract.
- Step 4 — Prequalify contractors: verify legal qualification, experience, financial capacity, safety and resources.
- Step 5 — Run and evaluate the tender: normalise price, scope, qualifications, programme and commercial departures.
- Step 6 — Negotiate and execute the contract: agree the final scope, price, programme, security, insurance and completion requirements.
- Step 7 — Complete pre-commencement requirements: satisfy municipal, lender, safety, insurance and technical conditions.
- Step 8 — Mobilise and commence: document site possession and implement administration and reporting systems.
- Step 9 — Control construction: manage design, progress, payment, quality, safety, changes, claims and risk.
- Step 10 — Test and commission: verify individual systems and their integrated operation.
- Step 11 — Complete the works: inspect, identify defects and confirm the contractual completion criteria.
- Step 12 — Complete the use procedure: submit the legally required documents and satisfy project-specific operating requirements.
- Step 13 — Handover: transfer the asset, systems, documents, access and operating responsibility.
- Step 14 — Manage defects and close-out: complete remedial work, agree the final account and release security only when justified.
41Construction and delivery cost categories
Allow for:
- main construction contract;
- early works;
- specialist packages;
- design completion;
- design review;
- project management;
- works supervision;
- cost management;
- safety coordination;
- surveys and testing;
- utility connections;
- temporary supplies;
- municipal charges;
- insurance;
- bonds and guarantees;
- lender monitoring;
- site security;
- environmental management;
- waste;
- commissioning;
- operator requirements;
- mock-ups;
- samples;
- defects;
- contingency;
- inflation;
- finance during delay;
- and legal or expert support for claims.
The forecast should distinguish between:
- original contract value;
- committed cost;
- paid cost;
- approved changes;
- anticipated changes;
- claims;
- contingency;
- and forecast final cost.
The construction and delivery decision gate
Proceed to unrestricted construction only when the following questions can be answered:
- Authority to build: is the correct planning route confirmed, the relevant title, communication or exemption effective, the applicable charges paid, the pre-commencement submissions ready and the authorised construction period understood?
- Contractor: is the contractor legally qualified, is its IMPIC status appropriate and current, has financial capacity been assessed, is the proposed project team available and are critical subcontractors identified?
- Contract: is the scope complete, is document priority established, is design responsibility allocated, is the price mechanism understood, are payment, change and delay procedures workable and are termination and insolvency provisions adequate?
- Finance and security: is construction funding available, are lender conditions satisfied, is contingency sufficient, are guarantees in place and is the insurance programme effective?
- Programme: is there an approved baseline programme, are long-lead items identified, are authority and utility periods included, are phased-completion interfaces controlled and does the programme match financing and sales commitments?
- Quality and completion: is there a quality plan, are inspection and testing requirements defined, are completion criteria objective, is the handover-document list agreed, is the use and operational-approval route confirmed and are defects and downstream buyer liabilities addressed?
If the contractor has commenced work while critical scope, design, price or authority matters remain unresolved, the project has not achieved true construction readiness.
Principal construction risks
- Incomplete or uncoordinated tender design converted into variations, claims and loss of price certainty.
- Contractor without current and appropriate IMPIC entitlement, capacity or financial standing.
- Design responsibility left undefined between the design team, contractor and specialist subcontractors.
- Unrecorded verbal instructions and progress-meeting decisions treated as contract administration.
- Changes executed on site without confirming their treatment under the RJUE.
- Guarantees, bonds or insurance expiring before delayed completion.
- Contractor distress or insolvency mid-programme.
- Late testing and commissioning revealing interface failures near the completion deadline.
- Occupation permitted before the legal and technical completion route is complete.
- Contractor defect periods shorter than the developer's liability to residential purchasers.
Indicative timing
Construction periods vary substantially according to project type, scale, site conditions, design maturity, procurement structure, planning conditions, utilities, contractor availability and market conditions.
As broad initial assumptions:
- tender preparation: 4–12 weeks;
- contractor tender period: 4–10 weeks;
- tender evaluation and negotiation: 3–8 weeks;
- contract execution and mobilisation: 2–6 weeks;
- small refurbishment: 3–9 months;
- substantial residential refurbishment: 8–18 months;
- new residential building: 12–30 months;
- larger resort, hotel or mixed-use project: 18–48 months or longer;
- testing, completion and handover: 1–4 months;
- contractual defect-management period: commonly 12–24 months, without prejudice to longer statutory or contractual liability.
These periods are not statutory deadlines and should not be used without a project-specific programme.
Common construction and delivery mistakes
- 1Selecting the contractor only by price: an unqualified low tender may exclude essential work or depend on unrealistic assumptions.
- 2Tendering incomplete design as a fixed-price project: a lump-sum label does not correct missing information.
- 3Failing to verify the contractor's IMPIC status: reputation does not replace current legal qualification.
- 4Starting under a letter of intent: an unclear letter can create binding obligations without a complete risk allocation.
- 5Using “design and build” without defining design responsibility.
- 6Allowing verbal variations, creating uncertainty over authority, price, time and scope.
- 7Certifying payment without adequate evidence of completed work or secured off-site materials.
- 8Treating progress meetings as contract administration.
- 9Ignoring municipal treatment of project changes.
- 10Treating safety as solely the contractor's responsibility.
- 11Leaving commissioning until the end of the programme.
- 12Allowing occupation before the legal and technical route is complete.
- 13Accepting the works without reservations.
- 14Releasing retention or guarantees too early.
- 15Failing to align contractor liability with downstream buyer liability.
- 16Treating the lender's monitoring as quality supervision.
- 17Waiting until final account to assess claims.
Construction and delivery checklist
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Frequently asked questions
Must the contractor hold a Portuguese construction licence?
The contractor must hold the construction entitlement applicable under Law 41/2015. Depending on the contractor and works, this may be an IMPIC alvará, certificate, registration or another legally recognised form of entitlement. Foreign registration in another country should not be assumed to permit construction in Portugal without the required Portuguese process.
Must a private construction contract be in writing?
Private construction and subcontracting contracts exceeding the statutory threshold in Article 26 of Law 41/2015 must be reduced to writing and include specified minimum information. Material development contracts should always be fully documented in writing, even where the statutory threshold is not met.
Is a fixed-price contract always fixed?
No. The price may still change through variations, provisional sums, defined employer-risk events, price adjustment, changes in law or other contractual mechanisms. Price certainty depends on both the drafting and the completeness of the scope.
Can the contractor start before the full contract is signed?
Only with considerable caution. Any early instruction should define the authorised work, price, maximum exposure, design, programme, insurance, safety, ownership of materials, termination and what happens if the main contract is never signed. Legal authority to commence the relevant work must already exist.
Who is responsible for design errors?
It depends on the appointments and construction contract. Responsibility may remain with the developer's design team, the contractor, a specialist subcontractor or more than one party. Review or approval by another party does not necessarily transfer responsibility.
Is the director of works the same as the director of works supervision?
No. The director of works is connected to the execution of the works by the contractor. The director of works supervision independently verifies execution on behalf of the project, within the applicable statutory framework.
Does the safety coordinator become responsible for every site accident?
No. The safety coordinator has defined legal functions, but its appointment does not remove the separate responsibilities of the owner, executing entity, contractors, employers, designers and other participants.
Can a contractor carry out unapproved changes and regularise them at completion?
Not as a general rule. The treatment depends on the nature of the change and the RJUE regime applicable at the time. Some changes may be dealt with through a later communication, while others require prior amendment or another procedure before the altered work is executed.
Does the municipality approve construction quality?
Municipal control and inspection do not replace the contractor's responsibility, the director of works, works supervision, design responsibility, testing or the employer's contractual quality controls.
Can the building be used immediately after physical completion?
Not solely because the physical works appear complete. The applicable completion and use documents must be submitted, and any fire-safety, energy, utility, tourism, commercial, healthcare or other sector-specific requirements must also be satisfied.
Is an “occupancy licence” still required?
Under the regime applicable on 21 August 2026, use following works subject to prior urban control is generally based on submission of the documents required by Article 62-A rather than a traditional permissive authorisation. The terminology and procedure will change again under the revised RJUE from 1 October 2026, so the specific route must be confirmed for the project and date in question.
Does contractual completion mean the works have no defects?
Not necessarily. A contract may permit completion with minor outstanding items that do not prevent the intended use. The items should be identified, reserved and remedied within defined periods.
How long is the contractor responsible for defects?
The answer depends on the type of defect, the Civil Code, contractual warranties, date of discovery, notice periods, acceptance and the parties involved. Serious defects in buildings and other long-duration immovable works are subject to the specific regime in Article 1225 of the Civil Code.
Do residential buyers have the same warranty as the developer has against the contractor?
No. Consumer buyers may benefit from the separate regime in Decree-Law 84/2021, including 10 years for structural construction elements and five years for other non-conformities. The developer's contract with the contractor should be structured with these downstream liabilities in mind.
Can retention be withheld until every defect is repaired?
Only in accordance with the contract and applicable law. The contract should establish the retention amount, permitted deductions, release stages and relationship with outstanding defects.
Does the lender approve each variation?
Only if required by the finance documents. Lender consent may be required for changes affecting cost, programme, design, value, planning, sales or contingency. The construction-contract procedure and lender-approval process should be coordinated.
Tools for this phase
Procurement Route Selector
Compare traditional, design-and-build, construction-management, multiple-package and turnkey structures.
Select the delivery routeContractor Due Diligence Tool
Organise IMPIC status, experience, financial capacity, team, safety and subcontractor checks.
Review the contractorPayment and Progress Tracker
Compare planned progress, completed work, certified amounts, retention and forecast final cost.
Track construction progressConstruction Programme Builder
Plan tender, mobilisation, construction, testing, completion and handover periods.
Build the construction programmeCompletion and Handover Builder
Organise inspections, testing, statutory documents, manuals, warranties, training and defects.
Build the handover planNext phase
08 — Sales, Operation & Exit
Convert the completed development into sales proceeds, operating income or an investment exit. The next phase explains pre-sales, buyer contracts, consumer obligations, leasing, operator readiness, property-horizontal structures, handover to purchasers, stabilised operation, refinancing and project disposal.
Continue to Sales, Operation & ExitLegal support through VVA
Deliver the project through a legally controlled construction process
VVA can support investors, developers, family offices, funds, landowners and operators throughout the procurement, construction, completion and handover of Portuguese real estate developments. Support may include procurement strategy, tender documentation, contractor due diligence, construction contracts, design-and-build structures, early-works agreements, letters of intent, professional appointments, project-management agreements, works-supervision appointments, development-management agreements, performance bonds, advance-payment guarantees, parent-company guarantees, insurance review, direct agreements, lender requirements, construction changes, payment and certification disputes, delay and extension-of-time claims, contractor default, subcontractor issues, termination, contractor insolvency, completion, use documentation, phased handover, defects, final account, downstream buyer warranties and construction dispute resolution.
Legal services are provided by Valente Veiga & Associados.
Official sources and further reading
- Portuguese Civil Code — construction contracts, Articles 1207 to 1230
- Law 41/2015 — construction activity and contractor qualification
- IMPIC — private-works contractor register
- Law 31/2009 — professional qualifications, duties and responsibility
- Decree-Law 273/2003 — construction-site health and safety
- ACT — construction-site safety
- RJUE — Legal Framework for Urbanisation and Building
- Decree-Law 10/2024 — urban-planning simplification
- Decree-Law 108/2026 — revised RJUE
- Decree-Law 155-B/2026 — postponement to 1 October 2026
- Decree-Law 102-D/2020 — General Waste Management Regime
- APA — construction and demolition waste
- Decree-Law 101-D/2020 — building energy performance
- Decree-Law 84/2021 — consumer conformity and residential property
Last reviewed: 21 August 2026
This page provides general information about procurement, construction contracts, project delivery, completion and defects in Portugal. It does not constitute legal, architectural, engineering, safety, environmental, insurance, tax, investment, financial, cost-management or project-management advice. The applicable requirements depend on the property, project, contract, parties, procurement structure, municipality, construction date, intended use and transitional legislation. Obtain project-specific professional advice before appointing a contractor, commencing works, issuing an instruction, certifying payment, changing an approved project, accepting the works, permitting occupation, terminating a construction contract or releasing security.

