{"id":5726,"date":"2026-10-17T14:31:46","date_gmt":"2026-10-17T13:31:46","guid":{"rendered":"https:\/\/araujoassociados.pt\/real-estate-law\/construction-delays\/"},"modified":"2026-10-17T14:31:46","modified_gmt":"2026-10-17T13:31:46","slug":"construction-delays","status":"publish","type":"post","link":"https:\/\/araujoassociados.pt\/en\/real-estate-law\/construction-delays\/","title":{"rendered":"Delays in the Works – Rights of the Client"},"content":{"rendered":"\t\t
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Delay in completing works – whether new construction, renovation or repair – is one of the most common sources of dispute in construction contracts (contratos de empreitada<\/em>), with legal consequences that can range from simple compensation to termination of the contract. The applicable regime depends, to a large extent, on what has been written into the construction contract, so the way it is drafted has a direct impact on the protection of the client (dono de obra<\/em>) in the event of delay. This article forms part of the Real Estate Law<\/a> area of Ara\u00fajo & Associados.<\/p>\n

When the contractor is in default<\/h2>\n

Under Article 804 of the Civil Code, the contractor is deemed to be in default (mora<\/em>) when, for a reason attributable to it, completion of the works, which is still possible, is not carried out within the due time. How that default arises depends, however, on whether or not the contract fixed a specific completion date: if the contract contains a specific date, the contractor falls into default automatically from that date, without need for any notice or formal demand, pursuant to Article 805(2)(a) of the Civil Code; if the contract does not fix a specific date, it is necessary to serve a formal demand on the contractor, in writing, requiring performance, pursuant to Article 805(1). This distinction is often decisive: without a completion date written into the contract, the client may not be entitled to any legal effect of the delay until it formally serves a demand on the contractor.<\/p>\n

Delay penalty clause – what it is and how it works<\/h2>\n

It is common, and advisable, for construction contracts to include a penalty clause for the case of delay in completing the works, typically fixing an amount for each day or week of delay. This clause has the advantage of relieving the client of having to prove the specific loss suffered, it being sufficient to demonstrate the delay and the failure to meet the contractual deadline. It is important to distinguish two types of penalty clause, with different legal effects: the delay penalty clause (cl\u00e1usula penal morat\u00f3ria<\/em>), intended to penalise mere delay, which is cumulative with the right to require completion of the works; and the compensatory penalty clause (cl\u00e1usula penal compensat\u00f3ria<\/em>), intended to replace compensation in the event of definitive non-performance, which cannot be combined with a demand for performance of the main obligation. Whether a specific clause qualifies as a delay or compensatory clause depends on the interpretation of the contract, so it is important that the wording of the clause is clear as to its purpose.<\/p>\n

The client’s rights in the event of delay<\/h2>\n

Faced with a delay attributable to the contractor, the client generally has more than one course of action available, which are not necessarily mutually exclusive:<\/p>\n