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Prevision of Delay in Brazilian Residential Unit Construction Contracts



Author(s)

Estacio Siemann Santos Pereira, Cristine do Nascimento Mutti and Antonio Edesio Jungles

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DOI:10.17265/1934-7359/2014.01.011

Department of Civil Engineering, Federal University of Santa Catarina, Santa Catarina 88037-000, Brazil

The aim of this paper is to verify the existence of a clause in contracts of promise of property sale which defines the consequences of delay in the delivery of property, and to discover whether owners demanded any compensation for delays occurred. The number of buildings delivered after the scheduled deadline in two cities between December 2009 and January 2011 was found (n = 542), and a sample of 82 residential units was taken. In order to obtain the data, a semi-structured questionnaire was given to the homeowners. It was observed that only 35% (n = 29) of the contracts included a penalty clause for delay. However, in 19 of the 29 contracts the clause regarding delay came with other clauses that allowed the company to delay the delivery of the building for up to six months. This clause is considered null in Brazilian legislation. As for compensation, only one (1.82%) owner demanded that the company provide a rental property during the period of delay. It could be concluded that contractors are not observing Brazilian legislation regarding the delay in the delivery of residential units. In addition, conformism is perceived in the attitude of the homeowners.

Delay, contracts, buildings.