What are your responsibilities as a property owner when renovating or doing home improvements?
With the high cost of labour and materials, many property owners seeking to renovate their properties often look at using unregistered or unlicensed workers to carry out their renovation. Although this helps smaller companies and individuals, it comes with some serious risks to the property owner.
A registered builder or construction company is issued an Alvará or Licence, which determines the scale of the project they are licensed to carry out. Applying for these licences is costly and the respective insurances are high, which unfortunately results in these costs filtering down to the property owner. Under Portuguese law, the property owner is considered the Dono de Obra which translates to the “owner of construction” and thereby being solely responsible for the project or renovation.
When carrying out a renovation, several parties are involved: the owner, designer, contractor and supervisor. In this way, they form a multidisciplinary team with legislated rights, obligations and responsibilities. The Owner is the entity that holds the investment and, with it, all the responsibility for ensuring that the entire process develops legally.
In terms of safety on site, according to legislation, the owner has the following obligations:
- To ensure that the Contractor is certified and registered to execute any construction or renovation work
- To guarantee that the Work Accident Insurance Policies cover all workers involved in the project. This means that a registered or licensed contractor assumes all responsibility for those on-site and ensures everyone’s safety. Not having this insurance results in all the responsibility being passed on to the owner. These compensation claims can reach hundreds of thousands of euros and include disability claims that span several years.
Construction of a new project or a more complex rehabilitation project is a process involving the owner and results in legal responsibilities. As a property owner, failing to comply with the legislation can result in severe fines and, in some instances, criminal prosecution.
Always seek specialised and independent advice to ensure that your investment is protected by law. By avoiding unexpected setbacks and legal constraints, you are helping to protect your investment.
