REALWorld Law

What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?

The provisions of the Commercial Code concerning contracts for work are mostly of a non-mandatory nature so parties are free to contract. On the basis of experience, construction companies have evolved their own standard form contracts that they tend to rely on.

International forms of contract prepared by FIDIC are becoming increasingly relevant in Slovakia, although they have not been adopted in statute. The ideas of FIDIC are being promoted by an interest association of legal entities called the Slovak Association of Consulting Engineers.

Last modified 23 Apr 2026

What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?

The main parties involved in a construction project are:

• Employer/client: This is the party who will procure the work (typically, a land owner or developer). In relation to building contracts, this party is usually referred to as the 'employer'. Where the employer is a public authority, it is referred to as the 'public procurer' or the 'contracting authority'.
• Contractor: A main building contractor is engaged by the client to carry out and complete the works. The contractor will usually then in turn engage subcontractors to carry out and complete parts of the works. Contractors may also take responsibility for the design of all or part of the works they are to execute, depending upon the procurement method and/or contract used.
• Funder: This is the term used to describe the banks and other institutions and parties (for example, government, or charitable organizations in the case of urban regeneration, infrastructure and cultural/sports projects) who provide finance to the client to fund the development. The funder will require security in return for the financial assistance. Depending upon the size of the project, the funder may be a single bank or a syndicate of banks.

Last modified 23 Apr 2026

What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?

There is a difference between the legal regimes and regulations related to:

• The Commercial Code, under which if the contractor creates a building on property belonging to the client or on property that the client has obtained, the client bears the risk of damage. In the case of reconstruction or adjustment of a building, the client bears the risk of damage as well. These provisions are of a non-mandatory nature and therefore can be modified by the contractual parties.
• The Civil Code, under which if a building is being constructed upon the order of the client, the contractor bears the risk of damage or destruction of the building until the moment of handing over the building to the client

Force majeure

Provisions of Civil Code provide that the party liable for the damage can exclude its liability if it proves that it did not cause the damage.

Under the provisions of the Commercial Code, the party bearing the risk of damage is liable regardless its culpability. An event of force majeure is deemed to be a reason for exclusion of the liability.

The effect of the circumstances of force majeure will apply only during the period of existence of such circumstances.

An event of force majeure does not exclude the liability of the party if this party is in default.

The aggrieved party will not be entitled to compensation for damage if the non-performance of obligations by the liable party was caused by the conduct of the aggrieved party itself or due to a lack of co-operation to which the aggrieved party was obliged.

Last modified 23 Apr 2026

What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?

The Slovak Government encourages municipalities as well as the private sector to use public-private partnerships (PPPs) as a way of procuring public services. Government support for PPPs is particularly strong in relation to public infrastructure projects.

The Ministry of Finance of the Slovak Republic has initiated, and intends to further initiate, several studies for the application of the PPP procurement procedure under Slovak laws. One of the first and largest pilot projects relates to the D1 highway, which has been supported by the Slovak Government during its realisation phase. In 2025, the Ministry of Transport of the Slovak Republic also continued to advance and prepare additional PPP projects, particularly in the field of transport infrastructure.

Last modified 23 Apr 2026

What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?

Contracts for work governed by the Civil Code can establish the price either determined as a fixed price (eg price on budget) or as a price determined by estimation. The fixed price can be expressed as a whole price or as a price of a specific unit of measurement. It cannot be increased without the consent of the client and any costs not included can only be invoiced upon a written approval of the client.

In accordance with the Commercial Code, it is at the discretion of the contractual parties whether to agree on a fixed price, or to stipulate another method for determining the price. However, if the parties agree amendments to the extent of the works, the price shall be adjusted accordingly. Furthermore, if the parties agree, after the conclusion of the contract, to amend the works without reflecting this change in the price, the client will be bound to pay a higher or lower price in relation to the amendment(s), whilst taking into account the difference in the extent of the necessary activities and the reasonable costs arising from the amendments to the work.

Last modified 23 Apr 2026

What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?

Contractors may obtain a special type of building insurance cover – building-and-assembly insurance. This type of insurance is suitable for investors, contractors and subcontractors as all of these parties can incur damage or cause damage to others during a construction project.

Building-and-assembly insurance deals with the specification of the building (such as location) and the potential risks arising from the construction process. It is currently a condition precedent for banks and other institutions providing money for construction projects.

Building-and-assembly insurance offers complex protection against the following risks:

• Buildings under construction;
• Technological equipment and facilities of the constructed work;
• Assembly equipment; and
• Tools, instruments and other objects on the building site.

The insurance covers damage that arises in relation to:

• Natural catastrophes;
• Theft or accidents;
• Negligence of the worker; and
• Traffic on the building site.

In addition, all contractors must obtain employer's liability insurance which covers loss, damage, injury or disease caused to an employee of the company.

Architects and engineers are obliged to take out liability insurance for the damage caused in relation to the execution of their activities.

Last modified 23 Apr 2026

What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?

Guarantees from a building contractor's parent or ultimate holding company are not typically used in Slovakia.

The most common securities are:

• A mortgage over the relevant construction work;
• Establishment of a pledge over claims resulting from contracts or accounts; and
• Assignment of claims.

Slovak law also recognizes bank guarantees, bills of exchange, securing transfer of right and the institute of suretyship.

Pledge rights can be over:

• An asset;
• A right;
• Another property value;
• A flat;
• Non-residential premises;
• A set of assets;
• A set of rights or other property values; or
• An ongoing enterprise or its part.

as well as over an asset, right, other property value, flat or non-residential premises, which may be acquired by a pledgor in the future.

Pledge rights and mortgage (in case of real estate) are established upon a written agreement and are created in the moment of registration with the respective pledge right register (Land/Cadastral Register, Notary Central Register of Pledge Rights, Commercial Register, in case of securities the Register of Pledge Rights to Securities of the Central Depository of Securities).

However, the requirement for written form is not necessary for:

• The creation of a pledge right over movable assets which will be handed over to the pledgee or to a third person for storage.
• When a pledge right is established over receivables from a bank account between subjects stipulated by the Civil Code (eg banks, securities brokers, insurance companies).

The performance of a construction contract obligation may be secured by a temporary transfer of the debtor's right or third person's right to the creditor (“securing transfer of right”). This type of security relies on the fact that the ownership right to a particular asset is temporarily transferred to the creditor. The agreement for securing a transfer of right must be in writing and shall contain specific details of the secured obligation and specification of the right that is being transferred for the benefit of the creditor, rights and obligations of the participants of the agreement in relation to the transferred right during the term of the securing transfer of right, its appraisal in money, performance of the securing transfer of right and the lowest bid in case of a voluntary auction. In the case of a transfer of right of a person other than the debtor, the agreement securing the transfer of right has to contain the designation of the debtor as well.

Until the cessation of the securing transfer of right, the creditor shall neither be entitled to transfer the transferred right to another person, nor to encumber it in the interests of another person. Should the subject-matter of the agreement on securing transfer of right be a real estate, the cadastral administration shall mark this fact by making a note in the Cadastral Register.

Suretyship is established by a written declaration of the guarantor addressed to the creditor in which the guarantor takes over the obligation to settle the claim of the creditor in the event the debtor fails to comply with the obligation. Unless agreed otherwise, the guarantor is liable for the whole of the debt. The basic condition for suretyship is that the related declaration must be in writing, to be valid.

In the case of a bill of exchange, Slovak law provides for strict formal requirements (eg: written form) the lack of which causes invalidity.

Last modified 23 Apr 2026

What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?

Methods of payment will vary according to the works. The four main types of payment are:

• Lump sum: A pre-agreed sum that the contractor/consultant/subcontractor will be paid to carry out either a part or all of the works as required under the contract
• Measurement: The work is measured and valued according to a schedule or formula
• Prime cost: Payment is made for the costs of the labour and materials used
• Cost plus: Payment is based on prime cost plus an added percentage for profit

Under the contract, the client will be bound to pay the contractor the price within the agreed time period. Unless the contract or Slovak law provides otherwise, entitlement to payment arises following the execution of the work. However, this does not prohibit the parties agreeing on another payment time or method, for example, a payment made following the approval of the completed works.

Last modified 23 Apr 2026

What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?

Generally, under the provisions of the Commercial Code, the contractor executes and completes the works within the agreed time period or if the period is not stipulated in the contract, within a reasonable time period with regard to the nature of the works. Unless the contract or the nature of the works provides otherwise, the contractor may complete the works prior to the agreed time. Completion of the works will result in the handing over of the object of the works to the client at the agreed place. The parties may agree a fixed date for completion of the works in the contract for work.

In compliance with the provisions of the Commercial Code, in the event of delay by the contractor, the client is entitled to withhold performance of its obligations (eg payment of the price). If completion of the works is delayed by the contractor, the client may withdraw from the contract. If the client does not use his right to withdraw from the contract, the contractor may complete the works and will therefore have fulfilled his obligation under the contract. However, the delay of the contractor in meeting his contractual obligation to complete the works shall not affect any right of the client for damages. The client may therefore claim for damages and also for a possible contractual penalty, if agreed in the contract, against the contractor even if he has not exercised the right to withdraw from the contract.

The delay also affects the transfer of the liability for damage.

Last modified 23 Apr 2026

What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?

Variations to the specification for engineering or construction works will affect the price.

If the contract for work is under the Civil Code, it has to be differentiated between a fixed price and a price on estimation. An increase of the fixed price can be pursued only with the consent of the client, otherwise it is entitled to withdraw from the contract. In the case of a price on estimation, the contractor shall inform the client of any substantial excess of the price (by at least 10 percent to 20 percent of the original price) in writing. If it neglects to do so, it is not entitled to the increased payment. After notification of a new increased price, the client is entitled to withdraw from the contract. The withdrawal has no effect on the obligation to pay the price works already carried out according to the price previously determined.

The Commercial Code distinguishes between quantitative and qualitative changes to the works, with the following effect on the price of the works:

• If, following the conclusion of the contract, the parties agree on a diminution of the scope of works, but cannot agree on the effect of such change on the price, the client is obliged to pay a reasonably decreased price. If, similarly, the parties agree an extension of the scope of works, the client will pay a reasonably increased price.
• If, following the conclusion of the contract, the parties agree to change the works, but fail to agree on the effect on the price, the employer will be obliged to pay a higher or a lower price according to the change(s), whilst taking into account the difference in the level of activities and the reasonable costs associated with the change to the works.

The changes to the specification for engineering or construction works will most commonly be reflected in the contract for work or construction contract. Therefore, it is advisable to conclude an addendum to the contract for work in writing with precise specification of the variations.

Last modified 23 Apr 2026

What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?

During the course of the construction, a construction manager (employed by the contractor) shall check that the construction is carried out in line with the project documentation or any other technical requirements.

Under the Building Act, an occupancy certificate is required for new construction, changes to completed construction, and landscaping for which a decision on a construction project was required. Occupancy certificate is not required for structures that are reported and construction modifications; this does not apply if the construction modifications are associated with a change in the use of the structure.

In terms of the liability for defects the verification by the client is important. The compliance of the works or the building with the contract for work will generally be verified by the client himself, as he is bound to inspect the work (object) or to arrange for its inspection as soon as possible after it has been handed over to him.

Last modified 23 Apr 2026

What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?

The limitation period depends on whether the regime of the Commercial Code or that of the Civil Code will apply.

In compliance with the provisions of the Civil Code, the general limitation period is three years commencing on the day when the right could be exercised for the first time. In the case of liability for damage, the right to damages becomes statute-barred after two years from the aggrieved party becoming acquainted with the damage and knowing who is liable for it and, in any event, will lapse after 3 years (or in the case of the damage caused purposely, 10 years) from the event creating the right for damages. This time period will not apply to damage caused to health.

According to the Commercial Code the general limitation period is four years. The limitation period for the right to damages commences on the day the aggrieved party became or could have become aware of the damage, and who is liable for it. The right to damages shall become statute-barred not later than 10 years from the day when the breach of obligation causing damage occurred.

With regard to liability for defects; the court will not allow the client any remedy in respect of defects in the work or building, if the client does not notify the defects either without delay after the defects are detected, or without delay after the obligatory inspection is carried out, or without delay after the defects could have been detected exercising due care, and in any event not later than 2 years after the work is handed over to the client or, in the case of buildings, not later than 5 years.

Last modified 23 Apr 2026

What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?

There is a difference between the legal regulation by:

• The Commercial Code, under which if the contractor creates the building on property belonging to the client or on property that the client has obtained, the client bears the risk of damage. In the case of reconstruction or adjustment of a building, the client bears the risk of damage as well. These provisions are of a non-mandatory nature and therefore can be modified by the contractual parties
• The Civil Code, under which if a building is being constructed upon the order of the client, the contractor bears the risk of damage or destruction of the building until the moment of handing over of the building to the client. 

In most cases, a developer concludes a contract for work with a contractor and afterwards a sale contract with an end user. In this event, an end user can hold the developer liable on the basis of the sale agreement and the developer is entitled to claim reimbursement from the contractor.

Contractual parties cannot agree upon a waiver of the right to damages in the contract. Since a contractual party cannot waive its right prior to the breach of a contractual obligation from which a right to damages arises, such a clause in the contract would be invalid. Although the parties may attempt to limit the liability for damage, it is not clear whether an agreement to limit liability would be enforceable before Slovak courts as currently the relevant case law is ambiguous.

The limitation of the liability of the developer (contractor) is connected to the fact that liability accords with the principles of objective liability embodied in the Commercial Code, but with the possibility of exclusion of liability due to force majeure.

The Commercial Code stipulates a limitation that an aggrieved party will not be entitled to compensation for damage if the non-performance of obligations by the liable party was caused by the conduct of the aggrieved party itself or due to the lack of co-operation to which the aggrieved party was obliged.

Last modified 23 Apr 2026

What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?

In a typical development project, there is no contractual relationship between the parties employed in connection with the design and construction of the development (the architect, engineers, other consultants, main building contractor and subcontractors) and the end users of the completed building. Therefore, such damage is not directly recoverable where there is no contract between parties.

However, if a developer concludes a contract (eg sale contract) with an end user, it is possible that the end user may claim damages under the warranty granted to end user by the developer and that the developer, having entered into the contractual relationships with other person(s) in order to construct a building, may subsequently claim reimbursement under his own warranty granted by persons employed in connection with the design and construction of the development (eg the contractor, the architect, engineers, other consultants, main building contractor and subcontractors).

Therefore, some end users' claims could potentially be covered by an existing warranty even if there is no direct contractual relationship between parties employed in connection with the design and construction of the development (the architect, engineers, other consultants, main building contractor and subcontractors) and the end users.

Last modified 23 Apr 2026

What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?

The purchasers, tenants and banks are considered to be third parties therefore, they will not directly have any protection against the designer and contractors involved in the design and construction of the project, unless explicitly agreed in the agreement governing the legal relationship between the developer and these third parties.

Last modified 23 Apr 2026

What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?

In Slovakia there are no specialized courts which are concerned exclusively with construction disputes. Thus, any construction disputes are tried by 'general' district courts (or municipal courts in case of competent courts in Bratislava or Košice). The administration of justice is governed by a two-tier system which means that any disputes relating to the contract for construction works arising between a contractor and a client fall within the jurisdiction of district courts being first-instance courts.

In general, a party may appeal against the decision rendered by a district court. The second instance is then exercised by regional courts being appellate courts. An appeal against a decision rendered by a district court is the only ordinary legal remedy available. Although, the Civil Procedure Act provides for extraordinary legal remedies such as the reopening of a case and appellate review however, these can be filed only if specific statutory conditions are met.

Last modified 23 Apr 2026

What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?

Arbitration as a form of alternative dispute resolution in Slovakia is governed by the Act on Arbitration Proceedings. The basic presumption is the conclusion of a written arbitration agreement or clause by the contractual parties, which shall stipulate:

• Material law;
• Procedural law;
• The precise definition of the arbitration court; and
• A number of arbitration justices.

In Slovakia, it is not common for parties to use arbitration as a form of dispute resolution in relation to construction agreements. However, generally, arbitration proceedings are considered to be a faster form of dispute resolution in comparison to court litigation. In addition, the arbitration courts are formed according to the various fields of practice and therefore the arbitration judges have a higher level of specialization in the particular issue.

Another advantage of arbitration relates to the arbitral awards. These can be directly enforced by the parties, ie in case of non-fulfilment of the obligation by the obliged party, the entitled party may seek the help of an executor without the need for any further procedure of recognition of the arbitral award. However, there are very limited remedies available as a result of arbitration – a party to such proceedings is only allowed to request the annulment of the decision before the ordinary court exclusively on the basis of the grounds laid down by the Arbitration Proceeding Act.

Last modified 23 Apr 2026

What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?

Under Slovak law, alternative dispute resolution (ADR) procedures are not mandatory.

Arbitration as a form of alternative dispute resolution in Slovakia is governed by the Act on Arbitration Proceedings. The basic presumption is the conclusion of a written arbitration agreement or clause by the contractual parties.

Mediation as a form of alternative dispute resolution in Slovakia is governed by the Act on Mediation. By means of a written agreement on dispute settlement by mediation the parties will refer the settlement of their potential future disputes arising out of or in connection with a contract to mediation such an agreement may be superseded by declarations of the parties recorded in a minute signed by all the parties agreeing on referring disputes to mediation.

The agreement following completion of mediation, will be in writing and is binding on all persons involved in the mediation. If the agreement resulting from the mediation is in the form of a notarial deed or approved by the court as a conciliatory agreement, the entitled party may use it as title in execution proceeding.

Arbitration and mediation as the forms of ADR are not commonly used in relation to construction disputes in the Slovak Republic. In general, however, arbitration proceedings and mediation are considered to be faster forms of dispute resolution in comparison to court litigation.

Another advantage of arbitration relates to the arbitral awards. These can be directly enforced by the parties, eg in case of non-fulfilment of the obligation by the obliged party, the entitled party may seek the help of an executor without the need for any further procedure of recognition of the arbitral award.

Last modified 23 Apr 2026