LEGAL GUARANTEES OWED BY THE BUILDER (BIENNIAL, DECENNIAL, ETC.)
From the date of project completion, three legal guarantees benefit successive owners of the property for the following ten years:
- Perfect Completion Guarantee (1 Year): Covers repairs for all reported damages, regardless of their severity, for one year after project completion.
- Biennial (Two-Year) Operating Guarantee: This covers equipment elements that can be removed without impacting the structural integrity (such as faucets, shutters, doors, heating systems) for two years from completion.
- Decennial (Ten-Year) Guarantee: This covers hidden defects affecting the structure’s stability or intended use (e.g., a leaking roof) and equipment permanently attached to the building. An insurance policy, called “construction damage insurance,” is secured by the developer to cover these defects. Damage due to normal wear, abnormal usage, or poor maintenance is excluded from these guarantees.
- Completion Guarantee: As required by law, developers provide a financial completion guarantee from a financial institution, ensuring that the property will be completed under any circumstances.
THE PERFECT COMPLETION GUARANTEE (Article 1792-6 of the Civil Code)
The perfect completion guarantee extends to the repair of all damages, regardless of severity:
- Reported by the owner in a list of reservations noted in the acceptance report
- Notified in writing by the owner for defects revealed within the year following completion
This guarantee obligates the contractor to repair any defects found within their scope of work. However, it does not cover damages resulting from normal wear and tear.
THE BIENNIAL (TWO-YEAR) OPERATING GUARANTEE (Article 1792-3 of the Civil Code)
For two years, the builder guarantees all equipment elements that can be removed or replaced without damaging the main structure (such as false ceilings, carpets, wall coverings, windows, and doors) in case they are non-operational. This guarantee applies to items that can be detached or replaced without harming the property itself. The installer of the equipment concerned is responsible for this guarantee. Although optional, insurance for this risk is highly recommended due to the potential consequences of equipment failure.
Professional equipment used exclusively for specific construction activities is excluded from the decennial and biennial operating guarantees; only contractual liability applies. However, custom insurance options may cover this risk.
THE DECENNIAL (TEN-YEAR) GUARANTEE (Articles 1792, 1792-2, and 1792-4 of the Civil Code)
If defects appear within ten years of completion that impact the property’s stability or intended function, the builder’s decennial liability may be triggered. Mandatory decennial insurance will cover the cost of necessary repairs. After the ten-year period, the builder is released from further liability for any additional defects that may arise.
Decennial liability insurance is mandatory for all projects, with certain “civil engineering” structures excluded by a 2005 ordinance. Decennial insurance contracts typically cover only those projects that fall within this legal mandate, excluding others. However, some policies include “civil engineering” coverage to address the decennial liability of contractors involved in such projects. If you undertake work involving these types of structures and wish to secure decennial liability, ensure your decennial insurance policy includes this additional coverage.
Important: Situations Where the Decennial Guarantee Does Not Apply
After completion, some issues that do not meet the criteria for decennial liability may still fall under your contractual responsibility. Some insurance policies cover these intermediate issues, especially those with “all but” coverage options. Avoid making promises you may be unable to fulfill, and do not assume the commercial commitments of suppliers (such as durability, performance, or ROI guarantees).
Such specific contractual commitments are unlikely to be covered by your standard insurance policies.