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Construction

10 September 2018
Matthias Scherer Contractors beware: clauses requiring employer pre-approval of additional work costs

Switzerland - LALIVE

Clauses that require a contractor to obtain the employer's pre-approval of the cost of any additional works are increasingly common in lump-sum construction contracts. According to a recent Federal Supreme Court decision, these pre-approval clauses will be applied strictly, subject to certain exceptions. In its decision, the court enforced such a clause to deny a contractor's claim to recover the cost of additional works performed by a subcontractor.

Authors: Matthias Scherer, Samuel Moss
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