In Romania’s fast-evolving construction and infrastructure sector, legal disputes are increasingly common. Conflicts often arise between developers, contractors, architects, and investors. Issues such as delayed projects, defective works, non-payment claims, and permit problems can lead to litigation. These disputes pose serious financial and reputational risks.
Understanding the legal framework and available remedies is essential for companies operating in this space. This guide outlines common causes of construction litigation in Romania. It also explains procedural options and offers practical steps to reduce exposure and protect your interests.
Common causes of construction disputes in Romania
Most construction-related litigation arises from contractual breaches, regulatory non-compliance, or delays in execution. Common conflict triggers include disagreements over scope of work, missed deadlines, defective or non-conforming construction, unpaid invoices, or unexpected cost overruns. In large infrastructure projects, issues such as flawed public procurement procedures, environmental permitting delays, or expropriation challenges can also escalate into formal disputes.
In many cases, these issues stem from poorly drafted contracts, unclear risk allocation, or failure to follow legal or technical procedures during project execution.
Contractual liability and claims under Romanian construction law
Romanian law allows parties to construction agreements to freely determine terms, subject to compliance with the Civil Code and applicable public law regulations. When a dispute arises, the contractual provisions regarding liability, penalties, and dispute resolution will be key.
Typical legal claims in construction disputes include:
- Non-performance or defective performance of contractual obligations
- Claims for damages caused by delays or construction defects
- Termination of contract due to material breach
- Claims for additional costs, including price adjustments due to inflation or changes in scope
Under the Civil Code, claimants must prove the existence of a valid contract, the breach of contractual obligations, and the resulting damages. Time limitations also apply — usually three years from the date the injured party becomes aware of the breach and damage.
Technical expertise and court-appointed experts
Construction litigation in Romania almost always requires expert technical analysis. Courts routinely appoint judicial technical experts to assess whether the works comply with project specifications, permits, and quality standards. These expert reports carry significant weight in the final judgment.
Parties may also submit private expert reports, particularly in complex technical disputes. However, only court-appointed experts have the authority to produce binding findings in contentious cases, unless the court rules otherwise.
Litigation vs. arbitration: choosing the right forum
Construction disputes may be resolved before Romanian civil courts or through arbitration, depending on the dispute resolution clause in the contract.
Litigation in the national courts is governed by the Romanian Civil Procedure Code and is generally more formal, with longer timelines. It allows access to appeal and recourse procedures and may be more suitable where third-party enforcement (e.g. against public authorities) is needed.
Arbitration, on the other hand, offers confidentiality, faster timelines, and greater flexibility. Many construction contracts — especially FIDIC-based agreements — refer disputes to domestic or international arbitration forums, such as the Court of International Commercial Arbitration attached to the Chamber of Commerce and Industry of Romania.
Enforcement of court decisions and awards
Once a final judgment or arbitral award is obtained, the successful party may initiate enforcement through a judicial bailiff. Romanian enforcement proceedings are generally effective for seizing bank accounts, movable assets, or real estate. If the debtor resists payment or fails to comply, enforcement actions may include asset seizure or public auction.
For cross-border disputes, EU regulations such as the Brussels I bis Regulation facilitate enforcement of judgments across EU Member States. Arbitral awards may be enforced under the New York Convention, to which Romania is a party.
Preventing construction disputes: practical legal strategies
The best approach to construction litigation is to prevent it. Businesses should invest in strong legal and contractual risk management. This includes careful drafting of construction contracts (including clear obligations, timelines, and penalties), conducting legal due diligence on permits and ownership titles, and engaging qualified professionals for project supervision.
Regular contract reviews, proper documentation of project milestones, and dispute resolution clauses tailored to the project’s size and complexity can minimise legal risk and create a roadmap for resolving conflicts before they escalate.
Construction disputes in Romania can be costly and time-consuming if not managed effectively. Whether acting as a contractor, developer, or investor, understanding your legal rights, contractual obligations, and procedural options is essential. Early legal advice, expert input, and strategic dispute resolution planning can make the difference between a successful outcome and a prolonged conflict.