Libro Quinto Título XI. Del contrato de obra o empresa

Under the contract for work or enterprise, the contractor undertakes to execute and deliver a work entrusted to him by another person, in exchange for a price that the latter undertakes to pay.

The risk of the work shall be borne by the contractor or entrepreneur until the moment of delivery, unless the person who was to receive it incurs in default, or there is an express agreement to the contrary.

When several builders have been invited to prepare plans, designs, or estimates, for the purpose of choosing the one that appears best, and they are aware of this circumstance, they have no right to charge fees, except upon offer or agreement to the contrary.

The contractor whose plan or budget has been accepted may not charge fees separate from that corresponding to him for the work if he himself takes charge of the work; but if the work is not performed due to the owner, he may charge the price of the plan, design or budget.

The author of the plan, design or budget may also collect its value when the work is executed in accordance therewith by another person, even when modifications have been made in the details.

The contractor is obligated to perform the work in full conformity with the specifications of the contract and, in the absence thereof, in the form, conditions and qualities customary in the place where the work is executed and that are necessary for the use for which it is intended.

The contractor is obligated, in addition, to abide by the principles of technique and by the plan or design accepted by the owner.

Once accepted by the owner, the budget, plan or design may not be modified except by express agreement of both parties, and in writing if the contract is in such form.

Unless otherwise agreed, the contractor who undertakes for a fixed price the construction of a building or other work, pursuant to a plan agreed with the owner and within a stipulated time limit, may not request an increase in the price even if increases occur in wages or in the value of materials; but he may do so when any change has been made to the plan that produces an increase in the work, provided that the owner has given his authorization.

If in the course of the work it proves indispensable to introduce modifications in order to complete it satisfactorily, the contractor shall notify the owner thereof, informing him of the increase in price; and if he refuses to accept the modifications without justified cause, the contract may be rescinded.

The contractor is liable for the work performed by the persons whom he employs in the work with their work or with their material, and such persons shall have no action against the owner thereof except up to the amount that the latter owes the contractor when the claim is made.

The contractor may not entrust the entrusted work to another, unless otherwise agreed or the owner consents thereto; but, in any event, the work shall be performed under the liability of the contractor.

The owner may withdraw from the contract by paying the contractor for the work performed, the materials used, and the compensation fixed by the judge.

The contractor is liable for the violation of the administrative and municipal laws and regulations relating to the work entrusted to him and for any damage or harm caused to third parties by the construction.

The owner is obligated to pay the price in the agreed form and time limits and, in the absence of stipulation, upon the work being delivered to him to his satisfaction.

If the owner of the work, having been required to receive it, does not appear on the appointed day or does not make, upon receiving it, the applicable objections or reservations, it shall be understood that he receives it to his entire satisfaction, except with respect to hidden vices or defects and to the special liability relating to the construction of buildings.

The contractor is liable for destruction or deterioration due to intent or fault on its part, for five years, counted from the date of delivery.

If the contractor and the engineer, architect or builder are different persons, liability shall be joint and several.

The same liability applies when the destruction or deterioration results from defects in the ground or foundation, if the contractor fails to give the owner appropriate warnings before undertaking the construction.

The liability established by the preceding articles is applicable to the case where the deterioration results from non-apparent construction defects, or the defects or deterioration originate from having modified the plan or design without the owner's authorization.

The contractor who receives advances on account of the agreed price, fails to commence the work, the work does not advance in proportion to the sums received, suffers unjustified delays, or employs construction materials that do not meet the specifications of the contract, shall be liable to the owner for the resulting damage and losses.

Likewise, the contractor may be accused criminally by the affected party or his heirs.

When a certain work has been entrusted to a person by reason of their personal qualities, the contract is rescinded upon the death of that person.

In this case, the owner must pay to the heirs of the contractor, in proportion to the agreed price, the value of the part of the work executed and of the materials prepared.

Rescission shall also proceed when the contractor cannot complete the work for a cause independent of the contractor's will.

If the owner of the work dies, the contract shall not be rescinded, and his heirs shall be liable for performance to the contractor.

Whoever undertakes to perform a work by pieces or by measure may require the owner to receive it in parts and to pay for it in proportion to those received.

The paid part is presumed approved and received by the owner; but there shall be no ground for that presumption merely because the owner has made advances on account of the price of the work, if it is not stated that the payment applies to the part already delivered.

The provisions of the two preceding articles shall not be observed when the pieces ordered to be constructed cannot be useful except when joined together forming a whole.

When the work was contracted without designation of the number of pieces or of the total measurement, the contract may be terminated by either contracting party, once the designated parts have been concluded, with the completed part being paid for.

Once the contractor has been paid what is due to him, pursuant to the preceding article, the owner shall remain at liberty to continue the work, employing other persons, even where it continues in accordance with the same plan, design or budget.

The constructor of a movable work has the right to retain it while he is not paid, and his credit shall be satisfied preferentially out of the price of said work.