ANDORRA Law and Practice Contributed by: Albert Hinojosa and Marc Ambrós, Cases Lacambra
6.21 Forced Eviction The landlord may force the tenant to leave if there is an early termination of the lease agreement. The duration of eviction procedures may vary significantly, depend - ing on the specific circumstances. 6.22 Termination by a Third Party The termination of a lease agreement could normally take place based on either an eviction proceeding, an administrative concession termination, or a ruling by the insolvency administrator as long as it is consid - ered detrimental to the insolvency proceeding. 6.23 Remedies/Damages for Breach The Urban Rents Law states that, prior to taking pos - session of the leased asset, the tenant must deliver to the landlord a guaranteed deposit equivalent to a maximum of two months’ rent; depending on the case, this security may be replaced by a bank guarantee. Such deposit is held by the landlord to be returned to the tenant upon termination of the lease agreement against delivery of the leased asset’s keys (return of possession over the leased asset). The tenant and the landlord may also agree on addi - tional guarantees to cover payment defaults by the tenant (eg, bank guarantees, specific default insur - ances or even upfront payment). 7. Construction 7.1 Common Structures Used to Price Construction Projects The price of construction projects may be subject to different criteria: • a fixed price (where the contractor executes and releases the entire work, while the total price is satisfied at the time of receipt of the construction project); • construction project by units or measures (consists of the partial realisation of the work with the recep - tion of partial payments); and • the construction project by administration (in which the contractor receives a percentage, or units, of the project executed as payment in kind).
7.2 Assigning Responsibility for the Design and Construction of a Project In general, in the absence of a contractual agreement, and in the event that different parties intervene, the parties agree that the liability of the contractors and the different parties will be jointly and severally liable. The period of prescription to carry out claims against the different parties is 15 years. On the contrary, once the work has been carried out and the price has been paid, without any type of complaint by the buyer, the risk becomes part of it, leaving the contractor or the other parties involved to be responsible. 7.3 Management of Construction Risk The risk of destruction, loss or deterioration of con - struction lies with the contractor, and the immediate consequence of such destruction, loss or deteriora - tion is that the contractor cannot charge the price agreed by the parties. Therefore, it is necessary to differentiate between two scenarios: • when the contractor provides the work but not the materials because the client provides them (in these cases, the contractor must bear the risk of losing or deteriorating, as long as it is not attribut - able to the contractor or in default due to the con - tracting party not having received the work when it was agreed); and • when the contractor provides the work and the materials (the contractor will be responsible for these damages as long as there is no default on the part of the contracting party). 7.4 Management of Schedule-Related Risk The reception of the construction project must be car - ried out within the term agreed by the parties. In the absence of any agreement, it will be understood that the term of termination of the work will be the usual for completion of the construction project, as agreed by the parties. Often, a conventional penalty is established as a guarantee of the contractor’s obligation to deliver the construction project within the agreed term, usually based on the days of delay in delivery. Such conven - tional penalty shall be enforceable when the delay in delivery is attributable to the contractor, provided that
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