GREECE Law and Practice Contributed by: Nikolaos Koulocheris, Ioannis Charalampopoulos, Rozita Karasso and Dimitra Kotsovelou, Machas & Partners
including statutory prohibitions against gross negligence, intentional misconduct or unfair contractual terms. Courts frequently scrutinise such clauses for reasonableness and clarity, ensuring they do not contravene public policy or mandatory laws governing construction con - tracts. 7.4 Management of Schedule-Related Risk Schedule-related risks are managed primar - ily through contractual mechanisms, including milestone deadlines, liquidated damages, bonus incentives and detailed delay provisions. Parties often agree upon liquidated damages, entitling owners to monetary compensation if specified milestones or completion dates are missed, providing predictability and incentivising timely performance. Contracts typically include clear definitions of excusable versus non-excusable delay, force majeure clauses and extension of time provisions. While parties have consider - able flexibility in structuring such terms, courts commonly require that liquidated damages pro - visions represent genuine pre-estimates of loss, rejecting clauses that function as penalties or disproportionately punitive measures. 7.5 Additional Forms of Security to Guarantee a Contractor’s Performance It is common for project owners to require additional security measures to ensure con - tractor performance, particularly on high-value or complex projects. Frequently used security devices include performance bonds issued by third-party sureties, letters of credit from finan - cial institutions, parent company guarantees, escrow accounts holding funds pending per - formance milestones and retention amounts withheld from interim payments. The choice depends on factors such as project complexity, contractor creditworthiness and the owner’s risk
tolerance. Such measures provide reassurance and financial protection, but their enforceability and practicality depend on clearly drafted con - tractual terms and compliance with local legal requirements or market practices. 7.6 Liens or Encumbrances in the Event of Non-Payment Contractors and designers commonly have stat - utory lien rights permitting them to encumber a property if they are not paid for their work. Pro - cedures for recording such liens vary by jurisdic - tion, typically requiring formal notices and filings within strict deadlines. Owners can remove liens by paying the underlying obligation, negotiating a settlement or contesting validity through legal channels, including court actions or arbitration. Alternatively, owners may post a bond or secu - rity to discharge liens pending resolution. Ensur - ing timely payments and carefully monitoring lien procedures are crucial preventative measures to protect against property encumbrances and associated disputes. 7.7 Requirements Before Use or Inhabitation A certificate is issued by the competent urban planning authority confirming that the building has been constructed legally and can therefore be inhabited or used. Prior to the issuance of the certificate, a governmental inspection is carried out confirming compliance with building codes, zoning regulations, fire safety standards, envi - ronmental requirements and applicable permit requirements. Failure to secure such a certificate may expose parties to fines, prevent occupancy or trigger liability issues. Procedures and crite - ria for obtaining certificates vary by jurisdiction, project type and complexity. Owners and con - tractors commonly co-ordinate closely to ensure timely inspections, compliance documenta -
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