PORTUGAL LAW AND PRACTICE Contributed by: João Gonçalo Galvão, Carolina Cardoso Alves and Miguel Paquete, CS’Associados
ticularly if the materiality of the breach can be challenged). Alternatively, provided that certain legal require - ments are met, landlords may use a special electronic eviction procedure, with a potential timeline of six to eight months. 6.22 Termination by a Third Party A lease agreement may not be directly termi - nated by a third party, such as a governmental or municipal authority. However, lease agreements may expire as a result of third-party actions, such as, by way of example, an expropriation of the leased premises which is incompatible with the lease, or an administrative order determining the closure of such premises due to breach of safety regulations. On a different note, unless agreed otherwise with the property owner, subleases automatically expire in the event of expiration of the underlying head lease. 6.23 Remedies/Damages for Breach There are no statutory or customary limitations on the damages that a landlord may collect as a consequence of tenant breach and lease termination. In general, in addition to claiming outstanding rents, landlords seek to claim com - pensation for damage caused by the tenant to the property, as well as for costs incurred due to the eviction process. Landlords may also seek to claim an indemnity for breach of contract, this normally being equal to the value of rents that would be due until the end of the lease term, though courts tend to reduce or dismiss any indemnities payable thereunder on account of the potential lease of the premises to third par - ties.
For details on security deposits posted by ten - ants, see 6.8 Costs Payable by a Tenant at the Start of a Lease . 7. Construction 7.1 Common Structures Used to Price Construction Projects The most common structures used to price con - struction prices are the following: • Fixed price: The agreed construction price is deemed as fixed and final, corresponding to all works comprised in the work scope. This fixed price may vary in the event of additional works or the decrease of works comprised within the initial work scope. • Price series: Construction is performed based on a pre-agreed series of unit prices, the pro - ject cost corresponding to the total unit prices for each type of work performed considering the amount thereof. • Open book pricing: The project cost is based on the costs of materials and supplies incurred by the contractor, to which a mar - gin, spread or fixed fee value is added as the contractor’s consideration. 7.2 Assigning Responsibility for the Design and Construction of a Project In general, the contractor is liable for all deficien - cies and errors arising out of the execution of the works or the quality, shape and dimensions of the applied materials (in cases where the project does not stipulate the rules to be observed, as well as where these are different from the ones approved). Without prejudice, professional liability applies to the several service providers involved in a construction project, from architects/designers
802 CHAMBERS.COM
Powered by FlippingBook