Why the handover protocol is so important
The handover protocol is a simple yet essential document. It should include the date of handover, a description of the work or its part being handed over, a list of any defects found (even minor ones), and the signatures of both parties. It is advisable to also include photographic documentation of the state of the work at the moment of handover.
Without a protocol, the only evidence of the work's condition is what both parties remember, which in any dispute places both sides in a very weak position, not just the client.
Obvious defects: record immediately
A patent defect is one visible during a routine inspection of the work at the time of handover, for example, uneven tiling, a scratched surface or a missing component from the order. Such defects must be recorded directly in the handover protocol. If they are not included in the protocol, proving them later becomes much more difficult, as it is unclear whether they arose only after handover.
Hidden defects: report without undue delay
Conversely, a latent defect manifests only after some time has passed, typically during normal operation of the work. As a general rule, as soon as the client discovers it, they should notify the contractor without undue delay to give them a realistic opportunity to respond. The longer notification is delayed, the more difficult it becomes to subsequently prove that the defect relates to the executed work and not to something that occurred only after handover.
What to do if defects are present at handover
If the work exhibits defects at the time of handover that prevent its normal use, the client may refuse to accept it. If the defects do not prevent use, it is customary to accept the work with reservations, i.e., by explicitly recording the defects in the protocol and agreeing on a deadline for their rectification. Under no circumstances should the protocol be signed "on trust" without an actual inspection.
Retention as standard practice for larger contracts
For larger projects, so-called retention money is commonly used in practice, part of the contract price is not paid to the client upon handover, but only after a specified period has elapsed and it has been proven that the work functions without defects. The amount of retention, the period for its release, and the conditions under which it will be released should be agreed in advance and in writing in the contract: not negotiated afterwards when the work is already complete and tension between the parties is rising.
How to set the price and payment conditions at the very start of an order is described in our article. Price, deadlines and deposits in the works contract.
Retention is not an exotic construct; it is simply a reasonable distribution of risk between both parties. The client has assurance that the contractor is motivated to complete any necessary remedial work, while the contractor has assurance that the remaining amount will indeed be paid once conditions are met. It is crucial that the release conditions are described specifically, rather than using vague phrasing such as "after quality verification," which makes finding a common interpretation difficult.
Practical recommendations for clients
- Never sign the protocol without a genuine inspection of the work.
- Always obtain photographic documentation of the work's condition upon handover.
- Also record minor defects in the protocol that you might just want to "leave alone".
- For defects preventing use, consider refusing acceptance or accepting with a clearly recorded reservation.
- Report any hidden defects to the contractor immediately upon discovery.
Summary
The handover protocol, describing the state of the work and any defects, is the strongest evidence you will have in case of a dispute. It takes just a few extra minutes during handover, but it can save you from many problems later. A completed template for a fixed-price contract with space to adjust handover conditions is available at smlouva-o-dilo-vzor.cz download free here.