General Contractor Liability in Building Bonuses: Trends Regarding the Nature of the Contract

1. The facts

   The case arises from the saturation of the subsidized renovation market, where many entities took on the role of General Contractor to manage turnkey packages including invoice discounts. According to reports from publications like NT+ Condominio and Ediltecnico, cases have multiplied where clients, faced with incomplete or clearly defective works, were met with the GC's objection of lack of passive legal standing.

   The procedural stage of these disputes is currently at the first instance of judgment on the merits. Specifically, numerous courts are called upon to decide whether the GC should be liable for damages caused by subcontracting firms or if their function was limited to mere financial and administrative intermediation. The recurring defense thesis of General Contractors is that, acting as agents for credit management and coordination, liability for poor execution rests solely with the executing companies chosen by the client or specified in the contract.

2. 

   The rules at play

   The central provisions for resolving the conflict are contained in the Civil Code:

   1. Article 1655 c.c. (Contract for works): defines the contract whereby a party undertakes to perform a work with the organization of necessary means and management at their own risk, an element distinguishing the entrepreneur from a mere intermediary.
   2. Article 1703 c.c. (Mandate): regulates the obligation to perform legal acts on behalf of others, often invoked by GCs to limit their liability to administrative management only.
   3. Article 1228 c.c. (Liability for the acts of assistants): establishes that a debtor who uses third parties to fulfill an obligation is liable for their intentional or negligent acts.
   4. Article 1667 c.c.: governs the warranty for non-conformities and defects in the work, placing the burden of eliminating defects at their own expense on the contractor.

3. What jurisprudence says

   Jurisprudence on the merits has begun to clarify, applying 2017 Supreme Court precedents by analogy, that the qualification of a contract as a contract for works or a mandate does not depend on the nomen iuris chosen by the parties, but on the actual substance of the relationship. If the General Contractor selects subcontractors, coordinates workers, and receives compensation linked to the total value of the work (and not just a commission), they must be considered a contractor in all respects.

   The courts specified that the GC is directly liable to the client for construction defects under Art. 1228 c.c., as subcontractors act as their assistants in executing the agreed unified plan. Furthermore, it has been established that contractual clauses excluding the GC's liability for construction defects are void if they constitute an exemption for gross negligence, especially when the breach concerns essential supervision of safety and structural stability of buildings.

5. Analysis drafted and verified with edit.legal

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8. What it teaches professionals

   1. Contract drafting: avoid qualifying as mandate relationships that exhibit traits of a contract for works, to prevent creating liability exemption expectations that would be struck down in court.
   2. Policy verification: ensure that the General Contractor has specific coverage for contractual liability arising from subcontractors' actions (ten-year post-completion and RCT/O).
   3. Litigation management: in the presence of defects, act promptly against the GC to interrupt limitation and forfeiture periods, without being misled by referrals to executing firms.

References: Articolo 1655 Codice CivileArticolo 1703 Codice CivileArticolo 1228 Codice CivileArticolo 1229 Codice CivileArticolo 1667 Codice CivileArticolo 119 D.L. 34/2020

Editorial oversight: Avv. Federico Papa·ICAMUpdated 4 November 2026Content drafted with AI support and subject to editorial source checks. Despite these controls, inaccuracies may remain: reports and rectification requests are welcome. Report a correction