Construction lawyers in Iceland

Construction and public procurement law covers building projects and public contracts: construction contracts between owners and contractors, defects and delays, disputes about extra work and payment, and the rules public bodies must follow when they buy goods, services and works.

The legal framework

• Public Procurement Act No. 120/2016 (lög um opinber innkaup): tenders by the state, municipalities and other public bodies.
• Construction Act No. 160/2010: building permits, construction managers and building standards.
• Consumer Services Act No. 42/2000 (lög um þjónustukaup): consumers' rights when they hire tradespeople.
• The standard terms ÍST 30, widely used in Icelandic construction contracts.

Construction contracts

Most disputes concern defects, delays, extra work and final payment. ÍST 30 sets rules on notices, variations, handover and penalties for delay, so it matters whether it is part of your contract. A building project must also have a registered construction manager (byggingarstjóri) responsible for supervising the work.

Homeowners hiring tradespeople are protected as consumers: the work must be done professionally, and the price cannot be much higher than the estimate without good reason.

Public procurement

Public bodies must advertise contracts above set thresholds and treat bidders equally. A bidder who believes the rules were broken can complain to the Public Procurement Complaints Committee (kærunefnd útboðsmála). Deadlines are short, generally 20 days, and during the standstill period a contract may not be signed while a complaint is pending.

When to contact a construction lawyer

Involve a lawyer before you sign a large construction contract, when defects or delays appear, when you disagree about extra work or the final invoice, or, as a bidder, when you believe a tender was unlawful. For planning and permits, see environmental and planning law.