SOCIETY | 13:46 / 24.12.2024
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3 min read

Rising complaints in housing projects: Contract gaps and consumer guidance

The Competition Committee has reported a significant rise in complaints concerning the construction of multi-apartment buildings in Uzbekistan.

Photo: KUN.UZ

In 2024, approximately 1,700 complaints were filed. As a result of actions taken by the committee, nearly 20 billion UZS was recalculated in favor of consumers.

An analysis of contracts from 129 construction companies across the country revealed several key issues:

  • Recalculation rights: In 80% of contracts, the construction companies held the exclusive right to recalculation, while only 20% allowed both parties to exercise this right.
  • Area discrepancies: In 58% of contracts, there was no provision for recalculation if discrepancies arose in the building’s area after construction.
  • Internal construction obligations: 37% of contracts lacked clauses regarding the completion of construction work inside the apartments.
  • Rights and obligations: 18% of contracts failed to specify the rights and obligations of both the construction company and the consumer.
  • Delivery deadlines: In 39% of contracts, the completion or delivery date of the project was not mentioned.
  • Penalty clauses: 51% of contracts omitted penalties for delays in construction by the contractor.
  • Contract cancellation: In 86% of contracts, both parties had the right to request cancellation. However, only 41% addressed the interests of both parties equally, while 59% prioritized the construction company’s interests. Meanwhile, 14% had no provisions for cancellation.
  • Refund periods: For unilateral cancellations, 74% of contracts stipulated refund periods ranging from 30 to 180 days, and in some cases, up to 36 months.
  • Warranty periods: In 84% of contracts, no warranty period was defined for the contractor after the consumer accepted the apartment.
  • Defect responsibility: In 82% of contracts, the contractor had no obligation to address defects found during the warranty period.

To address these concerns, the Competition Committee advises homebuyers to:

  1. Thoroughly review the terms of the contract.
  2. Pay close attention to critical details, such as construction deadlines, the rights and obligations of both parties, and the delivery timelines.
  3. Verify the company’s experience and reliability through the electronic register and the "Transparent Construction" system available in public sources.
  4. Make all payments through official bank channels.

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