As a construction lawyer in Paris, Maître Léa Scemama assists individuals who build their home under a CCMI, the French new-build house construction contract. It is the most protective contract available to a non-professional project owner, provided you understand its guarantees and know how to react when the builder departs from its commitments.
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How we work on a CCMI
| When we act | What we do | What you receive |
|---|---|---|
| Before signature | Analysis of the contract and of the descriptive schedule, checking the completion guarantee certificate, identifying the items left to the owner as reserved works | A risk note item by item, and the list of amendments to request from the builder |
| During the works | Checking each payment request against the statutory schedule, formal notice in the event of delay or of a stoppage | The correspondence, and a reasoned decision to pay or to withhold |
| Builder default | Prior formal notice, then notification to the guarantor and follow-up of the resumption of the works | The completion guarantee actually called upon |
| At handover | Preparing the reservations, advice on whether to be assisted by a professional, notifying visible defects within the eight days following handover of the keys | A usable handover report and your deadlines preserved |
| After handover | Interim application for an expert, quantification of the loss, substantive proceedings | Proceedings brought before the guarantees expire |
Our billing arrangements are set out on our fees page.
What is a CCMI and when does it apply
The CCMI was created by the Act of 19 December 1990 and is governed by the Construction and Housing Code, at article L231-1 where the builder supplies the plans and article L232-1 otherwise. It applies whenever an individual builds a house, of no more than two dwellings, on land they own, entrusting the works and the design to a single builder. Its regime is a matter of public policy: no clause may derogate from it to your detriment.
The mandatory guarantees of the CCMI
A fixed price and the completion guarantee
The agreed price covers the whole of the announced construction and may only change within the strict revision limits set out in the contract. Above all, the completion guarantee at the agreed price and deadlines, provided by a financial institution, ensures the house is finished even if the builder defaults or becomes insolvent. It is the flagship protection of the scheme.
Regulated payment schedule, withdrawal and conditions
Payments are capped stage by stage: you only pay in line with real progress. The contract comes with a descriptive schedule setting out what is included, and you have a ten-day withdrawal period. Signature is also subject to conditions precedent: obtaining the loan, the building permit, the damage insurance and the completion guarantee.
What you may be asked to pay, and when. Article R231-7 of the Construction and Housing Code caps every payment request. A builder asking for more is acting unlawfully, whatever the justification offered.
| Stage of the works | Maximum cumulative share of the price payable |
|---|---|
| Start of works, including the deposit | 15 % |
| Completion of the foundations | 25 % |
| Completion of the walls | 40 % |
| Weathertight shell | 60 % |
| Completion of partitions and airtight shell | 75 % |
| Completion of the fitting-out works: plumbing, joinery, heating | 95 % |
| Handover | The remaining 5 %, held in escrow if reservations stand |
These percentages are cumulative, they do not add up. At the weathertight stage you have paid 60 % of the price in total, not 60 % more. Before each transfer, check on site that the stage claimed has actually been reached. A payment request for the foundations presented when only the earthworks are done is the first sign of a project that will drift, and paying early costs you your main point of leverage.
Before the works start, the builder may ask for nothing at all, unless it provides a reimbursement guarantee. Only in that case are two limited payments allowed, on signature of the contract and on issue of the building permit.
Common pitfalls
The first is the fake CCMI: some professionals dress their service up as a project-management contract or a plain works contract, precisely to escape the mandatory protections. The second concerns works said to be reserved to the owner, which display an artificially low price. The third is a vague descriptive schedule, riddled with references to works not included. Each of these grey areas is paid for, sooner or later, in extra costs.
Delays, abandonment, defects: your remedies
A delay in delivery gives rise to penalties, often underestimated. A serious failure justifies a formal notice and then activation of the completion guarantee. At handover, acceptance must be made with reservations if any defect is visible. To classify defects, our pages on construction defects and the decennial guarantee set out the remedies.
Handover, and the eight days that follow
Handover is the act by which the project owner accepts the works, with or without reservations. It sets the starting point of every statutory guarantee, and it clears the visible defects you did not record.
A project owner who was not assisted by a professional at handover may, by recorded delivery letter, notify within the eight days following handover of the keys any visible defects not raised at the time, so that they are put right under the contract. This period is short and it does not extend. The letter must describe each defect, room by room, with dated photographs.
There is a trade-off worth knowing. Being assisted by a professional on the day improves the quality of the reservations, but it costs you that extra eight-day window. The choice depends on the state of the site, not on principle.
Where reservations stand, the remaining 5 % of the price is held in escrow until they are lifted.
What a delay entitles you to
Late-delivery penalties provided for in the contract may not be less than one three-thousandth of the agreed price per day of delay, under article R231-14 of the Construction and Housing Code. On a price of 250,000 euros, that is roughly 83 euros a day, close to 2,500 euros for a month of delay.
These penalties are a fixed sum. Obtaining more, for a double rent or for rehousing costs, requires proof of a distinct loss, assessed case by case. The first thing to check in your contract is the rate stipulated, often set at the statutory minimum, and the contractual delivery date that can actually be relied on once the properly recorded bad-weather days have been deducted.
Frequently asked questions
Can I withdraw after signing?
Yes. You have a ten-day withdrawal period from receipt of the contract, without having to give a reason.
What happens if the builder goes bankrupt?
The completion guarantee takes over and funds the completion of your house at the agreed price and deadlines. That is the whole point of a genuine CCMI.
Can the price rise during the works?
The price is firm. Only the revisions provided for in the contract are allowed. Beware of works presented as reserved or not included, which increase the real bill.
See how this contract fits alongside the other construction regimes in our construction law practice.
In the same area of law
- Works contracts: when the works are split between several contractors instead of one builder.
- Off-plan purchase: buying a completed home from a developer rather than having one built.
Written by Maître Léa Scemama, avocate at the Paris Bar, Miraï Avocats. This page states the law applicable at its update date. It is general in nature and does not constitute advice tailored to a particular situation.