Building contractor’s lien: Partial revision as of January 1, 2026

On January 1, 2026, a major revision of the Swiss Civil Code (CC) came into force in the area of building contractor’s liens. The amendment to the law aims in particular to clarify the requirements for the provision of substitute security. It is now expressly clarified that substitute security must cover not only the principal claim but also default interest for a period of ten years.

With this provision, the legislature has created greater legal certainty and eliminated previous uncertainties in interpretation in practice and doctrine. The revision has a direct impact on property owners, contractors, and builders.

Building contractor’s lien

The building contractor’s lien is a statutory security instrument pursuant to Art. 837 para. 1 no. 3 of the Swiss Civil Code (CC). It grants craftsmen and contractors who have carried out work on a property a lien on the property in question to secure their claims.

The purpose of the building contractor’s lien is to protect craftsmen and contractors from remaining unpaid for their work and material deliveries. This need for protection exists in particular because they are usually obliged to provide services in advance but cannot assert retention of title.

It is irrelevant who placed the order for the building contractor’s lien to arise. The order does not have to come from the property owner, but can also come from an architect or general contractor. The use of subcontractors carries the risk of double payment for property owners. If a subcontractor is not paid by the general contractor, they can assert their building contractor’s lien, even if the property owner has already compensated the general contractor in full.

If the debtor fails to meet their payment obligations, the holder of the building contractor’s lien is entitled to demand the forced sale of the property and to satisfy their claim from the proceeds.

The building contractor’s lien must be entered in the land register within four months of completion of the last work at the latest (Art. 839 para. 2 CC). After this period has expired, the right to register the building contractor’s lien expires definitively.

Prevention of registration: substitute securities

The landowner can avert the registration of a building contractor’s lien by providing sufficient security. This replaces the lien and is intended to offer the contractor equivalent protection. If the security is provided, the contractor’s claim to establish the lien is therefore waived. If the building contractor’s lien has already been entered in the land register, it can be redeemed by providing subsequent security and its deletion can be requested, provided that the security meets the legal requirements.

Partial revision as of January 1, 2026

The revision of Art. 839 para. 3 of the Swiss Civil Code clarified the conditions under which a building contractor’s lien can be replaced by substitute security. The new rule is that registration of the lien is not possible if the owner provides security covering both the registered claim and the default interest for the next ten years.

This means that the substitute security covers not only the principal claim but also the default interest for the period specified by law. For the first time, this offers landowners clear predictability and planning security with regard to the required scope of security.