What to Check Before Signing Your Renovation Contract in Portugal

In Portugal, most renovation disputes don’t start with a hammer — they start with a handshake. Vague contracts, verbal agreements, and missing legal clauses are among the biggest reasons expats lose money and control during renovations.

At Riviera Renovations, we’ve seen first-hand how poorly written contracts lead to chaos — from overcharging to unfinished work. This guide explains what every expat should verify before signing a renovation contract in Portugal.

1. Confirm Who You’re Actually Contracting

Many expats sign with individuals rather than registered construction companies. That’s risky — because only licensed entities (empresas de construção) can legally carry out building or structural work in Portugal.

Check for:

• Company name and NIF (Portuguese tax number)

• Alvará de Construção (construction license) for major works

• Insurance certificate covering liability and damages

Reference: Expatica – Renovating a House in Portugal

"For small cosmetic renovations, a registered company with insurance is sufficient; an Alvará is mandatory only for structural, plumbing, or electrical works."

Tip: Never sign with “Freelancers” or cash-based builders — it invalidates warranty and limits your recourse if something goes wrong.

2. Define a Clear Scope of Work

A vague scope is a blank check. In Portugal, many contractors write quotes like “paint house” or “renovate kitchen” — without specifying quantities, finishes, or brands.

Your contract should include:

• Detailed descriptions (e.g., “3 coats of anti-humidity paint, color code X”)

• Material brands or equivalents

• Measurable quantities

• Plans, drawings, or 3D visuals as annexes

Reference: Idealista – Renovating in Portugal Tips

Tip: Attach visuals to the contract — they count as legally binding references under Portuguese Civil Code.

3. Structure Your Payment Schedule

Many expats pay too much upfront — leaving them vulnerable when work stalls. Instead, link payments to verified progress milestones.

A fair payment structure should:

• Include an initial deposit (usually 10–20%)

• Divide the remaining amount into staged payments after completion of each phase (demolition, rough-in, finishes)

• Hold back 5–10% as a retention until final inspection

Data: InvestRopa – Renovation Costs Portugal shows that budget overruns occur in 42% of projects due to uncontrolled payment schedules.

Tip: Never release payments without documented progress — photos, receipts, or an inspection visit.

4. Confirm Warranty and Aftercare Clauses

Portuguese law requires a 2-year warranty on workmanship and materials (garantia legal).However, if your contract doesn’t reference it explicitly, enforcement becomes difficult.

Your contract should state:

• Duration of warranty (minimum 2 years)

• Scope of covered defects

• Process for reporting and correcting issues

Reference: ePortugal – Legal Guarantees for Construction Works

Tip: Always keep digital copies of correspondence and inspection reports — they serve as proof of warranty claims.

5. Include a Realistic Timeline — and How It’s Measured

Timelines in Portugal are frequently “aspirational. ” To protect yourself, require a timeline annex with start and estimated completion dates, plus measurable milestones.

If works are delayed due to supplier shortages, weather, or municipal approvals, ask for documentation. Avoid unrealistic fixed penalties — they are rarely enforceable and can backfire during negotiations.

Reference: Portugal Property – Renovation Timeline

Tip: Instead of penalty clauses, include a “progress verification” clause — requiring regular proof of work advancement.

6. Make Communication Part of the Contract

Renovation breakdowns are almost always communication breakdowns. Define how progress will be tracked, shared, and approved.

Your contract should state:

• Weekly or biweekly progress updates

• Preferred communication language (English + Portuguese)

• File-sharing system for documents and approvals

At Riviera Renovations, every client receives weekly bilingual reports and direct project-manager contact — ensuring clarity across languages and time zones.

7. Clarify Change Orders

Portuguese contractors often treat “extras” casually — a verbal “sure, we’ll move that wall” can result in a €2,000 surprise later.

Include a clause that:

• Requires written approval before any change

• Specifies how costs and timelines will be adjusted

• Distinguishes between necessary repairs (unforeseen) and client-requested changes
  

Tip: A strong contract prevents emotional disputes later. Every change should be documented in writing.

8. Define Quality Standards

The phrase “good quality” means different things to different builders. To avoid disappointment, specify the finish level — materials, paint type, flooring class, cabinetry type — and attach visual examples.

See also: Pearls of Portugal – Construction Quality Standards

9. Don’t Forget Insurance and Safety

Ensure the contractor’s insurance covers:

• Third-party damages (e.g., to your neighbor’s property)

• Worker injuries

• Fire, flooding, or construction-related incidents

If works are structural, verify site safety compliance and whether the contractor registered the project with ACT (Portuguese labor safety authority).

10. Have the Contract Reviewed Professionally

Even if it feels excessive, having your contract reviewed by a bilingual construction lawyer or renovation manager is the best investment you can make.

Riviera Renovations provides clients with pre-signature contract reviews — translating technical terms, identifying red flags, and ensuring protection under Portuguese law.

Conclusion

In Portugal, a renovation contract is more than paperwork — it’s your project’s backbone. It determines your budget, your timeline, and your peace of mind.

Before signing, take the time to verify every clause, demand clarity, and work with professionals who understand both the legal and practical realities of building in Portugal.

If you’re about to begin or are already mid-renovation in Cascais, Lisbon, or the Algarve, contact Riviera Renovations. We’ll review your contract, clarify your risks, and make sure your dream home doesn’t become a construction headache.