An advance payment, an agreed renovation deadline and assurances that everything will be ready on time. Then come repeated postponements, unanswered calls and no completed work. This can happen with renovation teams, carpenters, installers and fencing contractors.
If a contractor has accepted payment but failed to perform the contract, you may be able to recover your money. You must identify the correct legal basis and, often, validly withdraw from the contract first. A message saying “please return my advance” may not be enough. This article concerns Polish law.
First establish what was agreed
Before taking action, organise your documents and reconstruct the key terms:
- the work the contractor agreed to carry out;
- the agreed price;
- the start and completion dates;
- the amount paid and its purpose;
- whether the payment was a zaliczka or a zadatek;
- whether any work has been done or materials delivered;
- whether the deadline or scope was subsequently changed by agreement.
The type of contract also matters. Producing a specific result, such as made-to-measure furniture, may fall under the Polish rules on contracts for a specific work (umowa o dzieło). Other arrangements may be governed by construction or service contract rules. Classification depends on the actual agreement, rather than just the document's heading.
No written contract? Preserve the other evidence
The absence of a signed document does not automatically prevent recovery. Correspondence, an accepted quotation and the parties' conduct may also establish their agreement.
Keep text messages, emails, messenger conversations, estimates, transfer confirmations, cash receipts and photographs of the work site. Messages in which the contractor acknowledges receiving payment or promises a refund may also help.
Save correspondence in a way that preserves the entire conversation, its dates and the participants' identities.
You also need to identify the contracting party. A team's trading name may not be sufficient to identify the proper defendant. Establish the details of the individual business owner or company that accepted the order.
Zaliczka and zadatek — what is the difference?
These Polish terms are sometimes used interchangeably, but their legal consequences differ. An English word such as “deposit” does not by itself identify which Polish legal arrangement applies.
Zaliczka is an advance towards the agreed remuneration. It does not automatically entitle the payer to twice the amount. Valid withdrawal for non-performance triggers the settlement of what the parties have received, including payments.
Zadatek is a form of contractual security. Under the statutory default rules, where the contractor is responsible for non-performance, the customer may withdraw without setting an additional deadline and claim twice the zadatek paid. The parties may agree different consequences. If they terminate by mutual agreement, or neither or both are responsible for non-performance, the zadatek is generally returned in its original amount.
For example, a zadatek of PLN 4,000 may give rise to a claim for PLN 8,000 in total if the conditions for double repayment are met.
The description in a bank transfer alone is not always decisive. The parties' complete agreement must be considered.
The deadline has passed — must you give the contractor another chance?
In many cases, the appropriate step is to set a reasonable additional deadline for performance, expressly warning that failure to meet it will entitle you to withdraw from the contract.
Article 491 of the Polish Civil Code provides for this where a party is in culpable delay in performing a reciprocal contract. This means delay caused by circumstances for which the contractor is responsible.
The notice should identify the contract, the outstanding obligations and a specific deadline. A general request to “contact me urgently” does not replace a demand for performance.
There is no universal statutory period of seven or fourteen days suitable for every renovation. The additional period must be realistic in light of the outstanding work.
If that deadline expires without performance, you must still make a declaration of withdrawal. The earlier warning does not generally end the contract automatically.
An example of a notice setting an additional deadline:
“Because the work under the contract dated [date] has not been performed by the agreed deadline, I set an additional period of 14 days from receipt of this notice for performance of the following obligations: [precise description of the work]. If that period expires without performance, I will be entitled to withdraw from the contract.”
Fourteen days is only an example. The period must reflect the scope of the work and the realistic time needed to complete it. If performance is still outstanding after the reasonable additional period, the next step is a separate declaration of withdrawal referring to the earlier notice and the unsuccessful expiry of the deadline. A refund claim based on withdrawal requires that withdrawal to be effective.
When can you withdraw without an additional deadline?
An additional deadline is not always necessary.
For a contract for a specific work, Article 635 of the Civil Code allows withdrawal where the contractor is so late in starting or finishing that timely completion is unlikely. This right may be exercised even before the agreed completion date.
Another example is an unequivocal statement by the contractor that they will not perform. Relevant contractual provisions may also matter, as may a situation in which late performance would be pointless because of a contractual purpose known to the contractor. Merely stating a completion date does not always remove the need for an additional deadline.
Before sending a declaration, identify the ground for withdrawal that actually fits the circumstances.
Withdrawal and a demand to return the advance
Your declaration should clearly identify the contract and the reason for withdrawal. Set out the deadlines, amounts paid, course of the relationship and previous notices.
Use the correct form and method of communication. The contractual terms and the form in which the agreement was concluded may matter. Retain evidence of the declaration's contents and of the contractor having had an opportunity to read it.
Following valid withdrawal from a reciprocal contract, the parties must return what they received. Under the Civil Code, repayment to a consumer should be made without undue delay.
A payment demand should specify:
- the amount claimed;
- the legal and factual basis and the withdrawal date;
- the payment deadline;
- the bank account;
- the possibility of court proceedings.
A period such as seven days stated in your demand is a period chosen by you. It should not be presented as a universal statutory refund deadline for every advance payment.
What if some work was done or materials were purchased?
Partial performance requires a more detailed settlement. Establish the scope of withdrawal, the work actually completed, its usefulness and what each party received.
A contractor saying “I spent the advance on materials” does not by itself establish a right to retain the whole payment. Relevant issues include the purchasing arrangements, ownership, delivery to the customer and whether the materials can be used.
Document the condition of the works before another team takes over. Photographs, a written record and, in a larger dispute, a specialist assessment may help establish what was done and what needed correction.
Do not assume that every expense incurred with a replacement contractor can automatically be charged to the original one. The legal basis and amount require separate assessment.
Can you claim damages?
In addition to a refund, compensation for loss caused by non-performance may be available.
Depending on the circumstances, this might include reasonable additional costs of having the same work completed by another company or necessary expenses to protect abandoned works. You must establish the loss, its amount and its causal connection with non-performance. The contractor may defend the claim by showing that the failure resulted from circumstances for which they are not responsible.
Keep invoices, replacement contracts, estimates and records of the condition of the works. A refund and damages serve different purposes: the same loss cannot be recovered twice.
Be careful about saying “I simply cancel”
Withdrawal because of a contractor's breach must be distinguished from a customer's discretionary decision to stop the project.
For a contract for a specific work, Article 644 allows the customer to withdraw before completion, but requires payment of the agreed remuneration less the contractor's savings resulting from not completing the work.
Your declaration should therefore reflect the real situation. If the problem is the contractor's failure to perform, describe the breaches and rely on the appropriate legal ground.
How to prepare to recover your money
Start by gathering evidence and arranging the events chronologically. Then assess whether an additional deadline is required or immediate withdrawal is available.
If valid withdrawal and a refund demand do not resolve the matter, a court claim for payment may be the next step. Correctly calculating the claim is particularly important where work was partly completed, ownership of materials is disputed or additional damages are sought.
A well-prepared notice should clearly explain why the contract is being brought to an end, how much must be returned and why that amount is due. This supports both an attempt at an amicable recovery and any subsequent court proceedings.
This article provides general information about Polish law. The appropriate course of action depends on the contract and the circumstances of the particular case.
Downloadable document templates in Polish
First use the notice setting a reasonable additional deadline. Withdrawal on this basis follows only after that period expires without performance. Read the instructions and adapt the templates to the particular agreement. All downloadable files are in Polish.
- Notice to complete the work within an additional deadline — Word DOCX · PDF
- Declaration of withdrawal from a contractor agreement — Word DOCX · PDF
Legal basis: art. 394, 471, 476, 491–494, 635, 644 Polish Civil Code.
Source: Polish Civil Code — consolidated text.
Barbara Kardynia, Advocate
+48 795 674 344
b_kardynia@icloud.com