Helsinki Building Owners Partially Compensated for Construction Flaws

Shareholders of a Hitas apartment building in Helsinki's Jätkäsaari district have been awarded partial compensation after a protracted legal battle over alleged construction defects. The Helsinki District Court ruled that the city's housing production unit (ATT) must pay the housing company approximately 200,000 euros in damages. However, the court also ordered the shareholders to cover the city's legal costs, which exceed half a million euros.

The building, completed in 2014, was plagued by issues from the outset, including significant water leakage into the parking hall, accumulating on roofs, balconies, and the courtyard. Residents also reported moisture problems, a frequently wet and cracking facade, and defects in ventilation and interior humidity. The housing company had initially sought 4.5 million euros in damages and price reductions.

The housing company accused ATT of building the entire structure differently than promised and stated that ATT had cut corners on the contract to reduce costs. Specific examples cited included replacing steel piles with concrete piles and omitting a high-performance render on the facade. The company also alleged that ATT accepted the building as unfinished and acted with gross negligence and dishonesty.

ATT refuted these claims, asserting the building was constructed according to specifications. While admitting to making changes during the contract, ATT denied benefiting from them, describing the process as standard. The city's unit also denied accepting the building in an unfinished state, despite a reception inspection noting that the contractor had not fully complied with the contract and quality system. The court largely sided with ATT, finding that in many instances, the housing company failed to prove either that a defect occurred during construction or that it caused significant harm. The court, for example, deemed the substitution of steel piles with concrete piles not to be of significant consequence.