Mediation first
Georgia's Law on Mediation has largely applied since 1 January 2020. Taking part is voluntary in principle. On the application of one or both sides, a court can make a settlement reached in private mediation enforceable.
Construction delays in Georgia. Your contract sets out what you are owed.
In short
If your new build in Georgia is not finished on time, start with your purchase contract. Many provide for a daily or monthly penalty and, after a set period of delay, a right to withdraw. Give the developer a reasonable extra period in writing. If that also passes, the Civil Code generally lets you withdraw and reclaim what you have paid.
The four stepsThis page covers a developer who misses the date but can still pay its debts. If the developer is insolvent, different rules apply.
If the developer is insolventWhat to do
Four steps, from the contract to a decision.
Take the steps in this order. Each one produces the evidence you need for the next.
- 1
Read the contract
Look for four clauses: the completion date, any grace period after it, the penalty for delay, and a long-stop date after which you may withdraw. Check, too, what the contract counts as force majeure.
- 2
Document progress
Keep dated photos, the developer's progress reports, your payment receipts and all correspondence. A report from a structural engineer who has visited the site carries more weight than photos.
- 3
Give written notice
Write to the address the contract names for notices, with proof of delivery and a Georgian translation. State the missed date and set a reasonable extra period for completion.
- 4
Decide
Once that period has run out you have three options: keep waiting and claim the penalty, agree a new date with the developer, or withdraw and ask for your money back.
If no settlement is reached
A Georgian court or an arbitral tribunal decides, depending on what your contract says. Our guide to disputes with developers explains how that works.
Your remedies
What helps you, and what can backfire.
Every remedy comes with a condition. This overview is not legal advice. Have an independent lawyer in Georgia look at your case.
Contractual penalty
The Civil Code allows penalty clauses, provided they are agreed in writing. If it is disproportionately high, a court can reduce it. Whether you can claim further damages on top of the penalty is a question to have checked against your contract.
Withholding instalments
Safe only if the contract expressly allows it in case of delay. Without such a clause you may end up in breach yourself, and some contracts then let the developer terminate and keep part of what you have paid.
Withdrawal
After withdrawal both sides must return what they received. You give up the flat and are left with a claim for repayment, which is only as good as the developer's ability to pay.
A registered right
Under the Public Registry law, a right to a property can be pre-registered to secure its later registration. A pre-registered right, or ownership already registered, makes it much harder for the developer to sell the unit twice. Check the registry extract to see whether your right is recorded and which mortgages rank ahead of it.
Acting with other buyers
If several buyers in the same building are affected, share legal costs and evidence. A joint letter carries more weight with the developer, although each claim still rests on its own contract.
Frequently asked questions
Questions about delays.
Compensation, instalments, withdrawal and deadlines: what buyers often ask once the date has passed.
What can I do if my new build in Batumi is not finished on time?
Start with the clauses on the completion date, the penalty and withdrawal in your contract. Document progress, give the developer written notice and set an extra period. After that you can claim the penalty, renegotiate or withdraw.
Am I entitled to compensation for a delay?
Yes, if your contract contains a penalty clause, at the rate it sets. Without one, you are left with damages for losses you can prove were caused by the delay, such as lost rent. In a dispute, a court decides.
Can I stop paying instalments if construction has stalled?
Only if the contract allows it in case of delay, or your lawyer confirms it for your situation. Otherwise you risk breaching the contract yourself. Many payment plans are tied to construction stages, so an instalment only falls due once that stage is reached.
Can I withdraw from the contract and get my money back?
Under the Civil Code you generally can, if the developer also lets a reasonable extra period pass. Many contracts add a fixed long-stop date. After withdrawal the developer must repay what you paid. If it does not, mediation or court are the next routes.
How long can a construction project in Georgia be delayed?
We have found no statutory maximum. What counts is the date in the contract, any grace period agreed there and the extra period you set. We know of no official statistics on typical delays.
Last reviewed on November 3, 2026. Sources: Civil Code of Georgia (matsne.gov.ge), by article heading: Art. 352 (consequences of withdrawal), Arts. 400 et seq. (delay), Art. 405 (additional period for breach of an obligation), Arts. 417 to 420 (penalty, its form, reduction by a court)., Law of Georgia on the Public Registry of 19 December 2008, Art. 12 (pre-registration of rights to immovable property) (matsne.gov.ge), Law of Georgia on Mediation of 18 September 2019, Arts. 3, 13 and 19 (matsne.gov.ge), National Agency of Public Registry (napr.gov.ge): registry extract. This guide is not legal or tax advice.
Read next
More on contracts, instalments and insolvency.
The clauses in your purchase contract, payment plans tied to construction stages and the insolvency scenario.
Stay calm, act in writing.
Buyers who keep records and set deadlines start every later step from a stronger position.