The rules for concluding construction contracts are provided for in the General Industry Provisions, as well as in the norms of Ch. 37 Civil Code. In addition, the provisions of SNiPs, technical standards and other acts governing the design, installation, selection of materials, etc., serve as a legal base. We will consider in more detail below what constitutes a construction contract. A sample document will also be presented in the article.
General information
The contract for construction work involves the implementation of activities to order of the client. They may include the construction of an object or the installation of the structure. The contractor undertakes to carry out the necessary work within the time period established by the contract, and the customer, in turn, accept the result and pay the agreed amount. These clarifications are present in Art. 740, paragraph 1 of the Civil Code.
Subject composition
The parties to the contract are the customer and the contractor (contractor). The first may be any civil entity. The customer, for example, can be an individual. In this case, a household construction contract is signed. The sample document should indicate specific activities in accordance with which the type of agreement is determined. If the customer is a public entity, then the contract is drawn up for municipal / state needs. Some restrictions may apply to foreigners. Contractors are legal entities and individuals. The legislation imposes a number of requirements on these entities. One of the main is the availability of a license for construction activities.
Subject of agreement
It is directly the process of constructing a specific object or the implementation of installation activities. Point 2 of Art. 740 Civil Code specifies the subject in respect of which a construction contract is being drawn up. A sample agreement may include:
- The construction or reconstruction of a building (including residential), an enterprise or other facility.
- Implementation of commissioning, installation or other activities directly related to the facility under construction.
The main feature of the agreement is the compilation of estimates and technical documentation. The latter determines the scope and content of events, as well as the requirements for them. The estimate establishes the cost of work. Technical documentation is provided by the customer. In accordance with it, the contractor carries out the necessary work. This provision is established in Art. 743, paragraph 1 of the Civil Code. The subject matter of the agreement is thus detailed in the technical documentation.
Key terms of the construction contract
As they are the content and composition of technical documents. In addition, the deadlines must be set by which each party must provide the relevant paper. Moreover, the law provides that the absence of technical documentation approved in the normative order is not a basis for recognizing the agreement as not concluded if the complex of conditions allows to determine the subject. Another mandatory point is the setting of the price of the contract. According to Art. 746 CC, payment is carried out in the amount established by the estimate.
Execution of a construction contract
When drawing up the agreement, the obligations of the parties are established. In particular, the contractor must carry out the construction. At the same time, installation, commissioning and other activities are carried out strictly in accordance with technical documents, the requirements of SNiP and other regulatory acts, including environmental protection. The contractor is also required to:
- Ensure delivery of the necessary materials to the facility, including structures, parts, equipment and other elements, unless the agreement stipulates that the customer should do this.
- Timely eliminate defects and deficiencies discovered during the acceptance process and allowed through the fault of the contractor. In cases established by law, he is obliged, at the request of the customer, to eliminate deficiencies for which he is not responsible. This position is established in Art. 757, paragraph 1 of the Civil Code.
- To hand over the completed object within the period prescribed by law, ensuring that the indicators specified in the technical documents are achieved. These parameters, among other things, include the production capacity of the enterprise.
Customer Responsibilities
This party to the agreement must provide timely land for the construction of the facility. To perform the measures provided for in the technical documentation, the customer is obliged to provide the contractor with services related to:
- Electricity and water supply.
- Transportation of goods.
The customer also transfers the contractor for use of the building and the building, if necessary for the implementation of the construction. This provision is provided for in Art. 747, paragraph 2 of the Civil Code. If defects are detected in the facility during the warranty period, the customer must inform the contractor about them. This provision is provided for in Art. 754, paragraph 4 of the Civil Code. For the notification of a specific period is not established, therefore, information should be carried out within a reasonable time.
Important point
If, for reasons beyond the control of the parties, the facility was mothballed and activities on the site were suspended, the organization or individual hired by the contract may recover under the construction contract. The customer in these cases is obliged to reimburse the costs incurred in connection with these circumstances. If up to this point any work has been carried out, they are payable in full. These provisions are mandatory included in the construction contract. A model agreement may provide for a time period for such payments to be made.
Agreement specifics
It consists in a relatively long cycle and nature of events. The result is a completed, ready-to-operate public building, residential building or manufacturing enterprise. An indication of the content of technical documents must be included in the construction contract. The sample contract also contains information about the party that prepares the required papers.
PBU 2/2008
Some organizations providing services for the construction, reconstruction of buildings incorrectly keep records of construction contracts. PBU 2/2008 is currently in force. These rules apply if:
- The agreement is drawn up for a long period (more than a year).
- The signing was carried out in one reporting period, and the termination of the construction contract in another.
Final Provisions
The termination of the construction contract may occur at the initiative of the customer at any time. However, he is obliged to pay for the activities in full. Unlike the customer, the contractor is more limited in this right. He may terminate cooperation only in cases established by law. The list of grounds is considered exhaustive. They relate to violations by the customer of his duties.As a rule, the agreement itself contains provisions in accordance with which its termination is allowed on the initiative of any of the participants.
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