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Subcontracting in the construction process: contractual support and legal services

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Ланткевич Кирило
Lawyer
Ukraine / Dnepropetrovsk region

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Reading time: 11 minutes Total views: 48
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Publication date: 14.08.2024

I am studying in the third year of the State University of Economics and Technology.I specialize in contractual, economic and corporate law, in particular, I provide consultations and write articles.

A construction contract 

A construction contract is a legal agreement between the customer and the contractor that regulates the conditions of construction work. It defines the rights and obligations of each of the parties, the conditions of performance of works, terms, cost and other key aspects.

 

 

Question

What are the obligations of the contractor under the construction contract?

Answer

The contractor undertakes to perform the work according to the order of the customer at his own risk. This means that the contractor is responsible for the quality of work and compliance with technical and construction standards. The contractor must complete the work and hand over the finished object to the customer within the term established by the contract.

Question

What obligations does the customer have under the construction contract?

Answer

The customer undertakes to provide the contractor with a suitable site for carrying out work. The customer must provide all necessary permits and documents that are required for legal construction work. If design documentation is not part of the contractor's responsibilities, the customer must provide approved design documentation.

 

Legal aspects of subcontracting:

Contracts often specify the possibility of engaging subcontractors. Here are more details about this situation:

  1. The right to engage subcontractors: The contractor has the right to engage other persons (subcontractors) to perform part or all of the work under the subcontract, unless otherwise provided by the terms of the contract itself. This allows the contractor to leverage the specialized skills and resources of subcontractors.
     
  2. Liability: The contractor remains responsible to the customer for the result of the work, regardless of who actually performs the work. This means that the contractor is responsible for the quality of work and compliance with deadlines, even if part of the work is performed by subcontractors. The contractor acts as the customer before the subcontractors. This means that the contractor must enter into contracts with subcontractors, pay for their services and coordinate their work.
     
  3. Contracts with subcontractors: The contractor concludes separate contracts with subcontractors, which regulate the scope of work, terms, cost and quality of performance. These contracts clearly specify the terms of work, responsibilities and other aspects of the relationship between the contractor and subcontractor.
     
  4. Control and coordination: The contractor is responsible for coordinating the work of subcontractors and ensuring that their work meets the requirements of the contract. The contractor is also responsible for integrating the subcontractors' work results into the overall project.

 

Contractual support for subcontracting:

A subcontract is an agreement between the main contractor (general contractor) and a subcontractor that regulates the conditions for performing part of the work specified in the main contract. Here are the main elements and content that should be included in the subcontract agreement:

  • The main elements of the subcontract agreement. Parties to the contract: General contractor - a person or company that concluded the main contract with the customer and that engages the subcontractor. A subcontractor is a person or company that will perform part of the work under a subcontract.
  • Description of works. Scope of Work: A detailed description of the work to be performed by the subcontractor, including specifications, specifications, and quality requirements. Design Documentation: A reference to the design documentation that the subcontractor must use to perform the work.
  • Terms of execution. Start and End Dates: Start and end dates for the work, as well as any interim dates or stages.
  • Cost and terms of payment. Total Cost: The cost of the work that the subcontractor will receive from the general contractor. Payment schedule: Payment terms and terms, including possible advance payments, payment stages and the final settlement amount.
  • Liability and guarantees. Responsibility: Determining the subcontractor's responsibility for the quality of work, compliance with technical standards and deadlines. Guarantees: Terms of the guarantee for the work performed, including the terms and scope of the guarantee obligations.
  • Compliance with the terms of the main contract. Reference to the main contract: Obligations of the subcontractor to meet the requirements set out in the main contract between the general contractor and the customer.
  • Force majeure. Force majeure conditions: Circumstances under which the parties are released from liability for non-fulfillment of obligations in the event of force majeure.
  • Dispute resolution. Dispute Resolution Procedure: How disputes between the general contractor and the subcontractor will be resolved, including possible mediation or arbitration.
  • Term of contract and termination. Term of validity: The duration of the contract and the conditions for its termination or termination. Termination conditions: The procedure and grounds for terminating the contract, including possible consequences.
 

 

Lawyer services when concluding a contract:

The conclusion of a contract is an important step in business, and the professional help of a lawyer can be extremely useful. Here are the types of legal services that can be useful when concluding a contract:

 

 Lawyer consultation and legal analysis of the situation: Lawyers online will help determine specific needs and requirements that must be taken into account in the contract. Determination of potential legal and financial risks that may arise during the execution of the contract and development of a strategy for their minimization.

 

 

Legal services for drafting and drawing up a contract: A lawyer services online can draw up a draft contract, taking into account the specifics of your business and the requirements of the law. Inclusion of special conditions that may be important for a particular case, such as special conditions of payments, terms or quality.

 

  

Services of a lawyer during negotiations and agreement of terms: A lawyer help can represent the client's interests in negotiations with counterparties, helping to agree on the terms of the contract. Checking the correctness of the execution and signing of the contract to avoid legal errors. Preparation and signing of all necessary applications or accompanying documents.

Conclusion

Subcontracting is common practice in construction and other industries where specialized skills or resources may be required. A contractor using subcontractors must be prepared to manage this process and be accountable for the results of their work to the customer. The customer, in turn, must be aware that the contractor bears all responsibility for the performance of the contract, including the work of subcontractors. The lawyer advice when concluding a contract can significantly increase the confidence that your rights will be protected and that the contract will meet all your requirements and standards.

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    Ніколи не думав, що вирішення юридичних питань може бути таким легким! За допомогою цієї програми я швидко знайшов компетентного юриста, який допоміг мені впоратися з моєю проблемою. Дуже зручно та ефективно

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