RECONSTRUCTION OF APARTMENTS, HOUSES AND NON-RESIDENTIAL PREMISES

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QUESTION - 47: When is a construction contract concluded and for what purposes?

A construction contract is concluded for the implementation of new construction, major repairs, reconstruction (technical re-equipment) of enterprises, buildings (including residential buildings), structures, and the performance of installation, commissioning and other works.

The main subject of the construction contract is the result of the construction work - the special database completed construction object or the completed construction work in accordance with the design and estimate documentation at the customer's request. I would like to draw your attention to the fact that the process of performing the work or the contractor's activities aimed at creating the object and its delivery, that is, how the work itself will be performed, does not apply to the construction contract, the main result is the completed construction. Opinion of the Supreme Court of 18.03.23, case 910/7975/21.

QUESTION - 48: Is the customer obliged to accept and pay for individual stages and/or individual types of work performed before the construction is fully completed?

If this is not provided for in the contract, then the customer has no such obligation!

Yes, indeed, there is a practice of gradual payment for work performed under a construction contract, most often this happens at important intermediate stages, but this is discussed in advance and prescribed in the contract. Staged payment for work serves as a certain guarantee for the contractor that all his work will be paid. A similar conclusion of the Supreme Court dated 12.10.18, case 927/603/17.