Legal support of the contractor in the process of settlement with the subcontractor

News / 01.06.2023

We provide legal support to a Client operating in the infrastructure investment industry, in the process of settlement of a subcontract agreement concluded with a subcontractor, which was entrusted with the execution of works in the electrical and telecommunications industry, included in the scope of works carried out by the Client within the framework of a task concerning the construction of an access road to an investment area of one of the cities in the Sub Carpathian region.

The factual situation of the case is complex to the extent that in the final phase of the implementation of the subcontract, both the Client (the contractor) and the subcontractor filed declarations of withdrawal from the contract and charged each other contractual penalties on this account, and in addition, against the background of the settlements there were numerous disputed issues, concerning the subcontractor’s failure to perform a certain scope of work, the existence of defects in the completed scope of work, the Client’s use of substitute performance, and the deduction of the Client’s claims on this account from the remuneration due to the subcontractor and from the performance bond.

The Law Firm conducted a legal analysis of the contractual documentation and documentation related to the course of the entire process of implementation of the subcontract, made a legal qualification of the mutual claims of the parties, and currently actively participates and supports the Client in the further process of settlement, including preparation and opinion of the parties’ speeches.