The construction works contract as the foundation of an effective investment process

The Law Firm’s advocates participated in negotiations, on the basis of which they drafted a contract for the client, a developer and investor in large development projects in Rzeszów, for the construction of multi-family residential buildings with accompanying infrastructure. The value of the contract exceeds PLN 60 million.

The Client asked the Law Firm to analyse the contract draft and the risks associated with its implementation, and thus to introduce changes to the contract that would both protect its interests and minimise any future risks.

As a result of the analysis of the contract draft, it turned out that the draft did not correspond to the preliminary arrangements made by the parties at the bidding stage. Therefore, with the participation of the Law Firm’s advocates, the parties renegotiated all previous arrangements, on the basis of which new construction of construction works contract was drafted, taking into account the actual situation and the expectations and interests of the parties to the contract. Thus, not every draft contract can be adapted to changing realities.

In the new contract, the Law Firm’s lawyers focused on the most important contractual provisions, which include:

• specification of the subject matter of the contract, i.e. the scope of work and tasks to be performed;
• the possibility of introducing replacement work, additional work, and material substitutions;
• the terms and conditions for the payment of remuneration to the contractor, subcontractors and further subcontractors;
• the conditions for partial acceptance and final acceptance of the subject matter of the contract;
• the rules for withdrawal from the contract;
• the conditions for the release and use of the performance bond;
• the terms of warranty and guarantee;
• contractual penalties;
• specific requirements of the investor.

Based on the concluded contract, construction works have already commenced.