Well-prepared general terms and conditions of subcontracts for construction work facilitate the conclusion of contracts and improve the implementation of investments

Experience / 17.04.2024

One of the law firm’s Clients carrying out, as a general contractor, construction investments in the construction of multi-family residential buildings asked for the preparation of general terms and conditions of subcontracts for construction work.

Based on our decades of experience in handling construction projects from the side of investors, general contractors, subcontractors and further subcontractors, we first identified areas where there was a particular need to safeguard the interests of the general contractor. On this basis, among others, we prepared customized general terms and conditions of subcontracts (GTCs).

The law firm’s attorneys made sure that, from a practical standpoint, the GTCs prepared regulated issues related to the scope of construction work, replacement work, additional work, or abandoned work. Of course, the GTCs included provisions covering assurance of the subcontractor’s performance of construction work of adequate quality and in a timely manner.

The law firm’s lawyers paid special attention to the regulation of issues related to the acceptance of completed construction work, as well as those related to the removal of defects by the subcontractor, both during the execution of the investment, as well as during the warranty and guarantee period, including replacement removal of defects.

An important part of the GTCs was the regulation of the conditions for withdrawal from the contract, including by creating precise procedure regulating the rights and obligations of the general contractor and the subcontractor, including with regard to securing and carrying out an inventory and settlement of the completed construction work.

Well-prepared GTCs that take into account the nature and risks of a given construction project make it easier for the general contractor to manage its execution, reduce the risk of inconsistencies between individual subcontracts, and optimize the working time devoted to organizational and legal issues. All these advantages also contribute to increasing the profitability of a given investment.