Expert Legal Services for Construction Contract Disputes
Resolve construction contract disputes efficiently with Ambylegal.by’s expert legal support and personalized solutions tailored to your needs.
Companies that become investors in construction projects may become involved in various disputes related to real estate development. These are complex disputes, as they require experts in construction, project documentation, and other areas. It is impossible to handle such matters without the assistance of an experienced attorney.
General Characteristics of Disputes Arising from Construction Contracts
In Belarus, disputes related to construction contracts are quite common. They may arise for various reasons, such as delays in the completion of work, poor performance of contractual obligations, changes to contract terms, disagreements regarding payment, and many others.
One of the main issues faced by both clients and contractors is the lack of clarity and precision in drafting contract terms. Construction contracts are often not formulated clearly enough, which can lead to multiple interpretations and, as a result, disputes.
Expert Legal Services for Construction Contract Disputes
Disputes may also arise due to breaches of deadlines for the completion of work or poor-quality performance of obligations. In such cases, clients may demand that deficiencies be rectified or that additional work be carried out, which can lead to lengthy court proceedings.
To resolve such disputes in Belarus, the economic court is often used. Additionally, the parties may turn to experts and consultants for out-of-court dispute resolution.
In general, disputes related to construction contracts in Belarus require a competent and professional approach for their resolution. These disputes can have serious consequences for both clients and contractors and therefore require careful analysis and settlement.
Disputes Related to the Quality of Construction Work
The quality of construction work is not always immediately apparent when signing the acceptance certificate. Defects may emerge over time. In such cases, a claim can be filed demanding rectification of deficiencies. The contractor is obliged to eliminate defects at their own expense during the warranty period. Disputes arise when the contractor refuses to do so. In this case, the contractor must prove that the defects are not related to the quality of their work, but were caused by improper use, incorrect maintenance or repair by the client, or other external factors.
What Can Be Demanded from the Contractor During the Warranty Period
The client may demand the following from the contractor:
- To rectify the construction deficiencies free of charge within reasonable time.
- To reduce the payment for the work completed with deficiencies.
- To reimburse the client for expenses incurred to eliminate the deficiencies if the construction contract provides the client with such a right.
Disputes Over Recovery of the Construction Work Cost
Disputes Over Payment for Project Documentation
Disputes over cost may arise in connection with payment for the development of project documentation when the client has made an advance payment for the preparation of documentation, but later it turns out that the completed documentation is no longer needed. In this case, the contractor is entitled to recover the full cost for the work performed.
Disputes Over Non-Payment Due to the Quality of Construction Work
Disputes over the recovery of the cost of construction work arise when the client refuses to pay for completed construction work due to claims regarding its quality. The quality of construction work may be determined by an expert examination, which can be either court-appointed or pre-trial.
Pre-Trial Expert Examination
A pre-trial expert examination is carried out at the expense of the party to the contract that considers the examination necessary. To conduct a court-appointed expert examination, the cost of the examination must be deposited into the court’s account. Usually, the party requesting the examination makes this payment. The examination period is one month.
Expert Examination of Applied Pricing
Disputes over the recovery of the cost of construction work may arise when incorrect pricing, increased or decreased coefficients that have not been agreed upon by the parties in the contract are applied in the calculations. In such cases, the court may appoint an expert examination of the applied pricing.
Pre-Trial Procedure for Settling Disputes Arising from a Construction Contract
When a contract states that the parties shall resolve disputes in accordance with Belarusian legislation, it is mandatory to follow the pre-trial dispute resolution procedure. Such a procedure can be specified in the contract.
This may include a mandatory claims procedure. In this case, the party to the contract that has failed to fulfill its obligations must be sent a claim demanding the fulfillment of those obligations.
The contract may also specify another pre-trial procedure for settling disputes. In this case, before applying to the court, it is necessary to make use of this method of dispute resolution.
Recovery of Cost of Work Performed in Construction Contracts
The procedure for calculating and recovering the cost of completed construction work is set by the contract and applicable laws. A certificate of work performed and costs incurred, signed by both client and contractor, forms the basis for payment. It may include advances, previous payments, and adjustments. Clients must review the documents within five business days and provide a reasoned response if they disagree. Legal action is possible if costs exceed the estimate by over 10% due to unforeseen factors, though pre-litigation settlement is preferable to avoid high court fees.
Disputes in Construction Contracts Over Penalties and Damages Recovery
A construction contract includes responsibilities and penalties for non-performance or improper execution. The affected party may claim damages or penalties, such as fines or late fees. Even without specific terms in the contract, liability is established by law. The client may owe penalties for delays in accepting work or providing materials, while the contractor is liable for delays in completing work or correcting defects. Disputes are resolved through claims or court, though pre-litigation settlement is recommended.
Protection of Interests for Engineering Organizations
Engineering organizations, as defined by the Law of the Republic of Belarus “On Architectural, Urban Planning, and Construction Activities” № 300-Z, include legal entities or individual entrepreneurs providing engineering services to clients and developers. Relations between engineering organizations and other parties are primarily governed by contracts, the Civil Code, and relevant regulations. The contract outlines key terms, including rights, obligations, and responsibilities. For non-performance or improper execution, the client may incur penalties, fines, or take legal action. Disputes over such contracts are resolved according to established legal procedures.
Protection of Interests in Design and Surveying Contracts
Design and surveying contracts, which are critical in the construction industry, involve various complex legal and financial considerations. Disputes arising from these contracts may involve issues related to performance, deadlines, and project specifications. Legal protection is essential for both contractors and clients to ensure proper execution of work and the fulfillment of contractual obligations. In case of breach, clients or contractors may claim penalties, compensation for damages, or seek court intervention. Disputes in this area are resolved according to the terms in the contract and relevant legislation, with penalties determined by legal standards.
Consulting on Real Estate Lease Issues
Common Construction Disputes in Practice
Disputes in Construction Contracts
These disputes arise when parties fail to meet the terms of construction contracts, such as delays, poor quality of work, or non-compliance with project specifications.
Disputes Over Land Allocation
Disputes occur when issues arise during the allocation of land for construction, such as disagreements over land ownership, zoning, or rights of use.
Disputes in Property Registration
These disputes involve complications during the registration of construction projects, including title issues, discrepancies in documents, or non-compliance with local property laws.
Disputes Over Building Permit Denials
Disagreements arise when construction permits are denied, leading to legal challenges in court to reverse refusals or clarify the reasons behind permit rejection.
Disputes in Shared Construction Projects
These disputes stem from conflicts within joint construction ventures, often involving issues related to financing, timelines, or failure to meet agreed-upon terms.
Illegal Construction Disputes
These disputes occur when buildings are constructed without proper permits or legal approval, leading to enforcement actions or claims for damages and penalties.
Other Construction Disputes
This category includes various other construction-related conflicts, such as safety violations, environmental concerns, or contractor-client disagreements not covered by the specific categories
Disputes Related to Construction Work Quality
Violation of Standards and Contract
Disputes arise when work is completed with deviations from established norms or contract terms, affecting the final result.
Poor Quality Work
Disputes occur when construction work does not meet the required quality standards, impacting the project’s integrity.
Unusable Work
This type of dispute arises when completed work is deemed unsuitable or unfit for use, not meeting specified requirements.
Use of Unsuitable Materials
Disputes arise when construction work involves materials that are unsuitable or do not meet the necessary standards.
Non-Compliant Materials
Disputes occur when materials used do not comply with building norms or safety standards, such as fire safety regulations.
Failure to Meet Technical Specifications
Disputes arise when the work fails to achieve the specified technical parameters as outlined in the project’s documentation.
Other Issues
Other types of disputes related to construction work quality, including unaddressed defects or work that does not conform to agreement terms.
How Disputes Arising from Construction Contracts Are Resolved
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FAQ
Disputes under construction contracts occur when disagreements arise between parties involved, typically between the contractor and the client. These issues may relate to contract terms, work quality, delays, payment disputes, or failure to meet agreed-upon specifications.
The procedure for resolving construction disputes usually involves several stages. Initially, parties may attempt negotiation or mediation. If unresolved, the dispute can be taken to arbitration or court. The specific procedure depends on the terms outlined in the construction contract and applicable local laws.
Construction contracts are governed by local construction laws, civil codes, and contractual law, which regulate the relationship between parties. These regulations cover the obligations, rights, and responsibilities of contractors, subcontractors, and clients, ensuring compliance with building standards, safety regulations, and financial terms.
Commissioning refers to the process of verifying that all aspects of a construction project are complete and functioning as intended. It includes inspecting the building’s systems, checking that all contractual obligations are met, and ensuring the final product meets the standards outlined in the contract before it is handed over to the client.
Contact us
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LawyerLegal assistance is provided by advocate Anton Grinewich, Specialized Legal Bar No. 2 in Minsk.
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AddressOffice: 1 Krasnaya str., Minsk, Republic of Belarus Postal address: 1 Krasnaya str., Minsk, Republic of Belarus
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