What is the Construction Works Contract?

Construction Works

With the Construction Works Contract, a client commissions a construction company to carry out a work, such as new buildings or renovations, against a consideration in cash. The building contractor has to organize all means necessary to complete the work and carry out the work with the  help of its employees.

In addition to establishing the exact works to be carried out, the construction contract serves to regulate all the most important aspects of the commissioned works. For example, it is possible to provide for a penalty against delays in the delivery of the work, indicate an essential deadline for delivery which, if not respected, determines the termination of the agreement. Furthermore, it is possible to regulate the period of verification and testing of the works and to agree in the specifications on the execution methods and the total costs of the work.

With this contractual model, the customer can withdraw from the agreement at any time, without having to justify the reasons, but paying the expenses already made and any loss of earnings. Otherwise, the construction company will be able to withdraw from the agreement only if the amount of the changes to the project exceeds one sixth of the total agreed price.

When using the private construction contract

The private procurement contract can be used both to commission the construction of new housing units and to commission the maintenance of buildings. For example, the company can be commissioned to build a new condominium or to renovate the balcony of a house.

You can use this model to outsource construction work to both large construction companies and small business owners. However, in order to be able to speak of a contract, the work must be carried out with the help of collaborators and with the organization of the means necessary for its completion. If, on the other hand, the work is carried out with its own prevailing work, it will be necessary to use a work performance contract. For example, it is a work performance when the renovation of the bathroom is commissioned to a manual worker who works alone.

In the event that it is instead an activity carried out continuously over time, it will be necessary to draw up a contract for the supply of continuous service. For example, when hiring a construction company for the periodic maintenance of an apartment building.

What the facsimile of the contract for construction works contains

Our private construction works contract meets all legal requirements. The main clauses concern:

  • Object: the description of the building work, which may include any attachments (e.g. specifications), drawings and additional technical specifications
  • Fee: the possibility of indicating fixed or variable fees, with advances and payments staggered over time
  • Start and delivery: to indicate the date on which the construction of building works must begin and end
  • Penalties: to insert a penalty in case of delay in the delivery of the works
  • Reimbursement of expenses: for particular costs incurred by the construction company
  • Verification or testing period: in which the client checks the correct execution of the works
  • Subcontracting: to choose whether or not to authorize the assignment of all or part of the construction activity of building works
  • Work safety: to ensure compliance with the relevant legal requirements when necessary
  • English language: if the counterparty is foreign, it may be useful to generate the document in English to facilitate the negotiation

At the end of the interview we will guide you step by step through all the subsequent steps necessary for your document to be valid and effective.

Information you need

All parts data are required to complete the document. If you don’t know where to find this information we will help you during the guided interview.

The document can be modified in all its parts without time limits. Don’t worry so if you don’t have all the information available during the interview, you can always enter it later.

Remember that our interview does not generate a simple facsimile construction contract. Based on your answers, the system automatically draws up a customized contract model for your exact needs, guaranteeing its legal correctness.

Other names

The implementation of a construction works contract includes a wide spectrum of different situations and can be governed by more than one type of contract, for example:

  • Work contract
  • Engineering agreement
  • Private works contract
  • Supply and installation

 

You Might Also Like