VEGAS LEX discusses contractual relations and disputes between developer and general contractor duri

Igor Chumachenko, VEGAS
LEX Partner, Head of Real Estate, Land & Construction practice, took part in the breakfast meeting of АЕСОМ at which he told about contractual relations between developer and general
contractor, and procedures to be complied with when electing a contractor on a
tender basis, and current judicial practice regarding disputes between the
parties to a construction contract.

On the 18 October 2017, Igor
Chumachenko, VEGAS LEX Partner, Head of Real Estate, Land & Construction practice,made a speech at the breakfast meeting "Developer
vs general contractor: how to organise a construction process efficiently and
avoid losses?" organised
by one of the largest construction corporations – AECOM – at Franco-Russian
Chamber of Commerce and Industry.

The
main topics of Igor Chumachenko’s
speech were the disputes under a general contractor contract and the matters of structuring of relations between developer and general
contractor, in particular, the responsibilities of the parties, distribution of
risks, volume of works, specifics of determination of time limits, price of
contract and settlement procedure. The speaker
discussed with
the meeting participants the
case studies of disputes
over the legal
treatment of
relations between
the parties (structure, legal
treatment and
scheme of contractual relations), disputes
over the existence of a contractor contract, price of the
contractor contract and procedure of payment for works (when there is no
contract for performance of works or there is no
public contract; recovery of advance
and regular payments; retention, etc.), disputes over the failure to
comply with the time limits for performance of works and quality of works. In conclusion, he also addressed the issues of a bank guarantee and obligations of
the parties to a contractor contract in case of early termination of the contract,
and emphasized the details that need to be included in general contractor
contracts, based on analysis of judicial practice.

Raymond Abu, Regional Director of AECOM Russia,
told about how to select properly a general contractor on a tender basis, and dealt with the issues
of management of a construction project and provision of technical supervisor’s
services, having addressed, inter alia, the issues of risks and liability of the
project participants.