Рус / Eng

Ministry of Construction of the Russian Federation: standard construction and design contract samples will be postponed for six months

9 August 2019

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The Russian Ministry of Construction proposed postponing the entry into force of orders on the approval of model contracts for the construction, design and engineering surveys (orders of July 5, 2018 No. 398 / pr and July 5, 2018 No. 397 / pr). Reason: the previously developed model contracts do not take into account the new 44-FZ rules that will enter into force on July 1, 2019.

As explained by the Ministry of Construction, the possibility of increasing the price of a contract up to 10% provided for by standard contracts does not fully comply with the provisions of the above federal law and does not allow specifying the types of work to be performed under the contract. Also, the standard contract does not provide for the statutory right to change the price and duration of the contract within 30%.
In addition, the approved standard contracts establish the obligation of the customer to unilaterally refuse to fulfill the contract if the contractor violates the deadline for its execution, while the law establishes the possibility of a one-time extension of the contract.
The approved version of the standard design contract also does not provide for the development of working documentation, while in practice, contracts are concluded at the same time for design and survey work and the development of working documentation in the amount necessary for construction and installation works and commissioning of the facility. The development of design and working documentation is carried out in parallel by one design organization, which personalizes responsibility, reduces the design time, minimizes the risks of non-compliance of design and working documentation and the associated risks of additional spending of budget funds.
In this regard, and also referring to the duration of the conciliation procedures, the Ministry of Construction of Russia intends to postpone the entry into force of orders from July 1, 2019 to January 1, 2020 and amend the already approved standard contracts. Corresponding changes to the orders are published on the federal portal of draft regulatory legal acts.

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