Checklist: contracting construction

The differences between the two approaches are described on the page ‘How construction is contracted’.

1. Subject and documents

• The contracting parties are named correctly, together with the persons authorised to sign
• The subject of the contract and the scope of works are clearly described
• The main design and the bill of quantities form an integral part of the contract
• It is stated which document prevails if the documents are inconsistent
• What is not included in the scope is listed

2. Pricing basis

• The contract states whether it is turnkey, remeasured on the measurement book, or a combination
• For turnkey: it is clear that the price does not change because of differences in quantities within the scope
• For remeasurement: unit prices are agreed, and quantities are established from the measurement and the measurement sheets (dokaznice mjera)
• For a combination: it states which method applies to each group of works
• It is set out whether prices may change and under what conditions, or whether they are fixed

3. Variations and additional works

• Every variation is agreed in writing before it is carried out, with its effect on price and time
• It is set out who may order a variation on the investor’s behalf
• Additional and subsequent works have an approval procedure
• Quantities above those designed are approved before they are carried out and paid for
• A separate rule has been agreed for uncertain works (excavation, foundations, reconstruction)

4. Payment

• The advance and the payment schedule are set out and tied to work done
• Interim statements (situacije) are certified before payment, by an independent professional
• The payment period and the consequences of late payment are set out
• A retention (part of the price) is held back until defects are corrected or the warranty expires
• The final statement is tied to handover

5. Deadlines

• The start and completion dates are written in
• Key phases have their own deadlines (the programme is part of the contract)
• The consequences of the contractor’s delay are set out
• It states what counts as force majeure and a justified extension of time

6. Warranties and insurance

• Guarantees for performance of the contract and for correction of defects are specified
• The warranty periods and the date they start to run are written in
• The contractor holds liability insurance for damage on site
• A period is set within which the contractor must correct reported defects

7. Supervision and documentation

• A supervising engineer has been appointed and their powers are defined
• The investor has the right to inspect the works, especially those that will be covered up
• The contractor must provide quality records, test results and statements during construction
• The documentation for the technical inspection is listed among the contractor’s obligations

8. Termination and disputes

• The grounds for termination and the consequences for both parties are set out
• It is set out what happens to works already carried out and sums already paid
• The method of dispute resolution and the jurisdiction are specified
• A lawyer has reviewed the contract before signing

This is a general checklist, not legal advice. It does not replace a professional assessment. For your specific case, consult a designer, lawyer, notary or another suitable professional.

Bastion dizajn d.o.o.

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