Binding Agreement In Russian

By default, the contractor does not have the right to suspend work in the event of a late payment by the employer; However, this right can be defined in the construction contract. The employer may change the technical assignment provided that the cost of the additional work does not exceed 10% of the overall forecast status and does not change the type of work covered by the construction agreement. Legislation does not directly regulate this issue. If the parties fail to reach an agreement, the dispute is referred for consideration to a court that will assess the contribution of each (contractor and employer) within that time. When carrying out a project, a developer usually concludes the following agreements: Judgments of foreign courts of foreign countries that do not have relevant bilateral agreements with Russia may be enforced by Russian state courts on the basis of the principle of reciprocity. In order to obtain the execution of a foreign court decision in Russia, the party concerned must provide evidence to the Russian State Court that Russian court decisions are being enforced in the state concerned. However, if the employer delays payment under the agreement, the contractor has a common right to retain the facility built until payment by the employer, unless such a right is nullified by the contract. The mandatory conditions include the purpose of the agreement (which must be determined fairly precisely) and the work schedule (at least the start date and the end date). The price can be set in the agreement as a fixed amount or as a calculation formula. Guarantee letters are also widespread, in which the employer guarantees payment for the first work ordered by the contractor before the agreement, while the applicability of these letters is highly questionable. As a general rule, the only contractors who approve of them are those who have a long positive experience of cooperating with a particular employer or who are very keen to preserve the project and who are willing to take the risk.

A construction contract must be concluded in writing. In theory, it is possible to conclude one by exchanging offer and acceptance, but this does not happen in practice.