Contracting agreement (locatio-conductio operas) in Ukraine


Contracting legal relationships in Ukraine are regulated mostly by the Civil Code of Ukraine, namely by clauses 837 to 864 of the same and by a lot of special subsequent clauses of the Civil Code of Ukraine and by a small list of clauses of the Commercial Code of Ukraine.

Clause 837 of the Civil provides definition for the contracting agreement (locatio-conductio operas) and states that on the grounds of the contracting agreement one of the parties (the contractor) undertakes to make certain work according to the order of the other party (the customer) at his own risk and the customer undertakes to accept the work done and pay the contractor for the work.

The contracting agreement can be made for manufacturing, processing, treatment, repairing or other works providing that the result of such works is to be transferred to the customer. The contractor can be required to have appropriate license for certain types of works.

Subcontracting is allowed. Clause 838 of the Civil Code of Ukraine provides that the principal contractor has the right to engage a subcontractor to perform certain works, if otherwise is not provided by the contracting agreement, however reserving his own responsibility for the results of such works. I.e. the principal contractor is responsible anyway before the customer for the works performed.

Therewith the principal contractor is responsible before the subcontractor for poor performance or non-performance of obligations by the customer.

Clause 839 of the Civil Code of Ukraine provides that the contractor has to perform the work using his own materials and efforts, if otherwise is not provided by the contracting agreement. Therefore the contractor is in charge for the valid quality of such materials.

If the work is performed using materials of the customer in part or in full, the contractor has to report to the customer about the use of such materials and is in charge for the right use of such materials.

The risk of accidental loss of the material provided for the work bears the entity, which has provided such material.

Provisions of clause 843 of the Civil Cod of Ukraine require including into the contracting agreement the price of works or procedures to determine the price, otherwise such price to be determined considering the essential prices for the same works. Such price is to cover costs of the contractor and award for the contractor. As provided by clause 844 of the Civil Code of Ukraine, the price of contractual works can be determined in the estimation sheets.

The timescale of the contractual works is to be defined by the Contract; otherwise the work is to be done within the reasonable term (clause 846 of the Civil Code of Ukraine).

Essentially the customer has the right to check the process of work however not disturbing the contractor of performing the work. The customer also has the right to withdraw the contracting agreement at any time before the work is completely done, however has to pay for the work, which was already done by the contractor in full.

Clause 850 of the Civil Code of Ukraine requires the customer to facilitate the contractor to perform the work within the frameworks provided by the contract and the law.

When the work is done by the contractor the customer has to check the work and accept it. If the work was accepted without a check, the customer forfeits the right to claim the contractor as concerning the defects in the work, which could be found through such check.

The Civil Code of Ukraine also provides some special regulations for the civil work contract (construction contracts). In this regard one should duly notice regulations of clauses 875 to 886 of the Civil Code of Ukraine.

The above information is provided herein in educational and informative purposes only. It is provided that you have to get appropriate legal advice as regarding the legal and other issues of your interest in Ukraine in order to have the exact, extensive and up-to-date legal and other related information.

Do not hesitate to contact us if you have any questions or issues of legal nature, our Law Firm is working for you and our experienced legal specialists are always ready to help providing the client with appropriate legal consultations, legal reports and summaries, reasonable legal advices and all the other required legal support, assistance, coverage and protection.

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