On 18 October 2017, , 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 Chumachenkos 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 Fadel, 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.


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