Building Contracts: Understanding the Applicable Fee
Complex construction projects call for careful planning and preparation. The financial agreement reached between the parties involved is one of the most important parts of any construction project. Building contracts in Slovenia should be the subject of professional legal advice and direction from a Slovenian law firm that specializes in construction law.
Understanding Work and Building Contracts
Article 619 of the Obligations Code defines the general concept of a contract for work, which includes the undertaking of a specific transaction by the contractor and the obligation of the ordering party to pay for it.
Article 649 specifies that a building contract is a specific type of contract for work, whereby the contractor undertakes to build a structure on specific land according to a specific plan by a specific deadline or to carry out any other construction work on such land or on an existing structure, and the ordering party undertakes to pay a specific fee for the work.
Determining the Fee for Works in Building Contracts
Any building contract should include the cost of the construction job, which both parties must carefully analyze.
According to Article 654 of the Obligations Code, the charge for works in building contracts may be specified as either a unit of measurement of agreed works (unit fee) or as a sum total for the entire structure (total agreed fee). In other words, the contracting parties are free to select the payment method that best suits their requirements. Make sure the contract is in writing and has all pertinent information, including the price of the service, the date it is to be completed, and any other important terms and conditions.
If the payment is not stipulated in the contract, Article 642 of the Obligations Code specifies that the court shall determine it based on the value of the work, the time customarily required for such a transaction, and the customary payment for the type of work.
Deviation from the Construction Plan
According to Article 652 of the Obligations Code, in building contracts, the contractor needs the ordering party’s written consent before deviating from the construction plan or the agreed-upon works. The contractor is not permitted to request a raise in the pre-agreed price for work completed without such consent.
The form of the construction contract is prescribed to protect the interests of the parties and for evidentiary purposes. The form is determined only ad probationem, which means that its purpose is to make it easier for parties to prove the existence of a contract.
Legal Advice for Building Contracts in Slovenia
To avoid uncertainties regarding the agreed scope of work or the (agreed or fair) fee for work planned or completed, all agreements and changes to those agreements should be carefully drafted and approved in writing. In the absence of appropriate written documentation, one or both parties is likely to face uncertainty and potentially great financial loss. Especially in the latter case, legal counsel in Slovenia by a local lawyer may be essential.
For legal counsel and assistance with building contracts in Slovenia, contact a good Slovenian lawyer or law firm that can provide professional advice on all facets of construction law or broader civil law, including contracts, litigation, and disputes.
If you require legal advice or services for building contracts in Slovenia, contact our law firm in Ljubljana. We provide a variety of legal services, such as contract drafting, legal consulting, and dispute resolution.
You can find more information on our legal services on our web page and more information on legal counsel in general on the web page of the Bar Association of Slovenia. More information on the relevant legal acts, including the Obligations code can be found on the web page of the Ministry of Justice.
