Contract for Capital Construction: Features, Subject, Essential Conditions and Responsibilities

The article considers the peculiarities of capital construction contracts. The concept, subject and essential conditions of this agreement are defined. The analysis of the legislation regulating the order of drawing up and execution of contracts under capital construction is carried out. Part 1 of Art. 318 of the Commercial Code of Ukraine enshrines the concept of a contract for capital construction. The capital construction contract, being a type of contract, has all the generic features inherent in the latter. Regarding the subject of the contract, there are different scientific views for its definition, however, it should be noted that the subject of the capital construction contract is diverse, which allows us to consider this type of contract special. The issue of the essential terms of the contract is also important, as the capital construction contract is considered concluded upon agreement on all essential terms. The essential conditions of this type of contract are enshrined in the provisions of the Commercial Code of Ukraine, as well as in the General Conditions for concluding and executing contracts in capital construction, approved by the Cabinet of Ministers of Ukraine dated August 1, 2005 № 668. As a general rule, the parties to such an agreement are the customer and the contractor, who are endowed with certain rights and responsibilities. Contracts (subcontracts) for capital construction are concluded and executed on the general conditions of concluding and executing contracts in capital construction, approved by the Cabinet of Ministers of Ukraine, in accordance with the law. It should be noted that any contract is concluded for the purpose of obtaining results, even if it is complied with by all parties. However, unfortunately, it may happen that the parties do not perform their duties at all or perform improperly, which leads to a breach of contract. In case of breach of obligations under the contract, the following legal consequences occur for the violator: payment of fines, penalties (penalties) suspension of performance of obligations under the contract by unilateral refusal to perform it, if established by the contract or law, or termination of the contract ; change of terms of the contract; compensation for property damage, as well as moral. In the legal literature, some researchers for some reason consider contracts together with service contracts, as well as with the employment contract. Prospects for further exploration in the regulation of the contract for capital construction may be associated with the development of a separate legal act that combines and harmonizes the rules of the Central Committee of Ukraine, the Civil Code of Ukraine, the General Conditions of Contracts in Capital Construction and Contracts relations in general