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In business practice, a construction or works contract is often treated as a technical instrument: the parties agree on the scope of work, price and deadlines, sign the contract and start working.
However, Chapter 37 of the Civil Code of the Republic of Uzbekistan establishes a specific set of obligations and legal risks for contractors that should be considered from the very beginning of the contractual relationship.
Below are the key obligations of a contractor under the Civil Code of the Republic of Uzbekistan (the “Civil Code”).
Under a works contract, the contractor is obliged to:
Unlike a services agreement, a works contract places particular importance on the result of the work.
Therefore, the contract should clearly define what result is to be delivered, what requirements it must meet, and how the result will be delivered and accepted by the customer.
The Civil Code provides for the initial and final deadlines for performing the work. The parties may also establish intermediate deadlines for individual stages of the work.
Unless otherwise provided by the contract, the contractor is responsible for failure to comply with the agreed deadlines.
However, delays are not always caused by the contractor. For example, the customer may fail to provide the required materials, equipment or technical documentation.
In such cases, the contractor should properly document the circumstances preventing performance and notify the customer in a timely manner. The Civil Code provides specific rules for situations where the customer’s actions or omissions prevent the contractor from performing the contract.
The completed work must comply with the terms of the contract and, where the contract is silent or incomplete, with the requirements normally applicable to work of that type.
Where mandatory legal requirements apply to the work, a contractor acting as an entrepreneur must comply with those requirements.
If the work does not meet the required quality standards, the customer may, in cases provided by law:
Depending on the nature of the defects and the applicable contractual terms, the legislation also provides other remedies for the customer.
One of the key obligations of a contractor is to promptly warn the customer about circumstances that may affect the quality of the result or the deadline for completing the work.
The contractor must immediately notify the customer and suspend the work until receiving further instructions if, in particular, the contractor discovers:
For this reason, proper documentation of such circumstances is particularly important for the contractor.
Where materials, equipment or other property are provided by the customer, the contractor must use and preserve them in accordance with the applicable legal and contractual requirements.
When using customer-provided materials, the contractor must use them economically, provide an account of their use and return any remaining materials or, with the customer’s consent, reduce the price of the work accordingly.
The contractor is also responsible for preserving customer property that comes into the contractor’s possession in connection with performance of the works contract.
As a general rule, unless the law or the contract requires the contractor to perform the work personally, the contractor may engage subcontractors to perform part of its obligations.
In such cases, the contractor acts as the general contractor.
Where a subcontractor is engaged in violation of the applicable legal or contractual requirements, the contractor may be liable to the customer for losses caused by the subcontractor’s involvement.
Therefore, the contract should clearly address:
Once the work has been completed, delivery and acceptance become a separate legally significant stage.
The customer must inspect and accept the completed work in accordance with the procedure and deadlines established by the contract, with the participation of the contractor. If deviations from the contract or other defects are identified, the customer must notify the contractor without delay.
For this reason, proper documentation of the completion and acceptance process is particularly important.
Completion certificates, documents confirming delivery of the result, the customer’s objections and correspondence between the parties may become important evidence in disputes concerning payment, quality or deadlines.
Where a quality warranty is provided by law or by the works contract, the contractor must ensure that the result complies with the applicable requirements throughout the warranty period.
Unless otherwise provided by the contract, the warranty covers everything comprising the result of the work.
Warranty obligations should therefore be reviewed together with provisions concerning quality, deadlines for identifying defects, procedures for remedying defects and the liability of the parties.
A works contract is not simply an agreement to perform a certain scope of work. It regulates the result, deadlines, quality, materials, interaction between the parties, subcontracting, acceptance and liability.
Errors made when negotiating the contract may lead to disputes after the project has already started, when changing the contractual terms or proving a party’s position can be significantly more difficult.
Before signing a works contract, it is therefore important to review not only the price and deadlines but also how the legal risks are allocated between the customer and the contractor.
Legal review of a works contract helps identify potentially problematic provisions in advance, clarify the parties’ liability and reduce the legal risks of the project.
Sher Legal provides legal support to businesses and construction projects in Uzbekistan, including drafting and reviewing works contracts, legal support throughout contract performance and protection of business interests in contractual disputes