The contract of participation in the construction of the building
rose roofing canada: One of the types of contracts in the field of construction is the contract of participation in construction, which is arranged and signed between the two parties of the transaction and is classified as one of the most important contracts for which many legal points and legal issues have been raised. .
When a land owner decides to demolish and renovate the property but does not have enough resources to do so, he uses construction participation contracts. During this type of contract, he uses the services of a construction and contracting company to implement his project and finally, according to the contract, a percentage of the project product is awarded to the builder.
The content of construction partnership contracts does not refer solely to the financial aspects of a project. Many contracting companies that work in partnership on construction projects are actually dealing directly with the owner of the land or the owner of an old property.
Contribute to the creation of a cost-effective idea for construction projects
Co-build is a cost-effective idea for construction projects. These contracts have advantages and disadvantages.
It is assumed that you have an old property and you need to demolish it and build a new building instead. Your goal of implementing this project is to transform the worn-out urban fabric into a new one.
In this way, you have presented the initial planning for the construction of a new project, but the main issue is that you do not have enough expertise and the required resources available, as well as the legal procedures of obtaining permits and building permits, and other issues. You don’t have sufficient mastery; On the other hand, it is not possible to provide the funds needed to complete the project from zero to one hundred, so a construction participation contract will be the best solution for you.
When you choose a company or an experienced person in the field of construction as your contract party, in fact, you entrust all the operations required by the project to him to perform from zero to one hundred for you. In return for doing this operation, you will share a percentage of the final profit of the project with him. This is exactly the kind of contract that will benefit you.
Participation in construction has many advantages, some of which are mentioned below:
The transformation of the old building into a new building and then the updating of the structure’s resistance
Implementation of new and codified engineering principles for building construction
Creating more space than before in the building
beautifying the urban environment according to the regulations of the day
Using modern materials, methods and machines to build buildings
But the most important advantage of this contract can be considered as the profit that the parties of the transaction will get in the short term.
Benefits of participation in construction
The amount of the land owner’s profit and the amount of the builder’s share
There are common principles to determine the share of each of the parties to the contract, which are mentioned below. Of course, the fluctuations of the housing market and the change in prices make many people face ambiguity and doubt when signing a construction partnership contract. In any case, they usually base the price on the current situation.
For example, in the city of Tehran, the calculation of participation in construction in each area of the city is based on the price of each square meter of newly built apartment in that area.
Determining the owner’s and builder’s share of the project is usually by agreement and there is no law for it. In any case, most people try to follow the custom and what is common in this field.
Currently, the percentage of participation in construction is calculated according to the price of each square meter of a newly built apartment in that area.
Free money is the cost that is paid by the builder to the owner at the beginning of the project so that he can provide accommodation for himself and his family until the end of the construction operation.
Obligations of the owner
Obligations of the owner
In the case of the land owner, the most obvious issue that can be seen at first glance is that he does not have a more basic and important obligation than transferring the land to the project manager, and in fact, according to the nature of this type of contract, it can be said that not only is there no condition that If it is contrary to this issue, it is not correct, but it also invalidates the contract.
In this situation, if the owner does not fulfill his obligation, he should first refer to the contract between the parties and check what position is provided for not fulfilling such an obligation in its articles, and if such a situation is included in the contract as one of the conditions If the contract is included, it should be followed, as currently, such a condition is generally included in all contracts in the form of including a bond for breach of the terms of the contracts. This issue is exactly what is provided in Article 230 of the Civil Code that the judge cannot sentence the offender to more or less than what is prescribed.
Obligations of the project manager
Obligations of the executor of the construction participation contract plan – Rose Roofing Company
In construction participation contracts, when we examine the executor’s obligations, basically, unlike the owner’s obligations, most of which are clear obligations and are limited to handing over the land to the executor, the executor’s obligations do not have a specific model and can be any type of obligation. Be considered.
Now, by mentioning this introduction, it can be said that in the process of concluding a construction participation contract, the contractor can undertake various obligations that are different in different conditions, and according to their importance, it can be said that the most important obligations of the contractor can be be as follows:
Payment of project construction costs
Payment of administrative costs of the project
Payment of the owner’s fee for accommodation at the time of construction
The most important obligations of the executive – construction participation contract – Istasazeh Company
Customary obligations
As their name suggests, they are obligations derived from custom. These obligations are not written in the text of the contract
