{"id":1210,"date":"2023-09-11T22:06:43","date_gmt":"2023-09-11T19:06:43","guid":{"rendered":"https:\/\/varna-lawyers.com\/?p=1210"},"modified":"2023-09-11T22:06:43","modified_gmt":"2023-09-11T19:06:43","slug":"%d0%b4%d0%be%d0%b3%d0%be%d0%b2%d0%be%d1%80%d0%b8-%d0%b2-%d1%81%d1%82%d1%80%d0%be%d0%b8%d1%82%d0%b5%d0%bb%d1%81%d1%82%d0%b2%d0%be%d1%82%d0%be","status":"publish","type":"post","link":"https:\/\/varna-lawyers.com\/en\/2023\/09\/11\/%d0%b4%d0%be%d0%b3%d0%be%d0%b2%d0%be%d1%80%d0%b8-%d0%b2-%d1%81%d1%82%d1%80%d0%be%d0%b8%d1%82%d0%b5%d0%bb%d1%81%d1%82%d0%b2%d0%be%d1%82%d0%be\/","title":{"rendered":"CONTRACTS IN CONSTRUCTION"},"content":{"rendered":"

The construction investment process is complex both factually and legally. In the course of construction, many legal relationships arise between the various parties in the process, which often give rise to misunderstandings and develop into legal disputes and, in some cases, lawsuits. The purpose of construction is to realize a finished building. In connection with achieving this goal, a number of contracts are concluded, and in this post we will look at the most common of them.<\/p>\n\n\n\n

AGREEMENTS FOR THE ACQUISITION OF THE RIGHT OF OWNERSHIP OR THE RIGHT OF BUILDING<\/p>\n\n\n\n

In order to realize any building, first of all, a terrain is needed on which to build it. There are various transactions through which this can be carried out - purchase and sale, exchange, donation, contract for maintenance and care, establishment of the right to build and others.<\/p>\n\n\n\n

Each transaction has its own characteristics, and the actual will of the parties is always important. Often, although the will is one at the insistence of the builder or investor, the transaction is shaped in another form (simulation). In this way, the legal consequences generally change, and very often the parties are not fully aware of this change. In this regard, the rule is that contracts should correspond to the actual will of the parties. All covert agreements entail numerous risks.<\/p>\n\n\n\n

LAND PROPERTY SURVEY<\/p>\n\n\n\n

Ownership of the plot of land is extremely important when investing in construction, since it is possible that after the construction of the building it turns out that it was built on someone else's property and became his by virtue of accretion, for example (Article 92 of the Law on Property).<\/p>\n\n\n\n

Issues related to inheritance, co-ownership, marital property community should be clarified. Chronologically, the previous legal transactions with the property should be checked and how the ownership came to its current owner\/s.<\/p>\n\n\n\n

The vesting periods are extremely important because different laws may have been in effect and the consequences may have been different. This work should be done by a well-trained lawyer.<\/p>\n\n\n\n

PROPERTY APPRAISAL<\/p>\n\n\n\n

The property should be investigated - its status, real area, encumbrances of the property, pipelines, power lines, communications (easement areas).<\/p>\n\n\n\n

ESTABLISHMENT OF RIGHT OF CONSTRUCTION<\/p>\n\n\n\n

The most common case of construction begins with the establishment by the owner of a building right of the investor or builder. This contract is executed with a notarial deed, specifying the parameters of the future building.<\/p>\n\n\n\n

Very often, the establishment of a building right is associated with compensation to the owners of the land with separate objects in the future building. This type of contract includes a contract for construction and a contract for establishing the right to build.<\/p>\n\n\n\n

Usually, these agreements are laid down in a contract (often called preliminary), which includes the parameters of both contracts - what will be built, under what conditions, etc.<\/p>\n\n\n\n

INVESTMENT DESIGN CONTRACT<\/p>\n\n\n\n

The main stage when starting construction is the development of investment projects. According to Art. 148, para. 4 of the Territory Development Law the construction permit is issued to the contracting authority on the basis of an approved technical or work investment project, when such is required. A building permit is allowed to be issued on the basis of an approved conceptual design under the conditions of Art. 142, para. 2. The building permit is issued simultaneously with the approval of the investment project, when this is requested in the application.<\/p>\n\n\n\n

Parties to the contract are the client and the designer. The assignor is the owner of the property or the person who has been granted the right to build on the plot. The designer undertakes the obligation to prepare the investment project. The designer should have a designer's legal capacity.<\/p>\n\n\n\n

According to Art. 160, para. 2 the relationships between the construction participants are regulated by written contracts. This fully applies to the contract for investment design. According to Art. 29, para. 1 of the Law on Chambers of Architects and Engineers in Investment Design, architects, landscape architects, urban planners and engineers - registered in the relevant chamber, receive a fee for providing design services, determined in a written contract with the contractor of the design service, on the basis of free negotiation.<\/p>\n\n\n\n

Contracts for development of development plans and for investment design of objects from the first to fourth category under Art. 137, items 1-4 of the Territory Development Law are registered in the relevant chamber within one month of their signing. The registers contain information about the name and location of the object, technical parameters and data about the contracting authority and the contractor.<\/p>\n\n\n\n

The contract for investment design regulates the development of<\/p>\n\n\n\n

CONSTRUCTION SUPERVISION, CONFORMITY ASSESSMENT, CONSULTANCY CONTRACTS<\/p>\n\n\n\n

According to Art. 166 of the Territory Development Law consultants have two main roles:<\/p>\n\n\n\n