Contract for Work under the New Civil Code

Abstract

Contract for work is probably the second most widely used type of contract (next to the purchase contract). Therefore it's complex regal regulation is very important for the unambiguous definition of the rights and obligations of the parties to the contract. By the contract for work, the contractor undertakes to perform certain work and the employer undertakes to pay the price for its performance. Work as defined by the law manufacture specified products (provided the manufacture does not fall under the notion of a purchase contract), the maintenance, repair or modification of certain items or the result of other activities. Fabrication, repair or modification of buildings or parts thereof shall be always covered by contracts for work.The new legislation, given by the Civil Code, Law No. 89/ 2012 Coll. and effective from 1 January 2014, replaced the regulation of the contract for work, as contained in the abolished Civil Code of 1964, as well as the in the Czech Commercial Code of 1991 that was also cancelled by the new Civil Code of 2012.The paper describes the most important provisions of the new shape the of contract for work. The basis for the draft new legislation was taken from the former regulation of this contract by the Commercial Code and having taken regard to certain legal regulations by other countries, because the concept of contract work as contained in the former Civil Code was strongly influenced by its original design from 1964 and the by patterns of the Civil Code of 1950. In some respect certain provisions of former Code of International Trade were also take into account, the normative structure of which was “borrowed” by the later Commercial Code. The new Civil Code regulation, however, should be more precise and clearer than the previous arrangements.In the interest of clarity, the draft legislation is structured so that the introductory rules cover contracts for work in general and thereafter follow rules for deviation from the price of the work according to the agreed budget, for the work carried out on real estate and works concerning intangible assets.