SAFETY OF INVESTMENT PROCESS PARTIES IN THE ASPECT OF CONSTRUCTION WORK CONTRACT

Abstract

The essential characteristics of a construction investment project include, but are not limited to: individual, comprehensive, specialized, complex and multi-step nature of activities, significant time constraints, demand for different qualifications and resources (material, financial). The above characteristics are a potential source of risk, which makes it necessary to accurately describe the mutual relations of entities involved in the project - primarily in the scope of the content of a construction work contract. Its task is to settle the commitments of the parties, their rights and obligations, and the responsibility for actions taken at the stage of preparation and implementation of the investment, in order to ensure its safe and non-conflicting realization. Signing a construction work contract results in the assumption of specific responsibilities by each party. In practice there are numerous examples of contractual clauses, which constitute a gross violation of the safety and balance of the parties in the area of fair and even distribution of potential risk. Most often two groups of contractual provisions are observed in the content of works contracts. The first one contains an unreasonable limitation of the contractor's entitlements, the other includes the irrational extension of the contractor's obligations and the transfer of numerous consequences of potential risks. The incorrect, i.e. unequal division of risk and its consequences is the most common cause of disputes between parties to a construction work contract. The paper presents the issue of asymmetry in the allocation of risks and limitations in shaping the contents of the public procurement contract, in terms of the safety of parties to construction work contracts