Contract agreement for finishing work to renovate an apartment

Renovating an apartment is not a cheap pleasure. Especially when you hand it over to a construction crew. You have to pay twice: not only for materials, but also for work. Therefore, before allowing builders to carry out repairs, it is worth insuring yourself by concluding a special agreement. However, it will also be very useful for the workers themselves. Let’s figure out what risks this important document will protect you from and how to draw it up correctly.

Apartment renovation contract

Tyumen
October 27, 2023

Construction LLC, represented by General Director Anatoly Stepanovich Surganov, acting in accordance with the Charter of the company, hereinafter referred to as the “Executor”, on the one hand, and Vladislav Stanislavovich Vedyaev, registered at the address: Tyumen region, Tyumen City, Ozernaya street, building 117 , apartment 846, passport: number 0000 series 000000, issued by the Ministry of Internal Affairs of Russia for the Tyumen region in the city of Tyumen on November 19, 2000, hereinafter referred to as the “Customer”, on the other hand, we have entered into this agreement as follows:

The preamble of the agreement contains information that is directly related to the personal data of the counterparties. Thus, the text of the preamble contains the following provisions:

• Firstly, the type of transaction being concluded (in our case, it is an agreement for apartment renovation).
• Secondly, the place, that is, the city in which the agreement is drawn up;
• Thirdly, the date of conclusion of the contract;
• Fourthly, the surname, initials, registration address, passport details of the individual and the name of the organization, as well as the surname and initials of the representative of the legal entity;
• Fifthly, the roles of the participants in the transaction.

All of the above items together constitute the contents of the preamble.

Further, the agreement contains sections containing essential (without which the agreement does not enter into legal force) and additional (at the discretion of the parties) conditions. Below we present a sample of each section separately:

Responsibility of the parties

This section specifies the circumstances in the event of which the parties bear financial liability. The indication of such circumstances is due to the desire to reduce the risks of controversial situations. Below we give approximate wording that may appear in the text of the document:

Counterparties bear financial liability in the event of non-fulfillment or improper fulfillment of their obligations under this agreement. The contractor is liable if the work is performed poorly or not within the time period established by the contract. In case of delay in completing the work specified in the text of the document, the Contractor shall pay a penalty in the amount of 0.3% of the transaction amount for each overdue calendar day. The customer is responsible for late or incomplete payment of labor. In case of delay in payment for accepted work, the Customer pays a penalty in the amount of 0.5% of the transaction amount for each overdue calendar day.

Item

The subject matter section acts as the basic component of the agreement. In our case, the subject is the Contractor’s services for carrying out repair work in the Customer’s apartment. The section must indicate exactly what repair work must be carried out. So, the provisions related to the subject of the agreement are written in the text of the document as follows:

In accordance with this agreement, the Contractor, on the instructions of the Customer, carries out repair work in the apartment, which is located at the address: Tyumen region, Tyumen city, Ozernaya street, building 117, floor 9, apartment 846. Repair work is carried out by the contractor in accordance with technical documentation, as well as technical specifications of the Customer. All information related to the process of carrying out repair work is specified in the contents of Appendix 1 to this agreement. The procedure and terms for payment for work are set out in Appendix 2 to this agreement. All wishes of the Customer related to the renovation of the apartment that arise in the process of carrying out repair work are formalized by drawing up an additional agreement.

Turnaround time

To ensure that the repair work does not drag on for an indefinite period of time, the Parties determine the deadline for its completion. The deadlines are determined by the Contractors and depend on the quantity and complexity of the work performed. So, in the text of the document this section is written as follows:

The Contractor undertakes to fulfill the points specified in the document within the period: from October 23, 2023 to November 10, 2023. The work is accepted by the Customer on November 11, 2023, after which an acceptance certificate is drawn up.

Rights and obligations of the parties

This section provides a list of obligations of the Counterparties under this agreement. Also, this section sets out provisions on the rights of the parties. All this together forms the procedure for the Contractors’ actions within the framework of the agreement. We present approximate formulations that appear in this section below:

The Customer has the right to: • Demand that the Contractor carry out repairs to the apartment in accordance with the technical and design documentation set out in Appendix 1 to this agreement. • Require the Contractor to properly fulfill its obligations in accordance with the terms of this agreement. The Customer undertakes to: • Timely pay for the Contractor's work in accordance with the terms of this agreement. • Compensate for all losses incurred by the Contractor during the repair work. • Reimburse all expenses of the Contractor directly related to the implementation of its activities. • Pay the cost of building materials needed for repairs. • Provide the contractor with normal conditions for carrying out his activities. • Bear responsibility in case of violation of the terms of the contract, or failure to fulfill obligations under this agreement. • Fulfill your obligations in strict accordance with the terms set forth in the text of this agreement. The Contractor has the right to: • Demand from the Customer timely payment for repair work. • Demand compensation for all losses incurred by the Contractor in the course of carrying out activities related to the repair. • Demand reimbursement of all Contractor's expenses directly related to the repair. • Require the Customer to properly fulfill obligations in accordance with the terms of this agreement. The Contractor undertakes to: • Carry out repairs to the apartment in accordance with the conditions specified in this agreement. • Carry out repair work in accordance with the technical and design documentation specified in Appendix 1 to this agreement. • Provide a guarantee of the quality of work performed. • Submit the work within the period stipulated by the conditions set out in Appendix 1 to this agreement. • Bear responsibility in case of violation of the terms of the contract, or failure to fulfill obligations under this agreement. • Fulfill your obligations in strict accordance with the terms set forth in the text of this agreement.

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Citizen V. plans to renovate his apartment by a third-party private person.

Question

Should a repair contract be concluded with an individual?

Will such an agreement have legal force?

Is there a risk of losing money even if such an agreement is concluded?

Lawyer's answer

an agreement for apartment renovation with an individual , because... in case of disputes, the contract will confirm that V. have entered into certain contractual relations. An agreement between individuals has legal force. There is always a risk of non-fulfillment of agreements, but it is the agreement that will act as a guarantor (evidence) of V.’s violated rights and will help to defend his violated rights, including the return of funds.

Most often, individuals do not enter into a written agreement for the provision of services if they require minor help with housework or simple repairs. Agreements are made orally, payment is made from hand to hand upon receipt of the result of work or services. The absence of completed documents when an individual provides a service to another individual can lead to the fact that it will be very difficult to make claims about the quality of work or payment for it. Everything rests on the honest word of the customer and the performer.

If there are no supporting documents: an agreement, a receipt for receiving money, an act of acceptance of the transfer, an estimate of costs, a document on the use of customer funds for the purchase of materials, etc., then in the event of legal disputes the parties can only refer to witness testimony. Based on this, when placing an order for services or contract work between individuals, it is worth drawing up at least a simple one-page agreement, which will confirm that citizens have entered into certain contractual relations.

If disputes arise between individuals who have entered into a contract for repairs (houses, apartments) and they cannot find a compromise, then their decision will be transferred to the legal plane. The injured party prepares a statement of claim and submits it to the court. One of the main evidence in court will be the contract signed by the customer and the contractor.

The Civil Code of the Russian Federation allows you to conclude civil contracts with an individual for the performance of various works. Such agreements include, for example, a contract. Chapter 37 , common to all participants in civil legal relations, apply to relations under work contracts involving individuals . In other words, such agreements are concluded and executed in the same manner as work contracts to which a legal entity is a party (customer or contractor).

Citizens (individuals), along with legal entities, are participants in civil legal relations and can acquire rights and obligations on the basis of an agreement ( clause 2 of article 1 , clause 1 of article 2 of the Civil Code of the Russian Federation). An individual can be a party to any civil contract, if this does not contradict the mandatory norms of legislation ( Articles 421 , 422 of the Civil Code of the Russian Federation).

The law does not limit the possibility of concluding a contract by an individual, either as a customer or as a contractor. Moreover, under a household contract, the customer is the citizen ( Clause 1, Article 730 of the Civil Code of the Russian Federation).

It should be noted that regardless of the type of contract (household contract, construction contract, contract providing for the performance of other contract work), a citizen has the right to systematically perform work for a fee under the contract only subject to prior state registration as an entrepreneur, since such work is actually performed forms entrepreneurial activity ( clause 1, article 23 of the Civil Code of the Russian Federation). However, if a citizen carries out entrepreneurial activities without forming a legal entity in violation of this requirement, he does not have the right to refer to the transactions concluded by him to the fact that he is not an entrepreneur. The court may apply to such transactions the rules of the Civil Code of the Russian Federation on obligations associated with the implementation of entrepreneurial activities ( clause 4 of Article 23 of the Civil Code of the Russian Federation). Therefore, an agreement, the obligations under which are fulfilled by a citizen within the framework of activities that are actually entrepreneurial, cannot be declared invalid only on the grounds that such a citizen does not have the status of an entrepreneur (see resolution of the Federal Antimonopoly Service of the Central District dated January 13, 2011 N F10-5887/ 2010).

For carrying out entrepreneurial activities without state registration as an entrepreneur, a citizen may be brought to administrative liability under Part 1 of Art. 14.1 Code of Administrative Offenses of the Russian Federation. In the presence of certain circumstances (causing large-scale damage to citizens, organizations or the state, generating large-scale income, etc.), carrying out business activities in the absence of state registration may entail bringing the citizen to criminal liability (Article 171 of the Criminal Code of the Russian Federation ).

For the customer under a work contract, there are no negative legal consequences of the absence of such registration by the contractor - an individual.

The following conditions must be covered in the construction contract :

Parties to the contract . If this is an individual, then his full name is indicated. Other data may not be indicated in the preamble of the agreement, but rather written in the final chapter, where the signatures of the parties will be placed. A similar situation is if one of the parties to the contract is an organization - at the beginning of the contract indicate the full name, and who, and on what basis, represents its interests. In the final clause, other data is indicated: TIN, checkpoint, legal address, etc.

Subject of the agreement . It is necessary to indicate the exact list of work that the contractor must perform on behalf of the customer. All work must be carried out in accordance with the technical documentation (scope, content of work and other requirements) and the estimate (it determines the cost of the work), which are annexed to the main contract. If the contractor discovers the need to carry out work that is not taken into account in the estimate or technical documentation, he informs the customer about this, and he is obliged to make appropriate changes to the estimate or documentation within 10 days, otherwise the contractor has the right to suspend work.

The contract must indicate the start and completion dates for work . It is also possible to provide for phased delivery of work and penalties in case of violation of established deadlines.

Procedure for payment by the customer : are other expenses necessary to complete the work included in the payment, is a one-time or staged payment made, when will the final payment be made, etc. The cost of work is indicated in numbers and words.

The procedure for providing materials for work : at whose expense and by whose efforts they will be purchased. If this is done by a contractor, then it is necessary to stipulate the list of materials, their quality and the procedure for reporting costs to the customer.

Work acceptance procedure. Here it is important to provide not only for the acceptance period of the completed work, but, if necessary, to determine the procedure for its verification (testing). This item is mainly necessary if the object is commissioning work. Having accepted the entire work, or a certain stage of it, the customer signs an acceptance certificate.

It is imperative to reflect the responsibilities of the customer and the contractor, as well as the liability of the parties for violation of the terms of the contract.

If any of the points is not specified in the contract agreement, if controversial situations arise, they will be resolved in accordance with the norms of the Civil Code of the Russian Federation. You also need to take into account that if the terms of the contract contradict Russian legislation, they may be declared invalid.

Consultation was given in November 2021 as part of the Republican competition “Professional Lawyer 2018”.

Consultant - Sergey Vladimirovich Antropov, legal consultant of the Federal Budgetary Institution "Center for Hygiene and Epidemiology in the Udmurt Republic" (branch in the city of Votkinsk), post office

Final provisions

This section reflects provisions that are essentially not related to the above sections, but are important when concluding an agreement. Their wording looks like this:

• This agreement acquires legal force from the moment it is signed by the Counterparties. • The work is accepted by the Customer by drawing up an acceptance certificate for the completed work. • In case of any disagreements or disputes, the parties resolve them through negotiations. • If the parties do not reach a compromise, all disputes are resolved in court. • This agreement comes into force from the moment it is signed by the parties.

Contract price

An important element of the concluded transaction is the clause on the cost of the work performed. The price of the work is calculated in accordance with the characteristics of the room in which it will be performed and depends on the number of square meters. It is important to note that the cost of services is fixed and cannot change during the execution of work. So the cost section looks like this:

The cost of the work, taking into account the provision of necessary materials by the customer, is estimated at 45,580 (Forty-five thousand five hundred eighty) rubles 00 kopecks. Payment is made by transferring funds in cash to the Contractor at the time of acceptance and delivery of completed work.

Differences from labor

Often, inspection authorities try to prove that a contract with an employee was concluded unlawfully and that the existing relationship is an employment relationship. To avoid claims on their part, it is necessary to fully take into account the main differences between the relationship with a full-time employee and a contractor. These differences are presented in the table.

Insurance premiums from remuneration to contractors

Regardless of what tax regime the company applies, contributions to compulsory pension (to the Pension Fund) and medical insurance (Article 420 of the Tax Code of the Russian Federation) are charged from remuneration to individuals under contract contracts. These include a standard contract agreement for the performance of work, the execution of an author's order, the transfer of copyright, and the granting of rights to use works. For other GPAs (for example, under a lease agreement), insurance premiums are not required.

Contributions for compulsory social insurance are not charged to the Social Insurance Fund (subclause 2, clause 3, article 422 of the Tax Code of the Russian Federation).

Contributions for insurance against accidents and occupational diseases are charged only if the organization’s obligation to pay them is provided for by the GPD (paragraph 4 of article 5, paragraph 1 of article 20.1 of the Law of July 24, 1998 No. 125-FZ).