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Key elements of a successful construction contract in Spain

Real Estate
Key elements of a successful construction contract in Spain

When undertaking a construction project, it is essential to establish a solid contract that defines the terms and conditions between all parties involved.

In this article, we will explain in detail the key elements of a construction contract in Spain and why it is essential to have the advice of an expert law firm in real estate law in spain to draft it.

We will also examine turnkey contracts and other relevant agreements with architects, engineers, technicians and real estate agents, who play a crucial role in the construction process. 

What is a construction contract?

A construction contract is a legal document that sets out the rights and responsibilities of contractors, subcontractors, owners, and other key players in the construction process in Spain. Its proper wording is essential to ensure that the project is carried out successfully and avoid possible conflicts in the future.

Key Elements of a Successful Construction Contract in Spain

A well-written construction contract must contain a number of key elements to ensure the effectiveness and success of the project. These items include:

Identification of the parties involved

The contract must specify who are the parties involved, such as the owner, the main contractor, subcontractors and suppliers. This establishes the basis for defining the responsibilities and obligations of each of them.

Scope of work

The contract must describe in detail the scope of work to be performed. This implies defining the stages of the project, the deadlines, the materials to be used and the technical specifications. The clearer the scope of work, the less likely there will be misunderstandings or disputes during the execution of the project.

Payment and financial conditions 

The contract must establish the payment terms, including the total amount of the project, partial payments, due dates, and payment terms. In addition, you must address any penalties for late payment or failure to meet agreed financial obligations. 

Deadlines and schedule 

It is essential to establish clear deadlines and a realistic schedule in the contract. This will allow proper monitoring of project progress and avoid necessary delays. In addition, it is important to include provisions that address the potential consequences of failure to meet deadlines. 

Changes and modifications

Construction projects often require changes or modifications as they progress. The contract must contemplate how these changes are handled, including the procedures to request modifications, the approval of the changes and the corresponding definitions in terms and costs. 

Guarantees and responsibilities

The contract must establish the guarantees offered by the contractor and the responsibilities in case of defects or breaches. This includes guarantees on the quality of work, guarantees on the materials used, and the contractor's liability in the event of damage or accidents during construction. These clauses guarantee security for both the owner and the contractor.

Dispute Resolution

It is important to include clauses that establish the procedures for the resolution of disputes. This may include mediation, arbitration, or court settlement. These provisions help avoid costly litigation and promote quick and efficient resolution of any dispute that may arise.

Turnkey" contracts and other related agreements

In addition to the construction contract, there are other relevant legal agreements in the field of construction that must be considered. Some of these contracts include: 

Contracts with architects and engineers: Construction projects often require the services of architects and engineers for design and technical supervision. These contracts establish the responsibilities and fees of these professionals, as well as the expected deadlines and deliverables.

Contracts with technicians and subcontractors: In many construction projects, specialized technicians and subcontractors are hired to carry out specific jobs, such as electrical installations, plumbing or HVAC systems. Contracts with these professionals define the terms of their participation, including deadlines, payments, and responsibilities.

Off-plan sales contracts: In real estate, off-plan sales contracts are used when acquiring properties under construction or in stages prior to construction. These contracts establish the terms of the purchase, the delivery terms, the guarantees and the termination clauses.

Contracts with real estate agents: If a real estate agent is involved in the sale or rental of a property under construction, it is important to have a contract that specifies the terms of the collaboration, the commissions and the duties of the agent.

Importance of having an expert law firm in real estate law in Spain

The proper wording of all these contracts is essential to ensure that construction projects are carried out successfully and without legal conflicts. An expert law firm in real estate law plays a fundamental role in this regard.

These professionals have the knowledge and experience necessary to write solid contracts adapted to the specific needs of each project. Their experience in real estate law allows them to identify potential risks and protect the interests of their clients

In addition, a law firm specializing in real estate law can advise on the negotiation of contracts, making sure that the terms are fair and balanced for all parties involved.

They can also provide guidance in the event of contractual disputes or breaches, helping to resolve issues efficiently and minimizing the impact on the project.

Our experience in real estate law guarantees successful transactions

In our practice, we also take care of drafting contracts with key professionals in the construction process, such as architects, engineers and other technicians. These contracts set out the terms of your participation, including responsibilities, deadlines, and payments.

In addition, we provide off-plan purchase and sale contract drafting services, which are essential in the real estate field to ensure a safe transaction and protect the rights of both parties.

Likewise, we work on contracts with real estate agents, defining the terms of collaboration and the corresponding commissions. Our experience in real estate law allows us to offer comprehensive advice in all these areas and guarantee the effectiveness of the contracts involved in the construction process.

The advice of an expert real estate law firm is essential to draft solid contracts, protect the interests of the parties involved and resolve any dispute efficiently.

Contact us for expert advice on construction contracts and real estate law in SpainWe offer assistance and legal advice in Real Estate Nationally and Internationally. In addition, we have:

Law firm in Barcelona
Law firm in Madrid
Law firm in Reus