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Civil law. Part II. Contract agreement to perform work for state or municipal needs (the most important)

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50. CONTRACT FOR THE PERFORMANCE OF WORKS FOR STATE OR MUNICIPAL NEEDS

Contract work for state or municipal needs - contract construction work, design and survey work intended to meet the needs of the Russian Federation or a constituent entity of the Russian Federation and financed from the relevant budgets and extra-budgetary sources.

Contract work for state or municipal needs is carried out on the basis of state or municipal contract to perform contract work for state or municipal needs.

On state or municipal contract for the performance of contract work for state or municipal needs the contractor undertakes to perform construction, design and other work related to the construction and repair of industrial and non-production objects and transfer them to the customer, and the customer undertakes to accept the work performed and pay for them or ensure their payment.

Features of the state or municipal contract:

▪ the subject of the contract is the results of construction and other work related to them (design, survey, repair, etc.) (clause 2 of article 763 of the Civil Code);

▪ the customer under the contract is a state or municipal body that has investment resources, or an organization that has the right to dispose of such resources, and the contractor can be a legal entity or an individual (Article 764 of the Civil Code);

▪ the grounds and procedure for the conclusion are determined according to the rules of Art. 527 and 528 Civil Code;

▪ the essential terms of the contract include the volume and cost of the work, the start and end dates of the work, the amount and procedure for financing and payment, methods of ensuring the fulfillment of obligations by the parties (clause 1 of Article 766 of the Civil Code);

▪ the content of a state or municipal contract concluded as a result of a competition for placing an order for contract work is determined in accordance with the terms of the competition and the proposals of the contractor recognized as its winner (clause 2 of Article 766 of the Civil Code);

▪ contract work performed under a contract is intended to meet state or municipal needs and is financed from the relevant budgets and extra-budgetary sources (clause 1 of Article 763 of the Civil Code);

▪ if there is a decrease in budget funds allocated to finance contract work, the parties must agree on new conditions, and the contractor has the right to demand compensation from the customer for losses due to changes in the deadlines for completing the work (clause 1 of Article 767 of the Civil Code);

▪ relations under a government contract are regulated not only by the Civil Code of the Russian Federation, but also by the law on contracts for state or municipal needs (Article 768 of the Civil Code).

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