Legal Support for Companies in Real Estate and Contracting

Legal support of contractual relations

Relations in construction are based on a complex system of distribution of responsibilities between the customer, general contractor, and subcontractors. Legal formalization of these relations requires taking into account the specifics of construction control, financing procedures, and risks associated with unplanned increases in the scope of work.

Drafting of general contracting, subcontracting, and design agreements

A construction contract must contain detailed conditions on the subject matter, including a reference to the approved design documentation, and on deadlines — both final and intermediate. In design agreements, special attention is paid to the transfer of exclusive rights to architectural solutions and the designer’s liability for errors identified at the expert review or construction stage. To minimize conflicts, price approval protocols and mechanisms for adjusting the estimated cost upon discovery of additional work are included in the text of the agreements.

Regulation of work acceptance procedures and inspection of concealed works

Acceptance of completed work constitutes the fact giving rise to the payment obligation. The contract sets out the procedure for notifying the customer to attend the site, deadlines for reviewing KS‑2 forms (work acceptance certificates) and KS‑3 forms (cost reference statements). A separate clause regulates the procedure for inspection of concealed works: if the contractor closes up structures without notifying the customer, the latter has the right to demand uncovering at the contractor’s expense. Recording these regulations in the contract excludes the possibility of bad‑faith evasion by the customer from signing the acceptance certificates.

Establishment of liability for violation of deadlines and quality obligations

Liability of the parties in contractual relations is expressed in a system of penalties for violation of work schedules and fines for non‑compliance with quality requirements. Legal work in this part involves the inclusion of conditions on:

• withholding of warranty sums (usually 5–10% of the work cost) until the expiry of the warranty period;

• the customer’s right to engage third parties to eliminate defects at the contractor’s expense;

• insurance of construction

and installation risks and liability for harm caused to third parties.

Support of the investment and construction cycle

Implementation of a construction project requires compliance with administrative procedures established by the Town Planning Code of the Russian Federation. Legal support at this stage is based on verifying the compliance of design solutions and actual works with applicable regulations.

Legal support when obtaining the TPPLP and construction permits

The basis for design and commencement of works is the Town Planning Plan of the Land Plot (TPPLP). Verification of this document allows comparing the construction footprint with the established territorial restrictions before the start of design documentation development. At the stage of obtaining a construction permit, control is exercised over the completeness of documentation, verification of the existence of a positive expert review, and confirmation of rights to the land plot. In the event of a denial by the authorized body (Ministry of Construction or regional authorities), the procedure involves challenging it administratively or judicially.

Interaction with state bodies during the commissioning of facilities

Completion of the construction cycle requires obtaining a Certificate of Compliance (CC) of the constructed facility with the design documentation and technical regulations. This stage includes undergoing inspections by state construction supervision. Work at this stage covers:

• reconciliation of as‑built documentation with the works actually performed;

• confirmation of fulfillment of technical conditions (TC) from resource supply organizations;

• submission of an application for issuance of a permit to commission the facility.

After obtaining the permit, the facility is subject to state cadastral registration. The procedure involves reconciling the data of the technical plan prepared by a cadastral engineer with the parameters specified in the commissioning permit to eliminate discrepancies in the real estate register (USRER).

Dispute resolution in real estate and construction contracting

Conflicts in the construction sector arise from violations of work schedules, refusal to pay for completed stages, or challenging rights to assets. Legal settlement of such disputes requires compliance with formal notification procedures and defect recording.

Claims work

In disputes under construction contracts, compliance with a mandatory pre‑trial claim procedure is required. Work at this stage includes preparation of objections to acceptance certificates, recording delays caused by the customer or the contractor, as well as correspondence regarding the discovery of concealed defects and additional work. The pre‑trial stage allows securing the evidentiary base necessary for subsequent appointment of a construction and technical expert examination.

Arbitration disputes over debt collection and unjust enrichment

If the customer refuses to sign KS‑2 and KS‑3 forms, collection of the debt is initiated in court. In such cases, confirmation of the fact that the customer was notified of the completion of the work and of the actual performance of the work is of key importance. This category also includes disputes over the recovery of unjust enrichment resulting from overpayment of advances or payment for poorly performed work.

Protection of rights to assets and disputes over unauthorized constructions

A special category consists of cases on recognition of ownership of unauthorized constructions (Article 222 of the Civil Code of the Russian Federation). The process requires confirmation of the safety of the structure, absence of violations of third‑party rights, and evidence that the owner took measures to legalize the facility before applying to court. Legal work in courts also includes challenging the cadastral value of assets to adjust the tax base and disputes over the release of land plots from illegally erected structures.

International contract standards

Legal regulation of construction projects involving foreign counterparties is based on a combination of Russian legislation and international standard contracts. The use of these instruments requires adaptation of provisions to the mandatory norms of the Civil Code of the Russian Federation and the current regime of currency and counter‑sanctions control.

Adaptation of FIDIC forms and EPC contract conditions

In large‑scale projects, standard forms of the International Federation of Consulting Engineers (FIDIC) are used. When using EPC (Engineering, Procurement, Construction) conditions, responsibility for the entire project implementation cycle is placed on a single contractor. Legal work when implementing such standards in the Russian Federation includes:

• bringing limitation of liability provisions into compliance with Article 401 of the Civil Code of the Russian Federation;

• regulation of the role of the "Engineer" as an independent contract administrator under Russian procedural law;

• adaptation of dispute resolution mechanisms (DAB/DAAB) to the competence of Russian arbitration courts.

Support of real estate transactions involving foreign counterparties

Current regulations establish a special procedure for real estate transactions involving persons from unfriendly foreign states. The transfer of rights to such assets requires obtaining permission from the Government Commission on Control over Foreign Investment. As part of support, the preparation of a package of documents for the commission, confirmation of the market value of the asset through an independent appraisal, and control over settlements through specialized "Type C" accounts are carried out.

Legal support by KDpartners specialists

The law firm KDpartners provides legal support for the activities of organizations in the construction industry and the commercial real estate segment. The work of specialists includes drafting construction contracts, conducting legal audits of assets (Due Diligence), and representing interests in courts in disputes over work quality.

The company provides services for supporting registration actions with Rosreestr, preparing documents for obtaining construction permits and commissioning permits. Lawyers advise on issues of changing the type of permitted use of land plots, represent clients' interests in cases on recognition of rights to unauthorized constructions, and ensure legal control during transactions involving foreign counterparties.