Withdrawal from a Construction Works Contract
Withdrawal from a construction works contract is a serious decision with significant legal and financial consequences for the parties involved in the project. Is it solely a legal matter? Definitely not.
As CAS Experts and engineers, we support our Clients—both Employers and Contractors—through the challenging process following the decision to withdraw from a construction works contract. Our actions focus on minimizing disruptions in the project or business activities of the party that engaged us, and on protecting their interests.
What activities do we perform after withdrawal from a construction works contract?
Withdrawal from a contract, especially before the works are completed, requires conducting an inventory and preparing specific documents. The purpose of the inventory is to determine the scope and value of the completed works, which enables settlements between the Contractor and the Employer.
- We participate in the initial meeting between the parties, where the rules for the inventory of construction works and design documentation are set, as well as the arrangements for securing ongoing works and handing over the construction site.
- We take part in the inventory of construction works or carry it out independently. As part of this, we:
- Prepare a digital record of the state of construction works in the form of a 3D point cloud scan and 360-degree photos.
- Identify defects and faults in the works performed by our multidisciplinary team.
- Determine the quantity of completed construction works and materials delivered to the construction site.
- We verify the completeness of the design and as-built documentation for the completed works.
- Based on the inventory, we prepare a settlement of works, taking into account any additional/substitute works and identified defects and faults.
The documents we prepare may serve as documentation for the represented party or constitute an independent expert opinion.
Following withdrawal from the contract, we support our Clients in amicable dispute resolution through negotiations and mediation. In the case of court proceedings, our documents and opinions are an important element in pursuing claims.
What types of contract withdrawal do we distinguish?
- Withdrawal ex tunc – “with retroactive effect”
The contract is treated as if it was never concluded. The parties must return everything that was mutually provided (e.g., money, materials, completed works).
In such a case, we prepare a valuation of the works as of the date of their execution or the date of withdrawal from the contract. - Withdrawal ex nunc – “from now on, for the future”
The contract ceases to be binding from the moment of withdrawal. Everything completed up to that point remains valid and effective. The parties only settle the unperformed part, with no obligation to return what has already been delivered.
In this case, we prepare a settlement of works in accordance with the provisions of the contract.
What are the advantages of using modern technologies in inventorying?
Thanks to the use of the highest-quality modern equipment, 3D inventory is carried out quickly and efficiently. It involves making detailed measurements of the facility or its parts. Such evidence protection allows for precise determination of the quantities of completed works. In the case of disputes, it is possible to return to the 3D model and verify the data.
When inventorying linear investments such as roads, we use digital photogrammetry carried out by drones. Such documentation also allows for quick determination of the volume of completed works.
Examples of completed projects and our successes can be found in the CASE STUDIES section.
