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The Civil Code of the Russian Federation

(with the Additions and Amendments of February 20, August 12, 1996,
October 24, 1997, July 8, December 17, 1999, April 16, May 15,
November 26, 2001, March 21, November 14, 26, 2002,
January 10, March 26, November 11, December 23, 2003)

Part II
Section IV
Chapter 37
Contract of Hiring Work
_ 1.
General Provisions on Contract of Hiring Work
_ 2.
The Domestic Contract
_ 3.
The Building Contract
_ 4.
Contract for Design and Survey Works
_ 5.
Contract Works for State Needs

Chapter 37. Contract of Hiring Work

_ 1. General Provisions on Contract of Hiring Work


Article 702. Contract of Work and Labour


1. Under the work and labour contract one party (contractor) shall undertake to perform definite work according to the assignment of the other party (customer) and to turn it over to the customer, whereas the customer shall undertake to accept the result of this work and to pay for it.
2. The provisions envisaged by this paragraph shall be applied to the individual types of the work and labour contract (domestic contract, building contract, contract for the performance of design and survey works, contract works for state needs), unless otherwise stipulated by the rules of this Code for these types of contracts.

Article 703. Works Performed Under the Contract of Work and Labour


1. A contract of work and labour shall be concluded for the manufacture or processing of a thing or for the performance of another work with the transfer of its result to the customer.
2. Under the contract of work and labour, concluded for the manufacture of a thing, the contractor shall transfer the rights to it to the customer.
3. Unless otherwise stipulated by the contract, the contractor shall determine methods of performing the customer's assignment on his own.

Article 704. Performance of Work by the Contractor's Maintenance


1. Unless otherwise stipulated by the work and labour contract, the work shall be performed by the contractor's maintenance - from his materials and with his own forces and means.
2. The contractor shall bear liability for improper quality of materials and equipment supplied by him, and also for the provision of materials and equipment, encumbered with the rights of third persons.

Article 705. The Distribution of Risks Between the Parties


1. Unless otherwise stipulated by this Code, other laws or the contract of work and labour, the risk of accidental destruction of, or accidental damage to, materials, equipment, the things or assets used for the execution of the contract, transferred for processing, shall be borne by the party that has extended them;
the risk of accidental destruction of, or accidental damage to, the result of the performed work before it is accepted by the customer shall be borne by the contractor.
2. In case of delay in the delivery and acceptance of the result of work the risks, specified in Item 1 of this Article, shall be borne by the part which has made this delay.

Article 706. The General Contractor and the Subcontractor


1. Unless the obligation of the subcontractor to perform personally the work, envisaged by the contract, follows from the law or the work and labour contract, the contractor shall have the right to draw other persons (subcontractors) in the execution of his obligations. In this case the contractor shall play the part of the general contractor.
2. The contractor who has drawn a subcontractor in the execution of the work and labour contract in contravention of the provisions of Item 1 of this Article or the contract shall bear liability to the customer for the losses caused by the subcontractor's participation in the execution of the contract.
3. The general contractor shall bear liability to the customer for the consequences of the non-discharge or improper discharge of the obligations by the subcontractor in keeping with the rules of Item 1 of Article 313 and Article 403 of this Code and shall bear liability to the subcontractor for the non-fulfilment or improper fulfilment of the obligations by the customer under the work and labour contract. Unless otherwise stipulated by the law or the contract, the customer and the subcontractor shall not have the right to make to each other claims relating to the breach of the contracts, concluded by each of them with the general contractor.
4. With the general contractor's consent the customer shall have the right to conclude contracts for the performance of individual works with other persons. In this case the said persons shall bear liability directly to the customer for the non-performance or improper performance of work.

Article 707. The Participation of Several Persons in the Performance of Work


1. If two or more persons act simultaneously on the side of the contractor, they shall be recognized in case of indivisibility of the subject-matter of the obligation as joint and several debtors with regard to the customer and accordingly as joint and several creditors.
2. In the event of the divisibility of the subject-matter of the obligation, and also in other cases, provided for by the law, other legal acts or the contract, each person, referred to in Item 1 of this Article, shall acquire rights and bear obligations with regard to the customer within the limits of their share (Article 321).

Article 708. The Dates of the Performance of the Work


1. The work and labour contract shall indicate the initial and deadline expiry dates of the performance of work. By agreement between the parties the contract may also provide for the dates of completing in particular stages of the work concerned (interim dates). Unless otherwise stipulated by the law, other legal acts or the contract, the contractor shall bear liability for breaking both the initial or ultimate and interim dates of the performance of the work concerned.
2. The initial, ultimate and interim dates of the performance of the work may be changed in cases and in the order, rescribed by the contract.
3. The consequences of delay in execution, referred to in Item 2 of Article 405 of this Code shall ensue in case of breaking the ultimate date of the performance of the work concerned, and also of other times established by the work contract.

Article 709. The Price of the Work


1. The work and labour contract shall indicate the price of the work subject to performance or the methods of its estimation. If there is no such indication in the contract, the price of the work shall be estimated in accordance with Item 3 of Article 424 of this Code.
2. The price in the work and labour contract shall include compensation for the contractor's costs and the remuneration due to him.
3. The price of the work may be estimated by means of drawing up its estimate. In the event the work is performed in accordance with the estimate made by the contractor, the estimate shall acquire the force and become a part of the work and labour contract since the time of its confirmation by the customer.
4. The price of the work (estimate) may be approximate or firm. In the absence of other references in the work and labour contract the price of the work shall be deemed to be firm.
5. If there is a need for additional works and for this reason for a substantial excess of the price of the work estimated approximately, the contractor shall be obliged to warn the customer in due time about this. The customer who has not given his consent to the price of the work, indicated in the work and labour contract shall have the right to repudiate the contract. In this case the contractor may demand that the customer should pay the price for the performed part of the work. The contractor who has not warned the customer in due time about the need of exceeding the price of the work, indicated in the contract, shall be obliged to fulfil the contract and retain the right to the payment for the work at the price specified in the contract.
6. The contractor shall have no right to demand an increase in the firm price, whereas the customer shall have no right to demand its decrease, including in the event when at the time of concluding the work and labour contract the possibility was excluded to make provision for the full scope of works subject to performance or of the expenses needed for this. In the event of the substantial increase in the case of materials and equipment provided by the contractor, and also of the services rendered to him by third persons, which cannot be foreseen during the conclusion of the contract, the contractor shall have the right to demand an increase in the fixed price, and should the customer refuse to meet this demand, he shall have the right to demand the dissolution of the contract in accordance with Article 451 of this Code.

Article 710. The Saving of the Contractor


1. When the contractor's actual expenses prove to be less than those reckoned in the estimation of the price of the work, the contractor shall retain the right to the payment for works at the price, envisaged by the work and labour contract, unless the customer proves that the saving obtained by the contractor has influenced the quality of the performed works.
2. the work and labour contract may provide for the distribution of the saving obtained by the contractor among the parties thereto.

Article 711. Procedure of the Payment for the Work


1. If the work and labour contract does not provide for apreliminary payment for the fulfilled work or of its particular stages, the customer shall be obliged to pay to the contractor the specified price after the final delivery of the results of the work, provided that the work has been performed properly and within the agreed period or short of the term with the consent of the customer.
2. The contractor shall have the right to demand the advance or earnest money only in cases and in the amount, indicated in the law or in the work and labour contract.

Article 712. The Contractor's Right to Retention


In the event of default on the customer's obligation to pay the fixed price or any other sum of money due to the contractor in connection with the performance of the work and labour contract, the contractor shall have the right, in keeping with Articles 359 and 360 of this Code, to the retention of the results of the work, and also the equipment belonging to the customer, the thing transferred for processing, the remainder of the unused material and other property of the customer, turned out at his disposal before the payment of relevant sums of money by the customer.

Article 713. The Performance of the Work with the Use of the Customer's Material


1. The contractor shall be obliged to make economical and thrifty use of the material supplied by the customer, submit after the completion of the work to the customer his report on the spending of the material, and also to return its remainder or to reduce the price of the work with the customer's consent and with account of the value of the unused material that remains at the contractor's disposal.
2. If no result has been achieved or the achieved result has shortcomings which make it unfit for the use specified by the work and labour contract or by the usual use in the absence of the appropriate condition in the contract for reasons caused by the shortcomings of the material, supplied by the customer, the contractor shall have the right to demand payment for the work dome by him.
3. The contractor may exercise the right, indicated in Item 2 of this Article, if he proves that the material's shortcomings could not be discovered in the event of a proper acceptance of this material by the contractor.

Article 714. The Contractor's Liability for the Non-safety of Property Supplied by the Contractor


The contractor shall bear liability for the non-safety of the materials, equipment supplied by the customer, of things and other property transferred for processing (treatment) and possessed by the contractor in connection with the execution of the work and labour contract.

Article 715. The Rights of the Customer During the Performance of the Work by the Contractor


1. The customer shall have the right to verify at any time the progress and quality of the work performed by the contractor, while not interfering in his activity.
2. If the contractor does not embark on the execution of the work and labour contract or performs the work so slowly that it is obviously impossible to finish it by the time fixed, the customer shall have the right to refuse to execute the contract and to claim damages.
3. If it becomes obvious during the performance of the work that it will not be performed properly, the customer shall have the right to appoint a reasonable date for the removal of shortcomings and in case of default of this requirement by the contractor in the appointed time to waive the work and labour contract or to entrust another person with the correction of the work at the expense of the contractor, and also to claim damages.

Article 716. The Circumstances About Which the Contractor Shall Be Obliged to Warn the Customer


1. The contractor shall be obliged to warn the customer without delay and to suspend the work before he receives his directions in the event of the discovery of: the unsuitability or the substandard quality of the customer's materials, equipment, technical documents or the thing delivered for processing (treatment);
possible favourable consequences of the implementation of the customer's directions on the method of performing the work;
other circumstances beyond the contractor's control, which endanger the fitness or the stability of the results of the work being performed or make it impossible to finish this work on time.
2. The contractor, who has failed to warn the customer about the circumstances, indicated in Item 1 of this Article or who has continued the work without waiting for the expiry of the date, referred to in the contract, and in its absence without waiting the expiry of the reasonable period for a reply to the warning or despite the timely indication of the customer concerning the discontinuance of the work, shall have no right to refer to said corresponding in the event of the presentation of appropriate claims to him or by him to the customer.
3. If despite the timely and justified warning by the contractor about the circumstances, referred to in Item 1 of this Article, the customs fails to replace within the reasonable time the unfit and substandard materials, equipment, technical documents or the thing transferred for processing (treatment), does not change the directions on the method of performing the work or does not take other necessary measures to remove the circumstances threatening its fitness, the contractor shall have the right to refuse to execute the work and labour contract and claim the damages caused by the termination of the contract.

Article 717. The Customer's Refusal to Execute the Work and Labour Contract


Unless otherwise stipulated by the work and labour contract, the customer may at any time before the delivery of the result of the work to him refuse the execute the contract by paying to the contractor a part of the fixed price in proportion to the part of the work performed before the receipt of the notice about the refusal of the customer to implement the contract. The customer shall also be obliged to compensate the contractor's losses, caused by the termination of the work and labour contract, within the limits of the difference between the price fixed for the entire work and the part of the price paid put for the performed work.

Article 718. The Customer's Assistance


1. In cases, in the scope and in the order, provided for by the work and labour contract, the customer shall be obliged to assist the contractor in the performance of the work. In case of default on this duty by the customer the contractor shall have the right to claim damages, including additional costs caused by downtime or by putting off the dates of the performance of the work, or by the increase in the price of the work, indicated in the contract.
2. In cases where it has become impossible to perform the work under the work and labour contract owing to the customer's actions or omission, the contractor shall have the right to pay the price, indicated in the contract, with account of the performed part of the work.

Article 719. Default on the Customer's Reciprocal Obligations Under the Work and Labour Contract


1. The contractor shall have the right not to proceed to the work or to suspend the work he began in cases where the breach by the customer of his obligations under the work and labour contract, in particular, the non-supply of materials, equipment, technical documents or the thing subject to processing (treatment), prevents the execution of the contract by the contractor, and also in the presence of the circumstances evidencing that the said circumstances will not be discharged in the fixed period (Article 328).
2. Unless otherwise stipulated by the work and labour contract, the contractor shall have the right to refuse the execute the contract and to claim damages in the presence of circumstances, referred to in Item 1 of this Article.

Article 720. The Acceptance by the Customer of the Work Fulfilled by the Contractor


1. Within the time-limit and in the order, provided for by the work and labour contract, the customer shall be obliged to inspect with the contractor's participation the result of the work and to accept the performed work; in the event of the discovery of departures from the contract that worsen the result of the work or of any other shortcomings in the work, the customer shall be obliged to state at once about this to the contractor.
2. The customer who has discovered shortcomings in the work during its acceptance shall have the right to refer to them in cases where the deed or any other document testifying to the acceptance has specified these shortcomings or the possibility of a subsequent presentation of the claim about their removal.
3. Unless otherwise stipulated by the work and labour contract, the customer who has accepted the work without its check shall be deprived of the right to refer to the shortcomings in the work which could be ascertained in the usual method of its acceptance (obvious shortcomings).
4. The customer who has discovered in the work after its acceptance departures from the work and labour contract or other defects which could not be identified by the usual method of acceptance (latent defects), including those that were deliberately hidden by the contractor, shall be obliged to inform the contractor about this within the reasonable period upon their discovery.
5. In case a dispute has arisen between the customer and the contractor over the defects of the fulfilled work or their causes, an expert examination shall be scheduled. Expenses on the expert examination shall be borne by the contractor, except for the cases when experts have found out that there are no breaches by the contractor of the work and labour contract or a causal relationship between the contractor's actions and the discovered defects. In said cases the expenses on the expert examination shall be borne by the party which has called for the schedule of the expert examination, and if was scheduled by agreement between the parties, the expenses shall be borne by the parties in equal shares.
6. Unless otherwise stipulated by the work and labour contract, in event of the customer's evasion from the acceptance of the fulfilled work, the contractor shall have the right, upon the expiry of one month since the day when as per the contract the result of the work should have been turned over to the customer, provided the latter makes subsequently two warnings of the customer to sell the result of the work and to place the avails, minus all the payments due to the contractor, on the customer's deposit in the procedure, provided for by Article 327 of this Code.
7. If the evasion of the customer from the acceptance of the fulfilled work has involved a delay in the delivery of the work, the risk of accidental destruction of the thing manufactured (processed or treated) shall be recognized as passed to the customer at the time when the transfer of the thing should have taken place.

Article 721. The Quality of the Work


1. The quality of the work performed by the contractor shall correspond to the terms and conditions of the contract and in the absence or in the event of the incompleteness of these terms and conditions - to the requirements usually made to the work of appropriate kind. Unless otherwise stipulated by the law, other legal acts or the contract, the result of the fulfilled work shall possess, at the time of its transfer to the customer, the properties, referred to in the contract, or determined by the usually made requirements and shall be suitable within a reasonable period for the use, stipulated by the contract, for the usual use of the result of the work of this kind.
2. If the law or other legal acts provide in the statutory manner for mandatory requirements for the work to be performed under the work and labour contract, the contractor acting as a businessman shall be obliged to perform the work by observing these mandatory requirements. The contractor may assume under the contract the obligation of fulfilling the work that meets the requirements for quality higher than the requirements made obligatory for the parties.

Article 722. The Guarantee of the Quality of the Work


1. In case where the law, other legal acts, the work and labour contract or the customs of business turnover provides for a guarantee period for the result of the work, the result of the work shall correspond to the terms and conditions of the contract for quality during the entire guarantee period (Item 1 of Article 721).
2. Unless otherwise stipulated by the work and labour contract, the guarantee of the quality of the result of the work shall extend to all the components of the result of the work.

Article 723. The Contractor's Liability for Improper Quality of the Work


1. In cases where the work has been performed by the contractor with departures from the work and labour contract which have worsened the result of the work or with other defects which make it unsuitable for the use, envisaged by the contract, or in the absence of the relevant condition of unfitness for the usual use in the contract, the customer shall have the right, unless otherwise stipulated by the law or the contract, to demand from the contractor the following actions at his option: gratuitous removal of defects within the reasonable period;
an adequate reduction of the price fixed for the work;
reimbursement of his expenses incurred in the elimination of defects, when the customer's right to remove them is provided for by the work and labour contract (Article 397).
2. Instead of the removal of the defects for which he is responsible the contractor shall have the right to perform gratis the work anew with the compensation to the customer of the losses caused by the delay in the execution of the work. In this case the customer shall be obliged to return the result of the work to the contractor, if such return is possible according to the nature of the work.
3. If departures in the work from the terms and conditions of the work and labour contract or any other shortcomings of the result of the work have not been eliminated in the reasonable period or are substantial and unremovable, the customer shall have the right to refuse to execute the contract and claim damages.
4. The proviso of the work and labour contract about the release of the contractor from the liability for definite shortcomings shall not absolve him from the liability, if it is proved that such shortcomings have arisen due to the contractor's faulty actions or inaction.
5. The contractor who has submitted materials for the fulfilment of the work is responsible for their quality under the rules for the seller's liability for substandard goods (Article 475).

Article 724. The Terms of Discovery of the Result of the Work of Improper Value


1. Unless otherwise stipulated by the law or the work and labour contract, the customer shall have the right to make claims relating to the improper quality of the result of the work, provided that it was discovered during the period of time, fixed by this Article.
2. In case where no guarantee period is fixed for the result of the work, claims relating to the shortcomings of the result of the work may be made by the customer, provided they have been disclosed during the reasonable period, but within two years since the day of the delivery of the result of the work, unless different time-limits have been fixed by the law, the contract or the customs of business turnover.
3. The customer shall have the right to make claims, associated with the shortcomings in the result of the work, discovered during the guarantee period.
4. In case where the guarantee period provided for by the contract is less then two years and the shortcomings of the result of the work have been discovered by the customer upon the expiry of the guarantee period but within two years since the time envisaged by Item 5 of this Article, the contractor shall bear liability, if the customer proves that the shortcomings arose before the delivery of the result of the work to the customer or for reasons that arose before this time.
5. Unless otherwise stipulated by the work and labour contract, the guarantee period (Item 1 of Article 722) shall begin to run since the time when the result of the fulfilled work was accepted or should have accepted by the customer.
6. The rules contained in Items 2 and 4 of Article 471 of this Code shall be applied to the computation of the guarantee period under the work and labour contract, unless otherwise stipulated by the law, other legal acts, the agreement of the parties or unless the contrary follows from the specifics of the work and labour contract.

Article 725. The Statute of Limitation for the Improper Quality of the Work


1. The period of limitation for claims made in connection with the improper quality of the work, performed under the work and labour contract, shall be one year, which the period of limitation for buildings and structures shall be determined according to the rules of Article 196 of this Code.
2. If under the work and labour contract the result of the work has been accepted in parts, the period of limitation shall begin to run since the day of the acceptance of the result of the work as a whole.
3. If the law, other legal acts or the work and labour contract provide for a guarantee period and the statement of claim for the shortcomings of the result of the work has been made during the guarantee period, the period of limitation, referred to in Item 1 of this Article, shall run begin with the day of the statement for the shortcomings.

Article 726. The Duty of the Contractor to Transfer Information to the Customer


The contractor shall be obliged to transfer together with the result of the work information on the operation or any other use of the subject of the work and labour contract, if this is provided by the contract or if the nature of information is such that without it is impossible to make use of the result of the work for the purposes, indicated in the contract.

Article 727. The Confidentiality of Information Received by the Parties


If the party thanks to the discharge of its obligation under the work and labour contract has received from the other party information about new decisions and technical knowledge, including knowledge not protected by law, and also information that can be regarded as a commercial secret (Article 139), the party which has received such information shall have no right to communicate it to the third persons without the consent of the other party.
The procedure and conditions for the use of such information shall be determined by the agreement of the parties.

Article 728. The Return by the Contractor of the Property Transferred by the Customer


In cases where the customer dissolves the work and labour contract on the basis of Item 2 of Article 715 or Item 3 of Article 723 of this Code, the contractor shall be obliged to return the materials and equipment, supplied by the customer, the thing transferred for processing (treatment) and other property or to hand them over to the person indicated by the customer, and if this has proved to be impossible - to replace the value of the materials, equipment and other property.

Article 729. The Consequences of the Termination of the Work and Labour Contract Before the Acceptance of the Result of the Work


Should the work and labour contract cease to be valid on the grounds, provided for by the law or the contract, before the acceptance by the customer of the result of the work, performed by the contractor (Item 1 of Article 720), the customer shall have the right to demand the transfer to him of the result of the incomplete work with the compensation of the contractor's expenses.

_ 2. The Domestic Contract


Article 730. The Domestic Contract


1. Under the domestic contract the contractor who carries on appropriate business shall undertake to perform the work assigned by the individual (customer) to satisfy the customer's household and other personal requirements, while the customs shall undertake to accept the work and to pay for it.
2. The domestic contract is a public agreement (Article 426).
3. The laws on the protection of the customers' rights and other legal acts adopted in accordance with them shall be applicable to the relations under the domestic contract which are not regulated by this Code.

Article 731. The Guarantees of the Customer's Rights


1. The contractor shall have no right to impose on the customer the inclusion of an additional work or service in the domestic contract. The customer shall have the right to refuse to pay for the work or service not specified by the contract.
2. The customer shall have the right to refuse to execute the domestic contract at any time before the delivery of the work to him by paying to the contractor a part of the fixed price in proportion to the part of the work, performed before the notification about the waiver of the execution of the contract and by reimbursing the contractor's expenses incurred prior to this time for the purpose of the fulfilment of the contract, unless they form the said part of the price of the work. The terms and conditions of the contract which deprive the customer of this right shall be void.

Article 732. The Provision to the Customer of Information about the Offered Work


1. The contractor shall be obliged, before the conclusion of a domestic contract, to offer to the customer the necessary and trustworthy information about the offered work, its kinds and specific features, the price and the form of payment, and also to provide the customer with other information relating to the contract at his request. If this is of relevance due to the nature of the work, the contractor shall indicate to the customer the concrete person who will perform this work.
2. If the customer was not afforded the possibility of receiving immediately at the place of the conclusion of a consumer work contract the information on the work indicated in Item 1 of this Article, it may demand from the contractor the compensation for damages caused by ungrounded evasion to conclude the contract (Item 4 of Article 445). The customer may demand the cancellation of a concluded consumer work contract without payment for the work done and also the compensation for damages when, as a result of the incompleteness or inaccuracy of the information received from the contractor, a contract was concluded for the performance of work not having the characteristics that the consumer had in mind.
The contractor that did not finish the customer the information on the work indicated in Item 1 of this Article shall bear responsibility also for the defects of the work which arose after its transfer due to the absence of such information therewith.

Article 733. The Performance of the Work from the Contractor's Material


1. If the work under the domestic contract is to be performed from the contractor's materials, the latter shall be paid by the customer during the conclusion of the contract in full or in part, indicated in the contract, with the final settlement at the time of the receipt by the customer of the work fulfilled by the contractor. In conformity with the contract the material may be supplied by the contractor on credit, including with the proviso of payment by the customer for the material by instalments.
2. The change of the price of the contractor's material after the conclusion of the domestic contract shall involve no recalculation.

Article 734. The Fulfilment of the Work from the Customer's Materials


If the work under the domestic contract is fulfilled from the customer's materials, the receipt or any other document issued by the contractor to the customer during the conclusion of the contract shall indicate the exact name, description and price of the materials to be determined by the agreement of the parties. The estimation of the materials in the receipt or any other similar document may be subsequently disputed by the customer in court.

Article 735. The Price and Payment for the Work


The price of the work in the domestic contract shall be determined by the agreement of the parties and may not be higher than that fixed or regulated by the respective state bodies. The work shall be paid by the customer after it is finally delivered by the contractor. With the customer's consent the work may be paid by him during the conclusion of the contract in full or by giving an advance.

Article 736. The Warning by the Customer about the Conditions of the Use of the Fulfilled Work


In the event of the delivery of the work to the customer the contractor shall be obliged to inform him about the requirements to be observed for the effective and sage use of the result of the work, and also about the consequences possible for the customer himself and other persons in case of non-observance of the relevant requirements.

Article 737. The Consequences of the Discovery of Shortcomings in the Fulfilled Work


1. In case of discovery of defects at the time of acceptance of the result of the work or after its acceptance during the quarantee period, and is it has not been established, then during a reasonable period but not later than two years (for immovable property, five years) from the day of the acceptance of the result of the work, the customer may at its choice exercise one of the rights stipulated in Article 723 of this Code or demand the cost-free repeat performance of the work or compensation for the expenditures borne by it for the correction of the shortcomings with its own funds or by third persons.
2. In case of discovery of essential defects of the result of the work the customer may raise a demand to the contractor for the cost-free removal of such defects if is proves that they arose before the acceptance of the result of the work by the customer or for reasons that arose before that moment. This demand may be raised by the customer if the indicated defects were discovered upon the expiry of two years (for immovable property, five years) from the day of the acceptance of the result of the work by the customer, but within the limits of the period of service established by for the result of the work or during ten years from the day of the acceptance of the result of the work by the customer if the period of service has not been established.";
3. In case of default on the contractor's claim, referred to in Item 2 of this Article, the customer shall have the right during the same period to demand either the return of a part of the price paid for the work or the reimbursement of the expenses incurred in connection with the removal of the shortcomings by the customer with his own forces or with the help of third persons or refuse to perform the contract and demand the compensation for the inflicted losses.

Article 738. The Consequences of the Customer's Failure to Appear to Receive the Result of the Work


In the event the customer has failed to appear to receive the result of the fulfilled work or has evaded its acceptance, the contractor shall have the right to sell the result of the work at a reasonable price, while making a written warning of the customer, upon the expiry of two months since such warning and to place the avails, minus all the payments due to the contractor, on the deposit account in the order, prescribed by Article 327 of this Code.

Article 739. The Customer's Rights in Case of Improper Fulfilment or Non-fulfilment of the Work under the Domestic Contract


In the event of improper fulfilment or non-fulfilment of the work under the domestic contract the customer may avail himself of the rights, granted to the buyer in compliance with Articles 503-505 of this Code.

_ 3. The Building Contract


Article 740. The Building Contract


1. Under the building contract the contractor shall undertake in the period stipulated by the contract to build by the assignment of the customer a project or to perform other construction works, whereas the customer shall undertake to create for the contractor requisite conditions for the performance of the works, to accept their result and pay the specified price.
2. The building contract shall be concluded to build or reconstruct an enterprise or building (including a dwelling house), to erect any other project, and also to perform assembly, start-up and adjustment operations, and other works indissolubly related to the project concerned. The rules for the building contract shall be also applied to the works involved in the major repairs of buildings and structures, unless otherwise stipulated by the contract. In cases provided for by the contract the contractor shall assume the duty of running the project after it has been accepted by the customer during the period indicated in the contract.
3. In cases where under the building contract the contractor fulfils the works in order to meet the household and other personal needs of the individual (customer), the rules of the second paragraph of this Article on the customer's rights shall be accordingly applied to such contract.

Article 741. The Allocation of Risk Between the Parties


1. The risk of accidental destruction of, or accidental damage to, the building project, which makes up the subject of the building contract, shall be borne by the contractor before this project is accepted by the customer.
2. If the building project is destroyed or damaged before the customer has accepted it owing to the substandard materials, supplied by the customer (details, structures), or equipment or owing to the execution of mistaken directions of the customer, the contractor shall have the right to demand the payment for all the cost of the works, specified by the estimate, provided that he has fulfilled the duties, envisaged by Item 1 of Article 716 of this Code.

Article 742. The Insurance of the Building Project


1. The building contract may provide for the duty of the party to insure appropriate risks if it runs the risk of accidental destruction of, or accidental damage to, the building project, materials, equipment and other assets, used in construction, or bears liability for the infliction of damage to other persons during construction. The party that bears the obligation for insurance shall present to the other party the proofs of the conclusion by it of the insurance contract on the terms, provided for by the building contract, including data on the insurer, the insurance sum and insured risks.
2. Insurance shall not release the appropriate party from the duty of taking necessary measures to prevent the onset of an insured accident.

Article 743. Technical Documentation and the Estimate


1. The contract shall be obliged to carry on construction and the related works in accordance with the technical documents determining the scope and content of the works and other requirements made for them and with the estimate fixing the price of the works. In the absence of other directions the building contract implies that the contractor is obliged to perform all the works indicated in technical documents and the estimate.
2. The building contract shall define the composition and content of technical documentation, and also provide which of the parties and by which date it should submit relevant documents.
3. The contractor who has discovered in the process of construction the works which have not been recorded in technical documents and in this connection the need for additional works and for augmenting the detailed estimate of the cost of construction shall be obliged to inform the customer about this. If the contractor has failed to receive from the customer a reply to his information during 10 days, unless the law or the building contract provides for a different date, he shall be obliged to suspend the corresponding works and charge the losses caused by downtime to the customer's account. The customer shall be released from the compensation of these losses, if he proves that there is no need for additional works.
4. The contractor who fails to discharge the obligation, established by Item 3 of this Article, shall be deprived of the right to demand from the customer the payment for the fulfilled additional works and the compensation for the relevant losses, unless he proves the need for immediate actions in the interests of the customer, particularly in connection with the fact that the suspension of the works could lead to the destruction of, or damage to, the building project.
5. With the consent of the customer with the conduct and payment of additional works the contractor shall have the right to refuse to perform them only in cases where they do not enter in the sphere of the contractor's professional activity or cannot be performed by the contractor for reasons beyond his control.

Article 744. Introduction of Changes to Technical Documentation


1. The customer shall have the right to introduce changes to technical documentation, unless related additional works exceed in cost terms 10 per cent of the total estimate cost of construction and change the nature of the works, envisaged in the building contract.
2. Changes shall be made in technical documentation in the scope greater than that, indicated in Item 1 of this Article, on the basis of the additional estimate agreed upon by the parties.
3. The contractor shall be obliged in accordance with Article 450 of this Code to review the estimate, if the cost of the works has exceeded the estimate by not less than 10 per cent for the reasons beyond his control.
4. The contractor shall have the right to demand the reimbursement of reasonable expenses incurred by him in connection with the ascertainment and removal of defects in technical documentation.

Article 745. The Supply of Project Construction with Materials and Equipment


1. The duty of supplying project construction with materials, including details and structures, or equipment shall be borne by the contractor, unless the building contract provides for the supply of construction as a whole or in certain part by the customer.
2. The party which is obliged to supply project construction shall bear the liability for the revealed impossibility to make use of its supplied materials or equipment without the deterioration of the quality of the works being performed, unless he proves that their impossible use is due to the circumstances under the control of the other party.
3. In case of the revealed impossibility of making use of the materials and equipment supplied by the customer without the deterioration of the quality of the works being performed and of the customer's refusal to replace them, the contractor shall have the right to waive the building contract and demand that the customer pay the price of the contract in proportion to the fulfilled part of the works.

Article 746. The Payment for Works to Be Done


1. The payment for the works done by the contractor shall be made by the customer in the amount provided for by the estimate within the time and in the order prescribed by the law or the building contract. In the absence of appropriate references in the law or the contract the payment for works shall be made in accordance with Article 711 of this Code.
2. The building contract may provide for the payment for works in the lump and in full scope after the projects is accepted by the customer.

Article 747. The Customer's Additional Obligations under the Building Contract


1. The customer shall be obliged to provide in time a land plot for construction. The area and condition of the land plot to be provided shall correspond to the terms of the building contract and in the absence of such conditions shall ensure the timely start of the works, their normal performance and completion on due date.
2. In cases and in the procedure, envisaged by the building contract the customer shall be obliged to convey to the contractor for use the buildings and structures necessary for the accomplishment of the works, to transport cargoes at his address, to lay out temporary networks of power, water and steam supply and render other services.
3. Payments for the services rendered by the customer and indicated in Item 2 of this Article shall be made in cases and on the terms, provided for by the building contract.

Article 748. Control and Supervision by the Customer over the Performance of Works Under the Building Contract


1. The customer shall have the right to exercise control and supervision over the progress and quality of the works being performed, the observance of the period of their fulfilment (schedule), the quality of the materials supplied by the contractor, and also over the proper use by the contractor of the customer's materials without interfering in the day-to-day economic activity of the contractor.
2. The customer who has discovered during his control and supervision over the performance of the works departures from the terms and conditions of the building contract, which may deteriorate the quality of the works, or any other shortcomings, shall be obliged to inform the contractor about this without delay. The customer who has failed to make such statement to the contractor shall forfeit his right to refer in future to the shortcomings he will detect.
3. The contractor shall be obliged to implement the customer's directions, received during construction, unless such directions contradict the terms and conditions of the building contract and represent intervention in the day-to-day economic activity of the contractor.
4. The contractor who has fulfilled the works improperly shall have no right to refer to the fact that the customer failed to exercise his control and supervision over their performance, except for the cases when the obligation to exercise such control and supervision has been placed on the customer by law.

Article 749. The Participation of an Engineer (Engineering Organization) in the Exercise of the Rights and in the Discharge of the Obligations of the Customer


For the purposes of exercising control and supervision over project construction and of adopting on his behalf of decisions in relations with the contractor the customer may conclude on his own, without the contractor's consent, a contract for the rendering of such services to the customer with the relevant engineer (engineering organization). In this case the building contract shall define the functions of such engineer (engineering organization), connected with the consequences of his actions for the contractor.

Article 750. Cooperation of the Parties to the Building Contract


1. If hindrances to the proper execution of the building contract come to the surface during project construction and the related works, each party shall be obliged to take all reasonable measures under its control in order to remove such hindrances. The party which has failed to discharge this obligation shall forfeit its right to claim damages caused by the failure to eliminate the relevant hindrances.
2. The expenses of the party incurred in the discharge of the obligations, indicated in Item 1 of this Article, shall be subject to reimbursement by the other party in cases where this is stipulated by the building contract.

Article 751. The Contractor's Obligations of Protecting the Environment and of Providing Safety for Building Works


1. The contractor shall be obliged to observe the requirements of the law and other legal acts on environmental protection and safety of building works in the process of construction and the related works. The contractor shall bear liability for the breach of said requirements.
2. The contractor shall have no right to use during the works being done the materials and equipment, supplied by the customer, or fulfil his directions, if they may lead to the breach of the requirements, obligatory for the parties, for the protection of the environment and the safety of building works.

Article 752. The Consequences of the Laying-up of Project Construction


If the works under the building contract have been suspended and the project construction has been laid-in for the reasons beyond the control of the parties, the customer shall be obliged to pay in full to the contractor for the works fulfilled up to the time of the laying-up of the work, and also to reimburse the expenses caused by the need to terminate the works and to lay-up the project construction with the offset of the benefits which the contractor has received or could receive due to the termination of the works.

Article 753. The Delivery-Acceptance of Works


1. The customer who has received the communication of the contractor about the delivery of the result of the works performed under the building contract or, if this is provided for by the contract, of the fulfilled stage of the works, shall be obliged to proceed to it acceptance.
2. The customer shall organize and effect the acceptance of the result of the works at his own expense, unless otherwise stipulated by the building contract. In cases envisaged by the law or any other legal acts the representatives of state bodies and local self-government bodies shall take part in the acceptance of the result of the works.
3. The customer who has accepted the result of a particular stage of the works shall bear the risk of the consequences of the destruction of, or damage to, the result of the works which have taken place not through the fault of the contractor.
4. The delivery of the result of the works by the contractor and the acceptance of it by the customer shall be formalized by the certificate, signed by both parties. If one of the parties refuses to sign the certificate, a note about this shall be put down in it, with the certificate being signed by the other party. A unilateral certificate of acceptance of the result of the works may be recognized by a court of law as invalid only in case of the motives of the refusal to sign the acceptance certificate have been recognized by it as sound.
5. In cases where this is provided for by the law or the building contract or follows from the nature of the works performed under the contract, the acceptance of the result of the works shall be preceded by preliminary tests. In these cases the acceptance may take place only with the positive result of the preliminary tests.
6. The customer shall have the right to refuse to accept the result of the works in case of the discovery of shortcomings, which exclude the possibility of its use for the purpose, indicated in the building contract and may not be removed by the contractor or the customer.

Article 754. The Contractor's Liability for the Quality of Works


1. The contractor shall bear liability to the customer for the departures from the requirements, provided for by technical documents and by the building norms and rules obligatory for the parties, and also for the failure to achieve this building project's indicators, indicated in the technical documents, including the enterprise's industrial capacity. In the event of the reconstruction (renewal, reorganization, restoration, etc.) of a building or structure the contractor shall bear liability for the reduction or loss of the durability, stability and reliability of the building, structure or a part thereof.
2. The contractor shall bear no liability for small departures from technical documents, made without the customer's consent, if he proves that they have not influences the quality of project construction.

Article 755. Guarantees of Quality in the Building Contract


1. Unless otherwise stipulated by the building contract, the contractor shall guarantee the achievement by the construction project of the indicators indicated in technical documents and the possibility of using the project in keeping with the building contract throughout the guarantee period. The statutory guarantee period may be extended by the agreement of the parties.
2. The contractor shall bear liability for defects, discovered during the guarantee period, unless he proves that they occurred due to the normal wear and tear of the project or of the parts thereof, its incorrect instructions, elaborated by the customer himself or by the third persons attracted by him, the improper repair of the project, carried out by the customer himself or by the third persons attracted by him.
3. The running of the guarantee period lapses for all the time during which the project could not be exploited due to the defects for which the contractor is liable.
4. In case of discovery of defects, indicated in Item 1 of Article 754 of this Code, during the guarantee period, the customer shall inform the contractor about them within reasonable time upon their discovery.

Article 756. The Time-limits of Discovery of the Improper Quality of Building Works


In the event of making claims for the improper quality of the result of the works, the rules, specified by Items 1-5 of Article 724 of this Code shall be applied.
The deadline for the discovery of defects shall be five years in conformity with Items 2 and 4 of Article 724 of this Code.

Article 757. Elimination of Defects at the Expense of the Customer


1. The building contract may provide for the obligation of the contractor to eliminate on the demand of the customer and at his expense the defects for which the contractor is not liable.
2. The contractor shall have the right to refuse to perform the obligation, indicated in Item 1 of this Article, in cases where the removal of defects is not connected directly with the subject of the contract or cannot be realized by the contractor for the reasons beyond his control.

_ 4. Contract for Design and Survey Works


Article 758. Contract for Design and Survey Works


Under the contract for design and survey works the contractor (designer or surveyor) shall undertake to elaborate technical documentation of the customer and/or perform survey works, whereas the customer shall undertake to accept and pay for their result.

Article 759. Initial Data for the Performance of Design and Survey Works


1. Under the contract for design and survey works the customer shall be obliged to give to the contractor his assignment for designing, and also other initial data needed for drawing up technical documentation. An assignment for the performance of design works may be prepared by the contractor on behalf of the customer. In this case the assignment shall become mandatory for the parties since the time of its approval by the customer.
2. The contractor shall be obliged to observe the requirements containing in the assignment and in other initial data for the performance of design and survey works, and shall have the right to depart from them only with the customer's consent.

Article 760. The Contractor's Obligations


1. Under the contract for design and survey works the contractor shall be obliged: to perform the works in keeping with the assignment and other initial data on designing and with the contract;
to coordinate the ready technical documents with the customer and, whenever necessary, together with the customer - with competent state bodies and local self-government bodies;
to transfer to the customer ready technical documents and the results of the survey works.
The contractor shall have no right to give technical documents to third persons without the customer's consent.
2. Under the contract for design and survey works the contractor shall guarantee to the customer that third persons do not have the right to prevent the performance of the works or restrict their performance on the basis of the technical documentation prepared by the contractor.

Article 761. The Contractor's Liability for the Improper Performance of Design and Survey Works


1. Under the contract for design and survey works the contractor shall bear liability for the improper drawing up of technical documents and for the performance of survey works, including defects discovered later on during construction, and also in the process of the exploitation of the project, set up on the basis of the technical documents and the data of the survey works.
2. In the event of discovery of defects in technical documents or in survey works the contractor shall be obliged to remake technical documentation gratis on the customer's demand and accordingly carry out the necessary additional survey works, and also to reimburse to the customer the losses caused, if the law or the contract for performance of design and survey works establishes otherwise.

Article 762. The Customer's Obligations


Under the contract for design and survey works the customer shall be obliged to take the following measures, unless otherwise stipulated by the contract:
to pay to the contractor the fixed price in full after the completion of all works or to pay it in instalments after the completion of individual stages of the work;
to use technical documentation received from the contractor only for the purposes, provided for by the contract, not to turn over technical documents to third persons and not to divulge the data contained therein without the contractor's consent;
to render assistance to the contractor in the performance of design and survey works in the scope and on the terms and conditions stipulated by the contract;
to participate together with the contractor in the coordination of ready technical documentation with relevant state bodies and local self-government bodies;
to reimburse the contractor's additional expenses, incurred by changes in the initial data for the performance of design and survey works due to the circumstances beyond the contractor's control;
to draw the contractor in the participation in the case on a claim filed by a third person to the contractor in connection with the defects of the compiled technical documents or the performed survey works.

_ 5. Contract Works for State Needs


Article 763. The State Contract for the Performance of Contract Works to Meet State Needs


1. Contract building works (Article 740), design and survey works (Article 758), intended for meeting the needs of the Russian Federation or a subject of the Russian Federation and financed at the expense of the corresponding budgets and extra-budgetary sources, shall be performed on the basis of the state contract for the fulfilment of contract works to meet state needs.
2. Under the state contract for contract works to meet state needs (hereinafter referred to as the state contract) the contractor shall undertake to perform building, design and other works related to the construction and repair of the projects of a production and non-production character and to transfer them to the state customer, whereas the state customer shall undertake to accept the fulfilled works, to pay for them or to ensure their payment.

Article 764. The Parties to the State Contract


Under the state contract the role of the state customer shall be payed by the state body which possesses the required investment resources or by the organization vested by the relevant state body with the right to dispose of such resources, while the role of the contractor shall be played by a legal entity or individual.

Article 765. The Grounds and Procedure for the Conclusion of a State Contract


The grounds and procedure for the conclusion of a state contract shall be determined in keeping with the provisions of Articles 527 and 528 of this Code.

Article 766. The Contents of the State Contract


1. The state contract shall contain the terms of the scope and value of the work subject to performance, the time-limits of its beginning and end, the amount and procedure of financing and paying the works and the methods of security of the parties' obligations.
2. In case where a state contract is concluded according to the results of a tender for placing the order for contract works to meet state needs, the terms and conditions of the state contract shall be determined in accordance with the announced tender terms and the offer tendered by the contractor who is recognized as the bidding winner.

Article 767. Changes in the State Contract


1. In case of the diminution of the resources of the corresponding budget in the statutory manner, allocated for the financing of contract works, the parties shall be obliged to agree upon new dates, and, whenever necessary, other conditions of the performance of the works. The contractor shall have the right to demand that the state customer compensate the losses caused by changes in the dates of the fulfilment of the works.
2. Unless otherwise stipulated by the law, changes in the state contract, not associated with the circumstances, indicated in Item 1 of this Article, shall be made by the agreement of the parties.

Article 768. Legal Regulation of the State Contract


The law on contracts for state needs shall be applicable to the relations involved in state contracts for the fulfilment of contract works for state needs in the part which is not regulated by this Code.

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