Construction

Construction

The Czech construction industry is booming and there are many large construction companies on the Czech market that build for foreign investors. Czech construction law is quite straightforward and is not dissimilar to that in other European countries. Nevertheless, a strong contract is important in order to avoid the disputes that frequently arise in the construction business everywhere. The tight labor market in the Czech Republic creates a serious problem with meeting milestones and deadlines, which now often leads to construction disputes and application of contract penalties.

 

rutland & partners’ real estate team has several specialists who have thorough knowledge of Czech construction law and who can advise you on the legal standards of the Czech construction industry (e.g., holdbacks, length of different guarantees, daily penalties for delay) and negotiate a construction contract for you that will enable you to fulfill your business plan. We can efficiently assist you with Czech construction permits and negotiate their granting or prolongation with local authorities. Last but not least, we have represented many clients in their disputes with Czech construction companies in course of last 25 years and reached very satisfactory settlements for them.

 

Key contacts

Czech Construction Permits

Our clients often encounter problems in the course of the construction permitting process. In the Czech Republic, obtaining changes to land use master plans can be most difficult if local authorities refuse to cooperate. This also applies to zoning permits. In such cases, our real estate team supports clients in negotiations with municipal authorities, and in litigation if required to reverse an incorrect decision.

 

We assist in obtaining permission for:

• changes to the Czech land use master plan, including negotiation of changes with local municipalities
• zoning permits (including administrative appeals in case a permit is denied)
• construction permits (including, but not limited to, prolongation of construction permits)
• reconstruction of a property and its reclassification for a new use

 

We also assist in obtaining construction financing, drafting documentation on behalf of the client and negotiating with lenders.

Construction Contracts, Tenders, and Negotiations

Choosing a good, reliable general contractor is crucial for successful completion of a development project in the Czech Republic. Engaging a Czech lawyer from rutland & partners, who has profound knowledge of Czech construction law and International Federation of Consulting Engineers (FIDIC) contracts, will assure our developer-client that they will end up with a strong contract that ensures a contractor meets deadlines and completes construction. Furthermore, we can assure our clients that bank financing will be compatible with the timeline and structure of a project, so that the client does not experience any complications in drawing down loan proceeds.

 

We assist with:

• drafting construction tender documentation and negotiating with tender participants
• negotiating and drafting Czech construction contracts
• drafting and negotiation of FIDIC-type agreements
• obtaining construction financing, negotiating with the bank and drafting documentation on behalf of the client
• assistance with closing construction financing transactions

Construction Disputes

Construction projects sometimes go wrong. That is something we are dedicated to preventing, but if it happens we are prepared to assist. Serious disputes can arise in the middle of construction, or when a claim for breach of warranty arises. Over the years, the senior partners of rutland & partners (Monika Rutland, Michael Novak and Vojtech Makovec) have represented clients including ČSOB, Skanska, Klepierre, Horizon Holding, IBE hotels, Agrofim, and others in numerous disputes with various Czech construction companies.

 

rutland & partners attorneys can:

• advise clients on construction warranties
• litigate breaches of construction contracts in Czech courts
• represent clients in Czech and international arbitration of construction disputes
• draft settlement documentation for construction claims