REALWorld Law


Industry forms of agreement

Do any industry bodies, organizations or associations produce standard form contracts for use within the construction and engineering sectors? Are any international forms of contract ever used? How is the form of construction contract to be used selected?



The Ministry of Development of Communities and Territories of Ukraine (was renamed from the Ministry of Regional Development and Construction of Ukraine in August 2019) as well as the Cabinet of Ministers of Ukraine are the main bodies which produce standard form contracts for use in the construction and engineering sectors. The Standard Contractor's Agreement in Capital Construction approved by the Order of the Ministry of Construction, Architecture and Housing of Ukraine No. 3, dated 27 October 2005, is the main standard form of construction contract recommended for use in construction matters. Generally, the parties are free to choose any other form of contract provided it contains all the mandatory provisions envisaged by the law.

International contracts, such as FIDIC contracts, may be used in Ukraine subject to adaptation to mandatory Ukrainian legislative requirements. Due to this fact, FIDIC contracts are rarely used in Ukraine (except for public infrastructure projects financed by international financial institutions). At the end of 2016, the Cabinet of Ministers of Ukraine adopted Decree No. 1065, which determined the status of the engineer in course of construction of public roads, which simplified adaptation of FIDIC contracts to Ukrainian law. According to the above Decree, the engineer performs its functions with regard to terms and conditions of the relevant FIDIC contract.