REALWorld Law



How are payments to contractors, design consultants and subcontractors normally structured?



Generally, most construction contracts in Ukraine contain a clause providing for advance payments that should be paid to the contractor before the commencement of construction works. The rest of the contract price is usually divided into payments that are made on completion of specific stages of the construction works or periodically (eg monthly). The final retention payment is usually paid within one to two years after the completion of construction (after the expiration of the construction guarantee period).