Fatemeh Rakideh
trainee lawyer at the Iranian Central Bar Association
English
Consultation
Contractor agreements

Contractor agreements

In a contractor agreement, key risk-control provisions concern the scope of work, drawings and technical specifications, timetable, payment applications for work completed, provisional and final handover, variations in quantities and security.

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Contractor agreements

In a contractor agreement, key risk-control provisions concern the scope of work, drawings and technical specifications, timetable, payment applications for work completed, provisional and final handover, variations in quantities and security.

Practical point: In contractor disputes, the contract, addenda, meeting records, correspondence, payment applications for completed work and handover documents must be reviewed together.

Important points in contract review

Point 1

The complete contract, addenda and relevant clauses

Point 2

When the obligation arose, its due date and evidence of performance or non-performance

Point 3

Correspondence, messages, formal legal notices, payment receipts, and delivery documents

Point 4

Security, agreed sums for breach, termination rights and dispute-resolution clauses

Legal review of documents and disputes concerning contractor agreements

Importance of a careful contract review

In a client–contractor dispute, the contract, payment applications for completed work, handover records, contractor delay, sums claimed and performance security must be reviewed together to establish the basis for a claim or defence.

Related topics

Damages for delayed performance of a contractual obligation

Review of the effects of delay, the due date of the obligation, proof of breach, and contractual or statutory remedies.

Claiming agreed sums for breach and contractual damages

Reviewing the agreed-sum clause, breach and availability of contractual damages.

Compelling performance of contractual obligations

Follow up on the implementation of an obligation that has become due and the obligor has refused to perform it.

Arbitration and dispute resolution in contracts

Validity of the arbitration clause, the arbitrator’s powers and selection of the appropriate contractual dispute-resolution mechanism.

  • Iranian Civil Code («قانون مدنی»)

  • Iranian Code of Civil Procedure («قانون آیین دادرسی دادگاه‌های عمومی و انقلاب در امور مدنی»)

This list identifies the principal legal provisions relevant to the page. The applicable law and amendments must be checked against the dates, subject matter and circumstances of each case.

The official texts and latest amendments are available in the National Database of Iranian Laws and Regulations.

Frequently asked questions

Review the contract, timetable, minutes, notices and form of security. Depending on the circumstances, performance, delay damages, recourse to security or termination may be considered.
The basis of payment, approval of the contractor’s payment application, handover requirements and contractual deductions must be reviewed. Once entitlement is established, a payment or damages claim, or the agreed dispute-resolution mechanism, may be considered.
The contract duration, timetable, causes of delay, permitted extensions, correspondence and damages clause determine the delay attributable to a party and the remedy that may be claimed.

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