Fatemeh Rakideh
trainee lawyer at the Iranian Central Bar Association
English
Contact and consultation
Construction-partnership lawyer

Construction-partnership lawyer

Participation in construction is one of those contracts that has both a high financial value and is prone to disputes in practice due to the long implementation time,, the multitude of obligations and the dependence on permits and the progress of construction operations,. In such cases,, a careful examination of the contract and the obligations of the parties becomes particularly important.

In this area,, a general agreement between the owner and the developer is not enough. Details such as the share of each party, the division of units, the delivery time, the quality of construction, the responsibility for obtaining permits, the method of compensation and guaranteeing the implementation of obligations should be clearly specified so that disputes can be managed in the future.

A construction participation lawyer can accompany the parties from the stage of drafting the contract until a dispute arises and even the implementation of the result; whether to prevent a dispute, negotiate, or pursue legal action in the event of a violation, delay, or halt of the project.

Request a consultation with Fatemeh Rakideh

What issues are important in a construction partnership agreement?

A construction participation contract must go beyond a general agreement. The clarity of the contributions of the parties, responsibilities, the timing of the implementation stages, the limits of the builder's powers, the performance guarantee and the method of resolving disputes are among the issues that determine the fate of the project.

Important points before signing a contract

Reviewing the property and its documents: Before any agreement,, the status of the document, registration restrictions, required permits, possibility of construction and legal records of the property should be checked.

Clear determination of shares and the method of division: One of the most important parts of the contract is to accurately determine the ownership interest in a company or partnership interest and how to divide the units, commons and interests of the project so that they do not become a point of dispute later.

Project implementation schedule: A clear schedule for the start, of the project,, progress and completion,, along with a guarantee of implementation of delays,, prevents the occurrence of long disputes.

Planning for damages and security: If either party fails to fulfill its obligation or the project is stopped, the contract must clarify the liability for damages, agreed contractual penalty and the necessary guarantees.

Construction-partnership disputes

The lawyer’s role in construction-participation cases

In these types of cases, just knowing the text of the contract is not enough. The lawyer must be able to analyze the project situation from both a contractual and legal and executive perspective and choose the best path to protect the client's interests.

  • Careful drafting of a construction-participation agreement: The contract for this type of cooperation should be clear about ownership interest in a company or partnership interest, the implementation schedule, the technical specifications, the delivery method, the responsibility for obtaining permits, the delay damages and the guarantee of obligations in order to reduce the scope for future disputes.

  • Reviewing the owner’s and developer’s rights and obligations: The lawyer should specify exactly what obligations each party has; from the delivery of the property and providing administrative preparations to the implementation of the project,, financing the costs,, the quality of construction and delivery of the units.

  • Preventing disputes before the project begins: Many construction participation problems arise from the very beginning and because the contract is silent about important details. A prior review by a lawyer can greatly reduce subsequent disputes.

  • Legal follow-up in the event of delay or breach: If the builder falls behind schedule,, stops the project,, fails to meet the agreed quality or the owner refuses to fulfill the obligations,, the lawyer will determine the appropriate legal path to enforce the obligation,, claim damages or other actions.

  • Professional management of negotiations and settlement: In many construction participation cases, a detailed and documented negotiation can prevent the project from stalling, increasing costs, and eroding the dispute, and can lead to a more practical solution.

  • Following the enforcement stage and implementation of the outcome: In this area,, simply obtaining a vote is not enough. Execution of the contract provisions, Delivery of units, Collection of damages, Preparation of documents and removal of enforcement obstacles also require regular legal follow-up.

Key questions about construction partnership agreements

  • If the builder delays in delivering the units or completing the project,, what action can the owner take?
  • In the construction participation contract, On what basis is the share of each party determined?
  • What is the solution if one of the parties changes or terminates the contractual obligations without coordination,?
  • What risks does the lack of a guarantee of proper execution in the construction partnership contract create?
  • Should the status of the document, Licenses and property records be checked before signing the contract?
  • In the event of a dispute between the owner and the manufacturer,, is it always necessary to file a lawsuit directly or may negotiation be effective first?

  • Iranian Civil Code («قانون مدنی»)

  • mandatory registration of immovable-property transactions in Iran

  • Iranian Building Pre-sale Act

This list, shows the main provisions related to the subject of the page. The governing law and subsequent amendments must be adapted to the time of occurrence, of the subject and the situation of each case.

The official text and latest amendments of the laws are available at National Information Database of Laws and Regulations of the Country is available to view.

Frequently asked questions

A construction partnership is a contract that is usually concluded between the owner of the land or property and the builder to carry out the construction operation with the contributions of both parties, and at the end, the units or benefits of the project are divided according to the agreement between the parties.
From the initial review of the contract until a dispute arises,, the presence of a lawyer can be very effective; especially when the issue relates to ownership interest in a company or partnership interest, delay in execution, performance guarantee, delivery of units, quality of construction or termination and compensation claims.
The text of the contract,, the timing,, the terms of the damages, the delay,, the reason for the interruption and the related documents must be examined. Based on these, a declaration,, negotiation,, the obligation to perform the obligation or the claim for damages may be put on the agenda.
Ambiguity in the contract can lead to disputes about the value of the share, costs, delivery time, quality of execution, how to divide the units and the responsibility for obtaining permits. The more precise the contract,, the less likely it is to have disputes and conflicting interpretations.
This depends on the text of the contract, the type of breach, the terms of termination, the previous warnings and the status of the project implementation. Before taking any action, the contract and the available documents should be reviewed to avoid making a mistake.
The cost depends on the complexity of the contract, the value of the project, the subject of the dispute, the amount of documents and the number of follow-up steps, and will be more accurately estimated after the initial review of the file.
Contract, Scheduling, Project progress, Guarantees and the type of unfulfilled commitment should be reviewed in order to follow up on the obligation to fulfill the commitment, Claim for damages or other contractual guarantees, as appropriate.
First, the provisions of the contract, the share of the parties, the delivery time, the method of transferring the share value, the guarantees and conditions arbitration or dispute resolution are examined, and then the appropriate path of negotiation, arbitration or litigation is chosen.

Methods of contact

Contact us for advice and follow-up of the case through the following ways

Telegram@rakideh_lawyer WhatsApp09122023686 InstagramVakil.fatemeh.rakideh Contact09122023686