Construction and Real Estate

Legal relations in construction and real estate

We provide legal advice on all aspects of the development process – from construction projects, to execution of construction works, to completion and operation of buildings (incl. sale and lease).

We specialize in:

1. Preparation of contractual documents (contracts for work between contractors and investors, subcontracting agreements, consortium agreements, financing agreements, etc.)
During the preparatory stage of a project, we mainly focus on:

  • Clarifying any ambiguous provisions of contractual documents, ensuring their effectiveness, practicality, with an emphasis on minimizing unforeseeable problems in the course of contractual relations;
  • Allocation of risks stemming from contracts for work between contractors and clients (with a specific focus on FIDIC general conditions);
  • Detailed review of construction schedule, change request templates, guidelines, requests for information and template documentation concerning claims;
  • Contract management.

2. Resolution of conflict situations in the course of construction, with focus on dispute prevention, including subsequent settlement of such contractual relations and resolution of disputes, where appropriate.

Our domain includes in particular:

  • Assistance with the management of construction projects, particularly with regard to preparation of claims against investors or contractors or defence of such claims (claim management, dispute agenda management);
  • Time management: time schedules, progress reports, extension of time (EOT) claims, critical path method analyses, issues relating to acceleration, mobilization, demobilization, and re-mobilization;
  • Changes to the subject matter of works and change processes;
  • Dispute resolution, including mediation and arbitration. We specialize in dispute prevention, mitigation, and effective resolution.

We are one of the few firms on the Czech market to specialize in the application of FIDIC conditions of contracts within the Czech legal environment; we mainly prepare FIDIC-based contracts for work and amendments thereto for our clients.

Moreover, we provide our clients with advisory services in all aspects of their real estate transactions. The main domain of our services is advising on real estate acquisitions through direct sales, transfer of business or shares, real estate project development, including construction permits, contracts for work, sale and purchase agreements, and lease agreements (incl. lease of non-residential premises in shopping centres), as well as resolution of disputes relating to real estate, comprehensive management of contractual documents for investors, developers, buyers, sellers, landlords, and tenants, including specialized contracts with architects, project and property managers.

We are strongly engaged in:

  • Advisory services in forming joint ventures and partnerships between investors for the purpose of executing one or several investment or development projects;
  • Consultancy in the area of project financing, mainly credit financing and associated security;
  • Legal audits with a view to identify and eliminate risks associated with real estate transactions;
  • Representation of clients before public authorities in securing any public permits in the course of zoning, construction, and associated proceedings;
  • Management and recovery of claims arising from lease agreements (particularly for non-residential premises).

References

  • Representation of an investor in the course of complex litigation and insolvency proceedings relating to an acquisition of the largest outlet centre in Central Europe “Galleria Moda”, located near the Prague Airport, and subsequently making the centre operational;
  • Representation of a major Israeli developer in arbitration proceedings with a general contractor according to the Rules of Arbitration and Mediation of the Vienna International Arbitral Centre of the Austrian Federal Economic Chamber. The value in dispute amounted to approximately EUR 33 million.
  • Provision of comprehensive legal services to Eiffage Construction Česká republika, s.r.o., subsidiary of a major French construction company operating in the area of civil engineering and transport infrastructure, in connection with its business dealings not only in the Czech Republic, but also in Poland and Slovakia;
  • Successful representation of an insolvency administrator of a debtor in a dispute against an investor, who unlawfully utilised a bank guarantee securing the removal of warranty defects in connection with a civil facility (municipal swimming pool). The value in dispute amounted to CZK 100,000,000;
  • Successful representation of an insolvency administrator of a debtor in a dispute relating to the termination of a contract for work in connection with a residential development project in Prague. The dispute related to the settlement of outstanding construction works and unlawful utilization of a bank guarantee. The value in dispute exceeded CZK 47 million;
  • Representation of Centrum Krakov a.s. in matters relating to the start of operations and lease of a shopping centre in Prague.
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