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1 June 2015 |
Capital construction: Protecting Developers’ Interests during CrisisOn May 27-28, the VEGAS LEX law firm organized a series of workshops on Capital Construction during Economic Crisis: How to Protect Developers’ and Clients’ Interests and Money? in Krasnodar and Rostov-on-Don for federal and regional development companies and clients for major construction projects. The Krasnodar workshops were moderated by Maxim Grigoryev, head of VEGAS LEX’s Volga Directorate, while Partner led the Rostov-on-Don events, calling the participants’ attention to corporate fraud and other types of embezzlement in major construction projects. Мanager for conflict settlement and dispute resolution, spoke in detail about contractual relationships and disputes in construction. He discussed the structure and types of contractual relationships, the contract value and the payment options, the need to pay for additional works, the construction period, unreasonable gains and the developer’s liability, the client’s options for cancelling the contract, ways to defend the client’s rights and other issues. Volga Directorate head Maxim Grigoryev discussed the types and specifics of disputes involving bank guarantees, issued as security for the obligations under the design and construction contracts, and presented several case studies. In conclusion, VEGAS LEX experts covered the important issues arising from the contractor's potential insolvency (bankruptcy). They discussed the client’s legal risks and possibilities in the event that the contractor goes bankrupt; how bankruptcy proceedings can affect the contract; important aspects of the contract’s fulfillment in case of the contractor’s bankruptcy; the consequences of various options of the contract’s termination during bankruptcy proceedings and other issues.
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