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  5. Residential Construction Contracts

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Construction Contracts

Residential Construction Contracts

What is the essential content of a works contract?

Under Article 629, the contractor undertakes to perform the work and the client to pay the remuneration. Practically, the contract should reflect a description of the work, the remuneration, the materials, the warning procedure and the rules of acceptance.

What happens if the price is not stated in the contract?

Under Article 630, remuneration is deemed agreed even without words if the work is to be expected only for remuneration; where tariffs exist the tariff rate applies, otherwise the customary remuneration.

Who answers for the quality of the materials?

Under Article 646, where the contractor uses his own materials he answers for their poor quality; for the client's materials he answers for incorrect use and must present an account of consumption and return the remainder.

When may the contractor refuse the contract?

Under Article 647 — where the client, despite a timely warning, does not replace unsuitable materials, change dangerous instructions or eliminate the dangerous circumstance, the contractor may refuse the contract and claim damages.

When must the remuneration be paid?

Under Article 648 — after completion of the work, unless the contract provides for payment in parts; under Article 649 payment follows immediately upon acceptance.

6 min·9 Jan 2026

The Residential Construction Contract — the Elements Every Document Must Contain

Building or renovating a home takes the form of a works contract, and its foundation is Article 629: under a works contract the contractor undertakes to perform the work provided by the contract, while the client is obliged to pay the contractor the agreed remuneration. Where the work involves making a thing and the contractor makes it from materials he has purchased, he transfers to the client ownership of the thing made; where a generic thing is made, the rules of sale apply. One further practical detail: drawing up a cost estimate connected with the work is not reimbursed unless otherwise provided by agreement — planning and accounting are therefore a separate matter that must be fixed in the contract itself.

Updated: 15 Oct 2026

Verified against current law: 9 Jul 2026

Legal basis:

  • საქართველოს სამოქალაქო კოდექსი