Courts: it is impossible to increase the price of a state contract on a special basis if the obligations have already been fulfilled

22 August 2023, Tuesday

The parties signed a contract for major repairs. During its execution, the contractor repeatedly asked to change the project documentation and the price due to the rise in the cost of materials, but the customer did not respond.

The work was completed completely. Later, the contractor demanded to increase the price in the claim. In his opinion, the parties could have done this on a special basis, since there were conditions for its application.

The customer ignored the claim. The contractor appealed to the court to change the contract and collect an additional payment.

Cassation denied the claim:

the contractor offered to raise the price when he had already finished the repair. Since the obligations have been fulfilled, it is impossible to apply a special basis;

the rise in the cost of materials is not attributed to unforeseen circumstances. This is an entrepreneurial risk. The counterparty has no right to demand an increase in the price;

the work was not stopped. The presence of an emergency or emergency situation that prevented this has not been proven.

The Supreme Court of the Russian Federation did not review the case.

Similar conclusions were reached by the AS of the West Siberian and Northwestern districts.

Document: Definition of the SC of the Russian Federation of 15.08.2023 N 305-ES23-13732

SUBSCRIBE FOR NEWS
All content on this site is licensed under
Creative Commons Attribution 4.0 International