Turnkey house construction contract in Batumi: price, deadlines, payment, guarantee

Turnkey house construction contract: what it should contain

A turnkey house construction contract protects both sides only when it states specifics: which house, built from what, for how much, by what date, and what happens if something goes wrong. General phrases like "a mid-range turnkey house" without a finishes schedule and a timetable later turn into disputes. Below is what we put into our own contract and what we advise checking in any contractor's contract. What the turnkey house itself includes, item by item, is on the turnkey house page.

Subject of the contract

• the design, with its number and date, that the house is built to;
• an estimate with quantities and a finishes schedule with product codes or price limits;
• the scope boundaries: services across the plot, septic tank, fence, landscaping;
• what is excluded: furniture, appliances, the plot, state fees;
• the address and cadastral code of the plot, the house area and how it is measured.

If there is no design yet, the contract is signed on a sketch with a price per m² and a clause on repricing once the design is ready. The estimate is worth checking for missing works before signing; more on the house construction estimate page.

Price: fixed or by estimate

We usually work on a fixed stage price. If the build will stretch beyond a year, we state in the contract in advance which materials may be repriced and by what rule, and which may not.

Deadlines and liability

The schedule gives the duration of each stage, not just the handover date of the house. Next to it we write what legitimately moves the deadlines: delays to the permit or utility connections caused by the agencies, prolonged downpours, changes ordered by the owner. There is a penalty for delay through our fault, and also for late payment by the client. One-sided clauses, where only one party faces penalties, should be corrected before signing.

Payment and acceptance

The advance covers materials and the first stage; each further payment comes after a signed acceptance record. The contract lists the points on which each stage is accepted, who signs the record and how many days are allowed for it. Part of the sum can be retained until final handover of the house and the snagging list is cleared. The payment schedule is covered in detail on the stage payments page.

Changes during construction

Any change is formalised as an addendum before the work starts: what changes, how much it costs and how the deadline moves. Verbal agreements with the site manager on site do not count as part of the contract. If the earthworks uncover something that was not in the surveys, such as rock or an old foundation, we photograph the find, work out the options and wait for your decision.

Guarantee and disputes

The guarantee in the contract is set out as periods by type of work: 2 years on the works, 5 years on concealed pipes, wiring and fittings. It also states how you report a defect, how quickly we come out and what counts as a guarantee case. We draw up the contract in two languages, under Georgian law, with a clear procedure for resolving disputes. If you want your own engineer to check the contract and the site, that is normal; more on the technical supervision page. Our general commitments are collected on the guarantees page.

How much turnkey construction costs

A mid-range turnkey house under a contract with stage prices costs from 1 680 ₾ per m². The budget level from 1 200 ₾, premium from 2 700 ₾ per m², a turnkey guest house from 1 920 ₾ per m². A house construction estimate from the design from 1 440 ₾, a review of another contractor's building contract by a lawyer and an engineer from 840 ₾. The final cost is set from the design and after agreeing the estimate and the finishes schedule.