LEGAL AND ACCOUNTING ASPECTS OF CONSTRUCTION CONTRACTS

Abstract

This article examines the legal and accounting aspects specific to construction contracts based on the provisions of the legislation of the Republic of Moldova, which mainly refer to: the classification and composition of construction contracts, the object of the contracts, the value of the contract, and the method of settlements. The construction contract is drawn up on the basis of the Civil Code of the Republic of Moldova, the National Accounting Standard “Construction Contracts,” and the Regulation on the contracting of public investments. In order to solve the aforementioned issues and correctly implement national regulations related to construction contracts, it is recommended to: revise the composition of construction contracts based on the advantages and disadvantages of construction contracts according to their type; specify the object of the contracts; specify the method for determining the value of the contract, taking into account possible cases of contractual price modification; establish clauses in the contracts regarding the settlement organization for the construction and installation works performed, either after the completion of all the works specified in the contract or at the completion of certain construction elements and types of works; establish clauses in the contracts allowing for modification of the initial construction contracts.

Keywords

• construction
• contract
• construction contract
• fixed-price contract
• cost-plus contract
• mixed contract.