Construction Contract in 2025: Top 5 Changes to Rules No. 1450
By Resolution of the Council of Ministers dated 15 May 2025 No. 266 “On improving architectural, urban-planning and construction activities”, extensive amendments were introduced to the Rules governing the conclusion and performance of construction contracts
The amendments affect the parties’ liability, contractual structures, construction time limits, as well as the procedure for engaging subcontractors. Below is an overview of the key innovations that developers, contractors and investors should take into account.
1. Liability may be not only increased, but also reduced
Under paragraph 78 of the updated Rules, the level of liability established by the Rules may now be not only increased but also reduced by agreement of the parties.
Liability may be virtually eliminated, for example by stipulating a penalty of 0.000…01% for each day of delay.
2. Removal of the “turnkey construction” contract
The legislator continues its consistent efforts to exclude “turnkey” contractual structures from the legislation of the Republic of Belarus.
Following Regulation No. 1553 and the Urban Planning Code, the Rules have also removed the concept of a general contracting agreement for the construction of a facility “on a turnkey basis”.
At present, the legislation does not contain an express authorisation or permissive rule for entering into a “turnkey” contract. Nevertheless, we believe that a similar economic effect can be achieved through preliminary agreements and conditional agreements.
3. Extension of construction time limits without approval from the executive committee
The obligation to agree changes (extensions) to construction time limits with local executive and administrative authorities has been abolished.
The construction period of a facility (the period for performing construction works) specified in the contract must not exceed the duration of construction determined by the design documentation and the terms of procurement procedures.
The relevant administrative procedures (sub-paragraphs 3.16.6 and 3.16.7 of the Unified List of administrative procedures carried out in relation to business entities) have been excluded.
4. Engagement of subcontractors
The general contractor no longer needs to obtain separate written consent from the customer to engage subcontractors, unless this is expressly prohibited by the contract. An indication in the contract that the works will be performed by the contractor’s own resources or with the engagement of subcontractors remains an essential term.
It is now sufficient to provide for the possibility of engaging third parties in the contract itself in order to avoid the need for additional approvals during performance.
If the customer wishes to control the persons engaged by the general contractor, the relevant conditions must be set out in the contract.
5. Updates to other rights and obligations of the parties
- The customer must provide specifically the approved design documentation.
- If amendments are made to it, the customer must obtain a positive conclusion of the state construction expert review (gosstroyekspertiza) before the commencement of works under that documentation.
- The contractor’s right to retain the result of the works or the customer’s materials until full payment has been removed.
- The customer must amend the contract terms upon identification of additional works before such works commence.
- The contractor’s obligation to provide a report on the intended use of received earmarked advances has been закреплена (confirmed/established).
- The transfer of design documentation to subcontractors and suppliers without the customer’s consent is permitted.
Conclusions
The amendments to Rules No. 1450 are aimed at expanding contractual flexibility, reducing administrative burdens and clarifying the allocation of risks among participants in the construction process. At the same time, the new rules require careful review of contracts and the contractual models used in practice.
If you are planning to enter into, or to revise, a construction contract in light of the new Rules No. 1450, REVERA specialists will help you develop an optimal contractual model, assess risks and support the project at all stages—from negotiations to dispute resolution.
Authors: Sergey Suschenya, Mikita Apanasionak.
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