What is a works contract?

A works contract, looks, is basically the typical agreement between a public body and a company (or someone wanting to get their hands dirty in a work), where the company undertakes to raise something: a road, a bridge, a building, which touches. And, of course, in exchange for pasta. Nothing is done for love of art, right? This roll is every day in public projects, especially when you see that they are suddenly raising sidewalks or destroying streets just before the elections (chance, safe).

The move is that these contracts are like the star tool of the municipalities and others to carry out infrastructure. But be careful, it is not that they choose who they like. There is one thing called public bidding, which is like a casting but for construction companies. The one who does it best (or the one who convinces more), takes the prize: the contract.

Each country has its own legal mess with these contracts. For example, in Spain, if you want to soak up how the issue is going, you have to read the Public Sector Contract Law. It sounds like Tocho, and it is, but that is where you find out all the eggplant of norms and procedures that must be followed.

Now, in this type of agreements, the two parties have to fulfill their part of the treatment. The contractor has to build as agreed, with his technical specifications and his dates (which are never met, but hey, that is another issue). And the administration has to monitor that everything goes well and, the most important thing for the contractor, release the pasta on time.

In the piece of paper of the contract, you have to make a lot of things clear: what to build, how much they will pay, how it is paid, when you have to finish, what happens if someone lies it, those things. And it hurts more that companies are looking for a good advisor, because as you hang on something, then the surprises and dislikes come.

These contracts are key for cities to work and people have decent services, but they also have their traps. There are risks: do not pay you on time, that the costs go up (and nobody wants that), or that the public client is tied with quality and wants to penalize you for any bullshit. So, if you are going to get into a tender, you better go prepared and with lawyers by hand.

In short, a works contract is that role with which administrations are sought builders to assemble infrastructure. There are laws that regulate it, rights and obligations for all, and if you are a company and you want to get into this world, you have to know what the party is going on. Because here, he who does not run, flies ... or sticks it to him.