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What exactly is the contract for the lease and hire of work?

The contract for the lease and hire of work is a document that allows a contractor to make work available to a headmaster in return for a fee. It acts as an agreement by which a contractor puts in place a commitment to carry out specific work and therefore binds a lessor and an ordering customer.

The contract for the lease and hire of work in a nutshell

Opticourtage’s contract for the lease and hire of work, also known as a service contract, affects the relationship between a contractor and a client. The former is the one who carries out the work in exchange for a fee and the latter is the one who commissions it. In other words, the client receives the amount defined in the said contract when he or she has completed and delivered the work. The contractor or lessor undertakes to perform a particular type of work because the latter is to be fully completed. The document drawn up can relate to several sectors of activity and one of them is construction.

How does this type of contract work?

During the execution of the work to which the lessor has committed and the fulfillment of the contract, the ltter remains independent. Furthermore, the client is prevented from intervening or interfering in the contractor’s tasks. To verify and validate the proper execution of the contract as well as for the payment of the remuneration, these 2 parties meet at the end of the work. The contractor is therefore compelled to deliver the work on time, while the client must recover the delivery, even if the result does not meet his expectations. In addition, he must approve that the work contract has been executed.

The insurance required when setting up a contract for the lease and hire of work

To prevent future damage, both parties involved in a contract for the lease and hire of work must take out insurance. According to the law, they must put in place guarantees that consist of providing for the repair of damage that may occur following delivery. For instance, Article 1792-1 of the French Civil Code requires the project manager to take out a contract for the lease and hire of work insurance. The ten-year guarantee covers all losses that may affect the solidity of the work. Additional formulas such as the damage insurance policy allow for the pre-financing of repairs to damage related to the ten-year guarantee. The insurer is the one who can recover the funds advanced by appealing against that of the lessor of the work.

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