Recently, there has been much discussion about delays in major public projects. However, issues are also prevalent in many private contracts with developers.

Specifically, many citizens who are building their own homes and have agreements with developers are complaining about both breaches of agreement and arbitrary charges, as well as delays in construction.

In response to public inquiries about private contracts for home construction, Brief reached out to professionals in the construction industry. These experts also provided advice on how to avoid problems that could have been prevented from the start.

The President of the Federation of Building Contractors Associations of Cyprus (OSEOK), Stelios Gavriil, explained the situation regarding private contracts to Brief.

Mr. Gavriil noted that there are two types of contracts, but only one is considered more suitable by both OSEOK and ETEK. According to Mr. Gavriil, this contract offers more safeguards for both the citizen and the developer.

Specifically, the recommended type of contract is made between the citizen and the project’s architect or another professional, who then solicits bids from developers.

Mr. Gavriil explained that this method allows for more bids to be submitted, and the architect serves as the owner’s advisor to ensure the best possible choice, aiming for the owner's best interest.

According to Mr. Gavriil, this type of contract can offer faster resolutions in case of disputes between the buyer and the developer. It includes special mechanisms to resolve differences quickly and fairly.

On the other hand, Mr. Gavriil explained, there is another type of contract where the owner agrees directly with the contractor. This type of contract carries various risks. Unlike the first type, the buyer does not have an advisor for the project. Moreover, if a dispute arises between the owner and the developer, different resolution methods are prescribed, often leading to legal battles. This can cause delays in construction and additional expenses for the owner.

Mr. Gavriil concluded by advising citizens to consult with professional associations to seek advice on the process they should follow to protect their interests.