In accordance with Romanian law, the Civil Code respectively, any contract can be modified if the parties agree so. In the contract, the parties establish from the beginning which are the services needed and their value, so that future additional services needed by the beneficiary shall be agreed by the entrepreneur and shall be paid accordingly, as indicated in the contract.

In an enterprise contract, the beneficiary may control the entrepreneur’s work or the quality of the work and communicate his observations, without unduly hindering the activity of the entrepreneur, this being the only possibility for the beneficiary to intervene in the contract.

The contractor shall not be forced to accept future changes unilaterally proposed by the beneficiary regarding the work in question. Thus, contracts are signed by mutual agreement and should be modified as such. If the beneficiary requests for additional work, the entrepreneur should be informed and should agree, so that an addendum to the original contract will be signed.

There are 3 ways of setting the price in an enterprise contract: the estimated price (based on the bill of quantities), the value-based price and the flat-rate/overall price.

In an enterprise contract that serves for execution of works, the parties may agree on the price and the price fluctuations, according to the work evolution. The estimated price is based on the bill of quantities and it is the price calculated on an estimation; the entrepreneur should justify any price rising, the initial value of the contract may be modified due to the price of materials and of the work. The overall price shall depend on the quantity of the executed works and it will be set only after the full execution.

The parties shall establish from the beginning what type of work should be executed and its value, which includes the workmanship and the price of the materials. Hence, the parties should estimate a price at the termination of the contract, that is set according to the work evolution and the price evolution, but any increase must be justified.

In the same time, Romanian Law allows the parties to set an overall price that is fix and cannot be changed. Consequently, extra work shall not be paid. In this situation, the parties set an overall price. The flat-rate/overall price is a determined price, that cannot be changed during the term of the contract by none of the parties and for no reason, the price shall be paid as it was set from the beginning, there cannot be any increase or decrease in the price.

The parties can also set the price according to the value of the work or services. In this situation, the prices are set in accordance with the value of the work. If the price is set according to the value of the executed work, the entrepreneur, at the request of the beneficiary, must give information about the progress of work and the expenses.

Consequently, in an enterprise contract the price is set according to the work and the requests of the parties.

Publisher: Budușan & Associates