The Construction contract is a specific type of the work contract, as set out in Art. 258- Art.269 of The Bulgarian Obligations and Contracts Act. The specific regulations about the construction procedure are enshrined in the Spatial Planning Act. In accordance with the provisions of Art.160, para.2 of the Spatial Planning Act the parties can freely arrange their relationships during the construction process with construction contracts observing the Spatial planning Act´s regulations. The object of the construction contract may differ: it can be the construction of business facilities – factory, industrial unit, storage place or office, as well as residential buildings. It may envisage the whole building process, or construction only of separate stages of the building. A construction contract can be concluded not only for building but also for extension, renovation, reconstruction or reparation of existing buildings. The exact terms and conditions of the construction contract depend on its subject. As the building process is a very long process, it is very important to envisage detailed provisions concerning the performance and the possibilities for adjustment to economic changes.
In accordance with the provisions of the Spatial Planning Act the parties to the Construction contracts are the Assignor /contractor/ and the Building constructor /builder/. The contractor is the person who owns the regulated property or who has a building right according to Art.161, par.1 of the Spatial planning Act. The assignor finances the construction process and being owner of the regulated property he also becomes owner of the future building. The Constructor is the person who performs the construction works, specified in the construction contract, respectively in the investment project in compliance with the building regulations and standards. Under Art.231 of the Spatial Planning Act the requirements for individuals and legal entities that have the right to perform construction works shall be regulated by law - Law on the Construction Chamber. The assignor can negotiate with the building contractor to provide construction and design, as well as all necessary permits and adoption, etc. The developer may also be responsible for ensuring the delivery of equipment, if it is necessary.
There is no mandatory form for the construction contract. However, it is recommendable to conclude it in writing in order to easily prove the rights and obligations of the parties. Furthermore, the written form of the construction contract appears to be necessary as the contract contains information required for the issue of various permits and protocols that are obligatory under the Spatial Planning Act and its acts of implementation. Moreover, the written form is necessary given the ban in Article 164 of the Civil Procedure Code to use testimony in order to prove the content of contracts worth over BGN 5.000 (as construction contracts generally exceeds this amount).