Contrats D'Entreprise Construction Template for France

Yes. A contrat d'entreprise (also called contrat de louage d'ouvrage) is governed by articles 1710 and 1787 and following of the Code civil, and becomes binding once the parties agree on the works and the price. No notarial deed is required, and electronic signature is valid under articles 1366 and 1367 of the Code civil where the signatory can be identified and the document kept intact. Putting the agreement in writing matters mainly for proof of scope, price and deadlines if a dispute arises.

It should identify the maitre d'ouvrage and the entrepreneur, describe the works and technical specifications (often by annexing the devis descriptif and plans), state the price or the pricing method, the start date and the delivery deadline, and the payment schedule. It should also record the contractor's decennial insurance details, the conditions of reception of the works (reception des travaux), any penalites de retard and any retenue de garantie, which is capped at 5 per cent under the loi du 16 juillet 1971. For works on an existing home ordered by a consumer, the Code de la consommation also requires a detailed written quote and, where the contract is signed away from the contractor's premises, a 14 day withdrawal form.

Where the contract is a marche a forfait for a building, article 1793 of the Code civil prevents the contractor from claiming extra payment for additional works or design changes unless the owner authorised them in writing and agreed the price. If the contract is priced on a unit rate or cost reimbursement basis instead, variations are billed under the mechanism the contract sets out. To avoid disputes, include an avenant clause requiring every variation to be signed by both parties before the work is carried out.

Under article 1792 of the Code civil, introduced by the loi Spinetta of 4 January 1978, the contractor is liable for ten years from reception of the works for damage that compromises the solidity of the structure or renders it unfit for its purpose. This liability is a matter of public policy and applies even if the contract says nothing about it, and it cannot be excluded. Two shorter guarantees run alongside it: the garantie de parfait achevement of one year (article 1792-6) and the garantie de bon fonctionnement of two years on equipment (article 1792-3).

Yes. Article L.241-1 of the Code des assurances requires any builder to hold decennial liability insurance before starting works, and the contract should require an attestation d'assurance naming the insurer, the policy number and the covered activities for the relevant period. The maitre d'ouvrage must in principle take out dommages-ouvrage insurance under article L.242-1, which pre finances repairs without waiting for liability to be established. Starting works without a valid attestation leaves the owner exposed if the contractor fails or disappears, so make production of the certificate a condition precedent to the start of the site.

Delay is normally handled by the penalites de retard clause, which applies automatically per day of overrun once the contractual completion date passes, subject to any suspension for bad weather or additional works. For defects, the owner can send a mise en demeure and then rely on articles 1217 and following of the Code civil to demand performance in kind (article 1221), obtain a price reduction, have the works completed by a third party at the contractor's cost (article 1222), or seek termination under articles 1224 to 1230. Reserves noted in the proces verbal de reception must be lifted within the parfait achevement year, so record every defect in that document.

Only on the terms the contract allows, and the loi n° 75-1334 of 31 December 1975 requires the main contractor to have each subcontractor accepted by the maitre d'ouvrage and their payment terms approved. In private works the main contractor must also provide the subcontractor with a payment guarantee such as a bank caution, failing which the subcontract can be annulled. Include a clause requiring prior written notification of every subcontractor, together with their decennial insurance certificate, before they come on site.