Petro B.
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Kyiv,
Ukraine
25 days 10 hours ago
available for hire
registered for 3 years
Rating
Successful projects
Average rating
Language Proficiency Level
Українська: fluent
Skills
Outsourcing & consulting
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Legal Services
from 17 USD per project
Portfolio
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Regulation of a complex supply contract
Legal ServicesRegulation of a complex supply and subcontracting agreement for the maintenance of elevator and escalator equipment
(Client – landlord of the shopping center, customer of the works)
Preconditions of the agreement
The shopping center entered into a contract with a company specializing in elevator and escalator equipment (hereinafter – the Contractor) for the replacement of worn-out spare parts and the performance of related works. The contract had a combined nature:
… • Supply elements: The Contractor was to provide spare parts of its own production or from official suppliers.
• Subcontracting elements: The Contractor was to carry out the work for their replacement and adjustment.
The customer (the shopping center) expected clear deadlines, warranty responsibilities from the Contractor, and minimal equipment downtime to avoid inconveniences for visitors and tenants.
Identified problems
Significant complications arose during the execution of the contract:
1. Breach of delivery deadlines
o The Contractor was purchasing spare parts from China, and their delivery was delayed due to logistical problems and customs disruptions.
o The Contractor did not notify about delays in advance, complicating work planning.
2. Ambiguous interpretation of contract terms
o The Contractor insisted that the work deadlines start counting only after the complete delivery of parts, while the Customer believed they should be counted from the moment of signing the contract.
o The Contractor's warranty obligations were vague: it was not clearly defined whether they were responsible for the quality of the spare parts themselves or only for their installation.
3. Financial discrepancies and currency risks
o The Contractor stipulated payment in US dollars at the interbank exchange rate on the day of delivery in the contract. This meant that the Customer could not accurately predict the final cost of the contract due to currency fluctuations.
o The Contractor issued additional invoices for works that the Customer believed were already included in the contractual price.
o The procedure for adjusting the price in case of an increase in the cost of spare parts due to external factors was not clearly defined.
4. Lack of a clear mechanism for accepting work
o The Contractor provided acts of completed work; however, the Customer could not sign them due to the lack of proper documentation regarding the quality of the spare parts.
o The criteria for the final inspection of the equipment after the installation of parts were not clearly defined.
Problem resolution
1. Regulation of execution deadlines
o An additional agreement was signed that clearly defined new deadlines and the Contractor's responsibility for their violation.
o A phased delivery of spare parts was introduced to avoid waiting for complete delivery to start work.
2. Clarification of warranty obligations
o The Contractor confirmed in writing the warranty for both the spare parts themselves and the quality of their installation.
o It was clarified that in case of defects in the parts, the Contractor is obliged to independently organize their replacement.
3. Financial part
o A fixed exchange rate was agreed upon at the time of signing the contract to avoid unpredictable cost increases for the Customer.
o The completed works were divided into a main and additional list, each of which had to be approved by the Customer before invoicing.
o The procedure for price review was clarified: an increase in the cost of spare parts is possible only with the Customer's agreement.
4. Final acceptance of work
o A final inspection procedure with a test operation mode was implemented before signing the acts.
o The Contractor provided all necessary documentation, including quality certificates for the spare parts.
Result
• The project was completed without legal disputes.
• Financial losses for the shopping center were prevented, as additional expenses were agreed upon in advance.
• The Customer was protected from currency risks due to the fixed exchange rate.
• Clear conditions were established for future contracts to avoid similar problems in the future.
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Management of crisis rental relations in large TO
Legal Services(Client – landlord, shopping center)
Background and onset of problems
A large grocery retailer rented a significant area in the shopping center for its supermarket. After several years of successful operation, the company decided to carry out a full-scale renovation of the retail space, which included changes in layout, updating equipment, and interference with engineering networks.
From the very beginning, the retailer took a tough negotiating position:
… • Insisted on renegotiating the contract with a review of commercial terms, lowering the rent, and providing a grace period during the renovation.
• Independently began implementing the project without full agreement with the property owner.
• Interfered with engineering communications without permission, which could pose a threat to the entire building.
• Violated the terms of the contract by not providing project documentation and approvals on time.
• Allowed payment delays, justifying this with a "difficult financial situation."
Crisis: a combination of force majeure circumstances
Problems escalated due to external factors:
1. COVID restrictions – reduced foot traffic in the shopping center, financial pressure on the retailer, which became even more aggressive in demanding a review of the contract terms.
2. Full-scale war – a new economic reality, logistical problems that led to significant debt accumulation to the landlord.
3. Renovation work was not completed on time, deadlines were repeatedly violated, while the premises were not used, creating a risk of long-term losses for the shopping center.
Proposed solution: strategy to get out of a deadlock
1. Legal consolidation of responsibility
o An official warning was initiated to the tenant regarding violations of the contract terms.
o Penalties were imposed for unauthorized interference with engineering networks.
o The tenant was clearly informed of the risks of contract termination in case of further violations.
2. Financial agreements
o A debt restructuring schedule was developed (payments in installments over a certain period).
o The tenant received short-term concessions (deferral of certain payments), but without changing the base rent.
o A new financial control system was implemented to avoid similar problems in the future.
3. Control over the execution of work
o All subsequent renovation work was carried out only after official approval of the project with the shopping center administration.
o A mandatory mechanism for monthly reporting on the progress of work was introduced.
Result
• Losses from prolonged downtime of the premises were avoided.
• Debt was repaid according to the agreed schedule.
• The retailer retained the rented premises, and the shopping center retained a stable anchor tenant.
• A potential lengthy lawsuit that could lead to even greater losses was prevented.
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Agreement of the lease contract for premises in the shopping center for the pharmacy chain
Legal Services(Client – landlord, shopping mall)
Client's problem
The shopping mall planned to lease premises to a large pharmacy chain, but during negotiations, risks arose:
• Financial issues:
… o The tenant demanded a fixed rental rate without indexing, which could lead to devaluation of income in the long term.
o Insisted on reducing or fixing operating costs, which did not cover the actual maintenance costs of the premises.
o Wanted to include a clause about discounts or exemptions from rent during the renovation of the shopping mall, which could create a dangerous precedent for other tenants.
• Technical conditions:
o The pharmacy chain required the installation of a separate air conditioning and ventilation system at the expense of the shopping mall, which could incur additional costs.
o The tenant insisted on the right to modify the heating system to maintain the necessary temperature regime, which could affect the overall infrastructure of the building.
o Required guarantees of cleanliness and sanitary maintenance of the adjacent area, which should be carried out exclusively at the expense of the shopping mall.
My proposed solution:
1. Financial balance:
o Proposed a floating rental rate with indexing according to official inflation indicators.
o Implemented a transparent system of operating payments that accounted for actual maintenance costs.
o Achieved a compromise regarding the renovation period: partial rent reduction only in case of confirmed disruptions in the pharmacy's operations.
2. Technical aspects:
o Agreed that the installation of a separate air conditioning and ventilation system would be at the tenant's expense, and its integration would be under the control of the shopping mall's technical department.
o Established that any changes to the heating system are possible only after approval from the shopping mall administration and without harming the overall infrastructure.
o Regulated the issue of sanitary maintenance by assigning part of the costs to the tenant within mandatory payments.
Result
• Ensured predictable profitability of the premises due to rental rate indexing.
• Avoided unforeseen costs for technical modifications at the tenant's expense.
• Maintained a balance of responsibility for the maintenance of the adjacent area without additional costs for the shopping mall.
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Agreement on the terms of the commercial lease contract
Legal Services(client – landlord)
Client's problem
The shopping mall planned to lease the premises to a large cinema operator, but during negotiations, risks arose:
• Financial part:
… o The tenant insisted on a non-transparent formula for rent with floating indices, which could lead to a loss of income.
o Required a significant period of rent holidays without clear commitments regarding the opening dates.
o Proposed a minimal amount of additional payments, ignoring actual costs for maintenance, marketing, security, etc.
• Issues with the arrangement of the premises:
o The tenant wanted to completely change the configuration of the premises, which could harm the building's structure and required redesigning the engineering systems.
o Demanded a simplified procedure for approving changes, which could lead to chaotic reworks.
My proposed solution:
1. Protecting the landlord's financial interests:
o Implemented a transparent formula for calculating rent with clear adjustments based on official indices.
o Minimized the risks of delaying the opening by agreeing on limited rent holidays with specific deadlines for completing repairs.
o Provided a mechanism for compensating the shopping mall's operating costs by including fixed additional payments.
2. Control over repair work:
o Agreed on a clear list of permissible changes in the premises without harming the overall infrastructure of the shopping mall.
o Established the tenant's obligation to return the premises to their original or agreed condition after the contract ends.
Result
- The shopping mall obtained a reliable tenant without the risk of financial losses due to excessive concessions.
- Ensured predictability of income through a transparent financial model.
- Avoided technical risks associated with uncontrolled changes to the premises.
Activity
| Recent proposals 2 | Budget | Added | Terms | Proposal | |
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Draft a goods supply agreement
17 USD
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Develop a professional contract
24 USD
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