Service contract in Georgia — what to check
Renovation, construction, an IT project, design or consulting — you need the contract most when something doesn't go as agreed. We draft and review service and works contracts for both clients and contractors.
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Georgian law has no separate chapter for a "service contract". If you order a result — say, a renovation or a website — it's a contract for work (Civil Code, Article 629). If you instruct someone to carry out specific actions, it's closer to a mandate (Article 709). The type decides what happens with defects or termination.
If no price is agreed, the usual or tariff rate is treated as agreed (Article 630) — a frequent cause of disputes. So always write down the price and payment terms precisely.
What it must include
- A detailed description of the work or service — ideally as an annex
- Price: fixed or based on an estimate
- Advance and payment stages
- Start and completion dates
- Acceptance — who confirms completion and how
- Fixing defects and warranty
- A penalty for missed deadlines
- Who owns the result — a website, design or software
Cost estimates
If the contractor significantly exceeds an approximate estimate, as a rule they can only claim the agreed fee. They must tell you about the increase immediately (Article 631).
Common mistakes
- A vague scope — "renovation", "a website"
- A 100% advance with no result
- No acceptance certificate
- A penalty agreed verbally — it's valid only in writing
- No clause on rights to the result
Will a template do?
A template is written for a general case and doesn't reflect your risks — often it lacks exactly the clause you'll need in a dispute. It's better to fit the contract to your deal. We draft the contract or review the other side's text before you sign.
Our services
- Renovation and construction contracts
- IT, design and marketing service contracts
- Consulting service contracts
- Bilingual contracts with foreign clients
- Reviewing the other side's contract
- Disputes over defects, delays or unpaid fees
Questions & answers
Does a service contract have to be in writing?
The law doesn't always require it, but a verbal deal is hard to prove in a dispute. A penalty clause is valid only in writing.
The contractor exceeded the estimate — do I have to pay?
As a rule, only the agreed amount — if the overrun could have been foreseen. The contractor must tell you about the increase immediately.
Who owns the website or design I ordered?
This should be settled in the contract. If the transfer of rights isn't written down, a dispute may arise — so always include this clause.
Can I use a template from the internet?
You can, but a template is written for a general case and often lacks exactly the clause you'll need in a dispute. It's better to fit the contract to your deal or have a lawyer review it before you sign.
Legal basis
Official texts (in Georgian) — Legislative Herald of Georgia, matsne.gov.ge.
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