What does barter offer a supplier?
A manufacturer of elevators, windows, tiles or building services, or a contractor who carries out part of the work, can become the owner of a unit in the project instead of being paid in cash. For them, this means turning goods or work into a real estate asset.
For the project, the need for cash during construction also falls. But this advantage is real only when both sides have a clear agreement on value and timing.
Valuation: where most disputes begin
The price of the goods or service should be recorded on the basis of a price list or a dated quotation, and the value of the unit on the basis of that unit's market price on the date of the contract. If the reference date is not written down, later inflation will leave both sides dissatisfied.
Write down the delivery time and quality
A barter contract should make clear exactly what specifications the goods or service have, when and where they are delivered, who approves quality, and what happens if there is a delay or a defect. The equivalent unit or share should also be identified by number, floor or share composition.
Barter in a project company
When a project has its own independent company, barter is recorded more transparently: the goods as a cost of that project, and the unit or share as an asset of that project. At Azhianeh, barter is one of three ways of entering a project, alongside cash capital and partnership with land.
An example of checking before signing
Suppose a supplier offers to barter part of a building's materials for a unit instead of money. Before any discussion of the unit, three questions should be put on paper: the exact list of materials or services with technical specifications, the date and place of delivery, and the method of measuring quality at delivery.
Then the value of the materials and the value of the unit are compared on a clear, documented basis, not an oral estimate. If the two sides cannot agree on the basis, it is better to seek an independent expert. Finally, the form of settlement, whether cash, a unit or a combination of both, and its timetable go into the contract.
What must not be left out of a barter contract?
The names of the parties and the project company from which the unit is transferred, the unit's specifications, a condition for delay in delivering materials, the right to reject non-conforming materials, and a dispute resolution mechanism are among the points that must be explicit in a barter contract. The legal interpretation of each depends on the documents and circumstances of that project, and it is better reviewed with an independent lawyer.
Azhianeh considers barter only through a written contract and within the framework of that project's own project company; an oral promise is not the basis of a transaction.
Frequently asked questions
Which goods are suitable for barter?
Materials and equipment used in the same project, such as windows, elevators, tiles or building services, and specific contracting services.
How is the value of the goods determined?
On the basis of a dated quotation or price list, and a written agreement before delivery.
Can a project share be taken instead of a unit?
Depending on the structure of that project, yes; the type of equivalent is recorded in the barter contract.
Ask for the project file
For the current plan, status and terms of a specific project, ask Azhianeh. Everything on this page is general information, not a price list or an offer.
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