urakkaa

Urakka, in Finnish usage often encountered as the inflected form urakkaa, refers to a contract in which a principal (tilaaja) commissions another party (urakoitsija) to perform a defined set of work. The arrangement is typically result-oriented, with a defined scope, price and schedule. In practice, urakka is common in construction, infrastructure, maintenance and various service sectors.

A central feature of an urakka is the allocation of risk and responsibility. The contractor is usually responsible for delivering the agreed outcomes, meeting quality standards, and managing specified milestones. The principal provides payment according to the terms set in the contract, which may include progress payments, a lump-sum price, or unit prices. Change management, via formal changes or change orders, is a common mechanism to handle scope modifications and adjustments to price or timing. Acceptance criteria, defect liability periods and warranties are typically defined to govern performance after completion.

Types of urakka commonly used in Finnish procurement include fixed-price (lump-sum) urakka, where the price is set for the defined scope; time- and material-based (aikapers) urakka, where payment reflects actual work and materials; and design-build arrangements, where design and construction responsibilities are combined under a single contract. Maintenance- or service-oriented urakat may be structured as ongoing or framework agreements (puitesopimukset) to cover multiple tasks over time.

The urakka lifecycle includes bidding or tendering, contract formation, performance, changes, inspection and acceptance, and a warranty or defect liability period. Properly drafted terms promote clarity, accountability and efficient project delivery, while minimizing disputes between the tilaaja and urakoitsija.