Construction Contract Termination Agreement Template for Denmark

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Construction Contract Termination Agreement

Document background
The Construction Contract Termination Agreement is a vital legal instrument used in Denmark when parties need to formally end their construction contract relationships. It becomes necessary in various scenarios, including mutual agreement to terminate, breach of contract, or project abandonment. The document comprehensively addresses all aspects of the termination process under Danish law, including financial settlements, work handover, documentation requirements, and ongoing obligations. It incorporates key provisions from the Danish Construction Act and typically references AB 18 conditions, ensuring compliance with local construction industry standards and regulations. The agreement serves to protect all parties' interests while providing a clear framework for project closure and dispute prevention.
Suggested Sections

1. Parties: Identification of all contracting parties, including the employer/client and contractor

2. Background: Context of the original construction contract and circumstances leading to termination

3. Definitions: Definitions of key terms used throughout the agreement

4. Termination Date and Effect: Specific date of termination and immediate consequences

5. Works Status: Current status of construction works and completed portions

6. Payment Settlement: Final account settlement, including outstanding payments and retention amounts

7. Handover Requirements: Process for handover of site, materials, and documentation

8. Release and Waiver: Mutual release of claims and liabilities

9. Confidentiality: Obligations regarding confidential information post-termination

10. Governing Law and Jurisdiction: Confirmation of Danish law application and jurisdiction

Optional Sections

1. Ongoing Warranties: Provisions for maintaining warranties on completed works, used when significant portions of work are complete

2. Intellectual Property Rights: Transfer or license of design rights and other IP, relevant for design-build contracts

3. Subcontractor Provisions: Handling of subcontractor relationships, needed when subcontractors are involved

4. Insurance Provisions: Ongoing insurance requirements and responsibilities, important for projects with continuing risks

5. Dispute Resolution: Specific dispute resolution procedures, recommended for complex terminations

6. Employee Matters: Provisions regarding site personnel and employment issues, relevant when staff transfer is involved

Suggested Schedules

1. Schedule 1 - Original Contract: Copy of the original construction contract and key amendments

2. Schedule 2 - Works Completion Status: Detailed report of completed and outstanding works

3. Schedule 3 - Financial Statement: Detailed breakdown of final account, including payments made and outstanding

4. Schedule 4 - Asset Inventory: List of materials, equipment, and other assets on site

5. Schedule 5 - Outstanding Claims: List of any outstanding claims or disputes

6. Schedule 6 - Handover Documents: List of documents, warranties, and certificates to be handed over

Authors

Relevant legal definitions
Clauses
Relevant Industries
Relevant Teams
Relevant Roles
Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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