Engineering Procurement And Construction Agreement Template for Denmark

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Engineering Procurement And Construction Agreement

Document background
The Engineering Procurement And Construction Agreement under Danish law is a crucial document used for complex construction and infrastructure projects where a single contractor takes responsibility for the entire project delivery. This agreement type is particularly suitable for large-scale industrial, energy, or infrastructure projects where the employer seeks a turnkey solution. The document integrates Danish legal requirements, including compliance with AB 18 and ABT 18 standard forms, while incorporating project-specific technical specifications, commercial terms, and risk allocation mechanisms. It provides comprehensive coverage of all project phases from design through procurement to construction and commissioning, making it essential for projects requiring single-point responsibility and clear performance guarantees. The agreement is structured to comply with Danish construction law and EU regulations while maintaining international best practices in EPC contracting.
Suggested Sections

1. Parties: Identification and details of the contracting parties (Owner/Employer and Contractor)

2. Background: Context of the project and purpose of the agreement

3. Definitions and Interpretation: Definitions of key terms and rules for interpreting the agreement

4. Scope of Work: Detailed description of the works to be performed, including engineering, procurement, and construction obligations

5. Contract Price and Payment Terms: Price structure, payment schedule, invoicing procedures, and payment conditions

6. Project Schedule: Timeline, milestones, completion dates, and schedule management requirements

7. Contractor's Obligations: General and specific obligations of the contractor, including design, procurement, and construction responsibilities

8. Owner's Obligations: Responsibilities of the owner, including site access, permits, and owner-supplied items

9. Quality Assurance and Control: Quality requirements, inspection procedures, and testing protocols

10. Changes and Variations: Procedures for handling changes to scope, price, or schedule

11. Testing and Commissioning: Requirements and procedures for testing, commissioning, and performance verification

12. Completion and Handover: Conditions for substantial and final completion, acceptance criteria, and handover procedures

13. Defects Liability: Warranty obligations, defect correction procedures, and liability period

14. Risk and Insurance: Risk allocation, required insurance coverage, and liability provisions

15. Force Majeure: Definition of force majeure events and their consequences

16. Suspension and Termination: Rights and procedures for suspension and termination of the contract

17. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration

18. Governing Law: Specification of Danish law as governing law and jurisdiction provisions

Optional Sections

1. Interface Management: Required when multiple contractors or stakeholders are involved, defining interface responsibilities and coordination procedures

2. Environmental Protection: Detailed environmental requirements when project has significant environmental impacts

3. Local Content Requirements: Include when there are specific requirements for local content or community engagement

4. Technology License: Required when specific technology licenses or intellectual property rights are involved

5. Export Control: Include for international projects involving controlled technology or materials

6. Site Security: Detailed security requirements for high-security or sensitive projects

7. Training Requirements: Include when contractor must provide training to owner's personnel

8. Spare Parts: Detailed provisions for spare parts when long-term maintenance is critical

Suggested Schedules

1. Schedule 1 - Scope of Work: Detailed technical specifications and scope description

2. Schedule 2 - Project Schedule: Detailed project timeline, milestones, and critical dates

3. Schedule 3 - Price Schedule: Detailed breakdown of contract price, rates, and payment milestones

4. Schedule 4 - Technical Standards: Applicable technical standards and specifications

5. Schedule 5 - Site Information: Site details, conditions, and access requirements

6. Schedule 6 - Forms of Certificates: Templates for various certificates including completion certificates

7. Schedule 7 - Forms of Bonds and Guarantees: Templates for performance bonds, advance payment guarantees, etc.

8. Schedule 8 - Insurance Requirements: Detailed insurance requirements and coverage limits

9. Schedule 9 - HSE Requirements: Health, safety, and environmental requirements

10. Schedule 10 - Quality Assurance Requirements: Detailed quality assurance and control procedures

11. Schedule 11 - Key Personnel: List of key personnel and their qualifications

12. Schedule 12 - Permits and Licenses: List of required permits and responsible parties

13. Schedule 13 - Subcontractors: List of approved subcontractors and their scope

14. Schedule 14 - Testing and Commissioning Procedures: Detailed procedures for testing and commissioning

Authors

Relevant legal definitions
Clauses
Relevant Industries
Relevant Teams
Relevant Roles
Industries
Danish Contracts Act (Aftaleloven): Fundamental law governing formation and validity of contracts in Denmark, essential for the basic contractual framework of the EPC agreement
AB 18 (General Conditions for Building and Construction Works): Standard terms for construction contracts in Denmark, providing framework for rights, obligations, and risk allocation in construction projects
ABT 18 (General Conditions for Design and Build Contracts): Specific conditions for turnkey contracts, particularly relevant for EPC projects where contractor takes design responsibility
Danish Construction Products Regulation: Implements EU Construction Products Regulation, setting standards for construction materials and products used in the project
Danish Working Environment Act: Regulates workplace safety and working conditions, crucial for construction site management and worker protection
Danish Environmental Protection Act: Governs environmental requirements and permits needed for construction projects
Danish Public Procurement Act: Implements EU procurement rules, relevant if the project involves public entities or funding
Danish Building Regulations (BR18): Technical requirements for construction, including safety, energy efficiency, and accessibility standards
Danish Sale of Goods Act: Relevant for procurement aspects of the EPC contract, governing purchase and delivery of materials and equipment
Danish Planning Act: Regulates land use and construction permits, essential for project implementation
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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