LOI In (Construction) Template for Denmark

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LOI In (Construction)

Document background

The LOI In (Construction) is a crucial preliminary document used in Danish construction projects to establish the framework for negotiations and potential future collaboration between parties. It is typically employed when parties need to formalize their intentions before entering into a full construction contract, allowing for preliminary works, site investigations, or initial design development while maintaining flexibility. This document type is particularly important in the Danish construction sector, where it needs to align with local construction laws, building regulations, and industry standards such as AB 18. The LOI helps manage risk and expectations during the pre-contractual phase, outlining key commercial terms, technical requirements, and any binding obligations regarding confidentiality, exclusivity, or cost allocation. It's especially valuable for complex construction projects where detailed negotiations and due diligence are required before finalizing the main construction contract.

Suggested Sections

1. Parties: Identification of the parties entering into the LOI, including full legal names, registration numbers, and addresses

2. Background: Context of the proposed construction project and the purpose of the LOI

3. Definitions: Key terms used throughout the document

4. Project Description: Overview of the proposed construction project, including location, scope, and primary objectives

5. Duration and Termination: Period for which the LOI is valid and circumstances under which it may be terminated

6. Binding and Non-binding Provisions: Clear distinction between which provisions are intended to be legally binding and which are non-binding

7. Preliminary Works: Any authorized preliminary works or investigations to be undertaken during the LOI period

8. Exclusivity: Terms regarding exclusive negotiations during the LOI period

9. Confidentiality: Obligations regarding confidential information exchanged during negotiations

10. Costs and Expenses: Allocation of costs incurred during the LOI period

11. Governing Law and Jurisdiction: Confirmation of Danish law as governing law and jurisdiction for disputes

Optional Sections

1. Site Access: Terms for accessing the construction site during the LOI period - include if site access is required for preliminary works or investigations

2. Insurance Requirements: Preliminary insurance obligations - include if any works will be conducted during the LOI period

3. Intellectual Property: Protection of IP rights - include if design work or technical solutions will be developed during the LOI period

4. Break Fee: Compensation if negotiations are terminated - include for high-value projects or where significant costs will be incurred

5. Public Announcements: Restrictions on public communications - include for high-profile projects or listed companies

6. Environmental Considerations: Preliminary environmental obligations - include if environmental assessments are part of preliminary works

7. Third Party Rights: Rights of third parties - include if other stakeholders are involved in the preliminary stage

Suggested Schedules

1. Preliminary Project Timeline: Indicative schedule for negotiations, due diligence, and project milestones

2. Preliminary Technical Specifications: Initial technical requirements and specifications for the construction project

3. Preliminary Commercial Terms: Outline of proposed commercial terms for the final construction contract

4. Site Plans and Drawings: Relevant drawings, plans, and site information

5. Required Permits and Approvals: List of necessary permits and approvals for the project

6. Key Personnel: List of key personnel from both parties involved in the project

7. Form of Main Construction Contract: Draft or outline of the proposed main construction contract to be negotiated

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