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Standard Construction Contract

Standard Construction Contract Template for Denmark

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Standard Construction Contract

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Document background
The Standard Construction Contract is a fundamental legal document used in the Danish construction industry to establish and regulate the contractual relationship between employers and contractors for building and construction works. This document is essential when undertaking any significant construction project in Denmark, whether commercial, residential, or industrial. It incorporates the principles of AB 18 (General Conditions for Building and Construction Works and Supplies) and complies with Danish construction law and regulations. The contract covers crucial aspects such as project scope, payment terms, timeline, quality standards, risk allocation, and dispute resolution procedures. It's designed to provide a balanced framework that protects both parties' interests while ensuring project delivery according to Danish construction industry standards and practices. The document is particularly relevant for projects requiring formal contractual arrangements and can be adapted to various scales of construction work while maintaining compliance with Danish legal requirements.
Suggested Sections

1. Parties: Identification and details of the employer and contractor, including company registration numbers and authorized representatives

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

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

4. Scope of Works: Detailed description of the construction works to be performed

5. Contract Documents: Hierarchy and list of documents forming part of the contract

6. Project Timeline: Commencement date, completion date, and key milestones

7. Contract Sum and Payment: Price, payment schedule, and mechanisms for variations

8. Contractor's Obligations: General and specific obligations of the contractor

9. Employer's Obligations: General and specific obligations of the employer

10. Quality and Compliance: Quality standards, inspections, and compliance requirements

11. Variations: Procedures for handling changes to the scope of works

12. Delays and Extensions of Time: Provisions for dealing with delays and time extensions

13. Defects and Warranties: Defects liability period, warranties, and remediation procedures

14. Insurance and Liability: Required insurance coverage and liability provisions

15. Termination: Grounds and procedures for contract termination

16. Dispute Resolution: Procedures for resolving disputes between parties

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

Optional Sections

1. Performance Security: Requirements for bank guarantees or performance bonds, used for larger projects

2. Intellectual Property Rights: IP provisions when design services are included in the scope

3. Environmental Requirements: Specific environmental obligations beyond standard requirements

4. Site Conditions: Special provisions for dealing with site-specific challenges or conditions

5. Subcontracting: Detailed provisions for subcontracting when relevant to the project

6. Force Majeure: Specific force majeure provisions beyond standard AB 18 terms

7. Health and Safety: Additional health and safety requirements beyond statutory obligations

8. Liquidated Damages: Specific provisions for liquidated damages if different from AB 18 standard terms

Suggested Schedules

1. Schedule 1 - Technical Specifications: Detailed technical specifications for the construction works

2. Schedule 2 - Drawings and Plans: All relevant construction drawings and plans

3. Schedule 3 - Price Schedule: Detailed breakdown of the contract sum and unit prices

4. Schedule 4 - Project Timeline: Detailed project schedule including all milestones

5. Schedule 5 - Quality Assurance Plan: Detailed quality control and assurance procedures

6. Schedule 6 - Site Rules and Procedures: Specific rules and procedures for site operations

7. Schedule 7 - Insurance Certificates: Copies of required insurance certificates

8. Schedule 8 - Key Personnel: List of key personnel from both parties with roles and responsibilities

9. Appendix A - Forms and Templates: Standard forms for variations, payment applications, etc.

10. Appendix B - Building Permits: Copies of building permits and other regulatory approvals

Authors

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Relevant legal definitions
Agreement
Applicable Laws
Architect
As-Built Documents
Building Permit
Certificate of Practical Completion
Client
Commencement Date
Completion Date
Construction Documents
Construction Period
Contract Sum
Contractor
Day
Defects
Defects Liability Period
Delay Events
Design Documents
Drawings
Employer
Extension of Time
Force Majeure
Good Industry Practice
Governing Law
Health and Safety Plan
Insurance Requirements
Key Personnel
Milestone Dates
Payment Certificate
Performance Security
Practical Completion
Project
Project Manager
Quality Assurance Plan
Retention Money
Schedule of Rates
Site
Specifications
Subcontractor
Substantial Completion
Supervisor
Technical Specifications
Time for Completion
Variation
Works
Working Day
Clauses
Definitions and Interpretation
Contract Documents
Representations and Warranties
Scope of Works
Contract Price and Payment
Time and Progress
Site Access and Conditions
Materials and Workmanship
Quality Assurance
Health and Safety
Environmental Protection
Design Responsibilities
Variations
Extensions of Time
Testing and Inspection
Completion and Handover
Defects Liability
Insurance Requirements
Performance Security
Intellectual Property
Force Majeure
Suspension and Termination
Risk and Title
Indemnification
Confidentiality
Assignment and Subcontracting
Notices
Dispute Resolution
Governing Law and Jurisdiction
Compliance with Laws
Records and Audit
Warranties and Guarantees
Relevant Industries
Relevant Teams
Relevant Roles
Industries
AB 18 (General Conditions for Building and Construction Works and Supplies): The primary framework for construction contracts in Denmark, covering key aspects like payment terms, deadlines, defects, and dispute resolution
Danish Building Act (Byggeloven): Main legislation governing building works, setting requirements for construction quality, safety standards, and building permits
Danish Working Environment Act (Arbejdsmiljøloven): Regulates workplace safety and health conditions on construction sites
Danish Contracts Act (Aftaleloven): Provides the general legal framework for contract formation and validity in Denmark
Danish Building Regulations (Bygningsreglementet - BR18): Detailed technical requirements for construction, including energy efficiency, accessibility, and fire safety
Danish Planning Act (Planloven): Regulations regarding zoning, planning permissions, and environmental impact assessments
Danish Environmental Protection Act (Miljøbeskyttelsesloven): Environmental requirements and restrictions for construction projects
SBI Guidelines (Statens Byggeforskningsinstitut): Technical guidelines and standards for construction methods and materials
Danish Public Procurement Act (Udbudsloven): Relevant for projects involving public entities or funding, governing the tender process
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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