Construction Agreement

Construction Agreement Template for Denmark

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Document background

The Construction Agreement is a fundamental document used in Danish construction projects to establish legally binding obligations between the client and contractor. This agreement is particularly crucial when undertaking any significant construction work in Denmark, whether for commercial, residential, or industrial purposes. The document typically incorporates the AB 18 (General Conditions for Building and Construction Works and Supplies) as its foundation, which is the recognized standard for Danish construction contracts. It covers essential aspects such as project scope, payment terms, completion timelines, quality standards, and risk allocation, while ensuring compliance with Danish construction law, workplace safety regulations, and environmental requirements. The Construction Agreement serves as the primary reference point for project execution and dispute resolution, making it essential for all parties to have a clear understanding of their rights and obligations under Danish jurisdiction.

Suggested Sections

1. Parties: Identification of the employer/client and the contractor, including full legal names, registration numbers, and addresses

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

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

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

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

8. Time for Completion: Project timeline, completion dates, and milestone requirements

9. Price and Payment: Contract sum, payment schedule, and payment terms

10. Variations: Procedures for handling changes to the scope of work

11. Quality Assurance: Quality standards, inspections, and approval processes

12. Health and Safety: Safety requirements and responsibilities aligned with Danish regulations

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

14. Defects: Handling of defects during construction and liability period

15. Force Majeure: Provisions for unforeseen circumstances and their handling

16. Termination: Grounds and procedures for contract termination

17. Dispute Resolution: Procedures for resolving disputes, including reference to Danish arbitration

18. Governing Law: Specification of Danish law as governing law

Optional Sections

1. Environmental Requirements: Specific environmental obligations and compliance requirements, included for projects with significant environmental impact

2. Design Obligations: Include when contractor has design responsibilities in design-build contracts

3. Intellectual Property: Required when the project involves significant design elements or innovative construction methods

4. Site Conditions: Detailed provisions about site conditions and investigations, important for complex sites or renovation projects

5. Subcontracting: Detailed subcontracting provisions when significant parts of the work will be subcontracted

6. Performance Security: Requirements for performance bonds or guarantees, typically for larger projects

7. Building Information Modeling (BIM): Include when BIM is being used in the project

8. Sustainability Requirements: For projects with specific sustainability or green building certification requirements

Suggested Schedules

1. Schedule 1 - Works Specification: Detailed technical specifications of the construction works

2. Schedule 2 - Site Plan and Drawings: Construction drawings, site plans, and technical drawings

3. Schedule 3 - Program of Works: Detailed construction schedule and milestone dates

4. Schedule 4 - Price Schedule: Detailed breakdown of the contract price and bill of quantities

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

6. Schedule 6 - Health and Safety Plan: Detailed health and safety procedures and requirements

7. Schedule 7 - List of Approved Subcontractors: Pre-approved subcontractors for specific elements of work

8. Schedule 8 - Form of Collateral Warranties: Standard forms for any required collateral warranties

9. Schedule 9 - Insurance Requirements: Detailed insurance requirements and coverage levels

10. Appendix A - Special Conditions: Any project-specific conditions or requirements

11. Appendix B - Forms of Certificates: Standard forms for various certificates required during the project

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