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Construction Cost Plus Contract

Construction Cost Plus Contract Template for Denmark

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Construction Cost Plus Contract

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Document background
The Construction Cost Plus Contract is designed for complex construction projects under Danish jurisdiction where the exact scope or costs cannot be definitively established at the project's outset. This document is particularly suitable for projects involving uncertain conditions, renovation works, or where flexibility in scope is required. The agreement details the cost reimbursement mechanism, fee structure, and project management requirements while ensuring compliance with Danish construction laws and regulations. It includes comprehensive provisions for cost verification, change management, and quality control, making it especially suitable for projects where transparency and detailed cost tracking are priorities. The document incorporates standard Danish construction industry practices and typically references AB 18 (General Conditions for Building and Construction Works) while adapting them to the specific requirements of a cost-plus arrangement.
Suggested Sections

1. Parties: Identification of the Owner and Contractor, including full legal names and addresses

2. Background: Context of the agreement and brief description of the construction project

3. Definitions: Definitions of key terms used throughout the agreement, including 'Cost', 'Fee', 'Works', etc.

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

5. Contractor's Obligations: Core responsibilities of the contractor including quality standards, compliance requirements, and project management

6. Owner's Obligations: Core responsibilities of the owner including site access, permits, and information provision

7. Cost Definition and Structure: Detailed breakdown of what constitutes 'Cost' under the agreement

8. Fee Calculation and Payment: Structure of the contractor's fee, including percentage or fixed fee arrangement

9. Payment Terms: Payment schedule, invoicing requirements, and payment processing procedures

10. Project Timeline: Construction schedule, milestones, and completion dates

11. Changes and Variations: Process for handling changes to scope, cost, or timeline

12. Quality Control: Quality standards, inspection procedures, and acceptance criteria

13. Health and Safety: Safety requirements and responsibilities in accordance with Danish regulations

14. Insurance and Liability: Required insurance coverage and allocation of risks

15. Termination: Grounds and procedures for contract termination

16. Dispute Resolution: Procedures for resolving disputes, including reference to Danish law

17. General Provisions: Standard legal provisions including notices, amendments, and governing law

Optional Sections

1. Environmental Requirements: Specific environmental obligations and sustainability requirements, included when project has significant environmental impact

2. Financing Arrangements: Special provisions related to project financing, included when external financing is involved

3. Subcontracting: Rules and procedures for subcontractor engagement, included when subcontracting is permitted

4. Performance Guarantees: Specific performance guarantees and associated penalties, included for complex or high-value projects

5. Value Engineering: Provisions for cost optimization and value engineering proposals, included for larger projects

6. Public Authority Requirements: Special provisions for public projects, included when public authorities are involved

7. Force Majeure: Detailed force majeure provisions, included when standard provisions need enhancement

Suggested Schedules

1. Schedule 1 - Detailed Scope of Works: Comprehensive technical specifications and drawings

2. Schedule 2 - Cost Breakdown Structure: Detailed breakdown of cost categories and items included in the cost-plus calculation

3. Schedule 3 - Fee Calculation Method: Detailed methodology for calculating the contractor's fee

4. Schedule 4 - Project Timeline: Detailed construction schedule with milestones and critical path

5. Schedule 5 - Key Personnel: List of key personnel from both parties with roles and responsibilities

6. Schedule 6 - Required Insurance: Detailed insurance requirements and coverage levels

7. Schedule 7 - Quality Management Plan: Detailed quality control procedures and standards

8. Schedule 8 - Health and Safety Plan: Detailed safety procedures and requirements

9. Schedule 9 - Forms and Templates: Standard forms for change orders, payment applications, and other project documents

10. Schedule 10 - Permits and Approvals: List of required permits and responsible parties

Authors

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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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