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Construction Settlement Agreement Template for Denmark

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Construction Settlement Agreement

Document background
The Construction Settlement Agreement is a crucial document used in the Danish construction industry to resolve disputes and formalize settlements between parties involved in construction projects. It is typically employed when parties wish to settle disputes arising from construction works without proceeding to litigation or arbitration. The agreement must comply with Danish law, particularly the Danish Contracts Act (Aftaleloven) and construction regulations including AB 18. It should detail the settlement terms, including financial arrangements, completion of outstanding works, and mutual releases. This document is particularly important in complex construction projects where multiple parties may be involved and where there's a need to clearly document the resolution of disputes while maintaining business relationships. The agreement should address both immediate settlement terms and future obligations, providing clarity and certainty for all parties involved.
Suggested Sections

1. Parties: Identification of all parties to the settlement agreement, including full legal names and addresses

2. Background: Context of the original construction contract, description of the works, and nature of disputes leading to settlement

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

4. Settlement Sum: Details of the settlement amount, payment terms, and payment schedule

5. Release of Claims: Mutual release of claims related to the disputed matters

6. Completion of Outstanding Works: Details of any remaining works to be completed and associated timeframes

7. Warranties and Representations: Statements of fact and assurances from each party regarding the settlement

8. Confidentiality: Obligations regarding confidentiality of the settlement terms

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

10. Entire Agreement: Confirmation that this document represents the entire agreement between parties

11. Execution: Signature blocks and execution formalities

Optional Sections

1. Dispute Resolution: Specific mechanisms for resolving any future disputes, included when parties want to specify particular dispute resolution procedures

2. Insurance Claims: Provisions regarding ongoing or future insurance claims, included when insurance matters are part of the settlement

3. Third Party Rights: Provisions regarding rights of third parties, included when subcontractors or other third parties are affected

4. Tax Provisions: Specific provisions regarding tax treatment of settlement payments, included when tax implications need to be addressed

5. Publicity: Provisions regarding public announcements, included when public disclosure needs to be managed

6. Retention of Documents: Requirements for document retention, included when specific record-keeping obligations need to be addressed

7. Interim Arrangements: Temporary arrangements pending full implementation of settlement, included when phased implementation is required

Suggested Schedules

1. Schedule 1 - Original Contract: Copy or summary of the original construction contract

2. Schedule 2 - Schedule of Defects: List of construction defects or issues being settled

3. Schedule 3 - Payment Schedule: Detailed breakdown of settlement payments and timing

4. Schedule 4 - Outstanding Works: Detailed specification of any works still to be completed

5. Schedule 5 - Release Documentation: Forms of release or discharge to be executed

6. Appendix A - Correspondence: Key correspondence relating to the dispute and settlement

7. Appendix B - Technical Reports: Relevant technical or expert reports

8. Appendix C - Completion Certificates: Certificates or documentation confirming completion of various aspects

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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