General Construction Agreement

General Construction Agreement Template for Denmark

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Document background

The General Construction Agreement serves as the primary contractual framework for construction projects in Denmark, establishing the legal relationship between the employer/client and the contractor. This document is essential for any construction project where parties need to clearly define their rights, obligations, and responsibilities under Danish law. It incorporates key requirements from Danish construction legislation, including the Byggeloven (Construction Act) and Bygningsreglementet (Building Regulations), while typically following the widely-accepted AB 18 framework. The agreement is designed to address all crucial aspects of a construction project, including scope definition, pricing mechanisms, quality standards, timeline management, risk allocation, and dispute resolution procedures. It should be used whenever engaging a contractor for significant construction works in Denmark, whether for new builds, renovations, or major modifications to existing structures.

Suggested Sections

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

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

3. Definitions: Definitions of key terms used throughout the agreement, including technical construction terminology

4. Scope of Works: Detailed description of the construction works to be performed, including general specifications and standards

5. Contract Price and Payment Terms: Agreement on price, payment schedule, variations, and handling of additional costs

6. Time for Completion: Project timeline, key milestones, and completion dates

7. Contractor's Obligations: General and specific obligations of the contractor, including quality standards and compliance requirements

8. Employer's Obligations: Responsibilities of the employer, including site access, permits, and information provision

9. Variations: Procedures for handling changes to the scope of work and their impact on price and timeline

10. Quality Assurance and Inspection: Quality control procedures, testing requirements, and inspection rights

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

12. Defects and Warranties: Handling of defects, warranty periods, and remediation procedures

13. Insurance and Liability: Required insurance coverage and allocation of risks and liabilities

14. Force Majeure: Provisions for handling unforeseen circumstances and their impact on the project

15. Termination: Grounds and procedures for contract termination by either party

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

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

18. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Design Responsibility: Required when the contractor has design obligations in addition to construction works

2. Environmental Requirements: Detailed environmental obligations when project has specific environmental impacts or requirements

3. Intellectual Property Rights: Needed when design or innovative construction methods are involved

4. Confidentiality: Required for projects involving sensitive information or proprietary construction methods

5. Performance Security: Include when bank guarantees or performance bonds are required

6. Subcontracting: Detailed provisions when subcontracting is anticipated or needs to be regulated

7. Site Conditions: Specific provisions for projects with challenging or unusual site conditions

8. Materials and Equipment: Detailed provisions when specific materials or equipment requirements need to be regulated

9. Commissioning and Testing: Required for projects involving complex systems or equipment installation

Suggested Schedules

1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings of the construction works

2. Schedule 2 - Project Timeline: Detailed program of works including milestones and critical path

3. Schedule 3 - Price Schedule: Detailed breakdown of prices, rates, and payment milestones

4. Schedule 4 - Site Information: Site details, access points, and any relevant site conditions

5. Schedule 5 - Quality Requirements: Detailed quality standards, testing procedures, and acceptance criteria

6. Schedule 6 - Key Personnel: List of key personnel from both parties with roles and responsibilities

7. Schedule 7 - Required Insurance: Detailed insurance requirements and minimum coverage amounts

8. Schedule 8 - Forms and Procedures: Standard forms for variations, payment applications, and certificates

9. Schedule 9 - Health and Safety Requirements: Detailed health and safety procedures and requirements

10. Appendix A - Drawings: Complete set of construction drawings and design documents

11. Appendix B - Permits and Approvals: Copies of relevant permits, approvals, and certificates

12. Appendix C - Environmental Management Plan: Environmental protection measures and waste management procedures

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