Construction Contract Agreement

Construction Contract Agreement Template for Denmark

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Document background

The Construction Contract Agreement is a fundamental legal document used in Danish construction projects to establish a binding relationship between the employer (building owner) and the contractor. This agreement is essential for any construction project in Denmark, whether it's a commercial building, residential development, or infrastructure project. The document is structured to comply with Danish construction law, particularly incorporating the widely-accepted AB 18 (General Conditions for Building and Construction Works) guidelines. It covers crucial elements including detailed scope of works, payment mechanisms, project timeline, quality standards, risk allocation, and dispute resolution procedures. The agreement should be used whenever engaging a contractor for construction works in Denmark, ensuring all parties understand their rights, obligations, and the project's parameters while maintaining compliance with local regulations and industry standards.

Suggested Sections

1. Parties: Identification and details of the Employer and Contractor, including business registration numbers (CVR)

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 reference to technical specifications

5. Contract Documents: Hierarchy and list of all documents forming part of the contract, including drawings and specifications

6. Project Timeline: Commencement date, completion date, and key milestone dates

7. Contract Sum and Payment: Price, payment schedule, variation procedures, and handling of cost adjustments

8. Contractor Obligations: Key responsibilities including quality standards, workmanship, and compliance with laws

9. Employer Obligations: Responsibilities including site access, permits, and information provision

10. Site Conditions and Safety: Site management, safety requirements, and environmental protection measures

11. Quality Assurance: Quality control procedures, inspections, and acceptance criteria

12. Variations and Changes: Procedures for handling changes to scope, pricing, and timeline

13. Delays and Extensions: Handling of delays, extension of time procedures, and liquidated damages

14. Defects and Warranties: Defect liability period, warranty terms, and remediation procedures

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

16. Force Majeure: Definition and consequences of force majeure events

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

18. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration

19. Governing Law: Confirmation 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: Relevant for projects involving design elements or innovative construction methods

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

4. Environmental Requirements: Detailed environmental obligations beyond standard requirements, for environmentally sensitive projects

5. Building Information Modeling (BIM): Specific provisions for projects using BIM technology

6. Subcontracting: Detailed provisions for projects where significant subcontracting is anticipated

7. Materials Supply: Specific provisions for projects where the employer supplies materials

8. Provisional Sums: For projects with uncertain elements requiring provisional pricing

9. Archaeological Findings: For construction in historically sensitive areas

10. Multiple Phase Completion: For projects requiring staged completion and handover

Suggested Schedules

1. Schedule 1: Technical Specifications: Detailed technical requirements and construction specifications

2. Schedule 2: Drawings: Complete set of construction drawings and plans

3. Schedule 3: Price Schedule: Detailed breakdown of contract sum, including unit prices and quantities

4. Schedule 4: Project Timeline: Detailed program of works including milestones and critical path

5. Schedule 5: Quality Assurance Plan: Detailed quality control procedures and acceptance criteria

6. Schedule 6: Site Rules and Safety Procedures: Specific site management and safety requirements

7. Schedule 7: Insurance Requirements: Detailed insurance specifications and certificates

8. Schedule 8: Form of Payment Certificate: Template for payment applications and certificates

9. Schedule 9: Form of Completion Certificate: Template for substantial completion and final completion certificates

10. Schedule 10: List of Approved Subcontractors: Pre-approved subcontractors for specific work packages

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