New Construction Agreement

New Construction Agreement Template for Denmark

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Document background

The New Construction Agreement is a fundamental document used in Denmark for establishing the contractual relationship between a client/employer and a contractor for new building projects. It is designed to comply with Danish construction law, particularly AB 18 (General Conditions for Building and Construction Works), the Danish Building Act, and associated regulations. This agreement is essential when commissioning new construction works, whether for commercial, residential, or industrial purposes. It contains detailed provisions covering project scope, payment terms, completion timelines, quality standards, and risk allocation. The document includes references to technical specifications, drawings, and other crucial project documentation through its schedules and appendices. The agreement is structured to protect both parties' interests while ensuring compliance with Danish construction industry standards and practices.

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, including the purpose and any relevant preliminary work or agreements

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

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

6. Contract Sum: The agreed price for the works, including payment structure, milestones, and any provisions for price adjustments

7. Time for Completion: Project timeline, key milestone dates, and completion deadline

8. Contractor Obligations: Main responsibilities of the contractor, including quality standards, compliance with regulations, and supervision

9. Employer Obligations: Main responsibilities of the employer, including site access, permits, and information provision

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

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

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

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

14. Defects Liability: Warranty period and procedures for handling defects

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

16. Termination: Grounds and procedures for contract termination

17. Dispute Resolution: Procedures for handling disputes, including mediation and arbitration

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

Optional Sections

1. Environmental Requirements: Specific environmental obligations and sustainability requirements, used for projects with particular environmental focus or certification requirements

2. Intellectual Property Rights: Provisions regarding design rights and other IP, used when the contractor is involved in design work

3. Bonds and Guarantees: Requirements for performance bonds or other financial securities, used for larger projects

4. Liquidated Damages: Specific compensation for delay or performance failures, used when particular milestone dates are critical

5. Subcontractors: Provisions regarding the appointment and management of subcontractors, used when subcontracting is anticipated

6. Building Information Modeling: BIM requirements and procedures, used for projects utilizing BIM technology

7. Archaeological Findings: Procedures for handling archaeological discoveries, used for projects in historically sensitive areas

8. Financing Arrangements: Details of project financing and related conditions, used when specific financing arrangements affect the contract

Suggested Schedules

1. Technical Specifications: Detailed technical requirements and specifications for the works

2. Drawings: List and copies of all relevant construction drawings

3. Price Schedule: Detailed breakdown of the contract sum and payment schedule

4. Programme of Works: Detailed construction schedule with milestones

5. Site Information: Details about the construction site, including surveys and ground conditions

6. Quality Control Plan: Detailed procedures for quality assurance and control

7. Health and Safety Plan: Detailed safety procedures and requirements

8. Insurance Certificates: Copies of required insurance policies

9. Form of Bonds/Guarantees: Templates for required bonds or guarantees

10. List of Approved Subcontractors: Pre-approved subcontractors for specific works

11. Environmental Management Plan: Detailed environmental protection measures and procedures

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