Most Danish construction contracts are based on agreed documents. The agreed documents “AB 92”, “ABR 89, and ABT 93” are commonly acceded to, both in small private construction agreements and in major construction contracts.
How are Construction Contracts regulated in Denmark?
Except for procedures based on the Public Procurement Directive and the Danish Procurement Act, no specific Danish legislation exists on the matter of Danish construction contracts. Instead, these are based on agreed documents; most commonly applied is the general terms for building and construction work, AB 92, which is applicable to both small private construction agreements and major construction contracts, irrespective of the nationality of the contractor.
Contracts applied by the developer and the developer’s technical adviser are typically based on the provisions of the General Conditions for Consulting Services, ABR 89.
The General Conditions for turnkey contracts, ABT 93, apply to situations where the builder enters into a construction contract with a single general contractor who is responsible for both construction and project management.
What should you be aware of when applying AB 92, ABR 89, and ABT 93?
The AB 92, ABR 89, and ABT 93 are a set of contract provisions decided on in 1989, 1992, and 1993 by the Danish construction industry. However, as for all standard agreements, it is always important to ensure that all aspects not regulated by the provisions are covered by the individual contract, such as the contents of the individual assignment.
What is the main Content of AB 92?
Amongst other things, AB 92 mainly contains provisions about:
- The basis of the agreement
- The offer and acceptance
- The transfer of rights and obligations
- Security provision and insurance
- Performance of the contract
- Remedies in case of breach and non-conformity
- The parties’ collateral prior to the contract
- Organisation of the work schedule for the contract
- Progress of the work
- Settlement of the price
- One and five year inspections
- Special information on cancellation
What is the main Content of ABR 89?
Amongst other things, ABR 89 mainly contains provisions about:
- Requirements for the technical counselling agreement
- Liability in case of breach or delay
- Postponement and suspension of duties
What is the main Content of ABT 93?
ABT 93 mainly follows the content of AB 92; however, it differs from AB 92 in the way that the rules take into account that the general contractor is not only responsible for the building performance but also for the project management.
Litigation when adopting AB 92 or ABR 89
Should the parties decide to adopt either AB 92, ABR 89, or ABT 93, any dispute arising from the contract should be resolved by the Danish Arbitration Board for the Construction Industry.
Is it a good Idea to agree on a Standard Document?
AB 92, ABR 89, and ABT 93, govern the interests of both the contractor and the entrepreneur or the contractor and the technical adviser, respectively, and are up to date with the problems that might occur. It is therefore a good idea to agree on AB 92, ABR 89, ABT 93 or a similar agreed document. However, the document should not stand alone and the parties should add or remove provisions in order for the agreement to fit the matter between the parties perfectly. Thus, the parties in Danish construction contracts often make general and special provisions. The general provisions implement AB 92, ABR 89 or ABT 93 and the special provisions amend provisions in the general provisions, so that the agreement fits the matter between the parties.
The above does not constitute legal counselling and Moalem Weitemeyer Bendtsen does not warrant the accuracy of the information. With the above text, Moalem Weitemeyer Bendtsen has not assumed responsibility of any kind as a consequence of the reader’s use of the above as a basis of decisions of considerations.