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AB 18

Contents

A. The basis of the agreement .............................................. ...................... 4

B. Collateral and insurance ............................................. ..... 7

C. Execution of the contract ............................................. ............... 9

D. Payment ................................................ .................................. 15

E. Time limit extension and delay ............................................. .. 17

F. Episode .................................................. ............................... 19

G. Missing .............................................. ................................ 20

H. 1- and 5-year inspection ......................................... ....................... 22

I. Repeal .............................................. ............................... 22

J. Disputes .............................................. .................................... 24

Dansk Byggeri 2 Nørre Voldgade 106 2 1358 Copenhagen K 2 Telephone 72 16 00 00 2 www.danskbyggeri.dk

January 2019
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General conditions for works and deliveries in construction and civil engineering (AB 18)

A. The basis of the agreement

§ 1 Application
General conditions have been drawn up with a view to agreements PCS. 7. "Scrutiny of a project" means a coherent and systematic
on works and deliveries in the construction industry, where the client review of a project as part of quality assurance in order to assess
is not a consumer. The conditions apply when they are adopted by the project's ability to meet the requirements for the project and to
the parties to the agreement. identify relevant problems.

PCS. 2. Deviation from the conditions only applies when it is

clearly and explicitly stated in the agreement at which points the deviation PCS. 8. Amounts are without VAT, unless otherwise stated.
must take place.

PCS. 9. "Working days" means all Mondays up to and including

Fridays that do not fall on a public holiday, 1 May, Constitution Day,
§ 2 Definitions Christmas Eve or New Year's Eve.
In the case of deliveries, the "builder" is understood as the buyer and
"entre preneur" as the seller. In the case of subcontracting, "the client"
is understood as the contractor and "the contractor" as the subcontractor.
§ 3 Choice of law
The legal relationship must be dealt with in accordance with Danish law

PCS. 2. By "work" is also understood the contractor's delivery of materials rules.

etc., regardless of whether the contractor must incorporate them as part
of the work or carry out a delivery alone.

PCS. 3. By "work" is also understood planning, which the contractor § 4 The client's tender
must carry out, and by "subcontracting" and "under contractors" also Tender means the client's invitation to submit an offer.
technical advice and advisers assume one of the contractor to assist
with this planning. PCS. 2. Bids are made on the basis of the information contained
in the tender material. The material must be clearly worded. Depending
PCS. 4. By "interface" between works is meant the part of a work on the degree of detail of the material and the requirements for contractor
that borders on another work and is dependent on or has an impact planning, it must be designed in such a way that there is clarity about
on its design, so that there is a need for mutual coordination. For the services and terms.
team to existing buildings or facilities can also form an interface.
PCS. 3. The tender material must contain information on whether
the contractor must carry out planning and, if so, to what extent.

PCS. 5. By "the client's supervision" is understood his construction

management, professional supervision or other supervisors who have PCS. 4. The tender documents must contain a main timetable that
been specially appointed by the client. In provisions according to which must indicate
the "developer" can or must take an action or receive a notification, the a) start and end time of the work,
developer can entrust this to the inspectorate or other representative of b) any decisive deadlines for earlier completion of individual parts
the developer. of the contractor's work (intermediate deadlines),

PCS. 6. "Quality assurance" means activities which aim to prevent c) the number of usual lost days which are included in the main
defects in a building and ensure that a chosen quality is maintained timetable due to weather,
during planning and execution. d) any significant restrictions on availability
the construction site, which the contractor must endure, including

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coordination with other contracts, client deliveries and commissioning PCS. 5. The acceptance period for offers is 20 working days from the
before delivery, date of the offer. If the developer's tender has been sent to several
e) end time for entering into contract, the contractor's tenderers with a deadline for submission of tenders, the 20 working days
preparation of a work plan and the client's preparation of a detailed are counted from the tender deadline set in the tender.
timetable,
f) start and end time for project review, PCS. 6. The client must notify the tenderers whose tenders are not
mobilisation, security coordination and walk-through, as well as accepted as soon as possible.

g) start and end time for quantity verification, completion of design,

contractor design and project optimization, if these activities have
been agreed. § 6 The enterprise agreement
A contract is entered into by written acceptance of the submitted offer
PCS. 5. If, in addition to a total bid sum, the contractor must offer unit or by signing a contract.
prices, the tender documents must indicate whether the unit price
must be given for an estimated quantity, and the tender list must in that PCS. 2. The main timetable with any agreed changes is called the
case for each item indicate the unit and quantity, so that the contractor agreed main timetable.
adds a price per . unit and the total for the item.
PCS. 3. The following ranking must apply in the event of a conflict
between the provisions of the agreement documents, unless otherwise
PCS. 6. The tender material must also contain follows from the general principle of interpretation
information on other conditions that must be considered to be of per:
importance to the contractor's offer. a) The enterprise agreement.
b) Correspondence, minutes of meetings and other written material
PCS. 7. The tender material may contain information about which contain adopted changes, additions or clarifications of the
special conditions that are of significant importance for the client to tender or offer material and which are later than the offer.
be able to take the building or facility into use.
c) The contractor's offer.
d) Exchange of letters, minutes of meetings and other writing
material that contains changes, additions or clarifications of the
§ 5 The contractor's offer tender material and which is later than the tender and earlier
If the contractor's offer includes offers for unit prices in addition to a than the offer.
total offer sum, both parts are binding for the offeror. e) The client's tender material.
f) AB 18.

PCS. 2. The offer only includes services that are indicated as belonging
to the contract on drawings and models, including digital models that
have been handed over to the contractor as a basis for submitting the § 7 Transfer
offer, or that are mentioned in the sections of the work description that The parties may assign their rights under the agreement.
apply to the contract in question . The offer also contains all necessary
professional ancillary services for the completion of the work, cf. § 12,
subsection 2. PCS. 2. If the contractor assigns outstanding claims in accordance with
the agreement, transports related to the performance of the work take
precedence over other transports.
PCS. 3. The contractor's reservations or deviations from the tender
conditions must appear clearly and collectively in the tender. PCS. 3. A party cannot transfer its obligations to others without the
consent of the other party.
PCS. 4. To the extent that the contractor must carry out winter
measures during the winter period (1/11 – 31/3), seasonal winter
measures must be considered included in the offer, unless these are
common to several contracts.
Weather-related winter measures, on the other hand, are paid as
extra work.

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§ 8 Subcontracting
To the extent that it is usual or natural for the work to be carried the provisions in § 8 also apply when a subcontractor
out by subcontracting, the contractor can entrust the execution of entrusts the work to others, and that the client can assert
the work, including planning, to others. However, it can be agreed direct deficiency claims against the subcontractor in accordance
that all or certain parts of the work must be carried out by the with subsection 4 and 5.
contractor himself or a specific subcontractor, so that it requires
the client's approval if the contractor wishes to entrust the execution PCS. 4. If it can be considered proven that the client cannot or
to others. only with great difficulty implement a claim regarding defects
against the contractor, the client is entitled to assert the claim
PCS. 2. The developer's approval pursuant to subsection 1, directly against the contractor's subcontractors and suppliers if
2nd point, can only be refused if it is reasonably justified in the their performance has the same defect.
circumstances of the appointed subcontractor, including
qualifications, financial conditions or lack of documentation
according to subsection 3, 3rd point At the client's request, the PCS. 5. A direct defect claim is subject to the limitations
resulting
contractor must send the client information about these matters as soon as from the contractual relationships both between the
possible.
The client must give written notice of approval or refusal with client and the contractor and between the contractor and the
reasons as soon as possible after the contractor has given subcontractor and the supplier, including disclaimers and
information about the appointment of a subcontractor and about limitations of liability in both contractual relationships.
the subcontractor's circumstances. It is also subject to the provisions in chapter J on dispute
resolution. The client waives claims against subcontractors and
PCS. 3. If the contractor has hired a subcontractor to carry out suppliers for compensation outside of the contract in connection
work before the start of the work, the contractor must inform the with conditions that are covered by a direct management claim. If
client about this before the contractor starts the work. If the the direct defect claim is due to an intentional or grossly negligent
contractor later hires or replaces a subcontractor, the contractor attitude on the part of the subcontractor or the supplier, the 1st and
must inform the client of this before the subcontractor begins his 3rd pts. not applicable.
work. At the client's request, the contractor must as soon as
possible submit documentation that an agreement has been PCS. 6. The provisions in subsection 1-5 also apply when a
concluded with a subcontractor and that the subcontractor has subcontractor or a supplier entrusts the execution of the work to
acknowledged that certain others. 2

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B. Collateral and Insurance

§ 9 The contractor's security

The contractor must provide security for the fulfillment of his obligations PCS. 9. If work is postponed for later delivery, cf. section 45, subsection
to the client no later than 8 working days after the contract has been entered 1, the write-down takes place in accordance with subsection 3, 5 and 6,
into, unless otherwise stated in the tender documents. If the contract sum is as far as the postponed works are concerned, after they have been delivered.
less than DKK 1 million. DKK, the contractor must only provide security if the
client has made a demand for it in the tender documents. PCS. 10. If delivery takes place in stages, cf. section 45, subsection 4, the
write-down takes place in accordance with subsection 3 and 5-7 proportionally
The security must be provided in the form of a surety money institute according to the scope of the delivered stage.
guarantee, surety insurance or in some other way.
PCS. 11. If the client wants payment of the security provided, this must
be notified in writing and simultaneously to the contractor and the
PCS. 2. The security serves to fulfill all claims that the client has in connection guarantor, with a precise indication of the nature and extent of the
with the contractual relationship, including claims regarding any additional alleged default and the size of the amount required. The required amount
work and repayment of an overpaid enterprise sum. must be paid to the client within 10 working days of the notice being
received, unless the contractor has previously requested the Arbitration
Board for a decision on the provision of security specifically with a view to
PCS. 3. Until delivery has taken place, the security provided must whether the payment claim is justified, cf. § 67. If the contractor has been
correspond to 15% of the contract sum without VAT. declared bankrupt , a request for a decision regarding security can also be
The security must then be written down to 10%. Enterprise sum according made by the guarantor, who then becomes a party to the case.
to the 2nd point must be calculated with additions or deductions for all
additional and minor work, to the extent that the client requests this in the
handover protocol.
PCS. 12. If the parties disagree about write-down or termination of the
PCS. 4. For deliveries that are completed in instalments, the security must security, each party - and in the event of the contractor's bankruptcy also the
correspond to 10% of the purchase price without guarantor - can request a decision on security provided, cf. § 67.
moms.

PCS. 5. The security is reduced from 10% to 2% 1 year after the handover PCS. 13. If the situation that justifies a claim under subsection 11 or 12, is
date, unless the client has previously submitted a written complaint about already the subject of a dispute between the parties during a pending case
defects. In that case, the security is written down when the deficiencies according to § 68 or § 69, submission of the claim during the pending case
have been remedied. replaces a request for a decision on security provided.

PCS. 6. The security ceases 5 years after the handover date, unless the
client has previously submitted a complaint about defects in writing. In this PCS. 14. The contractor must ensure that the guarantor has accepted that all
case, the security ceases when the deficiencies have been remedied. disputes about the security are settled according to the rules in chapter J, apart
from section 64.

PCS. 7. It must be stated in the tender materials if the security is to cease

upon delivery of independent entry prices, where no deficiencies can occur
after delivery. § 10 The builder's security
The client must provide security for the fulfillment of his obligations
to the contractor no later than 8 working days after the contract has been
PCS. 8. If the contractor terminates the construction agreement, the contractor's entered into, unless the client is a public client or a public housing organisation.
security ceases 3 months after the agreement has been terminated, unless
dispute resolution has been initiated in accordance with Chapter J regarding The security must be provided in the form of a reliable financial institution
the justification for the termination. guarantee, surety insurance or in another reliable way.

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PCS. 2. The security serves to satisfy all claims that the contractor has PCS. 7. If the situation that justifies a claim under subsection 5 or 6,
in connection with the contractual relationship, including claims regarding is already the subject of a dispute between the parties during a pending
any additional work. case pursuant to § 68 or § 69, submission of the claim during the pending
case replaces a request for a decision on security provided.
PCS. 3. The security must correspond to 3 months' average payment
- however at least 10% - of the contract sum without VAT. If the
agreement is extended with extra work in accordance with § 23, the PCS. 8. The developer must ensure that the guarantor has accepted
contractor can demand an increased security if the remuneration for all that all disputes about the security are settled according to the rules in
unpaid extra work exceeds half a month's average payment of the chapter J, apart from section 64.
contract sum.
The client can demand a reduction in the security if the security exceeds
the unpaid part of the contract sum and the extra work.
§ 11 Insurance
The client must take out and pay the usual fire and storm damage
PCS. 4. The security ends when the contractor has sent the final insurance from the start of the work, until defects detected at handover
statement and has no unfulfilled claims. have been remedied. The contractor and any subcontractors must be
included as insured on the insurance policy. The insurance must cover
PCS. 5. If the contractor wants payment of the security provided, this all contractors' work on the building or facility to which the contract
must be notified in writing and simultaneously to the client and the relates. In the case of conversion or extension, the insurance must
guarantor, specifying the amount of cover damage to this work and to the building or facility that is the
the required amount. The required amount must be paid to subject of conversion or extension. Excess is the responsibility of the
the contractor within 10 working days from the notification having developer.
been received, unless the client has previously requested before the
Arbitration Board a decision on the provision of security specifically
with a view to whether the payment claim is justified, cf. § 67. If the PCS. 2. A public developer can claim to be listed as
client has been declared bankrupt, a request for a decision regarding self-insures.
security is also provided by the guarantor, who then becomes a party
to the case. PCS. 3. The contractor and any subcontractors must have usual
professional and product liability insurance.
PCS. 6. If the parties disagree about the termination of the security,
each party – and in the case of the developer's bankruptcy, also the PCS. 4. On request, the parties must document that the
guarantor – can request a decision on security provided, cf. § 67. insurance policies are in force. 2

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C. Execution of the contract

who meet the deadlines in the agreed main timetable.

§ 12 The contractor's performance
The work plan must specify the sequence for the individual parts of the
The work must be carried out in accordance with the agreement,
contractor's work and take into account the obligations of the parties
professionally correct and in accordance with the client's instructions.
according to the working environment regulations.
Materials must – insofar as their nature is not stated – be of usual good
quality.
PCS. 2. If the client has hired several contractors, the client must, in
The contractor must ensure the quality of his services.
cooperation with them, draw up an overall work plan (detailed timetable)
before the work begins.
PCS. 2. The contractor must deliver all materials and perform all necessary
The detailed timetable must indicate the order of the individual parts
ancillary services to complete the work.
of the works.

PCS. 3. The contractor must inform the client in writing about the use
PCS. 3. Objections to the retail timetable must be shared with the client
of methods and materials that have not been tested, including any risks
in writing within 5 working days of receipt.
involved, unless the use is prescribed by the client.

PCS. 4. If a contractor does not cooperate to the extent required

pursuant to subsection 1-2, the client can determine the person's work
PCS. 4. Materials and other supplies intended for inclusion in the work
schedule to the extent necessary and include it in the detailed timetable.
must be delivered by the contractor without reservation of title. Once
the objects in question have been delivered to the building site, they
belong to the client.

PCS. 5. Materials and other supplies for the work must be delivered
§ 14 Updating of work and timetables
with a 5-year supplier's liability for defects in the supply. The liability
Compliance with work and timetables must be continuously
period is calculated from the delivery of the work and is limited so that
assessed. If it is expected that the plans will not be complied with,
the supplier's liability ends no later than 6 years after delivery to storage
they must be updated with an indication of the extent to which a
or resale.
deadline extension is required or accepted, and whether the delay
The supplier must also have recognized that the client can assert a
concerns a deadline subject to daily fines.
deficiency claim directly against the supplier in accordance with § 8,
subsection 4 and 5.
PCS. 2. If a contractor does not cooperate to the required extent when
updating the plans, the client can update the relevant work plan to the
PCS. 6. The contractor may fail to comply with the provision in subsection
extent necessary and allow it to be included in the detailed timetable.
5, if this will result in significant additional costs for this or a significant delay
in the work, or in the case of smaller deliveries, it will be difficult to check
compliance with the provision. In the case of significant deliveries, the client
must be notified of the omission as soon as possible after the offer from
the supplier has been received
§ 15 Sales and construction site
The client lays down the determining main lines and heights (elevations),
tet.
while all other laying out is carried out by the contractor.

PCS. 7. The contractor must continuously clean up and evacuate

PCS. 2. During construction work, the client ensures, to the extent
and immediately remove discarded materials from the construction site.
necessary, the establishment of branch lines for drainage, electricity,
gas, water and heat up to the construction site.

PCS. 3. The client pays the necessary connection fees and bears
any taxes and fees as a result of sheds, containers, scaffolding, etc. by
§ 13 Work and retail timetable
agreement not to be placed on the construction site.
The contractor must prepare a work plan within the deadline
specified in the agreed master schedule,

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§ 16 Digital building models, etc.

If digital building models are to be used for construction work, PCS. 2. If the contractor must design, the client must appoint a
it must be stated in the tender documents what and to what extent project manager. The design manager represents the client vis-a-
the models are to be used, including whether they are to be used for vis the contractor with regard to the organization and execution of
planning and design as well as during execution, and whether at the the design.
end of the construction a digital as-built model is supplied for later The design manager can give and receive messages regarding
operation and conversion. A determination must also be made as to the design as well as give instructions regarding the organization
which project material is to be given priority in the event of inconsistency of the different contractors' design in their mutual relationship.
with other project material.

PCS. 3. The contractor must design in accordance with the

PCS. 2. Whoever makes a digital building model available to others agreement, good design practice and the client's instructions. The
must at the same time indicate what and to what extent the model may contractor's project must contain information about the project's
be used, including for planning, quantity calculation, collision testing connection with the other project in the interfaces defined in the
and execution. At the same time, the person concerned must state agreement. Coordination of the overall project, including determination
whether a deviation from the general provision on priority applies at the of interfaces, is the responsibility of the client, cf. subsection 2. The
stage in question, cf. subsection 1, last point contractor must participate in an interdisciplinary review of the overall
project, with each party reviewing its own project and its interfaces with
others' projects.
PCS. 3. To the extent that others in the collaboration on a digital
building model, including an overall digital building model, must provide PCS. 4. If the contractor's project involves the use of methods and
input to it, the person who makes a model available must specify which materials that have not been tested, the contractor must inform the
input must be provided, in what form and data format and when . By client in writing of this and
agreement with the persons concerned, the developer must ensure that any risks thereby.

they are obliged to follow these instructions. This also applies if, at the
end of construction, the contractor must provide input for a digital model PCS. 5. If the parties agree that the design is to be divided into phases,
as completed. they must set deadlines for delivery of the individual phases, and the
provisions in subsection 6-8 then also apply to each phase.

PCS. 4. Data must be delivered and loaded in open data formats. PCS. 6. The contractor must carry out quality assurance, including
Whoever supplies or loads data must state which any examination of his project, cf. § 21, subsection 1.
the software data formats are produced with.

PCS. 7. The contractor must notify the client in writing of the

PCS. 5. The person who makes a digital building model available bears completion of the project (notification of completion) with a view to the
the risk of errors in the digital model, own input and interfaces to other client's approval. The result of the contractor's quality assurance must
people's design in the model, but not for errors when others use the be attached to the notification.
model, in other people's input or in the standard software, which is used
to prepare the model. PCS. 8. The client must notify the contractor in writing as soon as
possible after the notification of completion whether the client agrees
PCS. 6. The provisions in subsection 1-5 on digital building models that the project has been delivered and whether the client can approve
apply correspondingly to other digital data with the deviations that it as a basis for the contractor's further work. In the sharing, the
follow from the nature of the relationship. developer must indicate any defects in the delivered or reservations
for the approval.

§ 17 Contractor planning
The contractor must only design if this has been agreed (shared § 18 Project deficiencies
advice). To the extent that the contractor's work is described in the The contractor has the duty and the right to remedy deficiencies in
agreement by specifying functional requirements, the contractor his design that are demonstrated during the delivery of the individual
must carry out the necessary planning for this. phases according to § 17 or later.
The contractor's submission of a proposal which the client
implements does not imply that the contractor undertakes the design PCS. 2. The client must set a deadline in writing for
or bears risk or responsibility for the proposal. remedying identified deficiencies. The length of the deadline is determined

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taking into account the nature and extent of the defects as well as uncovers. The same applies to errors in the project that they
the circumstances in general. The contractor must notify the client become aware of.
in writing when the deficiencies have been remedied.
PCS. 6. The developer must prepare a report for the project review
PCS. 3. If the developer after the expiry of the deadline in subsection 2 as soon as possible with a description of what has been dealt with and
- or after the contractor has announced that remediation has taken place how much time has been spent on the individual parts of the project.
- finds that the deficiencies have not been remedied, the client must The statement must also
notify the contractor in writing within 10 working days of which contain a description of conditions covered by subsection 5 with

deficiencies are still claimed. indicating the measures to be taken to mitigate them. Comments
on the statement must be sent to the client as soon as possible.
PCS. 4. The client is then entitled to have the claimed defects rectified
at the contractor's expense (rectification compensation) or to decline
the contract sum, cf. § 52. PCS. 7. The planners must as soon as possible carry out the
necessary adjustments to their project in accordance with the report.

§ 19 Project review PCS. 8. The contractor and the client must notify the other party in
Before the execution of the construction work begins, the client, together writing as soon as possible of any demands for changes in the agreement
with the consultant and contractor, must review the agreed project and with regard to price, time and safety as a result of the mitigation measures
any project contributions and proposals for material selection from that appear in the report. The provisions in section 25, subsection 3-5,
contractors and suppliers. apply accordingly.
A project review must also be carried out in case of later changes to
the project, if the client or the contractor deems that there is a need for
it.

PCS. 2. The project review takes place with a view to achieving a Section 20 Relations with authorities
common understanding of the project, including the interfaces and The developer ensures the necessary approval of the project and bears
timing between the individual parts of the project, and to give the the costs involved. This also applies to the part of the project that is
contractor the opportunity to influence the construction process by carried out by the contractor.
pointing out inadequacies in the project. It also takes place with a view
to uncovering risks and preparing for handling them, as well as PCS. 2. The contractor provides reviews, applies for permits,
uncovering ambiguities and inadequacies in the project. During the requests inspections and obtains certificates relating to the execution
project review, the parties must nominate specific works or materials of the work itself, and bears the costs thereof.
that must be supervised in accordance with section 21, subsection 4. Dispensations can only be sought after agreement with the developer.

PCS. 3. The client must oversee the project review. All parties must
participate loyally in the project review. § 21 Quality assurance, supervision and appeals
In the tender documents, the client can lay down provisions on the
PCS. 4. The client must involve the client's consultant, design contractor's quality assurance of the work, including any planning, as
manager, construction manager, safety coordinator and other well as on the nature and extent of tests, and on the documentation
advisors who participate in the design and execution phase. for the performance of the work, for the origin and properties of the
The client must ensure that the consultant involves sub-consultants materials used and for performed tests, which the contractor must
who have contributed to the design. The contractor must involve provide. Provisions to this effect can be included in a tender control
selected subcontractors and suppliers who will carry out the contract plan.
or who have contributed or will contribute to the design.
PCS. 2. The client may request additional tests during the
execution of the work and upon delivery. Also in such cases, the
PCS. 5. The client, the consultant and the contractor must notify each contractor must make the necessary personnel available for the
other as soon as possible of inappropriateness, ambiguities and taking and examination of the samples.
inadequacies that they If the additional tests show contractual performance, the

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the client will pay for this as extra work. Otherwise, the contractor must pay addition to or instead of what was originally agreed, that the nature, quality,
the client's expenses. nature or performance of the service must be changed, or that agreed services
must be discontinued.
PCS. 3. The contractor must give the client access to the workplaces
and production sites where the work is carried out. PCS. 2. The contractor has the right to carry out a requested change,
The client can also demand the information necessary to assess the unless the client demonstrates special reasons for having others carry out
performance. the work, including that the contractor's financial requirements for the
execution are not reasonable.
PCS. 4. The contractor and the client call for an inspection of specific works
or materials that have been designated by agreement during the project PCS. 3. The client's demand for a change must be made in writing or at
review, with a view to an assessment of whether the services in question are a construction meeting and must describe the change
contractual in terms of specified characteristics or must be discarded as not closer.

contractual. . The contractor and the client can also, if necessary, request a
supervisory review according to the 1st point.

§ 24 Additional payment and savings

If a change concerns work for which a unit price applies, the contract sum
PCS. 5. The contractor must, before the inspection review according to must be adjusted up or down in accordance with this, unless another
subsection 4 have carried out and, on request, documented agreed quality agreement is made, cf. section 25, subsection 4. Adjustment according to unit
assurance. During the inspection review, an inspection protocol is drawn up, in price must only take place within +/-100% of the individual item in the offer list.
which the reviewed properties of the works or materials are listed with Furthermore, adjustment according to the unit price for additional work must
information on approval or rejection. only be done with up to +20% of the contract sum, calculated by adding all
additional work together, and for minor work with up to -10% of the contract
sum, calculated by adding all minor work together. If a work is simultaneously
PCS. 6. The client supervises during the course of the work and may dispose replaced by another work, only the difference between the price of the two
of non-contractual works or materials. works is included in the calculation of the sum of either additional or less work.
This cassation must take place as soon as possible.

PCS. 7. Inspection by the client does not exempt the contractor from carrying
out inspections himself.

PCS. 2. In the case of unit-priced additional work that exceeds the

variation limits in subsection 1, regulation also takes place according to
the unit price, unless it is proven that the prerequisites for the unit price are not
§ 22 The client's instructions on the execution of present.
the work
The client can give instructions on carrying out the work. PCS. 3. Apart from cases where according to subsection 1 and 2,
adjustment takes place according to unit price, change work is carried out
PCS. 2. The contractor must obtain the client's decision if the agreement as invoice work, unless another agreement is made according to
and its basis do not provide sufficient guidance for carrying out the work. Section 25, subsection 4.

PCS. 4. When carrying out a change in the bill, the bill must be calculated
PCS. 3. If the contractor finds that the client's instructions on the execution of with further specification of working hours, materials and equipment.
the work pursuant to subsection 1 and 2 involve a change to the work
according to § 23, the contractor must notify the client of this as soon as
possible. PCS. 5. In the event of a reduction in the scope of the work, the contractor
must credit the client with the expenses that are saved or should have been
saved, but no more than the amount for which the work is calculated in the
contract. If the reduction concerns work for which the unit price applies, cf.
§ 23 Changes in work subsection 1, this must only be done to the extent that the minor work results
The client can request a change in the work when the change has a natural in the contract
connection with the agreed services. A change may mean that the contractor the sum is reduced by more than 10%.

must provide something in

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§ 25 Price, time and security after a

change
The parties' possible demands for changes in the agreement with PCS. 3. The tender material must contain information on investigations
regard to price, time and safety as a result of a change in the work or in carried out regarding groundwater and soil conditions, pollution, lines,
the conditions for its execution must be submitted as soon as possible cables, dangerous substances and materials as well as other obstacles.
in writing or at a construction meeting. To the extent that the tender material does not contain sufficient
The same applies to a party's claim for changes in the agreement as a information about the obstacles, the measures against this and the
result of an approved proposal from the contractor or an instruction from disadvantages must be paid for as extra work.
the client pursuant to Section 22 or Section 26, which the party considers
to be a change in the work, even if the proposal or instruction does not
state that it involves a change . PCS. 4. If, despite carrying out preliminary investigations as mentioned
in subsection 3, which are reasonable or customary taking into account
PCS. 2. Following an inquiry from one party, the other party must notify the character, location and previous use of the land, unforeseen
in writing as soon as possible whether it considers a specific work to be circumstances arise which result in public injunctions or prohibitions which
a change that entails demands for changes in the agreement with result in the continuation of the work being hindered or becoming
regard to price, time and security. The contractor is not obliged to start unreasonably burdensome for the developer, the latter may cancel the
work until the client has responded. contract. In the event of cancellation, the client must pay the contractor
compensation for the loss the contractor suffers as a result of the
cancellation, apart from the profit the contractor loses by not completing the
PCS. 3. If a party has made a claim pursuant to subsection 1 regarding work.
a change in the agreement with regard to price, time or security, the other
party must notify in writing as soon as possible whether the claim is accepted
and, if not, must give reasons for this.

PCS. 4. The parties must as soon as possible enter into a written § 27 Transfer of risk
supplementary agreement on a change according to § 23 and on the The contractor bears the risk of damage to or loss of work and materials
resulting changes in the agreement with regard to price, time and security. until delivery. The same applies to materials that the client has supplied
Negotiations in this regard must not delay the execution of the work. when these have come into the contractor's possession.

PCS. 5. The client must continuously register requested changes

according to § 23, requirements according to subsection 1, requests and PCS. 2. However, the contractor does not bear the risk of damage or loss
with divisions according to subsection 2, § 22, subsection 3, and § 26, as a result of the client's circumstances. The same applies to consequences
subsection 1 and 2. If the contractor finds that there are errors in the client's of extraordinary events coming from outside, over which the contractor has
registration, the contractor must notify the client of this as soon as possible. no influence (force majeure), including war, rebellion, acts of terrorism and
unusual natural events.

§ 26 Obstacles PCS. 3. The client is not responsible for damage that contractors cause
If the contractor finds that the work cannot be carried out in accordance to each other's work, materials and equipment
with the agreement entered into, the contractor must notify the client of century.

this as soon as possible and follow his instructions.

PCS. 4. The contractor must maintain the completed work until handover.

PCS. 2. The provision in subsection 1 also applies if the contractor

finds that circumstances arise which hinder or make the work difficult PCS. 5. For works or parts of these that are put into use before delivery,
or make it likely that the builder will suffer inconvenience or loss, including the rules in subsection 1-4 until commissioning. Upon commissioning,
incurring liability towards third parties. If there is no time to obtain the the developer can carry out a registration according to the rules in section
client's instructions, the contractor must – against payment and necessary 63, subsection 2-4.
extension of deadlines – take the best possible measures to avoid the client
suffering a loss, and notify the client of this as soon as possible. PCS. 6. For building work and construction work in connection
therewith, which are carried out in locations that are in use during the
execution, the rules in subsection 1-4 on the contractor's risk of damage
only damage caused by another contractor, without

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§ 31 Construction meetings
that it is a consequence of the client's circumstances. When the works have The client must call construction meetings with the contractor.
been completed and the contractor has left the site, the works are deemed to
have been put into use, cf. subsection 5. PCS. 2. At each construction meeting, the parties must
a) review and update matters covered by section 25, subsection 5,
PCS. 7. For materials and other movable property that is delivered to the client b) review updates to work and timetables, cf. §
or the contractor by a supplier who is not to carry out any kind of assembly, 14, and
processing, manufacturing or other work on the construction site, the rules in c) record the number of days in which the work is complete or
subsection (1) apply. 1-4, until the materials and movable property have come have been partially idle (wasted days), as well as their reason and whether
into the possession of the client or the contractor. they are included in wasted days included in the timetables.
Waste days that are recognized for a period, but which do not
correspond to actual waste days in the period (unused waste days), are
Section 28 Supervision by the developer not transferred to later periods.
The client must appoint a supervisor who represents the client
towards the contractor with regard to the organization and execution of the PCS. 3. Changes in the power of attorney of the construction
work. The supervisor can give and receive notifications regarding the work, management or the professional inspectorate, cf. § 28, must be announced
approve or discard materials or work, and give instructions regarding the at the next construction meeting. The same applies to any power of attorney
organization of the work of the various contractors in their mutual relationship. for the contractor's representative.

PCS. 2. The construction management is authorized to, on behalf of § 32 Common rules on planning and
the client, request or enter into an agreement on changes to the work and on construction meetings
changes to the agreement with regard to price, time and safety as a result, The parties themselves or through a representative must participate in
with an additional payment of no more than DKK 50,000 for each change and the meetings.

a deadline extension of no more than 5 working days for each change. If the
client has not appointed a construction management, the trade inspection is PCS. 2. The client leads the meetings and prepares meeting minutes,
authorized to the same extent. which are sent to the contractor as soon as possible.
The contractor has the right to have objections and demands entered into
the minutes. Comments on the minutes must be sent to the client as soon as
PCS. 3. The supervisor must be present at the construction site or must possible and must be reproduced in the minutes for the following meeting.
could be summoned.

PCS. 3. The parties can give and receive messages with binding effect at
the meetings. Announcements must be reproduced in the minutes.
§ 29 Contractor's representative
The contractor must appoint a person who represents the contractor vis-à-
vis the client and the inspectorate with regard to the organization and execution
of the work, and who can give and receive notifications in this regard.
§ 33 Duty of cooperation and loyalty
The parties must also cooperate loyally, so that errors,
PCS. 2. The contractor's representative must be present at the construction delays and cost increases are avoided. The same applies to
site or must be able to be summoned. the contractor in relation to other contractors and the inspectorate. 2

§ 30 Planning meetings
The client must call planning meetings with the contractor if the
contractor is to carry out planning.

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D. Payment

§ 34 Price and index regulation

The contract sum is a fixed price for the part of the work that is carried out PCS. 5. It is a condition to be able to obtain compensation according to
within 12 months from the date of the offer (fixed price period). subsection 2, that the sum of the calculated adjustment amounts constitutes
at least 0.5% of the contract sum.

PCS. 2. For the part of the work that is carried out after 12 months from the PCS. 6. If the contractor must provide his subcontractor with compensation
date of the offer, the price is adjusted according to the building or construction according to the rules in subsection 2-5, corresponding compensation
cost index that has been agreed, or which – in the absence of an agreement – must be provided to the contractor by the client, regardless of the rule in
must be considered relevant for the work. subsection 5.

The index adjustment is calculated according to the change in the index

from 6 months after the date of the offer to the time of execution, which is PCS. 7. The regulation according to subsection 2-6 takes place in
considered to be the middle of the period in which the works concerned have connection with the payment for the part of the work affected by the
been carried out, the index at the mentioned times being calculated by linear regulation, and on the basis of a documented statement from the contractor.
interpolation if necessary.

PCS. 3. The regulation must take place in connection with the payment for
the part of the work affected by the regulation, and on the basis of a
documented statement from the contractor. § 36 Payment and retention
Upon written request to the client, the contractor is entitled to payment
twice each month for contractual works and materials respectively provided
and delivered to the construction site.
§ 35 Extraordinary regulations
The price is regulated if a government intervention carried out after the
offer has been submitted has led to a significant increase or decrease in PCS. 2. The contractor can – according to the same rules as stated in
expenditure and is not covered by other regulation. The regulation takes subsection 1 – also demand payment for materials etc. which have been
place in accordance with a notification from a government agency. purchased by the contractor and have not been delivered to the construction site.
If the client requires it, the contractor must provide security for contractual
PCS. 2. The contractor is also reimbursed for extraordinary price increases delivery, cf. § 9. The size of the security must correspond to the required
for material that is included in the work in finished form or in the usual payment - including VAT - for the undelivered materials.
way, or for fuel that is directly used for the work, unless it is reimbursed in
accordance with subsection 1.
PCS. 3. It can be agreed that payment must be made according to a
payment plan instead of payment according to subsection 1. The payment
PCS. 3. The price increase according to subsection 2 shells schedule must follow the agreed main schedule and determine at which times
a) have entered into force after the offer date and before the agreed or at which stages the contract sum or certain parts thereof must be paid.
index adjustment has entered into force, Upon request, the contractor has the right to payment at the agreed times,
b) be generally occurring, and etc., provided that the work to which the payment relates has been performed.
c) appear in official price material or can be documented in another way.

PCS. 4. If the payment time for an extra work has not been agreed, the
PCS. 4. Compensation according to subsection 2 includes the price contractor can demand payment according to the rule in subsection 1.
increase that exceeds 10% of the price of the material or fuel in question on Payment must be required within a reasonable time after the extra work
the day of the offer. To this percentage is added 0.5 percentage points for has been carried out, unless special circumstances make it impossible to
each full month that has elapsed between the day of the offer and the time of settle them.
purchase. Price increases that occur after the time when the material or fuel
is purchased cannot be taken into account. PCS. 5. After delivery, the contractor sends a final and complete final
statement to the client, including above

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receivables for all extra work. After the client has received the final PCS. 2. The contractor's receivables bear interest from the
statement, the contractor cannot come up with any further claims - apart due date at the interest rate in the Interest Act. The deadline in para. 1
from those that have been expressly reserved in the final statement. are running days.

PCS. 6. The final statement must be sent to the client no later than 25
working days after delivery. For main contracts, however, the deadline § 38 The contractor's right to stop the
is 35 working days, and for construction work that is not carried out in work
connection with construction work, the deadline is 60 working days. If the client has not paid an amount due by the end of the payment
deadline, the contractor can stop the work after giving written notice of 3
working days, however, 5 working days is given if the client is a public
PCS. 7. If the final statement has not reached the client before the client or a public housing organisation.
deadline in subsection 6, he can demand in writing that the statement
be sent within 10 working days. If the statement is then not sent to the
client before this deadline, a three-preneur forfeits his claim to PCS. 2. The contractor can also immediately stop the work if
remuneration for extra work carried out as invoiced work, as well as for the client is declared bankrupt or placed under restructuring
wage and price increases. proceedings, or if the client's financial circumstances otherwise
prove to be such that it must be assumed that he is unable to fulfill
PCS. 8. If the client finds that a claimed amount is not due, the client the contract. It is a condition that the client has not provided
must immediately give the contractor reasoned notification in writing. satisfactory security for the fulfillment of the remaining part of the
agreement. If the client immediately provides such security, the
contractor must resume work.
PCS. 9. If the parties disagree about an estimate, the developer
must pay the part of the amount that the developer does not dispute
that it owes. PCS. 3. If the contractor can stop the work according to subsection
2, the contractor can demand that the client immediately provide
PCS. 10. The client may withhold a reasonable amount as security satisfactory security for the fulfillment of the remaining
for remedying defects that are noted at handover, cf. § 48. The part of the agreement. 2

amount must be paid to the contractor as soon as possible when the

defects have been remedied.

§ 37 Due date, payment deadline

and interest
The contractor's claim according to § 36 is due for payment upon
the client's receipt of a request for payment and must be paid no later
than 15 working days after receipt.

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E. Time limit extension and delay

§ 39 The contractor's right

to time limit extension
The contractor has the right to an extension of deadlines when has completed the work and has declared it complete, and is due for
the execution of the work is delayed as a result of: payment at the time of completion according to the contractor's
a) changes in the work required by the client, cf. § 23, declaration of completion.
b) the client's circumstances or another contractor's negligence
if PCS. 4. Exceeding a deadline only triggers claims for
c) war, unusual natural events, fire, strike, daily fines,
lockout, blockade, vandalism or similar circumstances that a) if the deadline and daily allowance are clearly stated in the agreement,
occur through no fault of the contractor and over which the b) if a note has been made continuously of the exceeding of the
contractor is not in control, deadline, as it may have been changed by a deadline
d) precipitation, low temperature, strong wind or other weather extension, and c) if the client within a reasonable time after
that prevents or delays the work, when such weather occurs the client is
to a significantly greater extent than is usual for the season has become aware that the deadline will be exceeded, has
and area in question, or announced that the builder will demand a day's notice and
e) public orders or prohibitions which are not due to the from what time.
contractor's circumstances.
PCS. 5. Daily fines for exceeding a deadline other than
PCS. 2. The contractor must seek to avoid or limit the delay by the delivery deadline (intermediate deadline) can only be
such dispositions as are reasonable demanded if the deadline is set to ensure the completion of an
may be required. activity that is decisive for the construction process or other
significant matters.
PCS. 3. If the contractor realizes that there will be a delay,
the contractor must notify the client in writing as soon as possible. PCS. 6. If no fines or other special sanction provisions
have been stipulated, the client's loss is calculated according to
the general rules of Danish law.
PCS. 4. If the contractor considers himself entitled to an extension
of a deadline, the contractor must give the client written notice of
the required deadline extension and the reason for it as soon as
possible. The developer must respond in accordance with § 25, § 41 Coercion
subsection 3. The contractor can demand payment for forcing,
a) if the contractor has carried out the forcing in accordance with
an agreement with the developer, or
b) if the client wrongly asserts that the contractor is in delay
§ 40 Contractor's liability in case of giving rise to liability, and the contractor carries out the
delay enforcement to protect himself against this.
Delay, which does not entitle the contractor to a deadline
extension, is liable.
PCS. 2. If the contractor considers himself entitled to payment for
PCS. 2. If daily fines or other special sanction provisions forcing pursuant to subsection 1, letter b, the contractor must -
have been stipulated, compensation claims for delay cannot be before he begins the forcing - notify the client of this in writing.
raised in addition. The contractor's claim for payment as a result of the forcing must
be reduced if it can be considered unreasonable.
PCS. 3. Must daily allowance be calculated as a fraction of the
contract sum per day the contractor is late, it is calculated from
the contract sum without VAT per started working day.
Per diem is calculated for the time until the contractor has

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Section 42 The client's right to time limit extension Section 43 Liability of the developer in case of delay
The client has the right to an extension of deadlines when the work If the delay is due
is delayed as a result of a) the client's circumstances, and the client has shown fault or
a) changes in the work required by the client, cf. § 23, negligence, or
b) war, unusual natural events, fire, strike, b) other contractor's delay giving rise to liability, cf. § 40, subsection
lockout, blockade, vandalism or similar circumstances that occur 1, or other contracting party's liability-inducing delay, the client
through no fault of the client or other contractor and for which the must pay the contractor compensation for the loss suffered.
client or other contractor is not the owner
over,
c) precipitation, low temperature, strong wind or other weather, PCS. 2. If the delay is due
which prevents or delays the work, including the work of other a) the client's circumstances, without the client having shown any fault
contractors, when such weather occurs to a significantly greater or neglect, and without the relationship being covered by
extent than is usual for the season and area in question, or subsection 3,
b) other contractor's delay, without the relationship being covered
d) public orders or prohibitions which are not due to the client's or by subsection 1 or 3,
other contractor's own circumstances. c) changes in the work required by the client, cf. § 23,
or
PCS. 2. The developer must seek to have the delay avoided d) public orders or prohibitions which are not due to construction
or limited by such dispositions as are reasonable cleaning or other contractor's conditions
may be required.

the client must pay the contractor compensation for the loss the
PCS. 3. If the client realizes that there will be a delay, the client must contractor suffers as a result of the delay, apart from the profit
notify the contractor in writing as soon as possible. the contractor loses by not being able to carry out other work
during the delay period, and similar additional losses.

PCS. 4. If the client considers himself entitled to an extension of a

deadline, the client must notify the contractor in writing of the PCS. 3. If the delay is due
required deadline extension and the reason for it as soon as possible. a) war, unusual natural events, fire, strike,
The contractor must respond accordingly lockout, blockade, vandalism or similar conditions that occur
with section 25, subsection 3. through no fault of the client or other contractor and over which
the client or other contractor is not in control, or

b) precipitation, low temperature, strong wind or other weather

which prevents or delays the contractor's or other contractor's
work, when such weather occurs to a significantly greater
extent than is usual for the season and area in question,

the contractor is not entitled to compensation. 2

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F. Episode

§ 44 Preliminary review
The client must, in writing and with reasonable notice, call for a review PCS. 3. If the client does not call as stated in subsection 1 for
of the work in a reasonable time before the agreed delivery (pre-review) delivery business, the work is deemed to have been delivered 10
collectively or divided into sections or contracts. If the client does not do working days after the specified time for completion.
so, the contractor can call for the preliminary review. The same applies to new delivery business as mentioned in subsection
2, 2nd point

PCS. 2. During the pre-review, the developer draws up a protocol PCS. 4. If the work includes several contracts, all contracts must be
stating the matters pointed out and any comments of the lessee. completed before the client must call for handover business. However, it
may be agreed or apparent from the circumstances that contracts or
parts thereof must be delivered at different times, or that construction
PCS. 3. The fact that the client has not pointed out a matter during the sections are delivered separately (phased delivery).
pre-review does not preclude the client from later citing it as a deficiency.

PCS. 5. In the case of construction works that are not carried out in
PCS. 4. If the contractor has not appeared at the preliminary inspection, conjunction with building works, the individual contracts are delivered
it can be carried out without the contractor's involvement. The client separately, unless otherwise agreed or apparent from the circumstances
must then send the protocol to the contractor as soon as possible. there.

§ 46 Delivery Protocol
§ 45 Delivery business At the handover event, the client draws up a handover report.
Immediately before the completion of the work, the contractor must The minutes state the deficiencies and any other matters pointed out
notify the client in writing of the time of completion (notice of by the client, as well as the contractor's comments. Agreements on
completion). The client then summons the contractor to a delivery remediation, including method and deadline as well as time for review
meeting, which must take place no later than 10 working days after of remediation, cf. section 48, subsection 2, must be added to the
the specified time, cf. however subsection 5. The provisions in 1st and protocol.
2nd point also applies to work that, by agreement with the client, has The parties' decision on whether the work has been delivered must
been postponed for later delivery. appear in the minutes. The protocol must be signed by the client and
the contractor.

PCS. 2. The work is deemed to have been handed over to the PCS. 2. If a party has not attended the delivery transaction, it can be
client when handover has taken place, unless significant defects have carried out without his participation.
been demonstrated, including conditions that prevent commissioning to The attending party must then send the minutes to the absent party as
a significant extent. If this is the case, a new handover meeting will be soon as possible. 2
held when the contractor has notified the client in writing that the
deficiencies have been remedied, cf. subsection 1.

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G. Missing

§ 47 Concept of deficiency § 48 Defects proven at delivery

Is the work not carried out in accordance with § 12, subsection 1 and 2, The contractor has the duty and the right to remedy defects that are
there is a deficiency. detected at the time of delivery.

PCS. 2. If materials do not conform to PCS. 2. The client must set a deadline in writing for remedying
the requirements in section 12, subsection 1 and 2, there is a deficiency. proven defects, taking into account the nature and extent of the
However, this does not apply defects as well as the circumstances in general. The developer must
a) when the contractor in case of free choice of material also set a time for reviewing the remedy, taking into account when the
proves that contractual material does not exist or cannot be obtained majority of the deficiencies are expected to be remedied. If the deficiencies
due to war, import ban or the like, or are not remedied until after the remedial review, the contractor must give
written notice when the deficiencies have been remedied.
b) when the client has required the use of a specific
or similar material, and the contractor proves that the possibility of
obtaining this in the contractual condition must be considered
excluded due to conditions which the contractor should not have PCS. 3. During the remedial review, the client draws up a remedial
taken into account when entering into the agreement. protocol, in which the client states his position on whether the deficiencies
have been remedied, together with the contractor's possible comments.
If a party does not appear at the remedy review, it can be carried out
In these cases, the contractor must notify the client of the obstacles without his participation. The attending party must then send the minutes
as soon as possible, cf. § 26. to the absent party as soon as possible.

PCS. 3. If the material is not suitable for the purpose for which it is
used, there is however no defect,
a) when the contractor in case of free choice of material
proves that the material was considered suitable based on knowledge § 49 Defects proven after delivery
at the time of construction, or For 5 years after handover, the contractor has the duty and the right to
b) when the client has required the use of a certain electricity remedy defects that are detected after handover.
ler corresponding material, and the contractor has used the prescribed
material. PCS. 2. The client can only claim such defects if the contractor has
been notified of this in writing within a reasonable time after the defects
PCS. 4. The work must in all cases have the properties that are are or should have been discovered. However, this does not apply if
guaranteed according to the agreement. the contractor has been guilty of a grossly indefensible relationship.

PCS. 5. If any materials are to be supplied with a warranty with

obligations that go beyond the general liability for defects under these PCS. 3. The client must notify the contractor in writing of a deadline for
general conditions, the contractor is solely bound by it to the extent remedying identified deficiencies. The length of the deadline is
that it is possible for the contractor to purchase the materials with the determined taking into account the nature and extent of the deficiencies
required warranty and the supplier insists and fulfills the warranty. If as well as the circumstances in general. The contractor must notify the
the contractor determines that the materials cannot be purchased with client in writing when the deficiencies have been remedied. The contractor
the guarantee in case of significant deliveries, the contractor must as may postpone the rectification of a defect to the undertaking together with
soon as possible provide the client with the rectification of any defects found at the 1-year inspection, provided
that the defect does not worsen as a result, and the postponement does
sharing about it. not cause inconvenience to the client.

PCS. 6. The time of delivery is decisive for whether the work suffers from
defects, whether these are visible or hidden at this time.

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Section 50 Waiver of the contractor's § 53 The contractor's liability for consequential damages
remedy right and indirect losses
If, during the remediation review or otherwise after the expiry of a The contractor is liable for damages for losses that result from
deadline for remediation, - or after receiving the contractor's defects in the work, if the defects are due to errors or negligence on
notification that remediation has taken place - the client finds that the the part of the contractor, or if the defects relate to properties which,
deficiencies have not been remedied, the client must notify the according to the agreement, must be considered
contractor in writing within 10 working days of which deficiencies too insured.

which is still invoked.

PCS. 2. The contractor is not responsible for operating loss, loss of profit
or other indirect loss.

PCS. 2. The client is then entitled to have the claimed defects rectified
at the contractor's expense (remedial compensation) or to decline the
contract sum. If the contractor has sought to remedy all the previously
claimed defects, and the defects that are still claimed only make up a § 54 Contractor's product liability
small part of them, the contractor is, however, regardless of point 1, The contractor's liability for damages caused by a defect in a
entitled to remedy these, if the remedy is initiated immediately after the product that is part of the construction work (product liability) is
client's notification according to subsection 1. limited to the coverage according to the product liability insurance taken
out, cf. § 11, subsection 3.

PCS. 2. The contractor is not responsible for operating loss,

Section 51 Waiver of the contractor's loss of profit or other indirect loss as a result of damage caused by a
remedial duty defect in a product that is part of the construction work.
The contractor's remedial duty and the client's right to carry out
remedial work at the contractor's expense, cf. §§ 48-50, lapse if
remedial action is associated with disproportionately large expenses.
When assessing this, account must be taken of the client's interest in
fulfilling the agreement. In all cases, the client retains the right to refusal, § 55 Termination of liability for defects
cf. § 52. The client's claim against the contractor as a result of defects must be
submitted no later than 5 years after handover of the work.
After this time, the client cannot raise claims against the contractor.

§ 52 Refusal of the contract sum PCS. 2. If the contractor has remedied defects that the client has
If the contractor does not remedy deficiencies as stated in §§ complained about, a new deadline will run according to subsection 1
48-50, the client can – instead of having the deficiencies rectified at for making claims as a result of the deficiencies, so that the period runs
the contractor's expense – demand a reduction in the contract sum. from the end of the remedy, but no longer than 3 years after the expiry
The client also has the right to decline the contract sum if remediation of the original 5-year period.
is impossible or will cause significant inconvenience and in the cases
mentioned in § 51.
PCS. 3. If the client's claim against the contractor as a result of defects
PCS. 2. The refusal is calculated as a starting point as the amount it concerns movable property and fixtures which are not specially adapted
would have cost to correct the deficiencies. or permanently installed, the deadline in subsection 1 to 2 years.

PCS. 3. If rectification of deficiencies is impossible, and in the cases

mentioned in section 51, the refusal is set at discretion. PCS. 4. The client's requirements according to subsection 1-3 are preserved, regardless

of subsection 1-3, for missing, where

a) the contractor has undertaken to guarantee for a longer period of time,

b) it is found upon delivery that agreed quality assurance has failed
significantly, or
c) there is a grossly indefensible relationship on the part of the contractor
side of the thread. 2

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H. 1- and 5-year inspection

Section 56 1-year inspection § 58 Common rules for inspection

The client invites the contractor to an inspection of the work, Call for inspection according to § 56 and § 57, subsection 1, must be in
which must take place no later than 1 year after delivery. writing and be made with a notice of no more than 60 and at least 15 –
in the case of a main contract, but at least 20 – working days.

PCS. 2. During the inspection, the client draws up an inspection

Section 57 5-year inspection protocol, in which the client states the deficiencies in the work and any
The client invites the contractor to a final inspection of the work, other matters that he has pointed out, together with the contractor's
which must take place no later than 30 working days before 5 years possible comments and any agreements on remediation, including
after delivery. method and deadline.

PCS. 2. Has the client not summoned as mentioned in subsection 1, PCS. 3. If a party has not attended the inspection, the participating party
the contractor may summon the client to the inspection in writing with a can complete it without the participation of the absent party and must
notice of at least 10 working days. then send the minutes to the absent party as soon as possible. 2

I. Repeal

§ 59 The developer's right of withdrawal

Upon written request, the client may cancel the construction agreement in PCS. 2. The client may, upon written request, demand that a
whole or in part, subcontractor or a supplier be deprived of the performance of work and
a) if there is a significant liability-inducing delay on the part of the the delivery of materials, respectively, if this has significantly disregarded
contractor with regard to the execution of the work, and the applicable rules or agreed terms on social responsibility, including rules
delay entails significant disadvantages for the client, on safety and the working environment. Under the same conditions, the
developer can expel individuals from the building site.
b) if there is otherwise a significant delay from
the contractor's side with regard to matters of decisive
importance to the client,
c) if the work performed is of such quality that
the client has reason to believe that the contractor will not be § 60 Contractor's right of withdrawal
able to complete the work without material defects, or The contractor may terminate the contract upon written request,

d) if there is otherwise a significant default on the part of the a) if there is a significant delay as a result of the client's circumstances
contractor with regard to matters of decisive importance to the or another contractor's delay, and the client does not make
client. reasonable efforts to promote the work as much as possible, or

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b) if there is otherwise a significant delay or default on the part of the § 63 Common rules on cancellation
client with regard to matters of decisive importance to the contractor. Cancellation must be made in writing.

PCS. 2. At the same time as the cancellation, the party canceling the
agreement must, in writing, call for a registration meeting (stay meeting)
between the parties, which must be held as soon as possible. Unless
§ 61 Bankruptcy and reconstruction, etc. otherwise agreed, the meeting will be held no earlier than 1 working day
If one party is declared bankrupt, the other party can immediately cancel after the letter of invitation has arrived. In case of disagreement about the
the agreement, to the extent that the rules of the Bankruptcy Act do not status of the work, the status transaction can be carried out by inspection
prevent this.
and assessment announced by the Arbitration Board, cf. § 66.

PCS. 2. If the estate wishes to enter into the agreement in accordance

with the rules of the Bankruptcy Act, the estate must, upon request, give PCS. 3. At the stall shop, a registration protocol must be drawn up
notice of this without undue delay. that describes the extent and quality of the work carried out. The document
is signed by the parties, unless the registration is made by inspection and
PCS. 3. The rule in subsection 1 also applies if a party is taken into restructuring assessment.
proceedings, or if the party's financial circumstances otherwise prove to be
such that the party must be assumed to be unable to fulfill the contract. PCS. 4. If, after being notified, a party has not appeared at the court
proceedings, the attending party can complete it without the absent party's
However, it is a condition that the party has not provided – or at the assistance and must then send the registration protocol to the absent party
request of the other party does not immediately provide – satisfactory as soon as possible. Objections to the content of the protocol must be
security for the fulfillment of the agreement, cf. § 9 and § 10. submitted in writing no later than 5 working days after it has been received.

PCS. 4. If the party wishes to continue the agreement pursuant to the

Bankruptcy Act's rules on reconstruction, the party must, upon request,
give notice of this without undue delay. PCS. 5. In the event of cancellation by the client, the client or the person who
completes the work on behalf of the client is entitled to use the contractor's
PCS. 5. If one party is a capital company that is required to be dissolved materials and equipment located on the construction site, the removal of which
by the Danish Business Authority, the other party can withdraw from the before completion of the work will cause loss to the client. Usual remuneration
contract. The provision does not apply if the company documents, within 10
must be paid for the use.
working days after a demand from the other party has emerged, that the
conditions for its dissolution are not present, or if the company provides
satisfactory security for the fulfillment of the agreement. PCS. 6. In case of cancellation by one party, the other party is responsible
for the loss suffered according to the general rules of Danish law. 2

§ 62 Death of a party
If a party dies and the estate is treated as an insolvent estate, the
provisions of section 61, subsection 1 and 2, correspondingly
application.

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J. Disputes

§ 64 Solution ladder
A dispute between the parties must be sought to be clarified and PCS. 6. The mediation procedure ends when

settled by negotiation between their project managers no later than a) the dispute is settled, or

5 working days after a party has requested negotiation in accordance b) the mediator finds that there is no prospect of achieving
settlement.
with this provision. After delivery, subsection 1 does not apply, and the
dispute must instead be sought to be resolved or settled in accordance
with subsection 2. PCS. 7. The rules laid down by the Arbitration Board apply to cases
of mediation.

PCS. 2. If the dispute is not settled according to subsection 1, it must

be reconciled through negotiation between the parties' management PCS. 8. When mediation concerns more than 2 parties, the

representatives no later than 5 working days after the expiry of the provisions in subsection 1-7 also in their mutual relationship.

deadline in subsection 1. If the dispute is not settled according to the 1st

PCS. 9. The provisions in subsection 1-8 applies similarly to mediation.
point, the management representatives must discuss the next step for
resolving the dispute within the same deadline.

PCS. 3. Each party must appoint its project manager and management
representative no later than 5 working days after the contract has been
entered into. § 66 View and discretion
At the request of a party, the arbitration board announces views and

PCS. 4. Mediation, conciliation, quick decision and arbitration cannot be estimates with a view to securing evidence for or assessing factual

initiated before the negotiation procedure according to subsection 1 and 2 matters. If a party has requested a decision on security provided or a

have been completed. The same applies to opinions and estimates, unless quick decision, an opinion and assessment cannot be issued on the same

opinions and estimates are used to secure evidence. matter before the case on a decision on security provided or on a quick
decision has been concluded, unless the purpose of the opinion and
assessment is to secure evidence.

Section 65 Mediation and conciliation

At the request of a party, the Arbitration Board appoints a mediator PCS. 2. The arbitration board appoints – usually after consulting the

with a view to resolving a dispute by conciliation. A request can also be parties – one or more appraisers and makes a decision
about the content of the assessment theme.
submitted by an arbitration court that deals with the dispute in question.

PCS. 3. A new view and assessment by another assessor can only take

PCS. 2. Mediation cannot be initiated if a party wants the dispute settled place if the Arbitration Board finds that there is reason for it.

under a case for quick decision and submits a request for this no later than
PCS. 4. If, while an opinion and assessment is pending, arbitration proceedings
10 working days after there has been
requested mediation. are instituted on the subjects of the assessment proceedings, the assessment

proceedings continue as an opinion and assessment during the arbitration proceedings.

PCS. 3. The arbitration board appoints the mediator after consulting the Parties to the appraisal business who are not parties to the arbitration

parties with a deadline of 5 working days. proceeding continue as appraised parties.

PCS. 4. The mediator calls the parties to a mediation meeting, which PCS. 5. The rules laid down by the Arbitration Board apply to inspections

must be held no later than 10 working days after the mediator has and estimates.

been appointed.
PCS. 6. When views and estimates concern more than 2 parties, the

PCS. 5. The parties are obliged to cooperate in carrying out the provisions in subsection 1-5 also in their mutual relationship.

mediation procedure, and arbitration cannot be initiated or continued

until the procedure has been completed.

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§ 67 Decision on security provided

The arbitration board, at the request of a party, appoints an expert A decision to write down or terminate the security provided
to make a decision on payment, write-down and termination of must be fulfilled no later than 8 weeks after it has been taken.
security provided, cf. section 9, subsection 11 and 12, and § 10, The decision can be referred to arbitration no later than 8 weeks after
subsection 5 and 6, unless a decision has been made beforehand in it has been made, and a final decision on the dispute is then made at
accordance with § 68 or § 69, or the matter that justifies the claim is the arbitration. If no arbitration proceedings are instituted before the
already the subject of a dispute between the parties during a pending expiry of the deadline, the decision will then become final.
case pursuant to § 68 or § 69. Referral for arbitration does not have a suspensive effect,
unless the decision concerns the write-down or termination of
PCS. 2. The arbitration board appoints one or more experts after security provided, and the arbitration court decides otherwise.
consulting the parties with a deadline of 3 working days.

PCS. 3. The counterparty may submit a response no later than 10 PCS. 11. The rules laid down by the Arbitration Board apply to
working days after receiving the request for a decision on security cases concerning a decision on security provided.
provided. After this, each party can make a submission no later than
5 working days after receiving the other party's submission.
If very special circumstances speak decisively for it, the Arbitration
Board can extend the deadlines or allow one additional § 68 Quick decision
submission from each side. At the request of a party, the Arbitration Board appoints an
ombudsman to make a quick decision on
PCS. 4. The expert may, with a deadline of normally 5 a) the developer's right to withhold payments or offset against the
working days, request the parties for additional information and contractor's payment claims,
material. b) the client's right to demand changes and the contractor's right to
carry out such changes,
PCS. 5. The expert may carry out an inspection after being c) the contractor's right to extra payment for changes and the
summoned by the parties with a notice of 5 working days. Opinions client's right to credit for savings due to changes,
and estimates cannot be carried out as part of the case.
d) the contractor's right to adjust the contract sum,
PCS. 6. No later than 10 working days after the expert has received e) the design of the detailed timetable,
the last submission and any supplementary information and f) the contractor's and the client's right to a deadline extension
material and has carried out any inspection, the expert makes a else,
decision on the extent to which the claim must be met and who g) location of the risk of damage or loss of
must pay the costs of handling the case . labor or materials,
h) determination of interfaces for work,
i) refusal to approve a designated subcontractor,
PCS. 7. In special cases, it may be determined that payment to j) disputes with a value below DKK 200,000, and
contractors and to builders who are not a public developer or a k) other disputes, if the parties agree.
public housing organization is subject to the provision of collateral.
In that case, the expert decides on the nature and extent of the PCS. 2. A case for quick decision cannot be initiated if there is an
security and on the conditions for its payment or termination. arbitration case pending on the same dispute.

PCS. 3. The arbitration board appoints one or more arbitrators after

PCS. 8. The expert may, in special cases, instead of making a consulting the parties with a deadline of 3 working days.
decision on security provided, direct the parties to initiate arbitration
proceedings in accordance with section 69. PCS. 4. The opposing party(ies) may submit an answer no
later than 10 working days after receiving the request for a
PCS. 9. Amounts covered by a decision on payment of collateral quick decision, but may not bring other disputes into the
must be paid no later than 3 working days after the parties and the proceedings. At the latest at the same time as submitting an
guarantor have received written notification of the decision. answer, the opposing party(ies) may involve additional parties in
the case by means of a summons, and the person concerned must
then submit a reply no later than 10 working days after receiving the
PCS. 10. A decision on the provision of security has, as an summons. After this, each party can make a submission no later
arbitration award, a binding effect on the parties to the case. than 5 working days after receiving the other party's submission.

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§ 69 Arbitration
If very special circumstances speak decisively for it, the Arbitration Board Disputes between the parties are finally settled by arbitration at the
can extend the deadlines or allow one additional submission from each Arbitration Board.
side.
PCS. 2. An arbitration case cannot be instituted before 4 weeks after a
PCS. 5. The solicitor may, with a deadline of normally 5 working days, negotiation process on the dispute according to section 64 has been completed.
request the parties for additional information and material. Furthermore, arbitration proceedings cannot be instituted if there is a pending
case for mediation, conciliation, quick decision or decision on the provision of
security regarding the same dispute.
PCS. 6. The solicitor may carry out an inspection after summoning the
parties with a notice of 5 working days. Opinions and estimates cannot be PCS. 3. The arbitration case is dealt with according to the rules for general
carried out as part of the case. arbitration proceedings, unless, according to subsection 4 must be processed
according to the rules for simplified arbitration.
PCS. 7. No later than 10 working days after the solicitor has received
the last submission and any supplementary information and material PCS. 4. The arbitration case is processed according to the rules for simplified
and has carried out any inspection, the solicitor makes a decision with a arbitration if
stipulation as to who is to pay the costs of handling the case. a) the parties so agree, or
b) one of the parties so requests and the value of the case is
at most 1 million DKK

PCS. 8. The convenor may refer the parties to mediation or conciliation in PCS. 5. In ordinary arbitration proceedings, the arbitration court is set
accordance with section 65 or to initiate arbitration proceedings in accordance with 3 arbitrators, unless the parties agree that it should be reduced to 1
with section 69, if the convenor considers that the case is not suitable for a judge, or a party requests that it be expanded to 5 judges. In the case of
quick decision. simplified arbitration proceedings, the arbitration court is set with 1 judge,
unless the parties agree that it should be expanded to 2 or 3 judges. The
PCS. 9. A quick decision has, as an arbitration award, a binding effect on arbitrators can be professional judges appointed by the Arbitration Board, or
the parties to the case. The decision must be fulfilled no later than 8 legal judges appointed by the chairman of the Arbitration Board's Presidium.
weeks after it has been made. The decision can be submitted for arbitration Appointment takes place in all cases after consultation with the parties.
according to § 69 no later than 8 weeks after it has been made, and a final
decision on the dispute is then made at the arbitration. If no arbitration
proceedings are instituted before the expiry of the deadline, the decision
will then become final.
Submission for arbitration does not have a suspensive effect, unless PCS. 6. For arbitration proceedings, the rules laid down by the Arbitration
the arbitration court decides otherwise. Board apply.

PCS. 10. The rules laid down by the Arbitration Board apply to cases of quick When an arbitration case involves more than 2 parties, the provisions in
decision. subsection 1-6 also in their mutual relationship. 2

PCS. 11. When a case for quick decision concerns more than 2 parties,
the provisions in subsection 1-10 also in their mutual relationship.

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