Building in Denmark

The Danish construction sector is an attractive market for foreign contractors today. But the Danish construction law system does not necessarily resemble what most contractors know from home.

At this briefing we provide an overview of the construction law issues you need to be aware of as an international contractor carrying out works in Denmark. We look at AB 18/ABT 18 in practice, at the key differences from FIDIC, and at the classic pitfalls where time and money are typically lost: notification of additional works and extensions of time, documentation requirements, liquidated damages, security, handover, and liability for defects.

We also cover the framework surrounding the contract itself – public procurement rules where the employer is a public body, labour clauses and chain liability, RUT registration, and the posting of workers.

Along the way you will get concrete examples from Danish and international projects, together with a walk-through of the mistakes we most often see foreign contractors make on their first Danish project.

WHAT YOU WILL TAKE AWAY:

• An overview of the Danish system of agreed documents – AB 18, ABT 18 and ABR 18 – and why it matters that these conditions are not legislation but contractually agreed, and are frequently departed from in the tender documents
• An understanding of the central differences between AB 18 and FIDIC, including the allocation of roles between employer, consultant, and contractor, and why Danish construction law has no "Engineer"
• Practical insight into the notification and documentation requirements for additional works and extensions of time – and what happens to the claim if notice is not given
• An overview of the rules on liquidated damages, security, payment, handover, inspections, and liability for defects, including the Danish time limits
• Familiarity with the dispute resolution system, e.g., the dispute resolution ladder, negotiation, mediation, expert survey and appraisal, fast-track decision and arbitration – and how the choice between them affects project economics
• A checklist of the regulatory and employment law matters that must be handled before work commences in Denmark