REALWorld Law

Construction

General construction law

What are the main sources of law that govern and regulate contracts for the design or carrying out of building works?

Denmark

Denmark

In Denmark, construction law is mainly based on the following bodies of law:

  • Contract law – law that governs agreements and arrangements between parties
  • Law of torts – law that addresses and provides remedies for civil wrongs not arising out of contractual obligations
  • Case law – decisions from the Danish national courts and The Danish Arbitration Board for Building and Construction
  • Standard form contracts:
  • AB 18 – General conditions for the provision of works and supplies within building and engineering.
  • ABT 18 – General conditions for turnkey contracts.
  • ABR 18 – General conditions for consulting services.
  • AB Consumer – General conditions for the provisions of works within building to consumers. (A standard form contract that takes into consideration that the employer is a non-professional party.)

As the above indicates, there is no statutory regulation of construction contracts. Instead, standard terms and conditions – commonly referred to as 'agreed documents' – have been developed through collaboration among representatives of the key stakeholders involved in the construction industry. The standard form contract terms apply solely by virtue of the parties' agreement.

The standard form contracts, particularly AB 18 and ABT 18, are widely used in both public and private construction projects. AB 18 is typically used where the client provides the design, whereas ABT 18 is used for design-build projects where the contractor also performs the design. Both forms allocate risks and responsibilities in a similar way, with only minor differences in numbering and the design obligations.

Once adopted, they form the contractual basis unless expressly derogated from. In Danish construction practice, the standard form contracts AB 18 or ABT 18 are almost invariably adopted as the contractual basis when agreements are entered into between professional parties.

Additionally, various statutes regulate aspects of construction projects – for example, the Building Act (Byggeloven) requires building permits, and the Working Environment Act (Arbejdsmiljøloven) imposes safety obligations – which influence and supplement the contractual framework.