Construction Agreement Template for Denmark

A Construction Agreement is a binding contract between a property owner and a construction company that details how a building project will be carried out in Denmark. It spells out everything from costs and timelines to materials and quality standards, following Danish building regulations and the AB 18 standard terms for construction work.

Beyond just laying out the basics, these agreements protect both parties by clearly stating who handles permits, insurance, and worker safety under Danish law. They also outline payment schedules, dispute resolution methods, and warranty terms - essential safeguards in Denmark's construction sector where projects often involve multiple contractors and strict municipal oversight.

Use a Construction Agreement before starting any building project in Denmark, especially when working with contractors on renovations, new construction, or major repairs. This applies to both residential and commercial projects where the work value exceeds 50,000 DKK, as Danish law requires formal documentation of construction terms.

The agreement becomes particularly important when coordinating multiple trades, dealing with specialized installations, or managing projects that require municipal permits. Having it in place before breaking ground helps prevent costly disputes, ensures compliance with AB 18 standards, and creates clear accountability for issues like delays, defects, or changes in project scope.

• Simple Construction Contract: Basic agreement for straightforward projects under 500,000 DKK, ideal for single-trade renovations
• Contract Agreement For Construction Work: Comprehensive agreement following AB 18 standards for larger commercial projects
• General Contractor Agreement With Owner: For projects where one contractor manages multiple subcontractors
• Construction Cost Plus Contract: Flexible pricing structure for complex projects with uncertain scope
• Contractor Homeowner Agreement: Simplified version tailored for residential renovations and home improvements

• Property Owners: Individuals or companies who commission construction work and bear ultimate financial responsibility
• General Contractors: Construction companies responsible for executing the project and coordinating subcontractors
• Construction Lawyers: Draft and review agreements to ensure compliance with Danish building laws and AB 18 standards
• Architects: Often involved in drafting technical specifications and overseeing design compliance
• Municipal Authorities: Review agreements for permit requirements and ensure compliance with local building codes
• Insurance Providers: Assess agreements to determine coverage requirements and risk levels

• Project Details: Gather complete scope of work, timeline, and specific construction requirements
• Party Information: Collect legal names, contact details, and CVR numbers of all involved parties
• Budget Planning: Document detailed cost estimates, payment schedules, and any contingency allowances
• Technical Specs: Compile building plans, material specifications, and quality standards
• Permit Status: Confirm required municipal approvals and building permits
• Insurance Coverage: Verify liability insurance requirements and coverage limits
• Template Selection: Choose the right agreement type on our platform to ensure AB 18 compliance

• Party Information: Full legal names, addresses, and CVR numbers of all contracting parties
• Project Scope: Detailed description of work, materials, and quality standards per AB 18
• Timeline: Start date, completion date, and milestone deadlines with delay penalties
• Payment Terms: Price, payment schedule, and conditions for additional costs
• Insurance Requirements: Mandatory liability coverage and professional indemnity details
• Dispute Resolution: Danish Construction and Housing Board arbitration procedures
• Warranty Terms: 5-year mandatory warranty coverage for construction defects
• Termination Rights: Conditions and procedures for contract termination

A Construction Agreement differs significantly from an Asset Purchase Agreement in both scope and purpose, though they're sometimes confused in property development contexts. While both deal with valuable assets, their core functions and legal implications are distinct under Danish law.

• Project Focus: Construction Agreements govern ongoing work and future deliverables, while Asset Purchase Agreements handle one-time transfers of existing property or equipment
• Timeline Structure: Construction Agreements span multiple phases with progress payments and AB 18 milestones; Asset Purchase Agreements typically involve a single closing date
• Risk Allocation: Construction Agreements include warranties for workmanship and detailed quality standards; Asset Purchase Agreements often follow "as-is" principles
• Regulatory Framework: Construction Agreements must comply with Danish building codes and safety regulations; Asset Purchase Agreements focus on ownership transfer and due diligence requirements