The Construction Cost Plus Contract is designed for complex construction projects under Danish jurisdiction where the exact scope or costs cannot be definitively established at the project's outset. This document is particularly suitable for projects involving uncertain conditions, renovation works, or where flexibility in scope is required. The agreement details the cost reimbursement mechanism, fee structure, and project management requirements while ensuring compliance with Danish construction laws and regulations. It includes comprehensive provisions for cost verification, change management, and quality control, making it especially suitable for projects where transparency and detailed cost tracking are priorities. The document incorporates standard Danish construction industry practices and typically references AB 18 (General Conditions for Building and Construction Works) while adapting them to the specific requirements of a cost-plus arrangement.
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Key Requirements PROMPT example:
Construction Cost Plus Contract
I need a Construction Cost Plus Contract under Danish law for a commercial office building renovation project in Copenhagen, with specific provisions for green building certification and sustainability requirements, including cost tracking for environmental measures.
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OR
1. Parties: Identification of the Owner and Contractor, including full legal names and addresses
2. Background: Context of the agreement and brief description of the construction project
3. Definitions: Definitions of key terms used throughout the agreement, including 'Cost', 'Fee', 'Works', etc.
4. Scope of Works: Detailed description of the construction works to be performed
5. Contractor's Obligations: Core responsibilities of the contractor including quality standards, compliance requirements, and project management
6. Owner's Obligations: Core responsibilities of the owner including site access, permits, and information provision
7. Cost Definition and Structure: Detailed breakdown of what constitutes 'Cost' under the agreement
8. Fee Calculation and Payment: Structure of the contractor's fee, including percentage or fixed fee arrangement
9. Payment Terms: Payment schedule, invoicing requirements, and payment processing procedures
10. Project Timeline: Construction schedule, milestones, and completion dates
11. Changes and Variations: Process for handling changes to scope, cost, or timeline
12. Quality Control: Quality standards, inspection procedures, and acceptance criteria
13. Health and Safety: Safety requirements and responsibilities in accordance with Danish regulations
14. Insurance and Liability: Required insurance coverage and allocation of risks
15. Termination: Grounds and procedures for contract termination
16. Dispute Resolution: Procedures for resolving disputes, including reference to Danish law
17. General Provisions: Standard legal provisions including notices, amendments, and governing law
1. Environmental Requirements: Specific environmental obligations and sustainability requirements, included when project has significant environmental impact
2. Financing Arrangements: Special provisions related to project financing, included when external financing is involved
3. Subcontracting: Rules and procedures for subcontractor engagement, included when subcontracting is permitted
4. Performance Guarantees: Specific performance guarantees and associated penalties, included for complex or high-value projects
5. Value Engineering: Provisions for cost optimization and value engineering proposals, included for larger projects
6. Public Authority Requirements: Special provisions for public projects, included when public authorities are involved
7. Force Majeure: Detailed force majeure provisions, included when standard provisions need enhancement
1. Schedule 1 - Detailed Scope of Works: Comprehensive technical specifications and drawings
2. Schedule 2 - Cost Breakdown Structure: Detailed breakdown of cost categories and items included in the cost-plus calculation
3. Schedule 3 - Fee Calculation Method: Detailed methodology for calculating the contractor's fee
4. Schedule 4 - Project Timeline: Detailed construction schedule with milestones and critical path
5. Schedule 5 - Key Personnel: List of key personnel from both parties with roles and responsibilities
6. Schedule 6 - Required Insurance: Detailed insurance requirements and coverage levels
7. Schedule 7 - Quality Management Plan: Detailed quality control procedures and standards
8. Schedule 8 - Health and Safety Plan: Detailed safety procedures and requirements
9. Schedule 9 - Forms and Ƶ: Standard forms for change orders, payment applications, and other project documents
10. Schedule 10 - Permits and Approvals: List of required permits and responsible parties
Authors
Relevant legal definitions
Clauses
Relevant Industries
Commercial Construction
Residential Development
Industrial Construction
Infrastructure Development
Healthcare Construction
Educational Facilities
Renewable Energy Infrastructure
Retail Development
Hospitality Construction
Public Sector Construction
Relevant Teams
Legal
Construction
Commercial
Finance
Procurement
Risk Management
Project Management
Operations
Technical Services
Compliance
Business Development
Relevant Roles
Construction Project Manager
Contract Manager
Cost Controller
Quantity Surveyor
Construction Director
Legal Counsel
Chief Financial Officer
Risk Manager
Procurement Manager
Site Manager
Commercial Manager
Technical Director
Development Director
Project Engineer
Compliance Officer
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