Commercial contracts for construction work

Commercial contracts for construction work

There is no law governing commercial contracts for construction work. Instead, it is the contract between the parties that determines the framework. This means that it is important that the agreement is clear regarding what work is to be performed, how it is supposed to be done, at what cost, and the terms and conditions that apply to the construction work. Standard agreements have therefore been developed and are widely used in the construction industry. The most common standard agreements are as follows:

  • AB 04 – which is intended to be used for construction and installation work on execution contracts, such as when the customer prepares the project and the contractor carries out the actual construction.
  • ABT 06 – which is used in construction and installation contracts on complete contracts, such as when the contractor is responsible for both the design and execution of the construction.
  • AB-U 07/ABT-U 07 – which are intended to be used in agreements between the original contractors and subcontractors in cases where the above standard agreements are used between the customer and the contractor.

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