{"id":30,"date":"2015-11-24T13:55:16","date_gmt":"2015-11-24T12:55:16","guid":{"rendered":"http:\/\/bk-guide.dk\/en\/?page_id=30"},"modified":"2019-01-09T12:05:30","modified_gmt":"2019-01-09T11:05:30","slug":"contracting","status":"publish","type":"page","link":"https:\/\/bk-guide.dk\/en\/contracting\/","title":{"rendered":"Contracting"},"content":{"rendered":"

<\/a><\/p>\n

Negotiation<\/a>
\nCost saving measures<\/a>
\nSavings catalogue<\/a>
\nContract legislation<\/a>
\nInsurances<\/a><\/p>\n


\nEnclosures examples<\/a><\/p>\n

<\/a>Negotiation<\/h2>\n

When bids are made on the basis of
\nThe Danish Act on Tender Procedures<\/a> (Tilbudsloven)\u00a0the client has the possibility of negotiating with the bidder as follows:<\/p>\n

    \n
  1. When the criteria is \u2019lowest bid\u2019 the client is only allowed to negotiate with the lowest bidder.<\/li>\n
  2. When the criteria is \u2019the most economical advantageous\u2019 the client is allowed to negotiate with the top three best bids<\/li>\n<\/ol>\n

    Reference is made to
    \n
    \nThe Danish Act on Tender Procedures<\/a> (Tilbudsloven)\u00a0sections 10 and\u00a011 concerning the right to negotiate and negotiation\u00a0procedures.<\/p>\n

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    <\/a>Cost saving measures<\/h2>\n

    It is not unusual that the client asks the lowest bidding main contractor to present cost saving measures.
    \nThe main contractor and his sub-contractors\u00a0and suppliers will jointly analyze the bid\u00a0and elaborate a \u2019cost saving catalogue\u2019 and identify consequences of proposed savings.
    \nSubsequently, the cost savings catalogue will be presented to the client and his consultants in a meeting where they will discuss and take a position on the individual savings, and decide which savings they accept.
    \nOnce the savings are accepted, a final contract may be signed on the basis of the\u00a0reduced bid.<\/p>\n

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    <\/a>Savings catalogue<\/h2>\n

    In addition to the actual savings, the savings catalogue shall also clearly specify\u00a0what other consequences the savings may have in relation to the initial bid, for example: Life expectancy, wearability, operational expenditure, the look (samples), delivery time, reservations, changes in the time schedule, new working methods etc.
    \nAdditional conditions may apply.<\/p>\n

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    <\/a>Contract legislation<\/h2>\n

    In accordance with\u00a0 AB92 <\/a><\/u>section 6 \/ AB 18 \u00a7 9\u00a0 the contractor shall provide security for the performance of his obligations towards the client. The bond provided shall correspond to 15% of the contract sum. The security will be reduced re to AB 92 \u00a7 6 \/ AB 18 \u00a7 9. Please notice that the reduction of the security according to AB 18 goes from the contract sum including possible extra work \/ excluding possible minor work. Re AB 18 \u00a7 9 subsection 3.<\/p>\n

    In accordance with AB92 section 7 \/ AB 18 \u00a7 10 the client shall – if the contractor so requires, – provide\u00a0 a performance bond for the due performance of his pecuniary obligations towards the contractor.<\/p>\n

    Public clients and \u2013 re AB 18 \u2013 also Housing associations do not have to provide a security.<\/p>\n

    The contractor is entitled to demand an increased performance bond in case additional works are added to the contract (AB 92 \u00a7 14 \/ AB 18 \u00a7 23) and in case the the total remuneration for all additional works \u2013 apart from those already paid for \u2013 exceeds 50% of one month average as agreed in the initial contract.<\/p>\n

    The contract specifies penalties for delays re stated in the tender material<\/p>\n

    In cases where the contract states that the contract sum shall be adjusted in accordance with index changes, such adjustments shall be made in accordance with AB92 <\/a><\/u>section 22, subs. 6 \/ AB 18 \u00a7\u00a7 34 and 35 and the relevant index must be stated. See indexation figures at\u00a0 \u00a0Dansk statistik <\/a><\/u>(Denmark\u2019s Statistics).<\/p>\n

    If the contractor fails to submit the final account to the client within a defined period of time, he shall forfeit his right (i.e. he looses his right) to claim payment as reimbursement for wage and price increases \u2013 cf. \u00a0AB92 <\/a><\/u>section 22, subs. 8 and 9 \/ AB 18 \u00a7 36 subsection 7.<\/p>\n

    Once the main contractor has entered a contract with the client he may subsequently enter contracts with\u00a0his sub-contractors and accept bids from suppliers. Contract conditions will be based upon the tender documents that the main contractor has submitted to his sub-contractor as well as the sub-contractor’s bid and the result of negotiations.<\/p>\n

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    <\/a>Insurances<\/h2>\n

    AB92 <\/a><\/u>section 8 \/ AB 18 \u00a7 11 states that the client shall take out and pay for the usual fire and tempest insurance. In this context it is important that the contractor is included in the insurance policy. In AB 92 the contractor has to ask for it \u2013 in AB 18 the client has to include the contractor in the insurance. In doing so, the contractor will be able to claim the insurance company directly in case of damage.<\/p>\n

    This clause is included in the standard reservations prepared by The Danish Construction Association\u00a0 (Dansk Byggeri) and when the contractor uses these reservations, he will be covered automatically.<\/p>\n

    According to AB 18 the client has to cover the own risk \u2013 in AB 92 it is normally the Contractor has to cover the\u00a0 own risk.<\/p>\n

    It is the sole responsibility of the contractor to take out an insurance covering accidental damages such as theft and wanton destruction.\u00a0 \u00a0In case the tender documents mention that\u00a0 the client has taken out an \u2019all-risk\u2019 insurance the contractor will be covered by this insurance<\/p>\n

    According to AB 18 the contractor has to take out an insurance covering product liability.<\/p>\n

    insurance<\/p>\n

    Top of page<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    Negotiation Cost saving measures Savings catalogue Contract legislation Insurances Enclosures examples Negotiation When bids are made on the basis of The Danish Act on Tender Procedures (Tilbudsloven)\u00a0the client has the possibility of negotiating with the bidder as follows: When the criteria is \u2019lowest bid\u2019 the client is only allowed to negotiate with the lowest bidder. … L\u00e6s videre Contracting<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"_links":{"self":[{"href":"https:\/\/bk-guide.dk\/en\/wp-json\/wp\/v2\/pages\/30"}],"collection":[{"href":"https:\/\/bk-guide.dk\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/bk-guide.dk\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/bk-guide.dk\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bk-guide.dk\/en\/wp-json\/wp\/v2\/comments?post=30"}],"version-history":[{"count":6,"href":"https:\/\/bk-guide.dk\/en\/wp-json\/wp\/v2\/pages\/30\/revisions"}],"predecessor-version":[{"id":169,"href":"https:\/\/bk-guide.dk\/en\/wp-json\/wp\/v2\/pages\/30\/revisions\/169"}],"wp:attachment":[{"href":"https:\/\/bk-guide.dk\/en\/wp-json\/wp\/v2\/media?parent=30"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}