Heidi Melchiorsen
Advokat, LL.M./ Attorney-at-law, LL.M., Head of Large Projects and International Construction
The FIDIC conditions are relevant in major construction projects that contain a cross-border element.
If a Danish contractor wishes to submit a tender for a project abroad, the use of FIDIC can be the way forward.
And if a Danish client needs specialist expertise from a foreign contractor, a FIDIC contract will often be the right solution.
In an article, we provide an introduction to the provision and what is important to be aware of in relation to claim management in practice.
Labor shortages are nothing new. While there are variations across different industry segments, the overall shortage remains high, and Danish companies foresee labor shortages continuing until at least 2030. In particular, the Danish construction sector has been facing persistent labor shortages for the past few years.
Combined with the increase of large-scale projects in Denmark requiring substantial workforces, the number of foreign workers within the Danish construction sector has increased. It has recently been estimated that approximately every sixth worker is foreign. Simultaneously, the media has increased its focus on foreign workers in relation to social dumping and poor working environment.
But what should foreign contractors be particularly aware of when bringing foreign workers across borders into Denmark?
More often than not, contractors operating abroad will subcontract specific parts of the works. The reasons for this vary; the works in question may require expert knowledge limited to certain subcontractors, local subcontractors may be able to carry out some of the works at a low cost, etc.
While the employer and contractor may have similar interests in choosing subcontractors that will be able to carry out part of the works within the expected time, quality, and cost, we often see that contractors are contractually required to obtain the employer’s prior approval before engaging a subcontractor – or replacing a subcontractor.
Construction projects rarely go to plan. In fact, budgets and schedules overrunning on major construction projects is the rule rather than the exception.
Studies indicate that nine out of ten major projects either exceed their expected budget or run behind schedule.
What do you do to get a project back on track?
