Which type of contract should you choose?
Construction work can be carried out under various types of contracts. Under a design-build contract, the contractor is responsible for the entire construction project, including technical consulting, whereas under a trade contractor arrangement, the client (the port) has engaged an independent technical consultant and has a direct contractual relationship with each individual trade contractor. Carrying out a construction project under a specialized subcontracting arrangement places greater demands on the client than under a turnkey contract, but, as a general rule, it will be more expensive to carry out a construction project under a turnkey contract than under a specialized subcontracting arrangement. There are various hybrid forms, including the general contractor model, where multiple trades are consolidated under a single contractor. It is not possible to provide a comprehensive overview of the various organizational forms of construction projects in a brief manner, nor is it possible to establish general criteria for determining which contracting model is the most suitable.
If you have any further questions, please feel free to contact:
Danish Ports Secretariat, emaildanskehavne@danskehavne.dk, phone +45 7211 8100,
Danish Ports’ legal hotline athavne@kirklarsen.dkor +45 7611 5411. Read morehere
