The construction industry is known for numerous disputes over responsibility, delays, and additional costs, especially in complex infrastructure projects like railway expansions, roads, bridges, and tunnels.
According to a survey by Dansk Industri, trust between clients and contractors is often low, which can create a strained working environment. With these new guidelines, the parties hope to change that trend and foster better cooperation.
– We should view a contract as a cooperation agreement, not a declaration of war, says Kurt Hansen, project coordinator at JORTON and a member of the working group behind the guidelines. The guidelines are based on the existing AB18 regulations but focus on clarifying the handling of extra work, delays, and claims management. AB18 is a comprehensive regulatory framework for construction work in Denmark, setting standard terms for contracts between clients and contractors.
Change log is central
The guidelines include several points designed to ensure clarity on documentation, deadlines, and payments related to extra work. A key feature is the creation of a change log, where all claims for extra work are recorded. The contractor must file claims in the log no later than 30 days after the work is completed, and Banedanmark must process the claim within 10 days. This structure aims to reduce delays that often occur in case handling.
The role of documentation is crucial, and the contractor must provide evidence of work hours, material usage, and the necessity of the work performed. Examples of good documentation include original invoices, weigh slips, and inspection notes. If the documentation is insufficient, the contractor risks delayed payment or rejection of the claim.
Benefits for both contractors and clients
Thomas Mollerup, CEO of Aarsleff Rail A/S and chairman of the railway contractors’ interest group, sees significant benefits in the new guidelines.
– The clear guidelines will free up time for production and improve morale on projects. This is something we need to attract and retain employees in the industry, he says.
The goal of the guidelines is not only to ensure efficient handling of extra work but also to strengthen cooperation and reduce the risk of prolonged conflicts that can cost both time and money.
Clearer processes means better collaboration
The guidelines are the result of a year-long collaboration, where the parties worked closely together to find solutions to challenging issues. Banedanmark’s head of construction, Jimmy Volke, emphasizes that it has been a process based on trust:
– Although we were far apart initially, we found common ground through dialogue, and we already have several new topics we’ll continue working on, he says.
The guidelines will be evaluated in 2025, but the expectation is that they will immediately ease the burdens on larger construction projects. By clarifying responsibilities and finances early on, the parties can avoid exhausting disputes, which will improve both project progress and the working environment on site.
Facts: How the change log works
- The contractor files a claim in the log no later than 30 days after the work is completed.
- Banedanmark must process the claim within 10 days.
- Work hours, material usage, and the necessity of the work must be thoroughly documented.
- A work note is a document where the parties describe the extra work carried out, including work hours, materials, and any disagreements. The work note is used as the basis for entering claims into Banedanmark’s change log.
Example
- During the project, the contractor discovers it is necessary to remove protected milestone markers along a route. After a dialogue with Banedanmark’s project management, the parties agree on a fixed price per marker, measure them, and store them in a depot. The agreement is entered into the change log, and the project can continue without further delays.
