A Practical Guide to Dutch Building Contracts

Transcription

1 A Practical Guide to Dutch Building Contracts

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3 A Practical Guide to Dutch Building Contracts M.A.B. Chao-Duivis A.Z.R. Koning A.M. Ubink 3 rd edition s-gravenhage

4 3 rd edtion ISBN NUR , Stichting Instituut voor Bouwrecht Alle rechten voorbehouden. Niets uit deze uitgave mag worden verveelvoudigd, opgeslagen in een geautomatiseerd gegevensbestand, of openbaar gemaakt, in enige vorm of op enige wijze, hetzij elektronisch, mechanisch, door fotokopieën, opnamen of enige andere manier, zonder voorafgaande schriftelijke toestemming van de uitgeverij. Voor zover het maken van kopieën uit deze uitgave is toegestaan op grond van artikel 16h tot en met 16m Auteurswet 1912 jo. het Besluit van 27 november 2002, Stb. 2002, 575, dient men de daarvoor wettelijk verschuldigde vergoedingen te voldoen aan de Stichting Reprorecht (Postbus 3060, 2130 KB Hoofddorp). Voor het overnemen van gedeelte(n) uit deze uitgave in bloemlezingen, readers en andere compilatiewerken dient men zich tot de Stichting Instituut voor Bouwrecht te wenden. No part of this book may be reproduced in any form, by print, photo print, microfilm or any other means without written permission from the publisher.

5 Foreword When registering for a technical education learning to design or to execute building activities, one does not realise that the law plays a great part in this. However this is the case. Parties will have to agree on how to shape their legal relationship. Does the employer want to be involved or not? Does the designer want to stick to his copyright or is he willing to transfer this (partly) to the employer? Does the contractor want to take care of part of the design works or not? Do the parties want to form a completely new (legal) entity (an alliance) to take care of all the activities needed for realising a new building or not? These are just a few questions needed to be answered in the same manner as so many questions of a technical and management nature need to be answered beforehand. It is important to realise that when non legally trained persons are better aware of these questions they will be able to decide themselves on the answers to these questions and they will be less dependent upon lawyers. The parties themselves will know better than anyone what the preferred answers are supposed to be. On top of that knowledge of the law will prevent conflicts. Therefore it is a good thing that this book written for students of technology and construction management is available. Aware of traps one is less likely to walk into them. As professor in Construction management I am particularly interested in building projects taking place without conflicts, I hope this book is instrumental in this. Prof. J.W.F. Wamelink Chairman Department Real Estate and Housing, Delft University of Technology v

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7 Table of Contents Foreword v 1. The Practice of Contracting 1 M.A.B. Chao-Duivis 1.1 Principles of Contract Law The contract Freedom of contract Binding force of agreements No prescribed form Requirements to be met by contracting parties Incapacity Disqualification Representation Requirements for the creation of a legally valid and inviolable contract Creation of a contract, pre-contractual negotiations General Terms and Conditions Rights in the event of non-fulfilment of an obligation Failure Default Notice of default Rescission Unforeseen circumstances Special agreements Building contract models The Contract with a Consultant (The New Rules 2011) 29 A.M. Ubink 2.1 Introduction Components of the contract The client s obligations The duty to cooperate Duty to warn Payment The consultant s obligations Acting as a good and careful contractor State of the art Legally practicable design Duty to inform and duty to warn Schedule 35 vii

8 Table of Contents Compulsory insurance The consultant s liability Liability criteria Limitations of liability Contract-specific matters Remuneration Power of representation Ownership and copyright End of the contract Termination Rescission The Building Contract (UAC 2012) 51 M.A.B. Chao-Duivis 3.1 Introduction Components of the contract The UAC 2012 and the building contract The specification The UAC 2012 and the specification: order of precedence The client s obligations Payment Responsibilities for design and execution Enabling execution to take place Supervision The contractor s obligations Execution of the works Duty to warn Final completion of the works on time Liability following final completion Defects liability period The contractor s liability following final completion Contract-specific subjects Additions and omissions Changes in the specification Quantities Unforeseen cost-increasing circumstances Building materials and supplies End of the contract The Design Team 83 A.Z.R. Koning 4.1 Introduction Contracts within the design team The coordination agreement 86 viii

9 Table of Contents Overview of contracts between the client and the various parties The contract with the architect/consulting engineer The contract with the co-designing contractor The client s role The design team contractor s role Duty to warn The design team members liabilities The design team contractor s liability Liability for advice and designs Limitation of liability Quotations, price negotiations and the contract for works Legally binding nature Agreement on price End of the contract Integrated Contracts (UAC-IC 2005) 99 A.Z.R. Koning 5.1 Introduction General Terms and Conditions Components of the contract The client s role Passive and active involvement on the part of the client The duty to cooperate Independent auxiliary persons Payment terms and penalties/bonuses Representation The client s liability under the UAC-IC The contractor s role Compliance with the requirements Duty to warn Representation Liability Liability for defects following completion Liability for damage Contract-specific matters Permits and licences, exemptions, decisions, authorisations and statutory requirements Soil conditions Variations Quality assurance Reimbursement of costs and extension Intellectual property rights End of the contract Suspension Rescission and termination 133 ix

10 Table of Contents 6. Procurement Law 135 M.A.B. Chao-Duivis 6.1 Introduction Sources of procurement law Contracting authorities Contracts that must be put out to tender Tendering procedures How a procedure works Open procedure Restricted procedure Criteria The tenderer The tender Judicial protection 146 About the authors 149 Further reading 151 Website recommendations 153 Company Profiles 155 x

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