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Brief description of the Danish regulations on liquidated damages

The General Conditions for Turnkey Contracts (“Almindelige Betingelser”), which is an agreed document normally used in the building and engineering industry, establish a standard for the employer to claim liquidated damages in case of construction delay.

In order to claim for liquidated damages, the employer merely has to establish that the work is delayed, and that proper notice has been given. The contractor must then prove that the delay is due to circumstances of which the contractor cannot be held responsible. As the claims liquidated for liquidated damages are calculated based on a permille of the contract sum with a limitation, the employer does not have to establish proof of loss.