Getting It Right from the Start: Legal Guidance for Construction Projects

Property owners and housing cooperatives planning a construction project must carefully evaluate their choice of contractor, technical solutions, and contract terms.

Smaller clients are often at an informational disadvantage compared to contractors, and this imbalance frequently works to their detriment. A client who, for example, lacks knowledge of how delays or claims for additional work are handled may, in practice, lose important rights.

At the outset, many questions arise for a client: should the agreement be for a performance contract or a turnkey contract? Is it possible to enter into a simple agreement without involving AB 04 or ABT 06 – and what are the consequences? Can construction contracts even be made orally? Should you engage a general contractor or multiple contractors? What is the difference between a turnkey contract and a general contract? And a question many ask right now: how will the new ABPU 25 and AB 25 agreements actually work in practice?

Construction law quickly becomes complex. Without prior knowledge, it can be difficult to navigate the choices between contract types, procurement models, compensation structures, and various forms of risk allocation. It can also be challenging to safeguard one’s rights during the construction phase.

For any client, the goal is a completed and defect-free product delivered on time and at the agreed price. Careful preparation at the procurement stage often results in far less time and expense than trying to resolve issues once a dispute has already arisen.

This is why a client must always be aware of – and ideally influence – the contractual terms that will apply. The procurement stage is the optimal time to secure your project and avoid future disputes. While we at Engström & Hellman are of course ready to assist should a dispute arise, we would much rather help you minimize the risk of disputes altogether. By working with you from the start of the procurement process, we ensure that you have the right knowledge and an agreement that truly reflects your needs and expectations.