Dutch Construction Contracts: views from abroad

Dutch Construction Contracts: views from abroad

Dutch Construction Contracts: views from abroad Editor prof. mr. dr. M.A.B. Chao-Duivis

With special thanks to: Ministry of the Interior and Kingdom Relations Ministry of Infrastructure and the Environment Ministry of Economic Affairs, Agriculture and Innovation ProRail CROW Cover design Rob Kluitenberg ISBN: 978-90-78066-50-7 NUR 820-823 2011, 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 art. 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.

Foreword v

Dutch Construction Contracts: views from abroad vi

Table of Contents Foreword v 1. Dutch Construction Contracts: views from abroad - Analysis of the answers Prof. mr. dr. M.A.B. Chao-Duivis 1. Introduction 1 2. Answers to the Questionnaire 2 2.1 Theme 1: precontractual duties to notify and to investigate 2 2.1.1 The question 2 2.1.2 The answers 3 2.1.3 The findings of the Conference 16 2.1.4 Analysis 16 2.1.5 Specific comparison with the Dutch conditions 19 2.2 Theme 2: Liability for defects not noticed by the client at the time of take-over 19 2.2.1 The question 19 2.2.2 Answers 20 2.2.3 The findings of the Conference 31 2.2.4 Analysis 32 2.2.5 Specific comparison with the Dutch conditions 33 2.3 Theme 3: Payment schedules 33 2.3.1 The question 33 2.3.2 Answers 34 2.3.3 The findings of the Conference 41 2.3.4 Analysis 42 2.4 Theme 4: Early termination by the client in the event of contractor s non-performance 42 2.4.1 The question 42 2.4.2 The findings of the Conference 54 2.4.3 Analysis 54 2.5 Theme 5: Public law risks (permits, change in legislation, etc.) 55 2.5.1 The question 55 2.5.2 The answers 56 2.5.3 The findings of the Conference 64 2.5.4 Analysis 65 vii

Dutch Construction Contracts: views from abroad 2.5.5 Recommendation 65 2.6 Theme 6: Subsoil conditions 65 2.6.1 The question 65 2.6.2 The answers 66 2.6.3 The findings of the Conference 74 2.6.4 Analysis 74 2.7 Theme 7. Extent of the liability, liability to third parties 74 2.7.1 The question 74 2.7.2 The answers 75 2.7.3 The findings of the Conference 84 2.7.4 Analysis 84 2.8 Theme 8: Defects liability in relationship to the client s requirements ( fit for purpose ) 84 2.8.1 The question 84 2.8.2 The answers 85 2.8.3 The findings of the Conference 99 2.8.4 Analysis 100 2.8.5 Specific comparison with the Dutch conditions 100 2.9 Theme 9: Quality assurance, testing, duty to notify 100 2.9.1 The question 100 2.9.2 The answers 101 2.10 Theme 10: Settlement of disputes 111 2.10.1 The question 111 2.10.2 The answers 111 2.10.3 The findings of the Conference 120 2.10.4 Analysis 121 2.11 Risk allocation: highway A90 121 2.11.1 The question 121 2.11.2 The answers 123 2.11.3 Findings of the Conference 130 2.11.4 Analysis 130 3. Received general remarks 130 4. Concluding remarks 132 2. Dutch PPP-policy - Design Build Finance Maintain & Operatecontracts in the Netherlands Mr. dr. M.B. Nijhof 1. Introduction 133 2. Integration, the most important rationale behind DBFM(O) 134 3. Examples 136 4. DBFM(O), too good to be true? 136 5. New developments 137 viii

Table of Contents 3. DBFM and infrastructure - General policy and practical issues Mr. O.J. Wassenaar 1. Introduction 139 2. What is Rijkswaterstaat? 139 3. History of a mind-set-evolution at Rijkswaterstaat 140 4. Why Rijkswaterstaat uses PPP and DBFM-contracts 141 4.1 What advantages does PPP offer for Rijkswaterstaat? 141 4.2 Main Characteristics of a DBFM-contract in infrastructure 141 5. Added value assessment 142 5.1 Market Scan 142 5.2 Public Private Comparator 142 5.3 Public Sector Comparator 142 6. Scoping the Dutch Infrastructure DBFM-contracts 143 6.1 Activities provided by the contractor 143 6.2 Implementing DBFM in an infrastructure network 143 7. Payment for services 144 8. Maintaining the existing infrastructure 145 8.1 Introduction 145 8.2 Consequences for the payment mechanism 145 8.3 Information 146 9. The stakeholder as an important factor 147 9.1 Introduction 147 9.2 Getting to know your stakeholders 147 9.3 Consequences of expropriation 147 9.4 Changing infrastructure of other authorities 148 10. The mechanism of risk allocation 148 10.1 Principle of Risk allocation 148 10.2 The listed risks procedure 149 11. The success of the DBFM-approach, projects at hand and projects to come 151 4. Model DBFMO Agreement on Housing Mr. M. van Rhijn 1. Introduction 155 2. The Government Buildings Agency 155 3. DBFMO at the Government Buildings Agency 156 3.1 History 156 3.2 Advantages for the Government Buildings Agency 156 4. The model agreement on housing 157 ix

Dutch Construction Contracts: views from abroad 5. Housing related issues 157 5.1 Design and development 158 5.2 Availability 158 5.3 Services 159 5.4 Quality assurance 160 5.5 Stakeholders and risk-allocation 161 5.5.1 Land-use 161 5.5.2 The Government Buildings Agency s clients 162 6. Conclusion 162 5. De rijksbrede model DBFM(O) overeenkomst: de eerste ervaringen Mr. J.G.J Janssen, mr. D.C. Orobio de Castro en mr. I. de Groot 1. Inleiding 163 2. DBFM(O); projectopzet en publieke drijfveren 164 3. Principes DBFM(O) 165 3.1 Levering van een dienst 165 3.2 Output based 166 3.3 Life cycle based 166 3.4 Risico allocatie 166 3.5 Financiering 166 3.6 Value for Money 167 4. Rijksbrede model DBFM(O) overeenkomst, infra structuurmodule 167 5. Enkele kanttekeningen bij de Modelovereenkomst 171 5.1 Kritieke Vertraging 172 5.2 Standaard risicoverdeling 173 5.3 Afhankelijkheid van andere overheden/derden 173 5.4 Bestaande infrastructuur 174 5.5 Relevante wetswijzigingen 175 5.6 Beschikbaarheid versus oplevering 175 5.7 Lijstrisico s 176 6. Conclusie 177 6. PPS-light: voordelen van DBFM(O) ook haalbaar voor kleine(re) projecten? Mr. ir. M.B. Klijn 1. Inleiding 179 2. Hoe werkt een normaal DBFM(O)-contract? 181 x

Table of Contents 3. DBFM(O)-light 183 3.1 Gegarandeerde vergoeding 183 3.2 Aanvullende garantie 184 3.3 Eigendomsoverdracht 184 3.4 Exit-risico 186 3.5 Variant Eelde 186 4. Contractmodel 187 4.1 Het rijksmodel DBFM(O) 187 4.2 Modulaire opbouw 188 4.3 Huur 189 4.4 Samenwerkingsstructuur 191 5. Tot slot 191 7. Findings/slides 1. Precontractual duties to notify and to investigate 193 2. Liability for Defects Not Noticed by the Client at Time of Take-Over 193 3. Payment schedules 193 4. Early Termination 193 5. Public law risks 194 6. Subsoil conditions 194 7. Extent of the Liability, Liability to Third Parties 194 8. Fit for Purpose 194 9. Quality Assurance 195 10. Dispute Resolution 195 11. The Proof of the Pudding 195 xi