Contracting forms and implementation models

Stein Frederick Janzon

sfj@byggogprosjektjus.no

Within Norwegian, land-based contract law, we distinguish between two forms of construction, namely execution contract and turnkey contract. The fundamental difference between these two options is that the contractor designs in detail in addition to performing when having a turnkey contract. On the other hand, an execution centre does not include engineering as part of the contractor's area of responsibility or risk. At least this is the clear starting point.

The short version

We have two types of construction, namely execution center and turnkey contract

In the case of execution centers, it is the builder who designs and has functional risks, while the contractor will carry out what is designed.

In turnkey contracts, the builder has only designed functional requirements, while the general contractor must design and execute the solutions that ensure the fulfilment of the functional requirements.

The contractor bears the functional risk in the execution centers, while the latter is placed on the contractor in turnkey contracts

You can have one general contractor in charge of everything, or several equal general contractors in charge of each of their subjects

In execution centers, there is often a general contractor in charge of the construction trades, and several juxtaposed technical contractors. Alternatively, only one contractor responsible for all trades (general contractor).

Although the system is such that, for example, NS 8415 is intended to be used when the main contract is based on NS 8405, this is not a necessity.

For example, a general contractor in an NS 8407 contract with the builder may choose to use NS 8415 vis-à-vis a subcontractor. A general contractor with a NS 8406 contract may choose to use NS 8415 contracts vis-à-vis its subcontractors.

Independent contract reform, a contractor will always have an obligation to plan his works in such a way that statutory and agreed requirements are met. In this lies a form of engineering of work operations.