1. Introduction

Normally, the closing phase will be included as separate activities in the contractor's progress plan.

We refer in this regard to NS 8407 point 21.2 “General Contractor's Progress Plan” where, in the second paragraph, it is stated that a progress plan “shall show all main activities (...) such as (...) testing, regulation, trial operation and takeover”.

The time of when the contractor starts up with these main activities is far from free to decide for himself, and often the start dates will be different for the individual building parts.

However, NS 8407 paragraph 36 and NS 8405 paragraph 32.2 contain certain minimum requirements that are set in order to safeguard the interests of the builder and the possibility of being able to check that everything is as it should before the takeover.

In addition, the parties may have entered into special terms governing this phase of their agreement, but we delineate against that.

2. Overview of the rules

Below we have taken a matrix showing the individual items that fall under the topic “Preparation for takeover”.

As can be seen from the matrix, there is a very big difference between what is included in NS 8407 versus NS 8405 and NS 8416. The explanation for this is, as mentioned earlier, that the general contractor has functional risks and responsibility for the detailed design. Therefore, several requirements are also imposed on the general contractor in NS 8407 contracts.

Accordingly, this article will be mostly about turnkey contracts and general contractor, which therefore become the designations we use.

3. Testing and adjustment of technical facilities

It follows from NS 8407, paragraph 36.1, first paragraph that a general contractor shall: “notify of control, testing, regulation (...) within a reasonable time prior to the activity”. The notification should be sent to the builder who shall have the right to participate.

The fact that the builder shall have the right to participate is also stated in the second paragraph where it is stated that the general contractor shall “in cooperation with the developer (...) initiate the technical facilities and installations and carry out inspections, testing, adjustment or the like until they function satisfactorily”.

We clarify that this is something other than commissioning and trial operation which is regulated by the provision of NS 8407 paragraph 38.2.

Trial operations are normally a much more extensive affair, assuming that the facilities were inspected, tested regulated and commissioned satisfactorily prior to the takeover. Then the plants are subjected to so-called trial operation and most often over a period of one year.

We consider the provision of the standard contracts on trial operation in a separate article.

Incidentally, it is noted that the parties will often have agreed supplementary provisions on how this phase is to be carried out. Technical installations and automation normally form a very central, and expensive, part of a general contractor's delivery. Such systems usually have to work in order for the builder to be able to take advantage of the contract work while it is often not so easy to control the delivery with the naked eye.

There are also standards and supervisors which regulate in quite detail how testing etc should be carried out to check that deliveries conform to functional requirements, see section 4.

4. Standards and Supervisor

There are two key standards that the parties should adhere to, namely NS 3935:2019 “ITB, engineering, execution and commissioning” and NS 6450:2015 “Commissioning and trial operation”. These are, as the abbreviation shows, published by Norsk Standard.

In addition, there is a tutor BA (2015) “Systematic Completion” published by the Construction Industry. From the preface the following is found:

“The construction industry has in recent years experienced a lower productivity development than other industries, and many construction projects are characterized by the fact that the technical systems/designed functions do not work properly when the building is finished”.

Often, the builder will have demanded that these standards and the supervisor be added to the general contractor for his execution of the contract works, etc.

Although there should be no reference specifically to these Standards and Guidelines in any of the Offer Grounds, nor written anything about them in the Agreement itself, one must presumably assume that these documents reflect established industry practice.

We refer in this regard to NS 8407 paragraph 14.5 “General norms” where it explicitly states that the subject-matter of the contract shall conform to “Norsk Standard and (...) generally accepted norms at the time of the offer”.

Our recommendation is therefore that the general contractor should set up his work so that the requirements of these reference documents are met. Then it will also be unequivocally documented that the technical systems work as agreed.

It says something similar about testing in NS 8405 is paragraph 32.2, second paragraph, while NS 8406 lacks such provisions.

5. Briefly about the main points regarding testing

First, you need to check and test that each individual system is working properly. This is what is called system testing, and it is only when these work that one can move on to the next level which is integrated testing.

Integrated tests are conducted to verify that systems that are supposed to work together actually do so. For integrated tests to be applicable, there must be a minimum of two systems that are supposed to work together, but often there will be more.

For example, testing fire safety systems will involve several stand-alone systems. This can be ¹⁾detection of smoke or heat, ⁽²⁾ opening of air vents in ceilings and doors on the ground plane, ⁽³⁾ closing fireproof doors in fire separators, ^4th) closing of smoke/fire dampers in ventilation ducts passing through fire walls, ⁵⁾notification of the fire department, etc.

If an integrated test shows that something is not working, the cause must be determined. Once the cause has been identified and corrected, a new integrated test must be carried out to verify that everything is working properly. Not infrequently a new (-e) error appears and then the procedure must be repeated.

Finally, a full-scale test is conducted. At this point, we perceive that parties in the industry may have somewhat different opinions about what is included in a full-scale test. Some believe that all systems should be able to function at the same time as in a normal operating situation, while others believe that full-scale testing applies only to systems that should ensure the safety of life, health and material values.

The parties should therefore have agreed in advance what is meant and expected by the individual forms of testing.

6. Submission of test documentation and deadlines for this

It follows from NS 8407 paragraph 36.1, last paragraph that the general contractor must hand over complete documentation for all facilities to function as agreed at the latest “three weeks prior to commencement of takeover business”.

That means all the tests must have been commenced and then completed well in advance before the takeover business can commence. We will assume that it normally takes a fair amount of time to carry out tests, troubleshoot and then rectify if something turns out not to work before retesting to check that everything is in order etc. After that, inspection documentation should be prepared which should then be submitted within three weeks before starting the takeover business.

In view of the fact that many tests also assume that the subject matter of the contract is incidentally, or substantially, completed, it appears reasonably clear that the requirements for testing etc require a high degree of completion generally long before one has arrived at the time of takeover.

7. Provision of FDV documentation

It follows from NS 8407 paragraph 36.2 that the general contractor must hand over complete FDV documentation to the builder no later than three weeks before the start of the takeover business.

That there is the same deadline as for test documentation is natural since the latter is included as part of the FDV documentation.

Filing FDV documentation is often a matter of dispute and many builders require the deadline to be day-mulched to be sure the deadline is met. Often, the deadline for submitting test documentation will also be covered by day mulch.

FDV documentation is critical because the operating organization needs it in order to properly operate the contract object after a takeover.

In addition, we often see that the amount of FDV documentation is so substantial that the builder needs time to review and verify that it is under contract.

Experience-wise, the contractor should start his collection and systematization of FDV documentation as early as possible during the construction period. In addition to the fact that FDV can be a separate point in the builders' meetings or in their own special meetings, one may find that the builder requires the general contractor to have a separate FDV coordinator.

It is not uncommon for the builder to have made his own demands on how the FDV documentation should be systematized. This is especially true for multiple-use builders who operate several buildings and therefore have their own management tools with which the FDV documentation must be coordinated.

If so, something will be said about this in the tender and competitive basis with special contractual provisions.

If nothing is specifically agreed upon, it follows from NS 8407 paragraph 36.2 that the documentation shall be “divided according to the building subtable or by any other appropriate means”.

By the way, there are two Norwegian Standards that deal with structuring etc of FDV documentation, namely NS 3456:2022 and NS 3451.

In addition, there are requirements for FDV in TEK 17, and there are provisions in SAK 10 that everyone with a right of responsibility in a project is obliged to provide FDV documentation.

Chapter 4 of the TEK Guide to TEK 17 states, inter alia, that “FDV documentation shall be available that provides sufficient information for the optimal operation of the building with technical installations”.

Although the supervisor of TEK 17 is not a law or regulation, it says something about how functional requirements in law and regulations can be resolved.

Since the standard contracts require a contractor to deliver the contract subject in accordance with law, cf. NS 8405 paragraph 12.1 and NS 8407 paragraph 14.4, a contractor should take into account that functional requirements are resolved in a way that is at least as good as the recommendations found in VTEK17.

8. Notice of Takeover Business

The last provision we will deal with in this article is NS 8407 paragraph 36.3 which applies “Notice of Takeover Business”.

It follows from the provision that the general contractor shall send a notice of takeover business “in reasonable time”. Furthermore, it is specified that a deadline of at least two weeks is “reasonable”. For this reason, it is normal to say that a notice of takeover business should be sent no later than two weeks before the takeover.

The length of the deadline is due to the builder's need to mobilize those who want to participate, and most often the builder wants to be represented by people with such technical expertise as the building or facility requires.

It is worth noting the provision in NS 8407 paragraph 36.3 last sentence that the general contractor shall “Tell me about the remaining works.”That his own works are “final speed” and “what shortcomings” which was noted on the faring.

Our recommendation to the general contractor is that he be open and clear about what remains and about what shortcomings have been noted. This builds trust.

A builder who receives such a list of unperformed works and/ or defects must, in turn, act matter-of-factly and properly. It will only seem acidifying if the builder anticipates that one will not take over a fortnight ahead of time. Instead, the builder should demonstrate to the general contractor that he has confidence that the works will be completed to such an extent that the takeover business is carried out as normal.

Everything becomes easier in a construction project when the parties act neatly, professionally and matter-of-factly to each other.