1. Introduction
NS 8417 Chapter I contains general provisions, and one has essentially the same provisions of NS 8415 Chapter I. NS 8416 does not have chapter divisions, but broadly speaking most of the provisions of this Standard are stated as well.
As previously pointed out, NS 8417 is most often used in projects as of today, which is why we take this standard as a starting point.
2. Overview of the rules
Below we have prepared a matrix showing which provisions are included in NS 8417 Chapter I, and where the corresponding provisions are found in NS 8415 and NS 8416.
3. Brief presentation
We have written our own articles on “Contract documents and rules of interpretation”, “Meetings” and if “Notifications and requirements”.
These are key topics that we often get asked questions about.
Topic “Contract documents and rules of interpretation” is not only of interest when the parties are to map out what is the correct delivery while building, taking over or in case of dispute.
Above all, it is important to know these rules when negotiating the contract. First of all, it is then that you lay the foundation for how clear and clear the contract appears. There are unclear contracts that lay the groundwork for dispute. Accordingly, one should know these rules, and apply them throughout the course of the contract.
“Meetings” is primarily about the most important meeting in a construction project, namely the construction meeting in execution centers and general contractor meetings in turnkey contracts.
“Notifications and requirements” is a very important topic and particularly in NS 8415 and NS 8417 contracts. In these standard contracts, the main rule is that claims are lost — precluded — if one does not notify in accordance with the provisions. Likewise, rights are lost if one does not respond in accordance with the rules when receiving notifications.
4. Briefly about cooperation and loyalty
In all contractual relations, there applies an unwritten rule and duty to cooperate loyally with one's contractual counterpart, or co-contractor.
It falls too far to tentatively describe situations that might illustrate this theme.
Most people will probably have a reasonably equal understanding of the core area of loyal conduct and what lies in the concept of cooperative duty. Similarly, most people will have the same opinion if someone acts in a way that is far outside the core of loyal behavior. One recognizes outright disloyal conduct.
Therefore, first of all, when something happens in the “gray zone” it can become difficult to distinguish.
It is enough in these situations one must hope that the provision on cooperation and loyalty in NS 8417 paragraph 3 and NS 8415 paragraph 5 can act motivating as a reminder to both parties. The main purpose of the provision is probably just this — to be a reminder and encouragement.
By contrast, it is not so easy to enshrine clear legal duties or rights in such a provision.
5. Briefly about collateral and insurance
Experience-wise, these two topics do not raise many challenges in practice.
There are, however, two situations that we want to mention in terms of security.
The parties are both obliged to provide collateral for their contractual obligations, cf. NS 8417 paragraphs 7.2 and 7.3.
It follows from NS 8417 paragraph 7.1, second paragraph, that neither party is obliged to provide anything until the counterparty has provided its security. This means that the subcontractor is not obliged to start his works until the general contractor has received the security, while the general contractor is not obliged to pay installments until the subcontractor has provided his security.
The same rules follow from NS 8415 paragraph 9.2, first paragraph and 9.3, first paragraph and NS 8416 paragraph 8.
Once the contract object has been handed over, the subcontractor's security shall be reduced from 10 to 3% during the complaint period. Note that the security is reduced to zero when three years have elapsed, even if the absolute complaint period is five years.
The 10% security applies even to the takeover business and is a security for defects and other claims the general contractor or general contractor invokes at the latest at the time of the takeover.
If the extent of defects and deficiencies detected up to and including the takeover transaction is too high, a general contractor or general contractor will normally notify the guarantor that it will not accept a 10 to 3% reduction of the guarantee. This is in order to have certainty about their counterclaims and possible remediation costs on their own behalf.
