1. Introduction

In NS 8415, NS 8416 and NS 8417, the general rule is that the subcontractor's works are first handed over when the main/general contractor hands over to the builder. When the works are handed over from the main contractor, there is a simultaneous takeover of the subcontractor's works.

This is an arrangement that makes a lot of sense since you then get a date to relate to that is common to everyone, for example when it comes to the complaint deadline and warranty period.

However, for subcontractors who complete their works long before the contract object is to be handed over to the builder, the scheme is a disadvantage. It is only upon handover that the risk of own work passes to the main/general contractor and the subcontractor gets the right to its final settlement claim to name two key conditions.

The committees that drew up the subcontracting standards have resolved this by drawing up rules on registration business. That said, there are probably not that many subcontractors who complete their works long before the time of the takeover. Presumably, these rules are most convenient for the ground contractor and contractors who are involved only up to and including the raw build. All subcontractors who enter the project to contribute after the raw construction has been completed will normally have work duties right up to the takeover.

2. Overview of the rules

The provisions on registration business are set out in the chapters on takeover in NS 8415 cpt 32, NS 8416 kpt 24 and NS 8417 kpt 37, respectively.

3. Registration business requirements

It follows from NS 8417 paragraph 36.1, second paragraph that the subcontractor may require registration business to be held.

The condition for making such a claim is that the subcontractor must complete its works before a takeover transaction has been agreed in the relationship between the general contractor and the builder.

In other words, it is the subcontractor who must demand that registration business be held.

The same rule follows from NS 8415 paragraph 32.2 and NS 8416 paragraph 24.2

It is not sufficient that the subcontractor completes his works earlier in fact. In the same way that a general contractor cannot claim a takeover before the agreed closing deadline, a subcontractor cannot require a registration business before the agreed completion. In other words, it must be agreed that the subcontractor shall complete its works at a time prior to the main/general contractor's final deadline vis-à-vis the builder.

4. Notice of registration business

The procedure for convening a registration transaction is, in principle, the same as for takeover transactions. It is the subcontractor who sends a summons to the main/general contractor with a reasonable deadline, and where the reasonable period is at least 14 days, cf. NS 8417 paragraph 37.6.1.

It may be worth noting that the standards do not contain rules on preparation for registration business. For example, the standards do not contain rules on test procedures, that subcontractors must submit test documentation, FDV or defect lists after their own final inspection, etc.

Since there is freedom of agreement, there is nothing in the way for the parties to agree different provisions, and often the main contractor will have drawn up special contract provisions as part of its tender or competitive basis. It is not uncommon for us to see provisions adopted that either set aside these rules on registration business altogether, or supplement them. If one supplements the rules, it is perhaps precisely at the point of preparation for registration business that it may be appropriate to have thought more thoroughly through what should be done at that stage.

5. Conducting registration business

The registration transaction itself is carried out according to the pattern of a takeover business, and a protocol is kept as on a takeover business.

We consider this to be so well known to everyone that we will not go into all the details here.

However, for the main/general contractor, it is very important to have all deficiencies noted, and then you have to set a deadline for remediation. That deadline should be set in such a way that one is reasonably sure that everything is completed well before the project enters the phase of closing the construction case with testing, sending test and FDV documentation to the builder, own completion inspection and then calling the builder to take over business.

It may also be useful to note that the main/general contractor may object to the subcontractor's works being completed. The assessment theme then becomes the same as for the builder's refusal to take over.

The starting point is, then, that the general contractor may refuse to consider the subcontractor's works as finished if the defects are of such a nature that they are not “minor” and are not as they, or a correction of them, would have “little practical significance”, cf. NS 8417 paragraph 37.3, second paragraph.

In NS 8415 paragraph 32.8 and NS 8416 paragraph 24.8, the discretionary theme for refusing takeover is formulated slightly differently, but there is no fundamental difference between the provisions. In these standards, the general contractor may refuse to take over if the deficiencies or a rectification thereof would impede the assumed use of the subcontractor's works for the general contractor.

This then becomes the topic of consideration if a main/general contractor considers objecting to the completion of the subcontractor's works at a registration shop.

6. Effects of completed registration business

Provided that the works are completed, the effects of completed registration business are far and away the same as when the works are taken over at a takeover shop.

The subcontractor gets the right to submit a claim for final settlement and the risk of the contract object passes to the main/general contractor. In addition, the main/general contractor gets the right to use the contract object, any day mulch ceases to run and the subcontractor's guarantee of 10% is reduced to 3%.

What, on the other hand, does not arise from effects is the obligation to keep the contract works insured, and so the deadline for complaints does not begin to run. These two effects only occur when the works have been handed over to the builder.