Application of Strategic Contracting and Realization of Rational Rent Based on AB18

Sabina Parisa Elshan

Student thesis: Master thesis


The focus of this master thesis in on the new Danish general conditions for building and construction works and supplies, AB18 and how relational rent can be created in such a dynamic contractual environment. These conditions play a dominant role in the Danish construction law. The foundation of this thesis is to carry out an analysis of the contractual relationship, where the focus is on how to gain relational rent in unexpected circumstances, through strategic contracting where AB18 is agreed to be the general condition of the agreement. The thesis starts with examining the new Danish general conditions, to qualify the main changes and the relational effects there might be. Next, an analysis of the Danish background law is tested for effects on the contractual relation. The results that is qualified by this analysis is showing that the relation is not fostering a continuance, why an economic frame had to be included to make an interdisciplinary analysis and gain knowledge about how to achieve relational rent. By conducting the interdisciplinary analysis, it can be concluded that creating relational rent in construction contracts can happen by relationship specify, that reflects a commitment, not only towards the contractor, but also towards the relationship itself. In addition, the use of proactive clauses through strategic contracting in construction contracts, can help to control the unexpected circumstances. Finally, these results reflect a contract approach that is not supported by AB18 or the Danish background law, which means that the contract must be adapted for relational rent to be created.

EducationsMSc in Commercial Law, (Graduate Programme) Final Thesis
Publication date2019
Number of pages80
SupervisorsKim Ƙstergaard