Statetic Contracting Under AB18

Abstract

This master thesis is about about the new general conditions for building and construction works, called AB18, and stands for “Almindelige betingelser for bygge- og anlægsbranchen”. The Danish construction law heavily relies on these conditions. The basis of this thesis is to analyze the contractual relationship, with a focus on obtaining relational rent in unforeseen situations through strategic contracting, where AB18 serves as the general condition for the agreement. The thesis conducts a comparative analysis of AB92 and AB18, with the objective of assessing the modifications made in order to prevent disputes and encourage cooperation, including the promotion of strategic contracting and its relational rent in the agreement. The analysis reveals that numerous changes have been implemented to foster cooperation. The thesis revealed that AB18 appears to be influenced by the economic principles of strategic contracting, while AB92 was built upon traditional contracting methods. The AB18 can reduce the transaction costs for the parties. The use of strategic contracting can improve the relationship between the parties and lead to the achievement of relational rents, which will ultimately be beneficial for the parties and prevent costs after contract is on. Furthermore, the thesis concluded that there is room for improvement in the AB18 rules.