Construction—Denmark—Q&A guide

The following Construction practice note provides comprehensive and up to date legal information covering:

  • Construction—Denmark—Q&A guide
  • 1. If a foreign designer or contractor wanted to set up an operation to pursue the local market, what are the key concerns they should consider before taking such a step?
  • 2. Must foreign designers and contractors be licensed locally to work and, if so, what are the consequences of working without a licence?
  • 3. Do local laws provide any advantage to domestic contractors in competition with foreign contractors?
  • 4. What legal protections exist to ensure fair and open competition to secure contracts with public entities, and to prevent bid rigging or other anticompetitive behaviour?
  • 5. If a contractor has illegally obtained the award of a contract, for example by bribery, will the contract be enforceable? Are bribe-givers and bribe-takers prosecuted and, if so, what are the penalties they face? Are facilitation payments allowable under local law?
  • 6. Under local law, must employees of the project team members report suspicion or knowledge of bribery of government employees and, if so, what are the penalties for failure to report?
  • 7. Is the making of political contributions part of doing business? If so, are there laws that restrict the ability of contractors or design professionals to work for public agencies because of their financial support for political candidates or parties?
  • 8. Is a construction manager or other construction professional acting as a public entity’s representative or agent on a project (and its employees) subject to the same anti-corruption and compliance rules as government employees?
  • 9. Are there any other important legal issues that may present obstacles to a foreign contractor attempting to do business in your jurisdiction?
  • More...

Construction—Denmark—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to construction in Denmark published as part of the Lexology Getting the Deal Through series by Law Business Research (published: May 2021).

Authors: DLA Piper—Kristian Skovgaard Larsen; Lars Heiko Matzen

1. If a foreign designer or contractor wanted to set up an operation to pursue the local market, what are the key concerns they should consider before taking such a step?

The bureaucratic and legal hurdles faced by foreign contractors or designers wishing to set up an operation to pursue the local market are few. Denmark is considered to be among the world's best locations for doing business.

The primary concerns facing foreign contractors are more practical in nature. These include obtaining sufficient bonding capacity with a qualified surety, finding qualified domestic executives and labour, locating qualified legal counsel and becoming familiar with important legal considerations that affect contractors, and establishing relationships with local trade subcontractors.

Depending on the individual situation, a main concern would be Danish labour law. For instance, foreign contractors must register employees with workmen's insurance. Employees must be insured against industrial accidents and occupational illnesses.

A foreign contractor may conduct business through a joint venture or company or the contractor may set up a branch in Denmark. If the contractor wishes to incorporate and register a new firm in Denmark, it should obtain the Danish bank internet

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