NETHERLANDS Law and Practice Contributed by: Coco van Zuiden, Marijn Bodelier, Sabine Schoute and Simone Wijngaard, Greenberg Traurig, LLP
7.2 Assigning Responsibility for the Design and Construction of a Project Parties are free to assign the responsibility for the design and construction of a project. Gen - erally, the contractor bears the risk of the work until the moment of delivery. Several contract formats/general terms exist in the Netherlands, including the so-called UAV and UAV-GC. The latter relates to integrated contract structures. Other variations are build - ing team structures and co-design structures. The applicability of the use of a specific type of structure depends on the complexity of the project and the risk profile of the developer. It is common in the Netherlands to involve the contractor in the design process as well, in which case the contractor takes partial respon - sibility for the design and in turn has a preferred position to pitch for the contracting work. It is worth noting that parties can take out insur - ance to mitigate the risks relating to the respon - sibility for design and construction. 7.3 Management of Construction Risk Parties usually manage the construction risk on a project by agreeing upon indemnifications, representations and warranties, securities, insur - ances as well as limitations of liability. 7.4 Management of Schedule-Related Risk To manage schedule-related risk, parties often agree upon a specific payment schedule (by means of which the payment is related to the status of the works) and a penalty clause for late performance/delivery (which penalties can replace the actual damages incurred).
If the lessor gives notice and the lessee does not agree to the termination, the lease will continue unless and until it is terminated by the compe - tent court. 6.20 Registration Requirements Leases are not registered in the Netherlands. 6.21 Forced Eviction Where the lessee is in breach of its obligations under the lease (eg, non-payment of the rent for at least three months), the lessor may dissolve a lease prematurely, resulting in a forced eviction. 6.22 Termination by a Third Party Termination can be effected by the parties to the agreement and, in the bankruptcy of the lessee, by a bankruptcy trustee. 6.23 Remedies/Damages for Breach In the event of a tenant breach and termination of a lease, there are no statutory limitations on damages that a landlord may collect or remedies the landlord may pursue outside of charging remaining rent and evicting the tenant. In case of damages, a landlord can invoke the guarantee that is provided by the tenant (often a bank guarantee or deposit). 7. Construction 7.1 Common Structures Used to Price Construction Projects Parties can make various agreements on which payment(s) can be based, but construction con - tracts are generally concluded based on a fixed price.
746 CHAMBERS.COM
Powered by FlippingBook