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Holst, Advokater Advokatpartnerselskab
T, +45 8934 0000
F, +45 8934 0001

info@holst-law.com

CVR: 35680470

Aarhus

Hans Broges Gade 2

DK-8000 Aarhus C

København

Indiavej 1

DK-2100 København Ø

Submission of reference bid for laundry services and tender for new laundry facility

In 2017, midtVask, which is Central Denmark Region’s own laundry facility, was to submit a reference bid in connection with the region’s tender for laundry services in the western part of Central Denmark Region.

Therefore, they approached Holst, and together with other external advisors, partner Svend Bjerregaard assisted the region with advice and guidance during the submission of the reference bid.

On the basis of the reference bid, the region decided to extend the scope of midtVask’s services, and later the region also decided to build a new laundry facility at AUH for the purpose of handling most of the region’s laundry in-house.

Early 2021, midtVask is in the process of inviting tenders for the supply of laundry machines according to the Competitive Dialogue procedure, and in that connection Svend Bjerregaard is assisting with tender strategy, preparation of contract and implementation of tender procedure.

Legal assistance for wide-ranging development of social housing area

During the period 2010-2020, Danish housing association “Boligforeningen Århus Omegn” carried out a successful refurbishment and transformation of its social housing unit, Rosenhøj, in the southern part of Aarhus (808 residences in total), which in 2017 won the prize for the best refurbishment of social housing in Denmark.

Following this, the housing association carried out a tender during 2019-2020 for the sale of adjacent land of about 22,000 m2 to a private investor who wanted to develop the land for private residences and a convenience store. In the same area, the housing association is now planning a mutual office building together with the Municipality of Aarhus, which is also to comprise a community house for the above said social housing unit, Rosenhøj.

As legal counsel to the housing association, partner Svend Bjerregaard is (and was) responsible for drawing up all necessary agreements, for instance construction contracts, purchase agreements, services agreements and cooperation agreements, and simultaneously contribute to the planning and implementation of strategy and the process of making the agreements.

Development project with more than 1,000 flats followed through right from the purchase of land until the properties were handed over

A former industrial area just outside Copenhagen has been transformed into an exciting new area hous-ing both private residents and businesses. The area now consists of more than 1,000 residences, retail-ing and other businesses. Holst, provided advice to the owner from the beginning until the end: Purchase of land, planning, property development, structuring of plots and buildings in corporate form, formation of homeowner’s and owners’ associations, advice on the matters pertaining to the construction and final sale of the completed properties.

The properties were sold primarily to foreign and Danish equity funds, and in August 2020, Holst, assist-ed during closing of one of the last projects – a turnkey housing project with about 70 houses and an underground parking facility.

Thue Hagenau who has in-depth experience with transactions relating to turnkey projects headed the transaction.

Convincing victory in a major arbitration case of general public importance

Only with very few exceptions, a party in arbitration succeeds in all issues pertaining to a case. Nev-ertheless, this was the case when the award in a major arbitration case was delivered in June 2021 – despite the fact that a survey report provided by one of the experts actually pleaded for the oppo-site regarding one of the substantial claims.

Holst, represented an employer against whom action had been brought by the turnkey contractor who claimed payment of tens of millions of Danish kroner. The turnkey contractor claimed payment for a number of alleged extra works and claimed repayment of liquidated damages which the com-pany had been ordered to pay for a delay of 126 days, including compensation and remuneration.

This meant that the arbitration tribunal – chaired by a Supreme Court judge – was to decide on sev-eral complicated questions, including: How clear must tender documents be? How much attention to detail must a turnkey contractor have when reading the tender documents? Which duty of in-spection applies to the turnkey contractor when rectifications to existing buildings are made? Where is the line for unpredictable authority requirements to a turnkey contractor? Can a turnkey contractor apply for a dispensation from authority requirements without the employer’s consent?

The production of evidence, which was presented by attorneys Holger Schöer and Pernille Svit Westphal Riis convinced the arbitration tribunal that the turnkey contractor knew very little about the requirements for authorities’ processing. And also that the turnkey contractor during the pro-cess did not succeed in obtaining a timely and accurate overview, but instead got it bit by bit and too late.

On those grounds, the turnkey contractor’s claims for repayment of liquidated damages, extension of time, compensation and remuneration were dismissed. The arbitration tribunal also ascertained that all formalities pertaining to notification and demand for liquidated damages had been complied with, hence the turnkey contractor was ordered to pay liquidated damages for the delay of 126 days. In addition, the turnkey contractor must pay legal costs and costs for the arbitration tribunal amounting to DKK 1,850,000.

Naturally, the employer is satisfied with the award – and with Holst.

– We have been happy to have Holger and Pernille onboard during this unexpected storm. In no time they had analysed the very comprehensive case documents and subsequently outlined a clear course on how to proceed. They securely stuck to that course the whole way, and it did lead to a convincing victory in arbitration, says the employer’s CEO.

Negotiations regarding a turnkey contract for an international construction consortium

In 2020, passengers of the Copenhagen Metro could start using the new M4 metro line, “Nordhavnslinjen”, and thereby enjoy the more convenient access to the throbbing northern part of Copenhagen (“Nordhavnen”) and the fact that the new metro line was delivered on time.

A German construction consortium (Züblin and Hochtief) was behind the construction of the M4 metro line, and they were assisted by partner at Holst, Holger Schöer both before and during the project on digging and building the pipe for the metro line. Holger performed a risk assessment analysis on the contract, explained how Danish contracts and rules apply, and negotiated with Metroselskabet together with representatives of the consortium. After conclusion of contract, Holger provided continuous advice.

In other words, it was a case of providing advice pertaining to international construction law during a significant construction project, and during the process, the construction consortium benefitted from Holger’s German origin, meaning that he speaks German fluently, in addition to Danish and English.

As stated, the M4 metro line was put into service on time.