New guidelines and changes within construction law in 2024

New standard contract subject to consultation

The work of revising AB 04 and ABT 06 has been under way since 2016 and has now resulted in referral versions of AB 25 and ABPU 25. The new agreements are expected to be published in summer 2025 and the seminar addressed issues including:

• Major structural changes, new provisions and risk transfers that are included compared with previous standard agreements.

• Incorporation of case law from the Supreme Court in relation to professionalism, remedial action and price reductions.

• The purchaser's right to complain about work carried out and to demand action during the contract period, the purchaser's inspection options as well as opportunities to prematurely terminate a construction contract.

• The terms ÄTA (alteration and additional works), Equivalent ÄTA work and Obstacles are replaced by Amendment of contract and Deviating circumstances, as well as associated provisions on adjustment of contract period and right to additional compensation.

• The term turnkey contract will disappear and be replaced (completely or partially) by the term design and construction contract.

New provisions from the Swedish Work Environment Authority

The Swedish Work Environment Authority has published new provisions, which enter into force on 1 January 2025. Within construction and installation projects, AFS 2023:3, which replaces AFS 1999:3, is of greatest interest. Besides clarifying and structuring the division of responsibility, which was the main purpose of the overall revision, AFS 2023:3 contains new rules which clarify responsibilities and tasks, above all in the early stages of the construction process. The changes may require updates to existing templates.

Price increases and the contractor's burden of proof

A judgement from Jönköping District Court (case T 3033-23) has clarified the contractor's obligation to initially confirm the cost changes that are sought in cases concerning right to adjustment of agreed price according to AB 04 and ABT 06 chapter 6 section 3. Without detailed calculations and data, there is a risk that demands for price adjustment are dismissed without assessment of the unpredictability- and materiality criterion.

The rulings in the district court are not indicative, and the relevant judgements have been appealed to Göta Court of Appeal, we will therefore no doubt have reason to return to the issue in the future.

Judgements regarding ÄTA-works and duty of care

A judgement from Svea Court of Appeal (case T 14555-22) clarifies that contractors must notify the purchaser in writing regarding time impact in connection with ÄTA-works in order to justify the right to claim a time extension, and also that the burden of proof for fulfilling duty of care according to ABT 06 chapter 6, section 10 can be transferred to the contractor.

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