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Standard conditions in the construction industry

Marco Guit
Marco Guit
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General conditions play an important role in the construction sector. Within the industry, a number of standard conditions have been formulated that can be applied to building contracts. For a contractor, it can be advantageous to use a set of these standard conditions, for example to establish clear agreements regarding payments or delivery.

This page explains the most commonly used standard conditions. It provides guidance for contractors to assess whether a set of these standard conditions might be suitable for them. Always consult a solicitor to determine whether certain standard conditions can be used.

UAV

The UAV are Uniform Administrative Conditions for the execution of works and technical installations. They were drafted by representatives from the construction sector and the government and regulate the contractual relationships between the client and the contractor. The UAV are the most commonly used standard conditions for a traditional construction contract involving project management.

The UAV assume a strict division of responsibilities: the client is responsible for the design and instructions, while the contractor is responsible for the execution. Disputes are resolved by the Arbitration Board for the Construction Industry. The provisions in the UAV can be deviated from, which happens regularly, for instance in the specifications. However, the deviations must be explicit.

The most recent version is from 2012 (UAV 2012), but the older version from 1989 (UAV 1989) is still frequently used.

UAV-CG 2005

The UAV-GC (integrated contracts) were specifically developed for integrated construction contracts where the client has a more directive role and the contractor is responsible for the outcome. The UAV-GC cover a broader part of the construction process, including the initiative, design, execution and long-term maintenance. A revision of the UAV-GC 2005 – the UAV-GC 2020 – is currently underway but has not yet been officially published.

Difference between UAV and UAV-GC

The main difference with the UAV is that under the UAV-GC, responsibility for the design lies with the contractor. There is also much more flexibility for a different allocation of risks between the client and the contractor, depending on the nature of the agreement to which these conditions apply. Furthermore, the UAV only apply to the execution phase, whereas the UAV-GC cover the entire process (including design).

UAV 2012

The UAV were revised in 2012 to better align with the Dutch Civil Code (BW). In addition, environmental and safety provisions were tightened, the distinction between subcontractors and suppliers was removed and the duty to warn regarding additional work was brought in line with the Civil Code provisions.

A working group has also been established to revise the UAV 2012, partly due to the introduction of the Building Quality Assurance Act. Although there is a revised version, the ‘old’ UAV 1989 are still regularly used. A significant difference is that the previously separate UAVTI (technical installations) were integrated into the UAV 2012. In the UAV 1989, these are separate and can thus be agreed upon separately.

AVA 2013

The General Conditions for Building Contracts (AVA) were drafted by Bouwend Nederland. In 2013, a new version came into effect, replacing the old AVA 1992. The AVA are intended for smaller (simple) works where no project management is involved.

Like the UAV, the AVA regulate the relationship between the client and the contractor. However, the UAV are primarily suitable if the client does engage in project management and the resulting separate tasks (and responsibilities).

AVA Commercial 2023

In 2023, the AVA were divided into the AVA Commercial 2023 and the AVA Consumer 2023. Naturally, the provisions relating to consumers were removed from the AVA Commercial 2023. One of the key additions in the AVA Commercial 2023 is the distinction between gross and net provisional sums. For net provisional sums, a contractor’s fee (margin) of 10% is calculated. In addition, liability for indirect damages is capped at 10% of the contract sum.

AVA Consumer 2023

This version aims to provide greater consumer protection, partly due to the introduction of the Building Quality Assurance Act. Among other things, the contractor’s duty to warn has been tightened and the contractor must demonstrate that a defect is not attributable to them in the case of hidden defects.

SWK and Woningborg

For the construction of single-family homes, a model purchase-construction agreement from the Stichting Waarborgfonds Koopwoningen (SWK, Home Warranty Fund Foundation) or Woningborg is frequently used. In such cases, the general conditions of SWK or Woningborg also apply.

Both SWK and Woningborg issue warranty certificates to buyers of homes from affiliated businesses (contractors). By obtaining the warranty certificate, buyers are protected against the risks associated with purchasing a newly built home. SWK and Woningborg provide buyers with both insolvency and repair guarantees.

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