Construction Contracts in Sweden vs the UK:What Contractors Need to Know

Swedish contracts should not be treated as translated versions of JCT or NEC. The terminology, responsibilities and commercial procedures are different, and contractors need to understand those differences before pricing or starting work.

The main contract forms in Sweden

In the UK, contractors commonly work under JCT, NEC or amended versions of these contracts.

A traditional JCT contract normally leaves the main design responsibility with the client. Under JCT Design and Build, the contractor takes responsibility for completing the design as well as carrying out the work. NEC contracts place greater emphasis on active programme management, early warnings and assessing changes as the project progresses.

The main Swedish forms are:

• AB 04 – the client is normally responsible for the design, while the contractor is responsible for carrying out the work.
• ABT 06 – the contractor is normally responsible for both the design and the completed work.

These are broad comparisons. AB 04 is not simply the Swedish version of a traditional JCT contract, and ABT 06 is not a direct equivalent of JCT Design and Build or NEC.

“Be mindful of this: Not only do contractors have the right to stop work if not paid, they can also charge for the downtime caused by them stopping work.”

Be clear about design responsibility

The first question should be simple: who is responsible for the design?

Under AB 04, the client generally carries the design responsibility. Under ABT 06, the contractor normally takes responsibility for both design and delivery, based on the performance requirements set by the client.

That headline answer is not enough. Steelwork contractors should also establish:

• Who designs the connections?
• Who checks existing structures and site dimensions?
• Who coordinates the BIM model?
• Who approves fabrication drawings?
• Who is responsible for incomplete or conflicting information?
• Does producing a detail create additional design responsibility?

These points need to be clear in the contract documents. Do not rely on assumptions based on how a similar UK contract would normally operate.

Variations, compensation events and ÄTA work

UK contractors may be familiar with JCT variations or NEC compensation events.

In Sweden, changes are commonly managed as ÄTA work. ÄTA covers changed work, additional work connected to the original scope and work removed from the contract.

Whatever term is used, the practical questions are the same:

• Who is allowed to instruct the change?
• Does the instruction need to be written?
• When must the contractor notify the client?
• How will the work be priced?
• Does the change affect the programme?
• What records are needed to support payment?

The biggest mistake is carrying out additional work first and trying to agree the commercial position later.

A conversation on site may solve the immediate operational problem, but it may not protect the contractor’s right to extra time or money. Record the instruction, explain the effect and send the notice through the process required by the contract.

“The most important thing here is making sure that the person who instructed the work to be carried out actually has the authority to do so. If they don’t have the authority within the contract, you run the risk of not being paid at all for it.”

Programme and delay

Both UK and Swedish contracts can provide extra time where delays are outside the contractor’s responsibility. However, entitlement will depend on the contract and whether the correct notice and records have been provided.

Typical steelwork delays include:

• Foundations or holding-down bolts not being ready
• Late approval of connection details
• Restricted crane access
• Other trades blocking the planned erection sequence
• Changes to drawings after fabrication has started
• Steel arriving before the site is ready

NEC contracts use early warnings and current programmes as active project-management tools. Under AB 04 and ABT 06, contractors may also be entitled to additional time where delay is caused by the client or other defined circumstances.

The practical rule is straightforward: raise delay risks early and record their effect on the work.

Payment works differently

In the UK, qualifying construction contracts are subject to statutory payment and adjudication rules. These include the right to refer disputes to adjudication, requirements governing payment notices and pay-less notices and – for work expected to last 45 days or more – a right to instalments, stage payments or other periodic payments.

Sweden does not have an equivalent construction-specific statutory payment-notice and adjudication regime. Payment is governed primarily by the agreed contract, any incorporated standard conditions and general Swedish law. Swedish statutory protections concerning payment periods and late-payment interest may also apply.

Before accepting the contract, confirm:

• When payment applications or invoices can be submitted
• What must happen before an invoice is considered valid
• What supporting evidence is required
• How ÄTA work will be valued and invoiced
• Whether retention, security, withholding or set-off applies
• When payment becomes due
• Whether an undisputed part must still be paid
• How payment disputes will be resolved

Do not assume that a UK-style payment application, payment notice or pay-less notice process will apply automatically.

When dealing with Swedish contracts, do not look only at whether the terms say 30 days. Check what starts those 30 days, who must approve the valuation, what supporting records are required and whether a disputed item can delay the entire invoice. The real cash cycle may be considerably longer than the stated payment period.

Records protect the commercial position

Commercial control starts when the issue appears – not when the claim is prepared.

Project records should capture:

• Instructions and decisions
• Drawing and model revisions
• Labour and supervision hours
• Deliveries, plant and equipment
• Areas available for work
• Access restrictions
• Delays and disruption
• Rework
• Progress photographs
• Programme changes

Strong records help the project team resolve issues while they are still manageable. Poor records turn straightforward changes into arguments.

Checklist for UK contractors working in Sweden

Before signing:

1. Confirm whether AB 04 or ABT 06 applies.
2. Read all project-specific amendments.
3. Establish which contract language takes priority.
4. Define the scope and design responsibility.
5. Check who can instruct additional work.
6. Understand the ÄTA notification and pricing process.
7. Review the programme and delay requirements.
8. Confirm the invoicing and payment procedure.
9. Check the agreed dispute process.
10. Adapt UK notices and templates to the Swedish contract.

The key difference

The main risk is running a Swedish project as though the UK process still applies.

Successful delivery depends on knowing who carries each risk, who can issue instructions, what must be notified and what evidence is needed to recover time and cost.

Please note that this guide provides general commercial information and is not a substitute for project-specific legal advice.