Expert determination and decision on security provided (G-cases)

According to the standard agreements i branchen stille sikkerhed over for hinanden for henholdsvis entreprisesummens betaling og entreprisens udførelse.

Expert determination according to AB92

The Arbitration Board can, upon request from one of the parties, appoint one or more specialist experts to make a decision regarding the release of the provided guarantee. In cases initiated under AB 92, the expert may also decide on the complainant's claim regarding the legitimacy of withholding payments or the legitimacy of any set-off made. The Arbitration Board will generally accept if the parties have agreed that the rules should apply to other disputes.

The decisions are a provisional remedy and are not binding on the parties if the parties have agreed to AB 92. The decision cannot be invoked in a potential later arbitration case. However, the guarantor under a guarantee referring to a contract in accordance with the standard documents is obligated, according to the agreement, to pay the provided security in accordance with an expert decision.

Security for all expenses ensuing from such determination must be provided immediately, which also means that the Arbitration Board can initiate proceedings within a very few days unless procedural or other problems arise in the matter.

Based on the request received, the secretariat of the Arbitration Board determines whether all formal requirements are met, including compliance with the deadlines set out in the standard documents.

Decision on security provided according to AB18

AB18 still contains a provision for the appointment of an expert who, under these rules, can make decisions regarding the payment, reduction, and termination of the provided security. The complainant must initiate the case within 10 working days from the request for payment being received. If the complainant wishes an independent decision on set-off and withholding, a case for a fast decision must be initiated instead, according to AB18. 

The defendant may assert withholding and set-off as compensation in the payment claim as before, as it will still be up to the expert to assess the legitimacy.  

AB 18 and the Arbitration Board's rules for decisions regarding provided security in 2018 contain formal requirements that must be met in order to initiate and conduct a case regarding the decision on provided security at the Arbitration Board. It is the Arbitration Board that ensures and decides whether all formal requirements are complied with. If the case has been transferred to the expert's handling, the expert will address such formal objections in consultation with the Arbitration Board.  

A decision regarding provided security initiated under AB 18 has binding effect for the parties involved, similar to an arbitral award. The decision can be brought before arbitration within 8 weeks, at which point an arbitration tribunal will make a final ruling on the dispute. If the decision is not brought before arbitration, it will be considered final.

Rules

The standard agreements in this field include AB92, AB18, ABT93 and AB Consumer. The Arbitration Board has adopted its own rules on expert decision-making procedures in the field of building and construction. Cases brought before the Arbitration Board under AB92, ABT93 and AB Consumer will be processed in accordance with the Rules on expert determination concerning security provided, etc, at the Danish Building and Construction Arbitration Board, while cases brought before the Board in pursuance of AB18 and ABT18 will be processed in accordance with the 2018 Rules on security provided.

Internal guidelines exist within the secretariat regarding who may serve as an expert within the framework of the Arbitration Board and for appointments in specific cases, as outlined below.

The cases are filed as G-cases at the Arbitration Board.