The two main AFNOR norms used for private construction works are: NF P for private works; and. NF P for civil engineering. 1st issue P. © NF EN – Boutique AFNOR pour: C&D le 15/3/ NF EN (classification index: A ). In France the Norme AFNOR NF P is a popular standard. Warranty periods implied by law include the “responsabilite decennale” for
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Construction and afonr in France: Overview of the construction and projects sector 1. What are the main trends in the local construction and projects market? What are the most significant deals? Main trends Following several years of crisis, has been marked by a recovery in the French construction sector, including a 5.
This situation is likely to continue into the coming months, following a Meanwhile, public procurement has achieved a strong growth of Since the Grenelle de l’Environnementwhich is an environmental reform process launched inFrance has been committed to fighting global afbor and has passed several laws to regulate a potential project’s effects on the environment see Question The French Government has undertaken extensive reforms in and on contract law and public procurements that will affect certain aspects of the construction sector see Question These legal reforms should, in a context of historically low interest rates, help sustain construction activity in France in the coming year.
Major projects Recent significant projects include the following, which were all closed as limited recourse financing public-private partnerships:. This complex now hosts the new offices of the French Ministry of Defence project cost: This high-speed rail line will connect the city of Rennes to Parisbringing the journey time between the two cities to less than an hour and a half project cost: The Tribunal de Grande Instance de Paris.
The future Paris law courts building will unite five facilities currently spread around Paris in a single location project cost: It became the fourth tallest skyscraper in France in and is located in Paris project cost: It is France’s third highest skyscraper and is located in the business district of Lyon project cost: This future 10,seat sports arena in Lyon will open in It will also consist of 2, square metres of shops and a venue for major events and concerts project cost: Which are the most common procurement arrangements if the main parties are local?
Are these arrangements different if some or all of the main parties are international contractors or consultants? Key parties involved in construction projects are:. The contractor also known fanor the builder or entrepreneur. The employer usually enters into a contract with the main contractor, who will then be responsible to the employer for building the project in accordance with the plans and specifications, and will subcontract specific works packages.
The supervision unit or technical control bureau. Subcontractors see Question Traditionally, the design phase is separate from the construction phase.
The employer selects and appoints the design team and the construction contractors separately. In the private construction sector, the most commonly used contract is the construction contract contrat d’entreprise. The parties can individually negotiate a contract.
However, when larger and higher-risk projects are at stake, the employer may require a tender process. The same applies to design and project management contracts; while they are generally entered into on a directly negotiated basis, they may sometimes follow a competitive process see Question To procure the construction of buildings, besides the traditional construction contract, the parties can use either:.
The arrangements will be the same, whether the parties are local or foreign. There is no specific restriction in the private construction sector, except for restrictions relating to non-EU architects see Question In the public sector, procurement arrangements include:.
Concession afnro contrats de concession. Public procurements exceeding EUR5. However, defence and security procurements must be carried out by EU anfor, unless authorised by the authority in charge on a case by case basis. What transaction structures and corporate vehicles are most commonly used in both local and international projects? Local projects Several structures are available to organise the relationships between contractors according to 03–001 complexity of the project, their objectives, level of responsibility and other factors.
Incorporated vehicles Incorporated structures mainly include:. Its objective is to allow companies to unite their efforts where they have common interests, while preserving their total independence. Its members are jointly and severally liable for its debts.
It is used by parties wishing to benefit from afnog simplicity and flexibility. The main feature of the SNC is the joint and several liability of its members for the project they undertake together.
Garantiinaya ekspluatatziaya ob’yekta
The SNC is best adapted to a small number of shareholders who know and trust each other. This is a form of limited liability company regulated in the Afmor Code Article L. Shareholders enjoy flexibility on how they organise their SAS. A shareholder’s liability is limited to its investment in the SAS.
Construction and projects in France: overview | Practical Law
Non-incorporated vehicles Non-incorporated structures include:. The GME is a private agreement concluded between companies that wish to collaborate on the performance of a contract, which they could not have pursued alone.
It has 30-001 legal personality and the contractual relationship between the parties exists only for the duration of the specific project. Depending on the arrangement chosen by the parties, three situations can occur:. Each member is only liable for its own scope of work. Therefore, cross-indemnities must be agreed among the members of the GME, for the indemnifying member to be able to claim against the member responsible for the indemnified damages see Question 5.
A SEP is a hidden company, whose existence is unknown to third parties except for the tax authorities. It is used by parties wishing to share the profits and losses of a project among themselves without incurring the joint and several liability of a general partnership.
As long as the SEP remains unknown by third parties, each partner is solely liable afnof its own scope of work. International projects Structures for international affnor are mostly the same as those available in local projects. Afnoor has the same characteristics as atnor GME.
How are projects financed? How do arrangements differ for major international projects? Projects are mainly financed from equity and debt through a single lender or multiple lenders. A limited number of large public private partnerships projects have also been financed through the issuance of project bonds.
The European Investment Bank can provide or back funding for certain projects. The Investment Plan for Europe, also known as the Juncker plan, which was launched at the end of with the 03-0001 of moblising at least EUR billion in private and public investment over three years to plays a role in supporting large investments in key areas such as infrastructure and renewable energy.
Security and contractual protections 5.
What forms of security and contractual protections do funders typically require to protect their investments? Security Depending on the nature of the development and the client, typical forms of security required by lenders include:.
Mortgages on buildings, generally used for private projects. Contractual Funders may require step-in rights clauses that will allow them to replace the contractor to perform the project when the contractor is in breach of its obligations. Mf forms of contracts 6. What standard forms of contracts are used for both local and international projects?
Which organisations publish them?
Local projects In France, civil construction contracts are usually bespoke contracts. However, some of those contracts are derived from standard forms that have been issued for both private and public works, such as:.
The main difference between the Red Book and the Yellow Book is that the Yellow Book includes design obligations intended to be borne by the contractor, while these obligations are borne by the employer in the Red Book.
The Silver Book also provides for design and build obligations for the contractor; afnlr, as it is a turnkey contract, the contractor accepts most of 03-0001 risks arising from the contract including unforeseen geological conditions in exchange for a higher fixed price than in the Yellow Book. A recent trend has been the developing use of collaborative contracts for example, joint contracts tribunal and new engineering contracts for international projects, as opposed to contracts relying on the apportionment of risks between the parties for mf, FIDIC.
Contractual issues Contractors’ risks. What risks are typically allocated to the contractor?
How are these risks offset or managed? The contractor typically bears the design and construction risks, as it is best placed to take these risks and mitigate them.
N of the works on the date foreseen in the contract. The liability of contractors is usually limited see Question 15except when the liability derives from public order ordre public rules see Question 8.
How can liability be excluded or restricted under local law?
NF P – December
Contractual liability Parties can include a clause in the contract limiting or excluding their liability to another party. This includes the right for the contractor to exclude its liability for indirect or consequential losses, including loss of business or profits. However, there are exceptions to this general principle of validity and these clauses would not be valid if:. A party is guilty of gross negligence faute lourde or wilful misconduct dol.
The contractual liability provided is insignificant, as a result of a too broad exclusion clause. A party is liable by reason of a law, which is a matter of public policy ordre public.
The French legal guarantee regime is one example of a matter of public policy, which cannot be contractually excluded. Nevertheless, parties can limit their decennial liability when performing a public contract that is, a contract with the state or a local authority. French administrative courts have ruled, for example, that a provision which reduces the warranty period from ten to five years is valid. Tortious liability Parties cannot limit or exclude their liability towards third parties arising out of tort.
Indeed, limitation and exclusion of liability clauses are only valid in contractual obligations under special conditions see above, Contractual liability. Do the parties usually agree to a cap on liability?