Public sector construction projects require a legal advisor with specialist insight and specialised experience.
Real Estate
As a much sought-after advisor to public authorities, we have accumulated vast knowledge of all aspects of municipal regulation in the construction sector.
We advise both public and private participants on the many legislative aspects of public and quasi-public construction projects – residential construction projects as well as renovation projects. By way of example, we advise clients on:
- Public procurement and the duty to invite tenders
- PPP projects
- Municipal mandate rules
- Project development
- Sale of property owned by the public sector
- Residents' associations and democracy
- Landlord and tenant law
- Side activities
Social housing
The social housing sector makes up more than 20% of residential housing in Denmark, thus representing a large share of the housing market. Generally speaking, there are three different types of social housing:
- Family housing
- Youth housing
- Senior housing, including sheltered housing
Common to all three housing types is the fact that the construction projects were subsidised by public funds. This means that the construction and management of such housing is subject to public law regulation.
The regulation of social housing is comprehensive, complex and constantly changing. As a result, there is a great need for updated knowledge of the rules and practical problems faced by market players on a daily basis.
This is where we come in. At DLA Piper, we advise housing organisations, municipalities and private players on all aspects of social housing. We advise on new social housing projects and conversion of existing housing into social housing.
For more information, please click on the relevant subjects below.
In connection with the construction of new social housing, we advise on the purchase of building sites and all legal aspects of project development such as:
- Legal due diligence
- Negotiation of transfer terms
- Drafting of all transfer documents
- Title and registration
- Cadastral changes
- Sale-and-lease-back contracts
We also handle the legal aspects of procurement of building and engineering works in connection with new construction projects, renovations, alterations and extensions.
Furthermore, our lawyers in this field have solid experience in drafting construction and consultancy contracts, and they can help clients adapt social housing to PPP projects.
In connection with the conversion of existing housing into social housing, we advise on the acquisition of properties and all legal aspects of project development.
In addition, we advise on value-adding property development, identifying the potential of the property within the framework of the law. We have in-depth insight into the rules governing subsidies for social housing and the rules governing side activities, which affect completion of the project planned for the specific property.
In close cooperation with our clients, we engage in dialogue with the various stakeholders involved such as surveyors, neighbours, utility companies, contractors and mortgagees with a view to providing an optimum overall solution.
For more information about our legal services concerning social housing, please click here.
Sale of real estate by public authorities
When public authorities sell real estate, they must observe special procurement rules. The process is intended to ensure that the public authority obtains the right price and does not grant unlawful state aid and that all interested parties are allowed to bid on the property on equal and transparent terms. The rules apply to both developed and non-developed sites.
Although by far the most transactions must take the form of a procurement process, there are exceptions where the public authority is permitted to bypass the procurement process and sell directly if the price is the market price, e.g. in connection with the sale of real estate to social housing organisations.
We can help plan the procurement procedure and process, which may include:
- Advertising the property
- Drafting procurement documents
- Consulting with real estate agents on pricing
- Drafting recommendations to the political system
- Involving the regional state administration in cases where an exemption is required for the transfer
For more information about our legal services concerning procurement, please click here.
We have vast experience of providing legal advice on public private partnerships of any kind (PPPs, PPCs and PPIs).
Advising public authorities
We advise public authorities on the design and planning of PPP strategies. This includes advice on the choice of partnership form, feasibility studies and drafting of procurement documents. We draft the contract documents and determine the allocation of duties. In addition, we map out and manage the risks involved in each case, to the extent possible. We also assist in exploring private finance options.
Advising contractors
We assist contractors in PPP projects, e.g. in connection with prequalification, risk identification, contract drafting and negotiations. We act as a commercial sparring partner, assessing the effects and making recommendations as to the handling of the project in relation to the existing commercial basis. We have vast experience of advising on financing, the drafting of loan and security documentation and the issuance of legal opinions in relation to PPPs.
Public private partnerships (PPPs)
A PPP is a contract between a public authority and a private company which is used for the provision of public services. It is a type of outsourcing contract, integrating in one single agreement the design, set-up and operation (and often also financing) of public services. Under a PPP contract, the parties are often bound for a long period of time, and a considerable part of the investments and risks are shared between the contracting authority and the private company (the PPP contractor).
For more information about the different types of public private partnerships, please click here.
At DLA Piper, we advise social housing organisations on all relevant aspects of landlord and tenant law such as:
- Lease agreements and rent determination
- Termination of lease for convenience or cause and vacation
- Eviction for failure to pay rent
- Non-compliance with house rules
- Failure to keep the premises in good repair
Furthermore, our specialists are all experienced in conflict management and dispute resolution in the social housing sector in addition to being experienced arbitration and litigation lawyers. We represent housing organisations, municipalities and private parties and have also represented a great number of clients before residents' complaints boards.
For more information about our expertise and legal services concerning dispute resolution, please click here.
Social housing organisations are permitted to engage in side activities to a limited extent. Side activities are activities which go beyond the core activities defined in the Social Housing Act. Side activities are limited by law to activities which are naturally associated with the housing units and their management or which are based on knowledge accumulated by the housing organisation in the course of its activities.
The purpose of limiting the permitted side activities is to safeguard important tax law interests, counter anti-competitive practices and protect tenants' funds.
The boundaries of the permitted side activities for housing organisations are not quite clear, despite the "positive list" which is laid down in the Executive Order on Side Activities. There are several pitfalls. When engaging in new activities, housing organisations should therefore be particularly alert to any compliance issues.
We have in-depth knowledge of the rules on side activities and have advised a great number of housing organisations on side activities and the rules on how to manage such activities, including the related municipal supervisory powers.
We can assist you in the planning of side activities, both during the project phase and during the operational phase, and we can participate in negotiations with the supervisory authority.
