INTRODUCTION

This paper is mainly concerned with the institutional framework of the Danish construction industry, describing structures, rules and actors’ roles within a perspective of nationally defined procedural guidelines on construction projects. In the following these aspects are treated under the concept of a "contracting system". Like in most northern European countries several basic features of the Danish system carry evident traces of Anglo-Saxon and Anglo-American provenance. However such, mostly formal, reminiscences of international influence, are in no way adequate indicators of the nature and functioning of the construction process. At least two other types of general mechanisms could be indicated as having been shaping more profoundly the practice of construction: firstly on a Scandinavian level, the effects of the social-democratic society model, which is known to represent tight bonds between state actors and industrial parties as well as highly regulated labour market relations. Secondly, a particular national cultural phenomenon, the characteristic anti-centralistic behavioural attitude, which in specific contexts clearly allows autonomy to micro actors in the construction process. Rather than intending to present an analysis of the exact mix of influential currents in the Danish contracting system this paper goes into details with facts and procedures on the specific level. This hopefully provides basis for an understanding of crucial elements and coherences of the system. Initially in the paper is given a short introduction to the structure and activities of the Danish construction industry. Hereafter the post-war development of the industry is reviewed, in particular emphasising the importance of the early industrialisation process, which in an international perspective represents quite unique features. At the end of this section is indicated the most recent development trends in the industry. A third section of the paper describes the contemporary external, regulative framework of construction projects. In the two final sections the construction process is decomposed with regard to 1) phases and activities and 2) procurement forms, actors and functions. The content of the paper will primarily focus on the public and private provision of new and renovated homes and on the private procurement of buildings. This market perspective must be considered in distinction to larger public works in the field of civil engineering. Nevertheless, and for obvious reasons, there is a strong relation between these two segments of the construction market in Denmark, since the main actors most commonly work in both areas. Consequently much of the information given throughout the following chapters also applies to the civil engineering sector. The construction industry is a very complex sector consisting of a large number of actors related in many ways formally and informally. The main parties of the construction industry are normally defined as architects, engineers, contractors and suppliers. Their position in the value chain can be illustrated in the manner shown in figure 1. Figure 1 The Value Chain in Construction