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Understanding hävning enligt AB 04 och ABT 06, the right to terminate a construction contract, is critical for every party to a Swedish building project, particularly now that AB 25 and ABPU 25 are set to replace the legacy standard agreements that have governed the industry for over two decades. The new agreements introduce an explicit anticipatory-breach termination right while clarifying notice, cure and cancellation mechanics under a restructured Chapter 10. This guide provides the practical grounds, step-by-step procedures, comparison tables and compliance checklists that project owners, contractors and in-house counsel need to navigate termination in 2026 and beyond.
Sweden’s construction sector has relied on two principal standard-form agreements published by Föreningen BKK. AB 04 (Allmänna bestämmelser för byggnads-, anläggnings- och installationsentreprenader) governs traditional execution contracts (utförandeentreprenader), where the employer supplies the design documents and the contractor builds to specification. ABT 06 (Allmänna bestämmelser för totalentreprenader) applies to design-and-build contracts (totalentreprenader), where the contractor is responsible for both design and construction. Although the two agreements mirror each other structurally, the allocation of design risk means that the factual triggers for hävning can differ in practice.
In both AB 04 and ABT 06, the employer’s right to terminate is set out in Chapter 8, § 1, while the contractor’s corresponding right appears in Chapter 8, § 2. The provisions enumerate an exhaustive list of grounds, a point confirmed in legal commentary published by Svensk Juristtidning, meaning that a party may only terminate for the specific reasons stated in the contract, not on general breach-of-contract principles drawn from the Swedish Sale of Goods Act (köplagen).
Despite the shared legal architecture, the practical scenarios that lead to termination often differ between AB 04 and ABT 06 contracts. Under AB 04, disputes typically arise from execution failures, delays, defective workmanship, or failure to follow the employer’s technical documents. Under ABT 06, the contractor’s broader design responsibility introduces additional risk surfaces, including deficient project engineering, failure to meet functional requirements, or design-related delays that make timely completion impossible. In both cases, the threshold for termination is deliberately high: the standard agreements treat hävning as a last resort, to be exercised only when no lesser remedy will suffice.
The grounds for hävning enligt AB 04 och ABT 06 are intentionally narrow. The standard agreements reflect a consensus-based approach, negotiated by employer and contractor organisations alike, that favours contract continuation over premature cancellation. Nonetheless, when certain thresholds are met, termination is available to both parties.
Under Chapter 8 § 1 of AB 04 and ABT 06, the employer may terminate the contract when any of the following circumstances exist:
The contractor’s right to terminate under Chapter 8 § 2 is a mirror image, though exercised less frequently in practice. Available grounds include:
The burden of proof lies squarely with the terminating party. According to academic analysis from Lund University, the standard agreements use two key threshold terms: uppenbart (obvious) and väsentligt (material/essential). The “obvious” test for impossibility of completion demands objective, contemporaneous evidence, schedule comparisons, resource logs, and progress photographs, not merely a subjective fear that time will overrun. The “material” test for defects or default requires that the breach go to the root of the contract, not merely amount to a minor deviation. Industry observers expect that the arrival of AB 25 will not soften these thresholds but will instead extend them to a new category: anticipatory breach.
The revision of AB 04 and ABT 06, led by Föreningen BKK, reached a critical milestone when the consultation period (remisstid) for the replacement agreements, AB 25 and ABPU 25, closed in late February 2025. The new standard agreements are expected to take effect during the first half of 2026, replacing the frameworks that have underpinned Swedish construction procurement for over two decades.
AB 25 replaces AB 04 for execution contracts. ABPU 25 replaces ABT 06 for design-and-build contracts, adopting the new designation “PU” (projektering och utförande) in place of the previous “T” (totalentreprenad). The term “Definitions” replaces “Terminology” at the outset of the agreements, signalling a broader effort toward clarity and modernisation.
| Topic | AB 04 / ABT 06 | AB 25 (ABPU 25) |
|---|---|---|
| Anticipatory breach termination | Not expressly regulated; parties relied on general Swedish contract-law principles and § 62 köplagen by analogy | Explicit right to terminate where it is clear that a material breach will occur, even before the breach has materialised |
| Notice and cure (cancellation procedure) | Written notice required but procedural steps loosely defined; cure window implied rather than specified | Chapter 10 codifies notice contents, mandatory cure window, and formal cancellation procedure with defined timelines |
| Terminology | “Totalentreprenad” (ABT 06); “Terminologi” section | “Projektering och utförande” (ABPU 25); “Definitioner” section |
| Grounds for employer’s termination | Exhaustive list in Chapter 8 § 1 (impossibility, insolvency, failure to provide security, serious default after warning) | Existing grounds retained and supplemented by anticipatory breach; clearer procedural requirements for each ground |
| Grounds for contractor’s termination | Exhaustive list in Chapter 8 § 2 (non-payment, employer insolvency, failure to provide security) | Existing grounds retained; anticipatory breach right extended to the contractor as well |
| Post-termination valuation | Chapter 8 § 6, right to compensation for damages caused by the terminating party’s breach | Valuation methodology clarified; explicit guidance on treatment of completed work, materials on site, and subcontractor claims |
The single most significant AB 25 termination change is the codification of an anticipatory-breach right. Under the existing AB 04/ABT 06 framework, termination was only available once a breach had actually occurred or, in the case of impossibility, once it was obvious that the contractor could not finish on time. AB 25 now allows a party to terminate where it is clear that a material breach will occur, even if performance is not yet due. This aligns Swedish construction standard agreements more closely with Section 62 of the Swedish Sale of Goods Act, which provides a similar anticipatory-termination mechanism for sale-of-goods contracts.
Under AB 04 and ABT 06, the procedural requirements for termination were implied rather than spelled out. AB 25’s restructured Chapter 10 addresses this gap by codifying a formal cancellation procedure. The likely practical effect will be a three-stage process: written notice identifying the ground and the evidence relied upon, a mandatory cure window during which the defaulting party may remedy the breach, and a formal declaration of termination if the cure window expires without resolution. Industry observers expect that the cure window will be calibrated to the severity of the breach, shorter for insolvency-type events, longer for execution defaults that may still be correctable.
Parties entering new contracts in 2026 should consider the following drafting adjustments:
Exercising the new anticipatory-breach right under AB 25 demands disciplined evidence-gathering and strict procedural compliance. A premature or poorly documented termination exposes the terminating party to liability for wrongful hävning, a risk that increases when the breach has not yet materialised.
Before issuing any termination notice based on anticipatory breach, the terminating party should assemble the following evidence:
A notice invoking the anticipatory-breach right should include, at minimum:
Whether under the existing AB 04/ABT 06 framework or the new AB 25 regime, a termination notice that is vague, late, or improperly served can undermine the entire hävning. The following guidance applies to both regimes, with AB 25-specific additions noted.
Serve the notice by a method that creates an independent record of delivery: registered mail with return receipt, courier with signed proof of delivery, or, if permitted by the contract, email followed by a hard-copy confirmation. Retain copies of all correspondence, delivery receipts, and internal decision-making memoranda. In any subsequent dispute, the quality of contemporaneous records often determines the outcome.
Once hävning takes effect, the contract ceases to operate prospectively. Neither party is obliged to perform further, but rights and obligations that accrued before termination, including payment for work already completed and claims for damages, survive.
Under AB 04/ABT 06 Chapter 8 § 6, the employer who terminates on account of the contractor’s breach is entitled to compensation for the additional cost of completing the works, any delay-related losses, and other direct damages. The contractor, in turn, is entitled to payment for work completed to the point of termination and for materials delivered to site. AB 25 early indications suggest that the post-termination valuation methodology will be clarified further, with explicit guidance on treatment of overhead contributions, profit on uncompleted work, and subcontractor claims.
An employer who terminates without adequate grounds, obefogad hävning, effectively commits a material breach itself. The contractor can claim full expectation damages, including lost profit on the uncompleted portion of the contract. To mitigate this risk:
The following compliance checklist is designed for in-house legal teams and project managers assessing whether to proceed with termination under AB 04, ABT 06 or AB 25.
Decision-tree question: Has the defaulting party been given a written warning and reasonable opportunity to cure? If no, issue a warning first. If yes, and the cure window has expired without remedy, proceed to formal termination.
While the AB standard agreements are private-law instruments rather than statutes, their interpretation by arbitral tribunals and, on occasion, the Swedish courts generates persuasive guidance. The following practice highlights illustrate how termination disputes have been resolved in recent years.
The rules governing hävning enligt AB 04 och ABT 06 remain the baseline for thousands of active construction contracts across Sweden, and they will continue to apply to projects signed before AB 25 takes effect. For new projects in 2026, however, the AB 25 termination framework brings welcome clarity: an explicit anticipatory-breach right, codified notice and cure procedures under Chapter 10, and refined post-termination valuation rules. Parties who invest in early compliance, updating contract templates, training project teams, and reviewing dispute-resolution clauses, will be best positioned to manage termination risk in the new regulatory environment.
This article was produced by Global Law Experts. For specialist advice on this topic, contact Gustaf Cederschiöld at Hellström Law firm, a member of the Global Law Experts network.
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