ABSTRACT
The construction industry is subject to more risk and uncertainty than many other industries (Flanagan and Norman, 1993). International construction involves the risks common to domestic construction projects as well as uncertainties associated with international transactions (Han et al., 2005), and operating in an unfamiliar overseas environment (He, 1995). International projects usually involve elaborate financial provisions, participants with different political ideologies, and multiple owners or stakeholders (Gunhan and Arditi, 2005). Hence, foreign architectural, engineering or construction (A/E/C) firms on international construction projects face more risks than they would face in domestic projects.
