ABSTRACT
This introductory chapter reviews the legal setting of construction contracts: legal systems, contract law, freedom of contract, pacta sunt servanda and the proper law of the contract. The concept of lex constructionis is discussed – what it is, its role in promotion of best practice for successful projects and a proposed 20 principles. Fédération Internationale des Ingénieurs-Conseils or International Federation of Consulting Engineers (FIDIC) contracts are outlined – their use by multilateral development banks (MDB), and contract documents including General Conditions, Particular Conditions, Contract Data and Special Provisions. The concept of the FIDIC Golden Principles is introduced. The various laws applicable to a construction contract are discussed – the governing law of the contract, the intersection of local laws with the governing law of the contract, laws with extra territorial reach, laws applicable to the execution of a construction projects and laws applicable to the resolution of disputes. A section on the impact of Covid-19 addresses execution of construction projects, operation of construction contracts, economic measures and claims arising under FIDIC contracts. The impact of applicable laws is discussed, as are country accessions to international agreements, summarised in a table. A list of relevant references is provided.
