ABSTRACT

In view of the fact that a series of subcontracts is involved in an international construction project, the expression 'international construction contract' is a misnomer. The so-called international construction contracts are those contracts in respect of which contractors perform their work outside their home countries. These contracts may take one of two forms: contracts to design and supervise construction; and construction management. International construction contracts are very complex contracts. Although they generally follow the Federation Internationale des Ingenieurs-Conseils (FIDIC) and FIDIC (E & M) forms, in view of the variety of projects variations from the traditional clauses should not surprise anybody. International construction contracts involve large sums of investment. The success of an international construction contract very much depends upon the nature of the feasibility study that an investor has carried out; the better the study, the less the likelihood of failure.