Legal issues of dispute management in international construction projects contracting

Globalisation has changed the business of construction in many ways. One obvious change is that international construction has become the trend for foreign companies to expand their market shares. For contracting parties, entering into an international construction project is like going into a maze--it provides both excitement and uncertainties. A whole range of issues need to be considered and resolved before and during the international construction process, i.e. issues such as political environment, social and cultural differences, technical compliance and legal matters. It is widely accepted that the issue of legal matters cannot be overemphasised. In light of the fact that international contracting parties are enmeshed into the various rules of law, the conflict of laws is a significant hurdle for resolving disputes. This article provides a source of reference for contracting parties in identifying those legal issues that concern dispute management. The key legal issues identified include: harmonisation of construction law; legal rules for dispute resolution; interpretation of international construction contracts; and “disputology” in construction industry. This article will be an invaluable reference to international contracting parties, construction arbitrators and mediators, contract drafters and other related professionals.