International Construction Contracts Essay Example | Topics and Well Written Essays - 2000 words

International Construction Contracts - Essay Example Besides the central issue of construction, it has also dawned on me that the very legal backing behind the international engagements and more specifically the construction industry is the contractual agreements, thus the urge to understand the different aspects of construction has led me into digging deeper into the legal framework that creates the enabling environment binding both the contractor and the contracting party. Thus this study is zeroed in on international construction and international contracts. Information on these two is gathered from literature books on construction and legal books on international contracts an in depth study has also been conducted on various journal releases on construction. The study also includes information gathered orally from peers in the construction industry and though this research may not be satisfactory to all interested in the study, it will at least offer an insight into the issue. Local development has led to most companies devolving their incomes to other engagements and this has led to cross border trading and to a greater extent global trading. This has not been exceptional for construction companies which have extended their services to other countries well beyond their mother countries. This has been due to difference in technology, existence of conducive business environment and availability of liquid capital which has facilitated investment. However, engagement in foreign countries has definitely brought a need for regulatory measures which have been accorded through international contracts which bind the firms involved. A contract is a biding agreement between two firms or parties which draws expectations of each in regard to the other. (Pheng et al 2004) It is based on laws and since international agreements consist of more than one country, then there is need to consider the laws of these two countries. This again has brought in some technical aspec ts as all laws are not unanimous and each country has its own construction regulation laws as well as legal aspects that govern contracts. To overcome this discrepancy, a panel of individuals is drawn from countries with a common legal background such as the common wealth countries and they draw agreeable laws which are used in drawing a contract. These are the laws that are used to draw up international contracts and follow up a specific guideline and outline precisely the requirements and terms of the contract. In regard to the construction industry, there are certain agreed architectural and construction laws which govern international construction. (Chapman et al 2007) These must be abided by in order to ensure safety and quality for those who are subject to the constructions. This part of the research thus looks at certain aspects of the contracts specifically related to the construction industry. To ensure that this is tackled properly, the study will be divided into three parts. The first will tackle the success factors in international constructions, the second part will tackle the potential problems faced by international contractors and how these problems can be tackled and the final part discusses the future roles of international contracts. Conclusion Success factors These are factors that need to be considered before a construction engagement for they determine the success of the engagement. Project scouting This should always be the