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: (a) contracts to design and supervise construction; and (b) construction management. Under the former type, the employer (a government or a private entity) may decide to have the design work done by its own company or by an architect or engineer. Design work includes preparation of the plans, designs and specifications of equipment. After completion of the design work, the construction work is entrusted to a different company, which is usually elected by means of a tender. It is usual for a contractor to procure equipment and materials for the project, although the architect or engineer may also procure them on behalf of the employer. However, under this form, the principal function of the architect or engineer is to supervise the work of the contractor who carries out his work with the help of other people in the chain. The following subcontracts are usually involved in this form: