International Procurement Rules to Reduce Disputes

International tenders (especially those relating to the construction of plants or infrastructures) are characterized by a high level of litigation and claiming is a very frequent constant, often for extra works, for requests for an extension of the delivery deadline, for requests for penalties for delays allegedly attributable to the Contractor (liquidated damages) or for the enforcement by the Client of the guarantees issued by the Contractor.

First of all, we must take note of the fact that contracts for the construction of infrastructures or industrial or production plants (which usually take the form of EPC -engineering, procurement and construction- or turnkey contracts), are generally very complex first of all for technical reasons related to the works to be performed (themselves very complex). Cultural reasons (think of the cultural and linguistic differences between the parties) increase the complexity of the contractual relationship between the parties.

For an overview of international procurement, our article International Procurement Agreement may also be of interest to you : what to negotiate before signing

The duration of these contracts is medium-long term (sometimes years) and this adds a further difficulty in the relationship between the client and the contractor both for the concrete possibility of changes to the initial conditions (think of the cost of labor or of raw materials) and because it is common for part of the management to change during a job order.

The rules of good project management are essential to bring a project to a successful conclusion and to minimize the risk of disputes.

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