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International contracts: proposal for better bargaining

International contracts: proposal for better bargaining

Lawyer Richard E. Di Vizio *

International contracts: proposal for better bargaining

The international building contract (i.b.c.) is a contract of links between different States and their legal systems or because it is concluded between entities belonging to different States or because the work object of the contract must be carried out totally or partially abroad. It therefore implies a specific attention to legal and cultural systems often very distant from ours.

International contracts: proposal for better bargaining

Stated in advance that the contractors are unable to ensure with specific regulatory requirements to discipline the i.b.c., we suggest to focus on some important legal steps that the parties will have to make:

International contracts: proposal for better bargaining

It is important that the parties in the contract discipline the choice of the place of jurisdiction for any disputes concerning the execution of the contract and the law applicable thereto. You can also opt for the prediction of an arbitration clause in which is indicated the place of arbitration, and the arbitrator or panel of three arbitrators who will have to resolve the legal dispute.

International contracts: proposal for better bargaining

In regulating the content of the contract the parties will have to be very analytical and detailed in the definitions and explanations of technical terms in the description of the work covered by the contract, and the possible variations along the way.

International contracts: proposal for better bargaining

Utmost care in the definition of cases of “hardship” (unexpected onerousness), including when possible solutions and discipline in cases of termination of the contract (termination).
Forecasting assumptions of pre-liquidated damages ( “liquidated damages” clause); in the identification of events of force majeure, unforeseen or otherwise avoidable, which result in the suspension or the impossibility of the realization of the work or supply;

International contracts: proposal for better bargaining

It will be necessary appropriate to identify the person who will have control of the work and its testing.
Prediction of possible cases of sub-contracting and regulation of relations with sub-contractors.

International contracts: proposal for better bargaining

Regulation of clauses of limitation of liability; and even the prediction of the so called “Bond” “bid bond”, “advance payment bond”, “performance bond”, “retention money bonds” and “maintenance bond”, respectively, for hypothesis of bid maintenance guarantees, the return of payments or refunds, guarantees of a good execution of the work, retention guarantees and guarantees of the maintenance.

International contracts: proposal for better bargaining

Working with other countries is not difficult and, basically, you face with fair operators, but caution is necessary because undeniably companies work to achieve profits and the period is hidden in the most harmless words: “business is business”.

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