The International Construction Contract governs the relations between a company (Contractor) and its client (Employer), located in different countries, for the undertaking of a works project. Construction Contract.

1. INTERNATIONAL
CONSTRUCTION
CONTRACT

2. INTERNATIONAL CONSTRUCTION CONTRACT
1. Definition
2. Parties to the Contract
3. Main clauses
3.1 Tender Offer and Acceptance
3.2 Contractor´s Obligation
3.3 Time for Completion
3.4 Remedying Defects
3.5 Payment
4. Law applicable
5. Model Contract
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3. The International Construction Contract governs the relations
between a company (Contractor) and its client (Employer),
located in different countries, for the undertaking of a works
project, generally house or office building, although it may
also be used for other civil works, for example, mechanical or
electrical constructions.
The contract stipulates a clear and practical tender offer and
acceptance procedure between the Contractor and the Client.
The Client specifications and requirements as regards the
works project which are to be undertaken by the Contractor
are included in the Annex to the Contract.
DEFINITION
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4. Usually both the Contractor and the Client (Employer)
are companies. For each party, the following has to be
included:
• Name of company, full address and nationality
• Company type: public limited company, limited
liability company, etc.
• Name and position of company representative who
signs the agreement
• Tax ID number of both parties
PARTIES TO THE CONTRACT
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5. Some of the most important clauses in the International
Construction Contract are as follows:
• Tender Offer and Acceptance
• Contractor´s Obligation
• Time for Completion
• Remedying Defects
• Payment
See sample of International Construction Contract
MAIN CLAUSES
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6. “The Employer desires the execution of certain Works described as
follows:...............................................................................................”
“The Contractor offers to execute the Works in conformity with the
Contract for the Sum of : ....................................................................
[in words] (.........................................................................) [in figures]
or such other sum as may be ascertained under the Contract.”
“The Employer has by signing of this Contract, accepted the
Contractor´s offer and agrees that in consideration of execution of
the Works by the Contractor, The Employer shall pay the amounts to
the Contractor pursuant to the Contract.”
3.1 TENDER OFFFER AND ACCEPTANCE
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7. “The Contractor shall carry out the Works properly and in
accordancewiththeContract.TheContractorshallprovide
al supervision, labour, Materials, Plant and Contractor´s
Equipment which may be required. All Materials and Plant
on Site shall be deemed to be property of the Employer.”
“The Contractor shall not subcontract the whole of the
Works. The Contactor shall not subcontract any part or
the Works without the consent of the Employer.”
3.2 CONTRACTOR´S OBLIGATIONS
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8. “The Contractor shall commence the Works on the
Commencement Date and shall proceed expeditiously and
without delay and shall complete the Works within the Time
for Completion.”
“Within the time stated in the Annex, the Contractor shall
submit to the Employer a programme for the Woks in the form
stated in Annex.”
“Onreceiptof anapplicationfromtheContractor,theEmployer
shall consider all supporting details provided by the Contractor
and shall extend the Time for Completion as appropriate.”
3.3 TIME FOR COMPLETION
See sample of International Construction Contract

9. “TheEmployermayatanytimepriortotheexpiryof theperiodstated
in the Annex, notify the Contractor of any defects or outstanding
work. The Contractor shall remedy at no cost to the Employer
any defects due to the Contractor´s design, Materials, Plant or
workmanship not being in accordance with the Contract.”
“The cost of remedying defects attributable to any other cause shall
be valued as a Variation. failure to remedy any defects or complete
outstanding work within a reasonable time of the Employer´s notice
shall entitle the Employer to carry out all necessary work at the
Contractor´s cost.”
3.4 REMEDYING DEFECTS
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10. “The Contractor shall be entitled to be paid at monthly intervals:
(a) The value of the works executed.
(b) The percentage stated in Annex of the value of Materials
and Plant delivered to the Site at a reasonable time.”
“These values are subject to any additions or deductions which
may be due.”
“The Contractor shall submit each month to the Employer a
statement showing the amounts to which he considers himself
entitled.”
3.5 PAYMENT
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11. The Parties shall exercises their best efforts to resolve by
negotiation any dispute, controversy o difference between
them arising out or relating to this Contract.
The parties are free to submit any conflicts regarding the
agreement to International Arbitration or to the Laws of
the country of one of the parties.
The conflicts will normally be subject to the Courts of the
country where the Works are located and, specifically, to
those of the town/city of this country.
LAW APPLICABLE
See sample of International Construction Contract

12. In order to obtain the model contract in
Word format and the user guide, click on:
International Construction Contract
MODEL CONTRACT
See sample of International Construction Contract