International Construction: An Overview - Common Problems in International Construction

International construction projects, though somewhat similar to their domestic counterparts, have inherently unique challenges. One such challenge is balancing cultural considerations to foster an effective working relationship among the multinational participants. From language and ethics to work attitudes and holidays, cultural differences impact both the progress and completion of construction projects. For example, miscommunication between participants who speak different languages can result in work delays. The construction schedule can also be impacted when, for example, workers refuse to work on religious holidays or other days.

Another common problem in international construction occurs when disputes arise. The negotiation and resolution of disputes can be difficult to achieve given the parties' diverse backgrounds. Further, unless the parties have agreed to a method of alternative dispute resolution, disputes may linger on - costing the participants more money in the long run. Also, the resolution of disputes through the court system of an unfamiliar nation may present difficulties not only in achieving a desirable outcome but also in enforcing or collecting on a favorable judgment.

Local laws may present problems to parties who are unfamiliar with the locale. Additionally, contractors performing work on a project may be unfamiliar with building codes, zoning laws, or other local regulations that impact their work in a foreign jurisdiction.

A problem with international construction can arise due to the political climate of the area in which the construction is taking place. Unfavorable opinions of a nation may lead to terrorist activities that could affect the project. This could occur by destroying work already done on the project and impeding the flow of materials or workers for the project.

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