Consortia agreements in the international construction industry: With special reference to Egypt

The contractual co-operation among two or more international construction companies to undertake jointly a particular large industrial project has become a central feature of the international construction industry. It is the primary legal and economic concern of the parties not to be confronted with legal consequences which were not expected when they entered into their agreement. Unfortunately, this overriding objective is difficult to accomplish in many instances. The legal systems in general and Egyptian law in particular have not kept pace with the evolving contractual characteristics and economic significance of the co-operation agreements employed in the international construction industry. A structural and conceptual framework for various forms of contractual co-operation arrangements is vital to establish (Chapter One). These arrangements as developed in the international practice are sometimes at variance with general provisions of the law of partnerships and classical concepts of contract law (Chapters Two through Seven). A comprehensive contractual framework is necessary, and statutory changes may be deemed desirable. The analysis under this study covers the internal relationships between the parties of the international construction co-operation on one hand, and their external responsibilities to the employer under the works contract on the other hand.