A study of contractual provisions relevant to disputes arising in international construction projects involving both european and East asian cultural factors

Construction contract disputes are causing damages to the construction industry and the problem is noted worldwide. International construction projects involve multi-national participants from different political, legal, economic, and cultural backgrounds, which provide further catalyst for dispute occurrence. As one of the major issues affecting the management of international construction projects, culture deserves a wide coverage of research. This study reviews the characteristics of international construction projects and discusses the cultural context in play. It aims to investigate the contractual provisions, which affect the generation of disputes and their resolution in international construction contracts. It investigates how international construction contracts should be structured to reduce the likely incidence of disputes and to facilitate the effective and efficient resolution of disputes, which do arise. A major element of this study is to examine the effect of introducing both European and East Asian elements into the management of projects. The objectives of the study are to address the following questions: 1. What contractual provisions are likely to promote and/or to avoid the types of dispute commonly encountered in international construction contracts? 2. Is there any significant correlation between the existence of both European and East Asian cultural factors and the contractual provisions identified in 1 above? 3. What contractual changes would be most beneficial in the context of contracts with both European and East Asian elements to: a. reduce the likely incidence of disputes b. promote their effective resolution 4. Are non-binding dispute resolution mechanisms (ADR) in an international construction project conducive to achieving the overall project goals? 5. To what extent is this affected by circumstantial factors and in particular, differing cultural factors with respect to European and East Asian participants? 6. Is there any significant correlation for between cultural factors and the preferred choice of dispute resolution mechanisms for international construction projects involving European and East Asian participants?