As construction projects increasingly rely on specialized or international suppliers, project teams should evaluate more factors than pricing and product availability. Overseas vendors can offer significant advantages, but they may also introduce legal and practical challenges that become difficult to manage if problems arise.
When disputes involve foreign suppliers, resolving issues like delayed deliveries, defective materials, or warranty claims can be far more complex than with domestic vendors. International service requirements, differences in legal systems, evidence gathering, and judgment enforcement can all add time, cost, and uncertainty to an already challenging situation.
Key takeaways:
- Conduct due diligence before selecting unfamiliar or international suppliers, including reviewing their track record in the U.S. market.
- Carefully evaluate supply agreements for provisions that could increase risk like unfavorable warranty limitations or shortened claim periods.
- Negotiate contract terms that strengthen your ability to enforce your rights, including U.S. jurisdiction, service of process, warranty obligations, and clear remedies.
- Consider whether standardized international agreements, such as FIDIC contracts, may be appropriate for the project.
Read the full article for a closer look at the legal and practical considerations that can help owners and contractors reduce risk when working with international suppliers.