With the backdrop of "The Asian Century”, defined by rapid urbanisation and the rise of megacities in emerging economies, infrastructure renewal is the impetus for Baker McKenzie's release of its Regional Construction Country Guide for businesses to navigate their way through a myriad of changes and differing regulatory regimes.
This Guide provides an overview of regulatory issues which arise in commercial contracts in the Asian engineering and construction sectors and the extent to which those issues present barriers to cross-border business in the Asia Pacific region.
Construction in emerging markets, including some of Asia's fast-growing markets, is expected to double within a decade and will become a $6.7 trillion business by 2020, accounting for some 55 percent of global construction output (according to the 'Global Construction 2020' report published by Global Construction Perspectives and Oxford Economics).
In response to this incredible projected growth, Baker McKenzie's Asia Pacific Head of Construction, Anthony Whelan stated: "When you factor in China's 'One Belt One Road' initiative; one cannot underestimate the wave of construction to come."
Tony further commented: "In this climate, issues regarding the interpretation and enforceability of contracts in the region become increasingly complex, given Asia’s diverse legal traditions (civil law, common law and mixed) and differing approaches to commercial issues."
When asked about how the Guide will be utilised, he said: "The Guide will be your first step in navigating the myriad of legal and commercial interpretation of contracts under civil and common law and potential pitfalls to look out for when contracting in Asia, for example liquidated damages clauses, dual language contracts, termination rights and dispute resolution requirements."
Project disputes are common in infrastructure developments, especially in fast-growing markets where the number of large, complex infrastructure projects is expected to surge over the next decade and where there may be limited experience with international business dispute resolution techniques.
To view the complete Guide and read a Foreword authored by Anthony Whelan, please click here.