Price Methods and Payment Conditions in International Construction Contracts (Sistemas De Determinación Del Precio Y Condiciones De Pago En El Contrato Internacional De Construcción)
Revist@ e - Mmercatoria, Vol. 7, No. 1, 2008
46 Pages Posted: 23 Oct 2009
Date Written: October 22, 2009
Abstract
The incipient Latin-American economies require the construction of infrastructure that enables the sustainable development of the economies of such nations. In most cases infrastructure projects are carried by foreign companies with the necessary experience, financial endurance and technical ability to carry them. In most cases, the relationships between such companies and their employers are regulated by contract forms that are suggested by international institutions such as FIDIC. The difficulties that suppose the harmonization of such contract forms and the suggested clauses and the rules regulating such relationships, particularly in Colombia are the main aspect of our research. In this article we explore the general aspects of international construction contracts, the main methods for the determination of the price in such contracts and the payment conditions and the currency for those relationships that must be executed in Colombia.
Keywords: International construction contract, prices clauses, payment conditions, price currency, FIDIC, Engineering contracts, work contract, cost reimbursement, lump sum price, unit price
JEL Classification: K12, K33
Suggested Citation: Suggested Citation