Risk Controlling In International Construction Projects From Standpoint Of Domestic Contractor

International construction projects are economic cooperation method of outputting synthetic factors, their period being long, their contents being excessive, the risk being big and involving widely . Oversea inter- national construction industry of our country develops quickly, but research about its risk mostly concentrates on claim after the event. To contractor of our country, cost of preventing risk before the event is smaller, income being bigger, and its effect is half effort and double results, so it is very important to prevent risk before the event. The international engineer association establish a few contract copies, among these the FIDIC civil form of international federation of consulting engineers is being situated on important position, particularly in the item of the world bank loan. As contract copy, the FIDIC civil form is itself a construction law, it involving at least three primary parties — the owner, the contractor, and the engineer, in some construction items there being department contractor. Their law relationships are much complicated because of different functions and different points of departure. From the source, risk of international construction projects is divided into political risk, economic risk, technique risk and administrant risk. The political risk includes war, civil insurrection, nationalization, confiscation, expropriation, unpaid the obligation, sanctions and embargo, foreign relation, etc. Economic risk includes risk of price rising and price adjustment, foreign exchange risk, protection doctrine, and special risk. Types of projects delivery systems develop from the traditional to project finance. To contractor, risk associatedwith project financed projects is special, including design risk, changes/variation risk, construction risk, completion risk .feedstock supply risk, market risk, operator risk. As a participant in the sponsor/developer, an equity investor, contractor should consider international construction projects as a whole. Preventing risk before the event includes contract signing and contract implementing. When underwriting the FIDIC civil form, contractor of our country should make an effort to sign payment item more favorable, making an effort to modify item so as to include the remedial period in implement security deposit item, making clear the item that contractors can stop carrying out contract at any time when money is unavailable, making clear the item of requests/claims for additional payments, notice provisions, changes (variations) to the works, amount of additional compensation, requests/claims for time extensions, adverse physical conditions, excepted and special risks, disputes resolution, etc.. While implementing the FIDIC civil form, contractor of our country should notice to sign item to transfer monetary risk to owner as possibly as he can; When being required to pay funds in advance, contractors should investigate owner' s credit in detail and ask owner to supply letters of bank guarantee; Contractor should adopt beneficial form and format of letter; Contractor should prevent to supply the dual letters; Contractor need public finance, or establish the colleague of business enterprise and bank, or have business enterprises to cooperate to ensure to acquire the essential guarantee; Contractor should provide bank letter when being asked to supply reserved money to return half of reserved cash; Contractor should auditing and record completed work well; Because there is troublesome in handling customs, contractor should ask owner to handle the maritime customs tax ;Before handing over tax, contractors must make the native tax administration provision clear; For engineer's oral instruction,contractor must require engineer confirmation on 7 days with written form according to the contract; Contractor should notice the different workplace term item, the item of experiment, checking and acceptance; Contractor should try to endow the engineer' s representative with power of making the decision quickly, asking credit' s consultant to get involved in the item early; Contractor should disperse the risk of the department reasonable, particularly defending to sign unclear contract item; Contractor should attach importance to claim procedure and notice risk during it. In a word, contractor of our country should notice how to prevent international construction against risk.