One of the fundamental requirements of a contract and by implication a project, is that it is legal. In other words if it is illegal in a certain country to build a brewery, little protection can be expected from the law.
The relationships between the contracting parties must be confirmed in a legally binding contract which complies with the laws (and preferably customs) of the participating organizations. The documents themselves have to be legally acceptable and equitable and unfair and unreasonable clauses must be eliminated.
Where suppliers of materials, equipment or services are based in countries other than the main contracting parties, the laws of those countries have to be complied with in order to minimize future problems regarding deliveries and payments.
In the event of disputes, the law under which the contract is administered and adjudicated must be written into the contract together with the location of the court for litigation.
Generally, project managers are strongly advised always to take legal advice from specialists in contract law and especially, where applicable, in international law.
The project context includes the established conditions of contract and other standard forms and documents used by industry, and can also include all the legal, political and commercial requirements stipulated by international bodies as well as national and local governments in their project management procedures and procurement practices.
Was this article helpful?
What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.