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1.
Foreign pursuit of the local market
If a foreign designer or contractor wanted to set up an operation to pursue the local market what are the key concerns they should consider before taking such a step?To read more
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2.
Licensing procedures
Must foreign designers and contractors be licensed locally to work and, if so, what are the consequences of working without a licence?To read more
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3.
Competition
Do local laws provide any advantage to domestic contractors in competition with foreign contractors?To read more
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4.
Bribery
If a contractor has illegally obtained the award of a contract, for example by bribery, will the contract be enforceable? Are bribe-givers and bribe-takers prosecuted and, if so, what are the penalties they face? Are facilitation payments allowable under local law?To read more
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5.
Reporting bribery
Under local law must employees of the project team members report suspicion or knowledge of bribery of government employees and, if so, what are the penalties for failure to report?To read more
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6.
Political contributions
Is the making of political contributions part of doing business? If so, are there laws that restrict the ability of contractors or design professionals to work for public agencies because of their financial support for political candidates or parties?To read more
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7.
Other international legal considerations
Are there any other important legal issues that may present obstacles to a foreign contractor attempting to do business in your jurisdiction?To read more
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8.
Construction contracts
What standard contract forms are used for construction and design? Must the language of the contract be the local language? Are there restrictions on choice of law and the venue for dispute resolution?To read more
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9.
Payment methods
How are contractors, subcontractors, vendors and workers typically paid and is there a standard frequency for payments?To read more
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10.
Contractual matrix of international projects
What is the typical contractual matrix for a major project in your jurisdiction in terms of the contractual relationships among the various construction project participants?To read more
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11.
PPP and PFI
Is there a formal statutory and regulatory framework for PPP and PFI contracts?To read more
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12.
Joint ventures
Are all members of consortia jointly liable for the entire project or may they allocate liability and responsibility among them?To read more
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13.
Tort claims and indemnity
Do local laws permit a contracting party to be indemnified against all acts, errors and omissions arising from the work of the other party, even when the first party is negligent?To read more
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14.
Liability to third parties
Where a contractor constructs a building that will be sold or leased to a third party, does the contractor bear any potential responsibility to the third party? May the third party pursue a claim against the contractor despite the lack of contractual privity?To read more
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15.
Insurance
To what extent do available insurance products afford a contractor coverage for: damage to the property of third parties; injury to workers or third parties; delay damages; and damages due to environmental hazards. Does the local law limit contractors’ liability for damages?To read more
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16.
Labour requirements
Are there any laws requiring a minimum amount of local labour to be employed on a particular construction project?To read more
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17.
Local labour law
If a contractor directly hires local labour (at any level) for a project, are there any legal obligations towards the employees that cannot be terminated upon completion of the employment?To read more
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18.
Labour and human rights
What laws apply to the treatment of foreign construction workers and what rights do they have? What are the local law consequences for failure to follow those laws?To read more
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19.
Close of operations
If a foreign contractor that has been legally operating decides to close its operations, what are the legal obstacles to closing up and leaving?To read more
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20.
Payment rights
How may a contractor secure the right to payment of its costs and fees from an owner? May the contractor place liens on the property?To read more
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21.
‘Pay if paid’ and ‘pay when paid’
Does local law prohibit construction contracts from containing terms that make a subcontractor’s right to payment contingent on the general contractor’s receipt of payment from the owner, thereby causing the subcontractor to bear the risk of the owner’s non-payment or late payment?To read more
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22.
Contracting with government entities
Can a government agency assert sovereign immunity as a defence to a contractor’s claim for payment?To read more
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23.
Statutory payment protection
Where major projects have been interrupted or cancelled, do the local laws provide any protection for unpaid contractors who have performed work?To read more
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24.
Force majeure and acts of God
Under local law are contractors excused from performing contractual obligations owing to events beyond their control?To read more
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25.
Courts and tribunals
Are there any specialised tribunals that are dedicated to resolving construction disputes?To read more
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26.
Dispute review boards
Are dispute review boards (DRBs) used? Are their decisions treated as mandatory, advisory, final or interim?To read more
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27.
Mediation
Has the practice of voluntary participation in professionally organised mediation gained acceptance and, if so, how prevalent is the practice and where are the mediators coming from? If not, why not?To read more
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28.
Confidentiality in mediation
Are statements made in mediation confidential?To read more
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29.
Arbitration of private disputes
What is the prevailing attitude towards arbitration of construction disputes? Is it preferred over litigation in the local courts?To read more
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30.
Governing law and arbitration providers
If a foreign contractor wanted to pursue work and insisted by contract upon international arbitration as the dispute resolution mechanism, which of the customary international arbitration providers is preferred and why?To read more
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31.
Dispute resolution with government entities
May government agencies participate in private arbitration and be bound by the arbitrators’ award?To read more
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32.
Arbitral award
Is there any basis upon which an arbitral award issued by a foreign or international tribunal may be rejected by your local courts?To read more
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33.
Limitation periods
Are there any statutory limitation periods within which lawsuits must be commenced for construction work or design services and are there any statutory preconditions for commencing or maintaining such proceedings?To read more
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34.
International environmental law
Is your jurisdiction party to the Stockholm Declaration of 1972? What are the local laws that provide for preservation of the environment and wildlife while advancing infrastructure and building projects?To read more
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35.
Local environmental responsibility
What duties and liability do local laws impose on developers and contractors for the creation of environmental hazards or violation of local environmental laws and regulations?To read more
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36.
International treaties
Is your jurisdiction a signatory to any investment agreements for the protection of investments of a foreign entity in construction and infrastructure projects? If so, how does your model agreement define ‘investment’?To read more
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37.
Tax treaties
Has your jurisdiction entered into double taxation treaties pursuant to which a contractor is prevented from being taxed in various jurisdictions?To read more
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38.
Currency controls
Are there currency controls that make it difficult or impossible to change operating funds or profits from one currency to another?To read more
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39.
Removal of revenues, profits and investment
Are there any controls or laws that restrict removal of revenues, profits or investments from your jurisdiction?To read more
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Updates and trends
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Atsumi & Sakai is a multi-award-winning, independent, full-service Tokyo law firm, and among the ten largest independent law firms in Japan. Expanding from its highly regarded finance practic.
View more information about Atsumi & Sakai
Tokyo
Fukoku Seimei Building2-2-2 Uchisaiwaicho, Chiyoda-ku
100-0011
Tokyo
Japan T: +81 3 5501 2111
F: +81 3 5501 2211
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