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One of the earliest issues to decide on a hospitality renovation abroad – whether it's a branded resort in Europe, a hotel in Asia, or a mixed-use property in Latin America – is the selection of the appropriate project contracts. The design and construction contracts in wide use in the US are sometimes appropriate for adaptation for use abroad.
This was the focus of our recent webinar, Adapting Standard Construction Forms for Use in Overseas Hospitality Renovations. Below, we outline several of the most significant considerations that arise when U.S. forms cross international borders.
Standard Forms in Different Jurisdictions
In the United States, forms from the American Institute of Architects (AIA) and ConsensusDocs are the most widely used for construction projects, supported by a deep body of case law with respect to the AIA suite of contract forms.
Outside the U.S., however, other industry forms are available. Examples include:
- FIDIC – rarely used on hospitality projects unless part of a large-scale mixed-use development.
- Joint Contracts Tribunal (JCT) – the principal suite of construction contracts in the UK.
- New Engineering Contract (NEC) – frequently employed for public sector projects.
- Canadian Construction Documents Committee (CCDC) – consensus-based contracts common across Canada.
These forms reflect regional practices, risk allocations, and regulatory environments that may differ significantly from U.S. norms.
Areas of Divergence
Several key issues arise when adapting U.S. forms for international hospitality renovation projects:
- Local Law Requirements: Employment rules, licensing laws, building codes, and anti-corruption statutes can impose obligations directly on owners. Financial security instruments also differ—bank guarantees are more common abroad than U.S.-style surety bonds.
- Risk Allocation: The distribution of risk in U.S. forms does not always align with expectations overseas, where owners or contractors may bear greater responsibilities under local practice.
- Dispute Resolution: Internationally, arbitration is the preferred forum for construction disputes. Institutions such as the ICC, LCIA, SIAC, and HKIAC are commonly chosen, as well as country-based arbitral tribunals, and awards are broadly enforceable under the New York Convention.
Conclusion
Standard forms such as AIA and ConsensusDocs provide a familiar starting point in the United States, but they do not automatically fit the needs of overseas hospitality projects. Understanding regional frameworks, legal requirements, and dispute resolution mechanisms is essential when renovating or developing properties abroad. Careful alignment of these elements can help ensure that projects proceed smoothly and that agreements are enforceable across borders.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
