Diana Eichfeld and William Hazelton
The U.S. construction industry is taking on a more international flavor as more domestic contractors bid, and win, projects abroad. From oil pipelines in western Canada to infrastructure projects in South America, U.S. embassies in various European countries, U.S. contractors are welcoming the opportunities to work in new countries. While they deal with the cultural and legal differences of foreign projects, contractors should not overlook the significant risks that the varying environmental regulations in each country may pose for the project and for their company.
Before they embark on international projects, contractors should assess the environmental regulations in those countries to make sure that their construction work will comply with local laws and customs. They should also review their insurance program to determine if it can provide the coverage needed in the new locations and whether they will need local insurance coverage and claims handling capabilities. When considering international projects, contractors should seek to work with a carrier that has a strong international presence as well as a deep understanding of the construction industry and environmental risks.