Contract Laws in ASEAN

Infrastructure is a critical element in the further economic integration in ASEAN - ASEAN needs about US $60 billion per year until 2022 to fulfill all its infrastructure needs.

Such projects are undertaken pursuant to infrastructure contracts. The interpretation and enforcement of such contracts in the courts of ASEAN nations is a key consideration for those who are considering becoming or who are party to such contracts if a dispute arises.

ABLI is accordingly examining a project to provide guidance to businesses on the interpretation and enforcement of certain contractual clauses in construction and engineering contracts (e.g., exclusion clauses, liquidated damages clauses, force majeure clauses) in ASEAN courts.

The project will target construction and engineering firms in Europe and North East Asia that undertake construction and engineering projects in ASEAN, rather than businesses in ASEAN who already know the local rules.

The Secretariat is in the process of finalising its research on the practical issues that the project should consider in priority, including dual-language contracts and liquidated damages clauses.

The identification of these issues was one of the purposes for convening a panel of experts on the occasion of the conference organised by ABLI and SAL on Tuesday, 14 March 2017, entitled “Practical Issues in Contract Law: Barriers to Cross-Border Business in Asia”.

More information about the conference can be found here.

Associate Professor Goh Yihan of SMU is acting as Project Lead for this Contracts Project.

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