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1 UNCITRAL Legal Guide on Drawing Up International Contracts for the Construction of Industrial Works 19 (1987)

handle is hein.unl/icciw0001 and id is 1 raw text is: - 19- Introduction A. Origin, purpose and approach of the Guide 1. In 1974 and 1975, the United Nations General Assembly adopted a number of resolutions dealing with economic development and the establishment of a new international economic order.1 As one of the organs of the United Nations, UNCITRAL was called upon by the General Assembly to take account of the relevant provisions of those resolutions. It responded by including in its programme of work the topic of the legal implications of the new international economic order,2 and considered how, having regard to its special expertise, and within the context of its mandate, it could most effectively advance the objectives set forth in the General Assembly resolutions. In doing so, it also took into account a recommendation of the Asian-African Legal Consultative Committee (AALCC) that the Commission should deal with the topic.3 2. To assist it in defining the nature and scope of possible work in this area, in 1978 the Commission established a Working Group on the New International Economic Order and charged it with the task of making recommendations as to specific topics which could appropriately form part of the programme of work of the Commission.4 The Working Group reported to the Commission its conclusion that a study of contractual provisions commonly occurring in international industrial development contracts would be of special importance to developing countries, in view of the role of industrialization in the process of economic development.5 Based upon the discussions and conclusions of the Working Group, the Commission decided in 1980 to accord priority to work related to contracts in the field of industrial development. In 1981 it instructed the Working Group to prepare a Legal Guide on Drawing up International Contracts for the Construction of Industrial Works.6 3. Contracts for the construction of industrial works are typically of great complexity, with respect both to the technical aspects of the construction and to the legal relationships between the parties. The obligations to be performed by contractors under these contracts normally extend over a relatively long period of time, often several years. In these and other ways, contracts for the construction of industrial works differ in important respects from traditional contracts for the sale of goods or the supply of services. Consequently, rules of law drafted to govern sales or services contracts may not settle in an appropriate manner many issues arising in contracts for the construction of industrial works. It may be desirable or advisable for the parties to settle these issues through contract provisions. 4. The preparation of the Guide was largely motivated by an awareness that the complexities and technical nature of this field often make it difficult for purchasers of industrial works, particularly those from developing countries, to acquire the necessary information and expertise required to draw up appropriate contracts. The Guide has therefore been designed to be of particular benefit to those purchasers, while seeking at the same time to take account of the legitimate interests of contractors.

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