Parties, Roles and Interests in International Projects
Chapter 2 describes the parties, their interests, their responsibilities and their relations in international projects. It focuses on the parties’ responsibilities and the related scope of work and services that totally should match the needs of the proje
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Abstract. Chapter describes the parties, their interests, their responsibilities and their relations in international projects. It focuses on the parties’ responsibilities and the related scope of work and services that totally should match the needs of the project implementation until successful commercial operation has been achieved. As all international projects are implemented by several parties, the distribution of responsibilities and the plan on how to implement them in a coordinated manner is essential for preventing conflicts. In this respect knowledge about and understanding of the parties, their interests and their representatives play an important and underestimated role. This also includes the relation between the project and the local authorities in the project country. Therefore a conflict contingency plan is recommended. It highlights the potential conflict areas of the project and prepares the parties for handling disagreements that can evolve into a conflict, thereby preventing the conflict. This Chap. is also an introduction to Chap. about the drafting of the project contract. Key words: Project Parties; Parties’ Interests; Parties’ Responsibilities; Scope of Work; Owner (Client, Employer); Quality, Health, Safety & Environment (QHSE); Project Country; Local Authorities; Laws, Regulation, Decrees and Standards; Main Contractor; Main Process Supplier; Conflict Contingency Plan; Contracting Structure; Project Plan
. The Parties Turner () has identified and classified the parties involved in a project in the following general manner: a. b. c. d.
“the parent organization (the owner of the facility),” “the users, who will operate the facility” “the supporters, who will supply the resources to undertake the work” “the stakeholders, who are affected by the project”
Turner () uses the Channel Tunnel project as an example of the parties involved in a international infrastructure project as shown in Table . below. During the development, decision making and approval stages of major infrastructure or industrial projects conflicts of interests will often appear regarding environmental issues. These are outside the scope of this book because some of the parties are not contract parties but regulatory and political players.
Parties, Roles and Interests in International Projects
Table .. The parties involved in the Channel Tunnel project according to Turner () Role
Position
Owner User Manager Supporters
Group
Operator
Financiers, Subcontractors, Project auditors, Suppliers Stakeholders Buyers, Competitors, Communities
Eurotunnel ; its shareholders Eurotunnel Trans Manche Link Banks world-wide, Partners in TML consortium, W.S. Atkins, Brittish Rail and SNCF Travelling public, hauliers, Cross-Channel ferries, London, Kent, Pas de Calais
International projects are normally implemented by a number of contracts thereby involving many contract parties bound together by a contracting structure. There are two basic types of contracting structure: A. “The main contract type” and B. “The par
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