Construction - Austria 2017

1. If a foreign designer or contractor wanted to set up an operation to pursue the local market what are the key concerns they should consider before taking such a step?

2. Must foreign designers and contractors be licensed locally to work and, if so, what are the consequences of working without a licence?

3. Do local laws provide any advantage to domestic contractors in competition with foreign contractors?

4. If a contractor has illegally obtained the award of a contract, for example by bribery, will the contract be enforceable? Are bribe-givers and bribe-takers prosecuted and, if so, what are the penalties they face? Are facilitation payments allowable under local law?

5. Under local law must employees of the project team members report suspicion or knowledge of bribery of government employees and, if so, what are the penalties for failure to report?

6. Is the making of political contributions part of doing business? If so, are there laws that restrict the ability of contractors or design professionals to work for public agencies because of their financial support for political candidates or parties?

7. Are there any other important legal issues that may present obstacles to a foreign contractor attempting to do business in your jurisdiction?

8. What standard form contracts are used for construction and design? Must the language of the contract be the local language? Are there restrictions on choice of law and the venue for dispute resolution?

9. How are contractors, subcontractors, vendors and workers typically paid and is there a standard frequency for payments?

10. What is the typical contractual matrix for a major project in your jurisdiction in terms of the contractual relationships among the various construction project participants?

11. Is there a formal statutory and regulatory framework for PPP and PFI contracts?

12. Are all members of consortia jointly liable for the entire project or may they allocate liability and responsibility among them?

13. Do local laws permit a contracting party to be indemnified against all acts, errors and omissions arising from the work of the other party, even when the first party is negligent?

14. Where a contractor constructs a building that will be sold or leased to a third party, does the contractor bear any potential responsibility to the third party? May the third party pursue a claim against the contractor despite the lack of contractual privity?

15. To what extent do available insurance products afford a contractor coverage for: damage to the property of third parties; injury to workers or third parties; delay damages; and damages due to environmental hazards. Does the local law limit contractors’ liability for damages?

And many more questions and answers dealing with the legal framework for Construction in Austria.
To access the complete Austria chapter of the 2017 Construction edition, please click here.