Comparison of Contract General Conditions between the U.S. and China: Becoming More Competitive in the Chinese Construction Market

In light of the fact that the construction projects are expensive, complex, and time consuming undertakings, a well-written contract that specifies each participant?s duties and obligations is required. Furthermore, a well-written contract with regards of business practice differences between the U.S. and China is unquestionably in need by the U.S. owners, design firms, and construction companies who are conducting business in China. In response to this industry need, general conditions of construction contract that commonly used in the U.S. (AIA-A201) and China (GF-1999-0201) have been analyzed and compared. Objectives of this research were to address business practice differences between two countries, identify appropriate content that could be adopted by the U.S. firms, provide guidelines for future development of general conditions in China, and offer means of decision-making for American companies in implementing of general conditions in China. Achieving these objectives could help U.S. companies stay competitive and profitable in China.