Tackling the Compliance Challenges of Global Construction Projects

05 Mar 2021

In our latest guest blog, Expandopedia discuss compliance challenges of global construction projects.


Just like many other industries, globalization is increasingly presenting new opportunities in the construction sector. The global construction market will grow by 85% to $15.5 trillion by 2030, according to one study. China, US and India will account for 57% of all global growth.

Construction companies that diversify and expand into profitable markets stand a greater chance of success and are also prepared to weather regional economic downturns that could otherwise sink their business. Operating globally also limits the damage from additional costs and delays brought on by regional political developments, like Brexit. Not to mention, as your existing clients grow globally, there will be a greater need to serve them in different markets.

The benefits of overseas projects are clear, but are you aware of all the compliance risks? Setting up a business entity in a new country is a difficult process, with requirements that vary by country. You’ll need to know all the steps of registering an entity, plus the relevant tax and employment regulations.

Understanding the costs of compliance

Unlawfully registering your business can devastate your overseas projects. Just like any other business, your company must also comply with labor laws when you hire or relocate employees. However, construction is more regulated than some sectors, with greater safety and industry-specific laws. Operating in multiple countries increases the risks of noncompliance, which include fines and penalties, legal action and even imprisonment.

Maintaining compliance is even more difficult for mid-sized companies, which likely have greater requirements than small businesses but lack the resources of large construction companies. The costs of ensuring compliance can be sizeable, whether you’re borrowing resources from other areas of the business or relying on outside legal counsel to provide expertise. Outside legal counsel often lacks cost transparency, surprising you with expensive hourly attorney’s fees that add up over the course of a project.

Even so, legal requirements are an area where you can’t afford to cut corners. You should explore other, more cost-effective options for compliantly setting up business entities and completing projects abroad.

How a global HR compliance solution helps

The best tool for ensuring compliance is one that provides the peace of mind of legal counsel, but without the high price tag. A business intelligence and compliance solution like Expandopedia meets that standard.

Through Expandopedia’s comprehensive platform, you’ll have access to entity setup and labor law information for over 150 countries. With Expandopedia’s Ask An Expert service, your company also receives insights and personalized consulting from a global network of HR & Legal professionals.

This solution reduces your need for outside counsel by giving you ready access to compliance information, plus the ability to call on professionals in the field when you need more support. It’s more cost-effective than outside counsel, plus subscription-based pricing means greater visibility into what you’re getting.

If you’re interested in learning more about how Expandopedia can empower your global construction projects, please contact our Business Development Manager (EMEA) Sandra Harte at [email protected] or +1 (353) 86 3862175.

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