Some design firms have had a global reach and international clientele for decades. Other firms are exploring available international markets and the challenges of working on the worldwide stage for these past few difficult financial years. Whether firms have chosen to design projects out of the country to add to their bottom line or because that is simply where their clients are asking them to build, the method and process of working globally consists of an entirely different set of design and logistic challenges compared to working locally. International design work is emerging as a new normal. No longer is securing a project outside of the country an indicator of the strength or power of a design firm; many smaller design firms are now realizing working globally is the best, and in some cases, the only way for them to stay in business.
At NeoCon in Chicago this year, Joan Blumenfeld and Pamela Abalu, both from the New York office of the international powerhouse firm Perkins+Will gave an engaging overview for the uninitiated on how to capitalize on the opportunity of working globally. Beginning their presentation by listing the unique situations like time zone differences, language barriers and lack of face-to-face contact throughout most of the project, Ms. Abalu noted “At Perkins+Will, we have a process called the Go or No Go process, which involves two determinants: the country and the client. The Office of Foreign Assets Control (OFAC), a division of the Department of the Treasury, has a sanction list. The sanction fines range from $50,000 to $10 Million if you are doing business in a country that is on their list. Right now, there are only five countries on the list, but it fluctuates,” she said. Indeed, researching the country’s political or social stability or history of corruption is one thing, but especially where long distances are involved, securing payment for finished work requires special attention. “It is very hard to reach of overseas and tell your client that you will sue them if they don’t pay us,” said Ms. Blumenfeld. Of course, an arbitration clause in an international contract is useful if negotiations become difficult. Arbitration allows for both parties to agree in advance that an arbitrator (who is an informed third party like an attorney, judge, CPA or someone familiar with the business) will settle any disputes that happen with the project. Like litigated judgments, an arbitration order can usually be enforced in court under laws. It is also useful to note that every American embassy has an American business council that can help American design firms with legal issues. “If things go wrong,” said Ms. Blumenfeld, “it is really difficult either with arbitration or anything else, to make them right. There is a large amount of risk that you’re always taking on working overseas because things may go wrong no matter what mechanisms are in place,” she said.
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