Evaluation of Legal Risks for E-Commerce in Construction

Abstract

E-commerce is steadily becoming a reality in the construction industry. However, despite the increasing rate of utilization by owners and contractors alike, the legal implications of using e-commerce in construction have not been studied in depth. This paper fills this gap in literature. It identifies and analyzes the different types of legal risks involved in the use of e-commerce in construction. It also outlines the risk that contractors and professionals may face in their e-commerce implementations. A classification of e-commerce legal risks is also introduced. The legal risks discussed include agency, jurisdiction, contract formation, validity and errors, authentication, attribution, nonrepudiation, privacy, conflict of laws, and conflict between law and technology.