German contractors are involved in a large number of international construction projects both in Germany and elsewhere in the world. Not surprisingly, German contractors tend to insist on their contractual relations with their employer being governed by German law. Of course, the employer, that is in most cases a developer or investor, will usually try to opt for the law it is familiar with; but experience has shown that, when selecting the appropriate contractor and negotiating the terms of the contract, other issues—such as expertise, quality of work, prices and time schedules—are prioritised and the choice of law clause is considered to be of minor importance. The choice of a foreign law, however, always involves severe risks for the party that is not familiar with it. While this is basically true for all kinds of contracts in any market, there are some particular peculiarities of German law in the construction sector that could seriously endanger the financial basis of the entire project if the developer/investor has not taken account of them when setting up the financial structure and negotiating the terms of the agreement.