Construction—Mexico—Q&A guide
Construction—Mexico—Q&A guide

The following Construction practice note provides comprehensive and up to date legal information covering:

  • Construction—Mexico—Q&A guide
  • 1. If a foreign designer or contractor wanted to set up an operation to pursue the local market, what are the key concerns they should consider before taking such a step?
  • 2. Must foreign designers and contractors be licensed locally to work and, if so, what are the consequences of working without a licence?
  • 3. Do local laws provide any advantage to domestic contractors in competition with foreign contractors?
  • 4. What legal protections exist to ensure fair and open competition to secure contracts with public entities, and to prevent bid rigging or other anticompetitive behaviour?
  • 5. If a contractor has illegally obtained the award of a contract, for example by bribery, will the contract be enforceable? Are bribe-givers and bribe-takers prosecuted and, if so, what are the penalties they face? Are facilitation payments allowable under local law?
  • 6. Under local law, must employees of the project team members report suspicion or knowledge of bribery of government employees and, if so, what are the penalties for failure to report?
  • 7. Is the making of political contributions part of doing business? If so, are there laws that restrict the ability of contractors or design professionals to work for public agencies because of their financial support for political candidates or parties?
  • 8. Is a construction manager or other construction professional acting as a public entity’s representative or agent on a project (and its employees) subject to the same anti-corruption and compliance as government employees?
  • 9. Are there any other important legal issues that may present obstacles to a foreign contractor attempting to do business in your jurisdiction?
  • More...

Construction—Mexico—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to construction rights in Mexico published as part of the Lexology Getting the Deal Through series by Law Business Research (published: August 2020).

Authors: Comad SC—Roberto Hernández Garcia

1. If a foreign designer or contractor wanted to set up an operation to pursue the local market, what are the key concerns they should consider before taking such a step?

The Mexican market is friendly to foreign investment. Therefore, legal requirements for foreign companies, either to incorporate or operate, are not as rigid as in other countries; however, incorporation and registration must be performed.

Nevertheless, key concerns could be whether the company wants to focus on the public or private sector; what kind of sector they intend to enter into; and the tax and labour matters, which can be complicated and burdensome.

2. Must foreign designers and contractors be licensed locally to work and, if so, what are the consequences of working without a licence?

There are no licences required to operate as a designer or contractor. The company only has to be duly incorporated to be able to operate. The incorporation procedures are the same for all companies. The holding of the correct permits and compliance with relevant laws is necessary regarding land, purpose and environmental matters.

3. Do local laws provide any advantage to domestic contractors in competition with foreign

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