The case of the panama canal expansion: Pacta sunt servanda versus rebus sic stantibus in public works procurement Available to Purchase

The Panama Canal expansion is one of the most important public works projects in recent times. Both the awarding of the contract and its execution have been surrounded by intense controversy. The situation came to a head in February 2014 when the contractor halted construction work due to the canal authority’s failure to maintain the economic balance of the contract. This article explains the circumstances surrounding this dispute and analyses the causes and consequences of modifications to the contract. These are classic problems that affect all public procurement systems. The lessons drawn from this extraordinary case are valid for other legal systems