A U.S. court enforced an international arbitration award against an Indonesian state-owned company (Pertamina) that had breached a geothermal power project contract with Karaha Bodas Company. Pertamina tried to block enforcement but failed because it couldn't prove any valid legal grounds to overturn the arbitration decision. The court confirmed the award under the New York Convention, which means international arbitration decisions are very hard to challenge once made. This matters to subcontractors because it shows that arbitration clauses in contracts—especially international ones—are binding and enforceable even against large government entities.
Include arbitration clauses in your subcontracts. Courts strongly enforce them, even when one party is a government or major corporation trying to escape the award.
Make sure arbitration provisions specify the location, rules (like UNCITRAL), and language clearly. Vague terms can be challenged; specific ones are bulletproof.
If you win an arbitration award, you can enforce it in U.S. courts under the New York Convention. The other party has very few legal grounds to block payment.