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Can a Internet subdomain A record point to internal IP and is it good practice too do so?

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http://serverfault.com – We will be running a job soon where we want users to connect to a Internet based server but connect to a local server when on site due to slow network links. We will be subcontractors at the site and the infrastructure will be provided by the main client. We'd like our application to try and connect to the local server first and if it fails or cannont find it then try the global server out on the Internet. I was thinking of using our domain registrar to create a project subdomain for each of the servers localproject.domain.com and project.domain.com as opposed to the devs having to use raw I (HowTos)