Contract for Design, Procurement of Materials, Equipment, and Construction of Works: What Contents Should be Included?
What contents must a contract for design, procurement of materials, equipment, and construction of works include?
Pursuant to Appendix 4 issued together with Circular 02/2023/TT-BXD, the contents required in a Design - Procurement of materials and equipment - Construction works contract include:
LIST OF ABBREVIATIONS
PART 1. TRANSACTION INFORMATION OF THE INVESTOR AND THE CONTRACTOR
PART 2. BASIS FOR SIGNING THE CONTRACT
PART 3 - GENERAL CONDITIONS OF THE CONTRACT
Article 1. Interpretation of terms
Article 2. Contract documents and order of precedence
Article 3. General provisions
Article 4. Scope of work
Article 5. Requirements for construction design work
Article 6. Requirements for procurement and installation of equipment
Article 7. Requirements for construction work
Article 8. Testing, adjustment, and trial operation upon completion
Article 9. Acceptance by the Investor
Article 10. Contract performance time and schedule
Article 11. Contract performance guarantee and advance payment guarantee
Article 12. Contract price, advance payment, and payment
Article 13. General rights and obligations of the Investor
Article 14. Duties and powers of the Consultant
Article 15. General rights and obligations of the Contractor
Article 16. Price adjustment and contract modification
Article 17. Subcontractors
Article 18. Suspension and termination of the contract by the Investor
Article 19. Suspension and termination of the contract by the Contractor
Article 20. Insurance and warranty for the works
Article 21. Responsibilities for errors
Article 22. Bonuses, penalties for contract breaches, and liability for damages
Article 23. Risks and force majeure
Article 24. Claims and dispute resolutions
Article 25. Settlement and liquidation of the contract
Article 26. Contract effectiveness
PART 4 - SPECIFIC CONDITIONS OF THE CONTRACT
Article 1. Interpretation of terms
Article 2. Contract documents and order of precedence
Article 3. General provisions
Article 5. Requirements for construction design work
Article 6. Requirements for procurement and installation of equipment
Article 7. Requirements for construction work
Article 8. Testing, adjustment, and trial operation upon completion
Article 9. Acceptance by the Investor
Article 10. Contract performance time and schedule
Article 11. Contract performance guarantee and advance payment guarantee
Article 12. Contract price, advance payment, and payment
Article 13. General rights and obligations of the Investor
Article 14. Duties and powers of the Consultant
Article 15. General rights and obligations of the Contractor
Article 16. Price adjustment and contract modification
Article 17. Subcontractors
Article 18. Suspension and termination of the contract by the Investor
Article 19. Suspension and termination of the contract by the Contractor
Article 20. Insurance and warranty for the works
Article 21. Responsibilities for errors
Article 22. Bonuses, penalties for contract breaches, and liability for damages
Article 23. Risks and force majeure
Article 24. Claims and dispute resolutions
Article 25. Settlement and liquidation of the contract
Article 26. Contract effectiveness
What contents must a contract for design, procurement of materials, equipment, and construction of works include?
In what order are the documents attached to the EPC contract arranged?
Pursuant to the provisions of Article 2 Appendix 4 issued together with Circular 02/2023/TT-BXD, the order of documents attached to the EPC contract is as follows:
- Winning bid notice (or contractor selection decision or approval document);
- Specific conditions of the contract, General conditions, terms of reference;
- Approved investment project (or technical-economic report);
- Bidding documents (or request documents) of the Investor;
- Project standards, technical instructions, and design documents (FEED design or basic design);
- Bidding documents (or proposals) of the Contractor;
- Minutes of contract negotiation, modifications, supplements in writing;
- Appendices of the contract;
- Other related documents.
What is the form of the contract for design, procurement of materials, equipment, and construction of works stipulated?
Pursuant to the provisions in Appendix 4 issued together with Circular 02/2023/TT-BXD, the form of the contract for design, procurement of materials, equipment, and construction of works is as follows:
Download the sample contract for design, procurement of materials, equipment, and construction of works: here
Circular 02/2023/TT-BXD will come into effect from April 20, 2023.
LawNet
