How are Several Liability and Joint Liability in the Design, Procurement of Materials and Equipment, and Construction Contract Regulated?
How are Separate and Joint Responsibilities Regulated in the Design, Procurement of Materials, and Equipment to Construct Building Projects Contract?
Pursuant to the provisions of Clause 3.5, Article 3, Part 3, Appendix 4 issued together with Circular 02/2023/TT-BXD, the separate and joint responsibilities in the Design, Procurement of Materials, and Equipment to Construct Building Projects Contract are regulated as follows:
In the case where the Contractor is a joint-venture contractor:
- This contract binds the separate and joint responsibilities of each member in the joint venture.- The Contractor must notify the Investor of the leading contractor in the joint venture, who is responsible for coordinating the members in the joint venture;- The leading contractor in the joint venture, once approved, will have full authority to bind all members forming the Contractor in all matters related to the contract.- The Contractor is not allowed to change its structure or legal status without the consent of the Investor.
To avoid misunderstandings, the separate and joint responsibilities of each member of the joint venture Contractor will not be intentionally influenced or affected by the content of the joint venture Agreement.
Separate and Joint Responsibilities in the Design, Procurement of Materials, and Equipment to Construct Building Projects Contract
How is Information Exchange regarding the Design, Procurement of Materials, and Equipment to Construct Building Projects Contract Carried Out?
Pursuant to the provisions of Clause 3.6, Article 3, Part 3, Appendix 4 issued together with Circular 02/2023/TT-BXD, the methods of exchanging information regarding the Design, Procurement of Materials, and Equipment to Construct Building Projects Contract are regulated as follows:
Any content in the terms and conditions of this contract that requires the parties to make requests, proposals, or issue and accept any matter, must be communicated between the parties in one of the following ways:
- In writing and delivered directly (according to the receipt) or sent via postal mail, fax, or email.- Sent to the address to contact the recipient.
In case the receiving party notifies a different address (new address), the information must be sent to this new address from then on. Otherwise, any notice or request from one party to the other will be sent to their respective addresses.
What is the Scope of Work of the Contractor in the Design, Procurement of Materials, and Equipment to Construct Building Projects Contract?
Pursuant to the provisions of Article 4, Part 3, Appendix 4 issued together with Circular 02/2023/TT-BXD, the scope of work of the Contractor in the Design, Procurement of Materials, and Equipment to Construct Building Projects Contract is regulated as follows:
The Contractor shall perform the design, procurement of materials and equipment, and construction work described on the basis of the contract price in Article 12, Part 3, Appendix 4 issued together with Circular 02/2023/TT-BXD as generally described but not limited to the following contents and shall rectify any defects under their responsibility.
The aforementioned design, procurement of materials and equipment, and construction work, collectively referred to as the Work, shall be performed in compliance with the contract requirements and reasonably meet the Investor’s requirements, with the ultimate aim of providing the Investor with a complete, safe, and efficiently operating project. The Contractor shall:
- Provide technical design, construction drawing design services, and other related services for the Work;- Provide or arrange to provide all necessary labor, management, equipment, and materials to perform the Work, except in special cases stipulated in the contract;- Procure, expedite, inspect, and arrange the delivery to the site of all materials and equipment for the project and the Work, all temporary works, and necessary materials for construction in accordance with the design documents and the contract;- Develop construction organization measures and execute the construction of the project as described in the Appendix of [the Investor's Bidding Documents (or Requirement Documents)];- Establish processes and management systems, and report fully to control the quality and progress of the Work strictly and provide the Investor with sufficient information to independently assess the actual quality and progress of the Work;- Construct all temporary works and maintain these items safely and efficiently for the performance of the Work until they are removed from the site or returned as required by the contract;- Recruit, train, organize, manage, and supervise subcontractors and labor on-site for the Work, ensuring they are instructed on appropriate working methods and work safety, environmental hygiene;- Provide, manage, and regulate travel within the project area; ensure safe and orderly entry and exit from the site for all Contractor personnel including on-site labor, management and supervisory staff, site management staff, suppliers, and subcontractors;- Prepare the project for testing (operation);- Execute the project tests;- Supervise and direct the project testing;- Arrange customs procedures, including insurance arrangements, storage, and transportation within Vietnam for all imported materials, equipment, and goods for the project construction;- Coordinate with subcontractors, suppliers, and other parties hired by the Contractor related to the Work and technology license suppliers (if any) to ensure that all materials and equipment used in the project comply with the contract requirements;- Provide all other necessary equipment and services to achieve the project handover according to the contract;- Always perform the Work safely.- Train, guide the Investor’s personnel to operate and maintain the project within the specified scope in the Investor's requirements (if any).- Complete the conformable finalization of the project.- Any activity not explicitly stated in Article 4, Part 3, Appendix 4 issued together with Circular 02/2023/TT-BXD but can be inferred from the contract as necessary to complete the Work shall be performed by the Contractor and the cost for such work is presumed to be included in the contract price unless specified otherwise in the contract.
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