What are the foundations for signing construction contract in Vietnam? What are the contents and quantity of work in construction contract in Vietnam?
What are the foundations for signing construction contract in Vietnam?
Pursuant to Article 9 of Decree 37/2015/ND-CP stipulating the foundations for signing construction contract as follows:
- Foundations for signing a construction contract include requirements for performance of the tasks as agreed by the parties, result of selection of contractor, negotiation and completion of the contract and other relevant foundations.
- As for EPC, EC and EP contracts, in addition to the foundations as specified in Clause 1 Article 9 of Decree 37/2015/ND-CP, a feasibility study report or approved FEED is also required.
- As for Turnkey contracts, in addition to the foundations as specified in Clause 1 Article 9 of Decree 37/2015/ND-CP, other foundations such as project performance duties, investment policies, approved feasibility study report are also required.
What are the foundations for signing construction contract in Vietnam? What are the contents and quantity of work in construction contract in Vietnam? (Image from the Internet)
When is the construction contract payment guarantee issued?
Pursuant to Clause 2, Article 17 of Decree 37/2015/ND-CP stipulating as follows:
Payment guarantee
1. Construction contract payment guarantees shall be responsibilities of the employer for proving capabilities to perform payment obligations under the signed contract via such forms as approved capital arrangement plan, bank or credit organization guarantee, credit supply contract or loan agreement with financial institutions.
2. Before signing a construction contract, the employer must issue a payment guarantee in accordance with the payment schedule as agreed in the contract. The employer is not permitted to execute a construction contract without approved capital arrangement plan as agreed in the contract except urgent construction works.
Thus, according to regulations, before signing a construction contract, the employer must issue a payment guarantee in accordance with the payment schedule as agreed in the contract. The employer is not permitted to execute a construction contract without approved capital arrangement plan as agreed in the contract except urgent construction works.
What are the contents and quantity of work in construction contract in Vietnam?
Pursuant to Article 12 of Decree 37/2015/ND-CP stipulating as follows:
- Content and quantity of work in a construction contract are subject matters and quantity of work that the employer signs with the contractor in accordance with scope of work and specified in the contract. Scope of work is determined on the basis of an invitation to bid (ITB) or request for proposals, bid documents, negotiation minutes and other relevant legal documents. Depending on specific construction contract type, scope of work shall be determined as follows:
+ Contract for consultancy: Establishment of planning, investment project; designing and survey; project management; management of construction contract performance; construction supervision; examination and verification of design, cost estimates and other consulting works in activities of investment and construction;
+ Construction contract: Supply of building materials, human force, working machinery and equipment, and construction in accordance with approved design document;
+ Procurement contract: Supply of equipment; instructions on installation, use, trial operation, official operation, training and technology transfer (if any) in accordance with approved design document;
+ EPC contract: Engineering, procurement of materials and equipment, construction; training and instructions on operation, maintenance, repair work; technology transfer; on-load/off-load trial operation; other works in accordance with approved design document;
+ Turnkey contract: Establishment of investment project; engineering, procurement of materials and construction; training and instructions on operation, maintenance, repair work; technology transfer; on-load/off-load trial operation; handover of the works to the employer for operation; other works in accordance with approved project;
- Revision of quantity of work in the contract is prescribed in Article 37 of Decree 37/2015/ND-CP.
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