The latest form of construction contract from April 20, 2023? What are the general rights and obligations of the project owner in a construction contract in Vietnam?
What must be included in a construction contract in Vietnam?
Pursuant to Appendix 3 issued together with Circular No. 02/2023/TT-BXD stipulating the required contents in a construction contract, including:
A construction contract must contain the following contents:
LIST OF ABBREVIATIONS
PART 1. TRANSACTION INFORMATION OF PROJECT OWNERS AND CONTRACTORS
SECTION 2. BASES FOR SIGNING CONTRACT
SECTION 3. GENERAL CONDITIONS OF THE CONTRACT
Article 1. Interpretation of terms
Article 2. Contract documents and order of priority
Article 3. Law and language used
Article 4. Notification
Article 5. Performance guarantee and contract advance guarantee
Article 6. Content and volume of work
Article 7. Requirements on product quality and acceptance and handover of construction contract products
Article 8. Time and progress of contract performance
Article 9. Contract price, advance and payment
Article 10. Adjustment of unit price, work volume, a number of other contents in the contract and construction contract price
Article 11. General rights and obligations of the Project owner
Article 12. General rights and obligations of the Contractor
Article 13. Rights and obligations of the consulting contractor (applicable to the case where the project owner signs a contract to hire a project management consultant)
Article 14. Rights and obligations of the consulting contractor (applicable to the case where the project owner signs a contract to hire a construction supervision consultant)
Article 15. Subcontractors
Article 16. Occupational safety, environmental protection and fire and explosion prevention
Article 17. Electricity, water and site security
Article 18. Suspension and termination of the contract by the Project owner
Article 19. Suspension and termination of the contract by the Contractor
Article 20. Insurance and warranty
Article 21. Risks and force majeure
Article 22. Compensation events
Article 23. Contract bonus, penalty for breach of contract
Article 24. Complaints and handling of disputes
Article 25. Settlement and contract liquidation
Article 26. Effect of the contract
Article 27. General Terms
SECTION 4. SPECIFIC CONDITIONS OF THE CONTRACT
Article 1. Interpretation of terms
Article 2. Contract documents and order of priority
Article 3. Law and language used
Article 4. Notification
Article 5. Performance guarantee and contract advance guarantee
Article 6. Content and volume of work
Article 7. Requirements on product quality and acceptance and handover of construction contract products
Article 8. Time and progress of contract performance
Article 9. Contract price, advance and payment
Article 10. Adjustment of unit price, work volume, a number of other contents in the contract and construction contract price
Article 15. Subcontractors
Article 22. Compensation events
Article 24. Complaints and handling of disputes
Article 25. Settlement and contract liquidation
Article 26. Effect of the contract
The latest form of construction contract from April 20, 2023? What are the general rights and obligations of the project owner in a construction contract in Vietnam?
What is the latest form of construction contract from April 20, 2023?
Pursuant to Appendix 3 issued together with Circular No. 02/2023/TT-BXD stipulating the latest form of construction contract as follows:
Download the form of construction contract: Click here.
What are the general rights and obligations of the project owner in a construction contract in Vietnam?
Pursuant to Article 11 of Appendix 3 issued together with Circular No. 02/2023/TT-BXD stipulating the general rights and obligations of the project owner in the construction contract as follows:
Rights of the project owner
- The project owner has the right to inspect and supervise, but must not interfere with the normal construction activities of the Contractor and any delay, delay or prolonged additional requirements in the inspection/inspection of the Contractor. Project owners are not included in the Contractor's construction progress;
- If the project owner considers he is entitled to any payment under any other article or provisions relating to the contract, it shall notify and provide specific details to the Contractor.
- Where the project owner becomes aware of a problem or situation leading to a complaint, it must notify the Contractor as soon as possible. The details shall specify the term or other basis of claim and shall include proof of the amount and length of time to which the project owner claims to be entitled in connection with the contract. The project owner must then decide:
+ Amount (if any) that the Project owner has the right to request the Contractor to pay;
+ Extend (if any) the time limit for error notification;
+ The project owner may deduct this amount from any debts or liabilities of the Contractor. The project owner shall only be entitled to deduct or reduce the amount from the total amount confirmed to be owed by the Contractor or under any other claim against the Contractor under this paragraph;
+ Other rights as prescribed by law.
Obligations of the project owner
- Must apply for a construction permit according to regulations;
- Hand over the whole or part of the construction site to the Contractor for management and use in accordance with the schedule and agreements of the contract;
- Appoint and notify in writing to the Contractor about the main human resources involved in the management and performance of the contract;
- Allocate sufficient capital to pay the Contractor according to the payment schedule in the contract;
- Hire a consultant to help the Project owner supervise according to the provisions of Article 13 or Article 14 of this contract [Rights and obligations of the consultant];
- Provide timely design dossiers and related documents, materials (if any) as agreed in the contract and relevant laws;
- Review and promptly approve within ... days in writing proposals related to the Contractor's design and construction during the construction process. If within this time period the project owner does not respond, the project owner shall be deemed to have accepted the Contractor's proposal or request;
- The project owner shall make available to the Contractor all relevant data available to the project owner on topographic, geological and hydrological conditions and the contents of the site survey, including environmental factors related to the contract.
Circular No. 02/2023/TT-BXD takes effect from April 20, 2023.
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