What is the duration and schedule for the performance of construction contract in Vietnam?
What is a construction contract in Vietnam?
According to Point b, Clause 1, Article 3 of Decree No. 37/2015/ND-CP, a work construction contract (or construction contract) is a type of contract for the performance of construction of the works, work items or part of construction work by design.
What is the duration and schedule for the performance of construction contract in Vietnam?
What are the contents of work and workloads of construction contract in Vietnam?
The contents of work and workloads of construction contract according to Article 2 of Circular No. 09/2016/TT-BXD are as follows:
- The contents of work and workload shall be mutually agreed by both parties (the hirer and contractor) and shall be specified in the construction contract.
The scope of work shall be defined according to the bidding documents or request for proposals, bid or proposals, minutes of negotiations or relevant legal documents.
A construction contract may include the following tasks, in whole or in part:
+ Transferring, receiving and managing construction sites, construction site boundaries, markers
+ Providing building materials, personnel, and construction vehicles/machines/equipment stipulated in the contract.
+ Constructing the construction works according to the approved design and current construction regulations and standards.
+ Surveying and monitoring at requests of designers; carrying out on-line testing and off-line testing according to the commissioning plan prior to acceptance procedure.
+ Controlling construction quality, installing equipment, supervising sub-contractor performance (if the contractor is prime contractor or EPC contractor).
+ Remedying defects (if any) occurring during the construction
+ Testing quality of building materials and structure
+ Conducting the acceptance by construction stage, part of construction work, acceptance of work items and construction works
+ Performing HSE and fire/explosion prevention;
+ Protecting construction sites within the scope of contract.
+ Ensuring the construction site security
+ Cooperating with other contractors (if any)
+ Clearing the construction site and transferring construction works after the completion.
+ Other tasks as agreed in the contract, documents and provisions of laws.
- Building materials or construction vehicles provided by the hirer shall be specified in the contract, including: weight, quality, date and place of provision.
What is the duration and schedule for the performance of construction contract in Vietnam?
According to Article 5 of Circular No. 09/2016/TT-BXD stipulating the duration and schedule for the performance of a construction contract as follows:
- The contract duration shall be calculated from the effective date of the contract to the date on which both parties fulfill their contract obligations.
- The contractor shall submit the detailed schedule to the hirer which specify:
+ The order of work, schedule of work, duration of construction of primary work items, work items and the construction works.
+ Date for checking and inspecting the work, work items and construction works;
+ Reports on applicable construction techniques and main construction phases; reports on the number of officers, workers and equipment required for each main construction phase. The contractor shall follow the detailed schedule approved by the hirer.
- The contract schedule shall specify milestones and date of transfer of the primary works.
- Both parties shall specify cases which requires to adjust the contract schedule. Any adjustment to the contract schedule that does not make the contract schedule extend (including the acceptable extension time under terms of the contract) shall be agreed by the both parties.
Where the adjustment make the contract schedule last longer, the hirer shall request the person competent to make investment to consider deciding, and each party shall define their liabilities for damage due to the delay.
- Both parties should speed up their performance of contracts while still ensuring the construction works quality.
- The contractor shall submit a prediction of potential adverse events that may affect the construction work or may make the contract price increase.
LawNet
