Vietnam: What are the regulations on the content and workload in a construction contract? What will languages be used in construction contracts?
What are the regulations on the content and workload in a construction contract of Vietnam?
Pursuant to Article 2 of Circular 09/2016/TT-BXD stipulating as follows:
Article 2. Scope of work and workloads
1. The scope 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:
a) Transferring, receiving and managing construction sites, construction site boundaries, markers
b) Providing building materials, personnel, and construction vehicles/machines/equipment stipulated in the contract.
c) Constructing the construction works according to the approved design and current construction regulations and standards.
d) 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.
dd) Controlling construction quality, installing equipment, supervising subcontractor performance (if the contractor is prime contractor or EPC contractor).
e) Remedying defects (if any) occurring during the construction
g) Testing quality of building materials and structure
h) Conducting the acceptance by construction stage, part of construction work, acceptance of work items and construction works
i) Performing HSE and fire/explosion prevention;
k) Protecting construction sites within the scope of contract.
l) Ensuring the construction site security
m) Cooperating with other contractors (if any)
n) Clearing the construction site and transferring construction works after the completion.
o) Other tasks as agreed in the contract, documents and provisions of laws.
2. Building materials or construction vehicles provided by the hirer shall be specified in the contract, including: weight, quality, date and place of provision.
Accordingly, the content and workload in a construction contract in Vietnam shall comply with the above provisions.
What will languages be used in construction contracts in Vietnam?
Pursuant to Article 11 of Decree 37/2015/ND-CP stipulating as follows:
Applicable law and language used in a construction contract
1. The construction contract must conform to the law system of the Socialist Republic of Vietnam and provisions set out hereof.
2. Language used in a construction contract is Vietnamese.
3. As for a foreign construction contract, the language used is Vietnamese and English as agreed by the parties; in case no agreement on this is reached, English shall be used.
Thus, the construction contract can use Vietnamese and foreign languages according to the agreements of the parties.
What are the latest regulations on content and workload of a construction contract of Vietnam?
Pursuant to Article 12 of Decree 37/2015/ND-CP stipulating as follows:
Content and workload in construction contract
1. Content and workload in a construction contract are subject matters and workload 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:
a) 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;
b) Construction contract: Supply of building materials, human force, working machinery and equipment, and construction in accordance with approved design document;
c) 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;
d) 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;
dd) 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;
2. Revision of workload in the contract is prescribed in Article 37 hereof;
According to the above provisions, contents and workloads of a construction contract shall be determined on the basis of establishment of planning, investment project; designing and survey; project management; management of construction contract performance; construction supervision; inspection and verification of design, cost estimates and other consulting works in activities of investment and construction.
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