What is a construction general contractor in Vietnam? What are the contents of general construction contracts in Vietnam?
What is a construction general contractor in Vietnam?
Pursuant to Clause 35, Article 3 of the Law on the Construction 2014, construction general contractor means a contractor signing a contract directly with a project owner to undertake one job, some jobs or all jobs of a construction investment project.
Construction general contractor in Vietnam (Image from the Internet)
What are the contents of general construction contracts in Vietnam?
Pursuant to Article 141 of the Law on the Construction 2014, a general construction contract includes the following contents:
- Applied legal bases;
- Language used in the contract,
- Content and volume of work;
- Quality, technical requirements of work; pre-acceptance test and handover;
- Contract performance duration and schedule;
- Contract price, advance payment, currency used in payment, and payment for the contract;
- Contract performance security, contract advance guarantee;
- Adjustment of the construction contract;
- Rights and obligations of the parties to the construction contract;
- Liability for violations of the contract, rewards and fines for violations of the contract;
- Suspension and termination of the contract;
- Settlement of disputes over the contract;
- Risks and force majeure events;
- Settlement and liquidation of the contract;
- Other contents.
For general construction contracts, beside the above contents, the management contents and responsibilities of the construction contractor shall be added.
What are the obligations of contractors in construction contracts in Vietnam?
Pursuant to Clause 2, Article 28 of Decree 37/2015/ND-CP as follows:
Rights and obligations of the contractor (contract for work execution)
1. Rights of the contractor:
a) Propose additional quantity of work beyond the contract to the employer; refuse performance of the works beyond the contract without agreement between the two parties or unlawful requirements by the employer;
b) Change construction measures approved by the employer in order to quicken the progress, ensure quality, safety and efficiency of the construction works on the basis of signed contractual price;
c) Be entitled to ask the employer to pay loan interests due to late payment as agreed in the contract; be entitled to ask for compensation for damages caused by late handover of plan layout and other losses caused by the employer.
d) Other rights as prescribed by the law;
2. Obligations of the contractor:
a) Provide human force, materials, working machinery and equipment, other related material conditions with adequate quantity and type under the contract; design shop drawings (in case the contractor performs shop drawing design) for implementation of the works under the contract;
b) Receive and manage site plan, protect borderline markers of the construction site;
c) Carry out construction in accordance with the design, technical instructions, regulations and standards, ensuring quality, schedule, environmental protection safety and fire & explosion prevention and fighting.
d) Keep daily records of construction;
dd) Test materials, equipment and construction product as prescribed in the Law on Construction Quality Control, technical instructions, standards and regulations on construction;
e) Manage workers on the site; ensure safety, order and security and no adverse effect on surrounding residential area;
g) Establish construction measures, as-built dossiers and take part in work acceptance;
h) Take responsibility for quality of the construction undertaken; Take remedial work to any mistake committed during the construction;
i) Cooperate with other contractors on the site;
k) Make regular reports to the employer on construction schedule, human force and main equipment for the construction;
l) Move materials, machinery, equipment, and other properties out of the site within a defined time limit after the works have been accepted, handed over or the contract is terminated according to Article 41 hereof except otherwise as agreed in the contract;
m) Return the site plan as agreed in the contract;
n) Keep confidential information relating to the contract or as prescribed by the law;
o) Other obligations as prescribed by the law;
Thus, the obligations of the contractor in the construction contract:
- Provide human force, materials, working machinery and equipment, other related material conditions with adequate quantity and type under the contract; design shop drawings (in case the contractor performs shop drawing design) for implementation of the works under the contract;
- Receive and manage site plan, protect borderline markers of the construction site;
- Carry out construction in accordance with the design, technical instructions, regulations and standards, ensuring quality, schedule, environmental protection safety and fire & explosion prevention and fighting.
- Keep daily records of construction;
- Test materials, equipment and construction product as prescribed in the Law on Construction Quality Control, technical instructions, standards and regulations on construction;
- Manage workers on the site; ensure safety, order and security and no adverse effect on surrounding residential area;
- Establish construction measures, as-built dossiers and take part in work acceptance;
- Take responsibility for quality of the construction undertaken; Take remedial work to any mistake committed during the construction;
- Cooperate with other contractors on the site;
- Make regular reports to the employer on construction schedule, human force and main equipment for the construction;
- Move materials, machinery, equipment, and other properties out of the site within a defined time limit after the works have been accepted, handed over or the contract is terminated according to Article 41 of Decree 37/2015/ND-CP except otherwise as agreed in the contract;
- Return the site plan as agreed in the contract;
- Keep confidential information relating to the contract or as prescribed by the law;
- Other obligations as prescribed by the law;
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