What is the form of construction contract in Vietnam according to Circular 02/2023/TT-BXD? Where to download the construction contract form?
- What is the form of construction contract in Vietnam according to Circular 02/2023/TT-BXD?
- What are the content of construction contracts in Vietnam according to Circular 02/2023/TT-BXD?
- What are the regulations on payment, advance payment and dossiers on advance payment for construction contracts in Vietnam?
What is the form of construction contract in Vietnam according to Circular 02/2023/TT-BXD?
On March 3, 2023, the Ministry of Construction has just issued Circular 02/2023/TT-BXD on guilding certain contents of construction contracts.
Pursuant to Article 1 of Circular 02/2023/TT-BXD stipulating the scope of application of Circular 02/2023/TT-BXD as follows:
Scope
This Circular provides detailed guidance on certain contents of the construction contract; provides model performance contracts, consulting contracts, engineering, procurement, and construction (EPC) contracts.
Accordingly, Circular 02/2023/TT-BXD has regulations on construction contract forms including:
(1) Construction consulting contract
Pursuant to the regulations in Appendix II issued with Circular 02/2023/TT-BXD, it clearly states that the construction consulting contract has the following form:
>> Download construction consulting contract form: Here
(2) Construction performance contract
Pursuant to the regulations in Appendix III issued with Circular 02/2023/TT-BXD, it is clearly stated that the construction performance contract has the following form:
>> Download the performance contract form: Here
(3) Engineering, procurement, and construction contract (EPC contract)
Pursuant to the provisions in Appendix IV issued with Circular 02/2023/TT-BXD, it is clearly stated that the EPC contract form has the following form:
>> Download EPC contract form: Here
What is the form of construction contract in Vietnam according to Circular 02/2023/TT-BXD? Where to download the construction contract form? (Image from the Internet)
What are the content of construction contracts in Vietnam according to Circular 02/2023/TT-BXD?
Pursuant to the provisions of Article 7 of Circular 02/2023/TT-BXD stipulates as follows:
Instructions for using and applying model construction contracts
1. The model construction contracts enclosed herewith shall be applied to organizations and individuals to refer and apply in establishing and managing contract performance for construction contract packages, ensuring that contents of construction contracts meet the regulations in Clause 1 Article 141 of the Law on Construction No. 50/2014/QH13.
2. The model construction contracts enclosed with this Circular shall be applied to investors and contractors. If contracting parties are the general contractors or prime contractors, parties shall study and apply necessary contents of these model contracts to establish and manage the contract performance.
3. The model construction contracts enclosed herewith includes:
a) Model consulting contract specified in Appendix II enclosed herewith which is applied to consulting contracts for preparation of feasibility study reports, construction surveys, construction designs and construction supervision.
b) Model performance contract specified in Appendix III enclosed herewith.
c) Model EPC contract specified in Appendix IV enclosed herewith which is applied to lump-sum contracts. If prices of a contract are based on fixed unit prices, adjusted unit prices or combination of types of prices of the contract, parties shall, on the basis of regulations of law and this Circular, amend terms of their EPC contract templates for establishing the contract.
4. For simple and small-scale contracts, types of consulting contracts and other combined contracts, parties shall refer and apply the model construction contracts enclosed with this Circular for adjusting and amending terms of their contract templates for establishing contracts.
5. When using the model construction contracts enclosed herewith for dealing and signing construction contracts, specific requirements and conditions of packages, projects and the regulations of Decree No. 37/2015/ND-CP which are amended by Decree No. 50/2021/ND-CP, other regulations of law and the instructions in this Circular shall be based on. For contents of a contract, the following contents must be agreed specifically:
a) Specific regulations on time limit for payment, time limit for contract execution, deadline for response, expiry date of the contract and similar cases must be agreed upon.
b) If the contractor is a consortium, the performance guarantee - advance payment guarantee must be agreed upon as prescribed by law.
c) Specific regulations on types of currencies and forms of payment in the contract must not be contrary to requirements prescribed in bidding documents and regulations of law on foreign exchange.
d) If the price of the construction contract is based on adjusted unit prices, methods for price adjustments, price data sources and pricing basis must be agreed upon but not be contrary to bidding documents and law on construction contracts.
dd) The contents of the contract shall be adjusted and supplemented accordingly on the basis of the nature and conditions of the package.
Thus, the following contents must be agreed specifically:
- Specific regulations on time limit for payment, time limit for contract execution, deadline for response, expiry date of the contract and similar cases must be agreed upon.
- If the contractor is a consortium, the performance guarantee - advance payment guarantee must be agreed upon as prescribed by law.
- Specific regulations on types of currencies and forms of payment in the contract must not be contrary to requirements prescribed in bidding documents and regulations of law on foreign exchange.
- If the price of the construction contract is based on adjusted unit prices, methods for price adjustments, price data sources and pricing basis must be agreed upon but not be contrary to bidding documents and law on construction contracts.
- The contents of the contract shall be adjusted and supplemented accordingly on the basis of the nature and conditions of the package.
What are the regulations on payment, advance payment and dossiers on advance payment for construction contracts in Vietnam?
Pursuant to the provisions in Article 3 of Circular 02/2023/TT-BXD stipulates as follows:
Payment, advance payment and dossiers on advance payment for construction contracts
1. The payment for a construction contract shall comply with the regulations in Article 19 of Decree No. 37/2015/ND-CP.
2. In case production of structural elements and semifinished products with great values and building materials reserved by season is eligible for advance payment as prescribed in Clause 7 Article 18 of Decree No. 37/2015/ND-CP, the application for advance payment must list names, unit prices and total values of each type of materials, structural elements and semifinished products. When payment is made, the value of completed quantity which has been inspected and accepted must be reduced by an amount corresponding to the advanced value under the contract.
3. The advance payment as prescribed in Clause 4 Article 19 of Decree No. 37/2015/ND-CP shall be based on specific conditions of each advance payment to decide the advance payment value and guarantees for advance payments, thereby ensuring the efficiency and avoiding loss of capital. Some specific cases:
a) As for a contract based on adjusted unit prices, when the payment period begins but data on adjustments to unit prices and prices of the contract is not provided, the unit prices stated in the contract shall be used for making the advance payment.
b) For products and works which are in progress or unfinished as agreed upon in the contract, the degree of completion of each specific case and detailed unit prices of such products and works specified in the contract shall be bases for making advance payment.
4. For products and works which are unfinished due to reasons including termination of their contracts or failure to check and take over products by one of parties to the contract, responsibilities and obligations of each relevant entity must be specified before making payment.
5. An advance payment dossier includes: Final Acceptance Certificate (FAC) or workload confirmation record (if products or works fail to satisfy requirements for acceptance), Valuation table of workload generated out of contract for payment (increase or decrease); Valuation table of workload generated out of contract for advance payment and Request for advance payment.
Thus, payment, advance payment and dossiers on advance payment for construction contracts are carried out according to the above regulations.
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