What are the principles for signing construction contracts according to the law in Vietnam? What are judgments related to disputes on construction contracts in Vietnam?

What are the principles for signing construction contracts according to the law in Vietnam?

According to the provisions of Article 138 Law on Construction 2014, the general regulations on construction contracts are as follows:

(1) A construction contract is a civil contract agreed upon in writing between the contracting party and the contractor to perform part or all work in construction investment activities.

(2) Principles for signing construction contracts include:

- Voluntary, equal, cooperative, not contrary to law and social ethics;

- Ensure sufficient capital to pay according to the contract agreement;

- Completion of contractor selection and conclusion of contract negotiation;

- In case the contractor is a joint venture, there must be a joint venture agreement. Members in the joint venture must sign, seal (if applicable) the construction contract, except where otherwise agreed by the parties.

(3) Principles for executing construction contracts include:

- Parties to the contract must fulfill commitments in the contract regarding the scope of work, quality, quantity, type, timeline, method, and other agreements;

- Honest, cooperative, and in accordance with the law;

- Not infringing upon the interests of the State, community and legitimate interests of organizations and individuals.

(4) The language used in the construction contract is Vietnamese. In cases where the construction contract involves a foreign party, the language used is Vietnamese and another language as agreed by the parties to the contract.

(5) Construction contracts must be signed and executed in accordance with the provisions of this Law and relevant legal provisions.

Thus, some principles for signing construction contracts include:

- Voluntary, equal, cooperative, not contrary to law and social ethics;

- Ensure sufficient capital to pay according to the contract agreement;

- Completion of contractor selection and conclusion of contract negotiation;

- In case the contractor is a joint venture, there must be a joint venture agreement. Members in the joint venture must sign, seal (if applicable) the construction contract, except where otherwise agreed by the parties.

What are judgments related to disputes on construction contracts in Vietnam?

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