What are general principles of procurement contracts for bidding packages in the CPTPP Agreement in Vietnam?

What are general principles of procurement contracts for bidding packages in the CPTPP Agreement in Vietnam?

In Article 85, Decree 95/2020/ND-CP stipulates general principles of procurement contracts for bidding packages in the CPTPP Agreement, as follow:

1. The contract signed between the parties is a civil contract; agreed in writing to establish the responsibilities of the parties in performing the entire scope of work under the contract. The contract that has been signed by the parties, is valid and in accordance with the provisions of Vietnamese law, is a legal document that binds the responsibilities of the parties during the contract implementation process.

2. The content of the contract must be prepared according to the form specified in the bidding documents and request documents, and at the same time be consistent with the results of contract negotiation and the results of contractor selection based on the requirements of the package and guidance from specialized state management agencies.

3. Before signing the contract, the parties can agree to use arbitration to resolve disputes that occur during contract performance. Content related to the use of arbitration must be specifically stipulated in the contract.

What is contract price of procurement contracts for bidding packages in the CPTPP Agreement in Vietnam?

According to Article 86 of Decree 95/2020/ND-CP regulating procurement contract prices for bidding packages in the CPTPP Agreement, as follows:

1. Contract price must be clearly defined in the contract with principles for managing changes and adjustments (if any).

2. The contract price needs to be shown in appropriate detail in the contract price list according to the form specified in the bidding documents and request documents and negotiated and completed before signing the contract. 

What are general principles of procurement contracts for bidding packages in the CPTPP Agreement in Vietnam? (Image from the Internet)

What are principles governing procurement contracts in the CPTPP Agreement in Vietnam?

Pursuant to Article 87 of Decree 95/2020/ND-CP stipulating principles for adjusting procurement contracts for bidding packages in the CPTPP Agreement, as follows:

1. Contract adjustments must be specifically stipulated in the contract document and written agreement on contract conditions (if any).

2. Contract adjustments are only applicable during the contract's validity period.

3. Adjustment of contract price is only applicable to fixed unit price contracts, adjustable unit price contracts and time-based contracts.

4. In case a project or procurement estimate includes multiple bidding packages, the total contract price after adjustment must not exceed the total investment and approved procurement estimate.

5. For contracts with adjusted unit prices, the unit price adjustment is made from the time the price change factor arises and only applies to volumes performed according to the schedule stated in the contract or the schedule is adjusted according to the provisions of Clauses 6 and 7 of this Article.

6. Contract implementation progress can only be adjusted in the following cases:

a) Force majeure cases, not related to violations or negligence of the parties to the contract;

b) Changing the scope of work, design, and construction methods due to objective requirements that affect the progress of contract implementation;

c) The handover of the site is not in accordance with the agreements in the contract, affecting the progress of contract implementation without the contractor's fault.

7. In case the contract implementation schedule is adjusted without prolonging the project completion schedule, the parties to the contract shall agree and agree on the adjustment. In case the contract implementation schedule is adjusted to prolong the project completion schedule, it must be reported to the competent person for consideration and decision.

Best regards!