What are payment principles for fixed-price contracts for procurement of bidding packages in the CPTPP Agreement in Vietnam?

What are payment principles for fixed-price contracts for procurement of bidding packages in the CPTPP Agreement in Vietnam?

Pursuant to Clause 1, Article 93 of Decree 95/2020/ND-CP stipulating payment principles for fixed-price contracts for procurement of bidding packages in the CPTPP Agreement, as follows:

a) Payment value is calculated by multiplying the fixed unit price in the contract with the actual volume and quantity of work performed by the contractor;

b) For construction services, in case the actual amount of work that the contractor has performed to complete according to the design is less than the amount of work stated in the contract, the contractor is only paid for actual volume performed. In case the actual amount of work that the contractor has performed to complete according to the design is greater than the amount of work stated in the contract, the contractor will be paid for the difference in this amount of work at an equal unit price stated in the contract;

c) The investor, supervision consultant and contractor are responsible for confirming the acceptance record of the completed volume as a basis for payment to the contractor.

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

What is payment dossier for fixed-price contracts for procurement of bidding packages in the CPTPP Agreement in Vietnam?

According to Clause 2, Article 93 of Decree 95/2020/ND-CP stipulating payment documents for fixed-price contracts for procurement of bidding packages in the CPTPP Agreement, as follows:

2. Payment documents include:

a) Minutes of acceptance of the work performed during the payment period, certified by representatives of the contractor, investor and supervision consultant (if any);

b) A confirmation of the adjusted volume increased or decreased compared to the contract with confirmation from representatives of the contractor, investor and supervision consultant (if any);

c) Calculation table of proposed payment value based on the confirmed completed work volume and unit price stated in the contract;

d) The contractor's payment request, clearly stating the completed volume and completed value, increase (decrease) value compared to the contract, advance value, and proposed payment value during the contract period;

d) For goods procurement: Depending on the nature of the goods, determine appropriate payment documents such as contractor invoices, list of packaged goods, transport documents, insurance policies, Quality certificate, goods acceptance record, Certificate of origin and other related documents and vouchers.

What are payment principles for fixed-price contracts for adjustments for procurement of bidding packages in the CPTPP Agreement in Vietnam?

Pursuant to Clause 1, Article 94 of Decree 95/2020/ND-CP stipulating payment principles for contracts according to the unit price adjusted for procurement of bidding packages in the CPTPP Agreement, as follow:

a) Payment value is calculated by multiplying the adjusted unit price stated in the contract with the actual volume and quantity of work performed by the contractor;

b) For construction services, in case the actual amount of work that the contractor has performed to complete according to the design is less than the amount of work stated in the contract, the contractor is only paid for actual volume performed. In case the actual amount of work that the contractor has performed to complete according to the design is greater than the amount of work stated in the contract, the contractor will be paid for the difference in this amount of work;

c) The investor, supervision consultant and contractor are responsible for confirming the acceptance record of the completed volume as a basis for payment to the contractor.

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