What is price adjustment of procurement contracts in the CPTPP Agreement in Vietnam?

What is price adjustment of procurement contracts in the CPTPP Agreement in Vietnam?

In Clause 1 and Clause 2, Article 88 of Decree 95/2020/ND-CP regulating price adjustment of procurement contracts for bidding packages in the CPTPP Agreement, accordingly:

1. The contract price adjustment must be clearly specified in the contract regarding the adjustment content, principles and time for calculating the adjustment, and the input database for calculating the adjustment.

2. Unit price adjustment:

For contracts based on adjusted unit prices, the contract must clearly state the following contents:

a) Time to calculate the original unit price (normally determined at 28 days before the bid closing time) as a basis for determining the difference between the winning unit price and the adjusted unit price;

b) Input databases to calculate unit price adjustments, in which the price index used as a basis for calculating unit price adjustments is based on price index announced by the General Statistics Office or the construction price index announced by the Ministry of Construction and the Provincial People's Committee;

c) Method and formula for calculating unit price adjustment:

Determine the method and formula for calculating unit price adjustments must be based on a scientific basis and appropriate to the nature of the bidding package. Encourage the application of calculation methods that are widely applied in the international market such as the prescribed models of the International Association of Consulting Engineers and guidelines of the World Bank and the Asian Development Bank.

What is price adjustment of procurement contracts in the CPTPP Agreement in Vietnam? (Image from the Internet)

What is volume adjustment of procurement contracts in the CPTPP Agreement in Vietnam?

According to Clause 3, Clause 4, Clause 5, Article 88 of Decree 95/2020/ND-CP regulating adjustment of the volume of procurement contracts for bidding packages in the CPTPP Agreement, specifically as follows:

3. Adjustment for additional workload:

For construction service bidding packages, in case the construction service workload arises outside the original contract but is within the objectives of the bidding documents, due to unforeseen circumstances, it is necessary to implemented to complete the construction service bidding package according to the requirements of the bidding documents and without exceeding the approved bidding package price, the investor and contractor will calculate, agree and sign an additional contract appendix; In case the price of the approved bidding package exceeds, additional adjustments to the non-contractual volume may only be made if the total value of the arising construction volume does not exceed 50% of the original contract value and must be approved by a competent person. Consider and decide before signing additional contract appendices. For volumes arising outside the scope of the signed contract without a unit price in the contract, the parties to the contract must agree on the unit price to perform this volume of work before implementation based on regulations on construction law. In case the agreement is not successful, the amount of work arising will form a new bidding package, and contractor selection will be carried out according to current regulations.

4. For procurement packages of goods, consulting services and non-consulting services, in case the volume of goods and services under the additional purchase option arises, the investor and contractor will sign a sub-contract. contract supplement. The investor is only allowed to add the volume of goods and services under the additional purchase option when the source of money to pay for this volume has been determined.

5. In case of additional volume mentioned in Clause 3 of this Article, the investor and bid solicitor must post the following information on the National Bidding Network System:

a) Bidding package name and brief description of the bidding package;

b) Name and address of the purchasing agency;

c) Name and address of the contractor signing the contract;

d) Initial contract value and value of additional work volume;

d) Time for signing additional contract appendices;

e) Summary of reasons for applying Clause 3 of this Article.

What is currency and form of payment for procurement contracts in the CPTPP Agreement in Vietnam?

Pursuant to Article 89 of Decree 95/2020/ND-CP regulating currency and contract payment method, as follows:

1. The currency used to pay for the contract must be specifically specified in the contract and in accordance with the requirements of the bidding documents and request documents and must not be contrary to the provisions of law.

2. Domestic costs must be paid in Vietnamese Dong, costs outside the Vietnamese territory must be paid in foreign currency according to the provisions of the contract.

3. Payment can be in cash, bank transfer and other forms agreed upon by the parties according to the provisions of law and must be stated in the contract.

Best regards!