Are All Types of Construction Contracts Required to Ensure Contract Performance?

Based on the provisions at Point a Clause 1 Article 3 of Decree 37/2015/ND-CP, the construction consulting contract is one of the types of construction contracts.

In addition to the construction consulting contract, construction contracts can include other types such as: construction execution contracts, technology equipment supply contracts, design and construction execution contracts, turnkey contracts, etc.

According to Clause 1 Article 16 of Decree 37/2015/ND-CP: Ensuring the performance of construction contracts involves the contractor implementing one of the measures of deposit, escrow, or guarantee to ensure their obligations during the contract period; the guarantee form is encouraged.

Clause 2 Article 16 of this Decree also stipulates:

The performance assurance must be submitted to the contracting party before the contract takes effect according to the agreement of the parties on the value, type of currency, and method of assurance; in the form accepted by the contracting party and must remain valid until the contractor has fulfilled their contractual obligations or after the contracting party has received the performance bond for contracts that involve construction work and equipment supply. Particularly for construction consulting contracts, internal subcontract contracts, construction contracts under target programs implemented by households, and self-performed construction contracts, it is not mandatory to have performance assurance for the construction contract.

Thus, in principle, construction contracts must have measures to ensure performance. However, some types of contracts, such as construction consulting contracts, internal subcontract contracts, etc., are not mandatory for performance assurance.

Therefore, for your company's construction consulting contract, whether to implement a guarantee measure or not will depend on the agreement between the two parties.

Respectfully!