Can Additional Subcontractors Be Hired for a Construction Project in Progress?

Our unit is the investor and has signed a contract with a joint venture of two construction contractors. However, during the execution of the contract, the subcontractor did not meet the schedule and has requested in writing to only complete a sufficient volume to cover the advance payment. They have also asked our unit to allow another subcontractor to continue with the remaining volume of work. Can this be allowed?

Based on the provisions in Clause 3, Article 4 of Decree 37/2015/ND-CP:

The general contractor and primary contractor are allowed to sign contracts with one or several subcontractors; however, these subcontractors must be approved by the investor, and these subcontracting contracts must be consistent and synchronized with the primary contract signed with the investor. The general contractor and primary contractor bear responsibility to the investor for the progress and quality of the work agreed upon, including the tasks performed by subcontractors.

At the same time, Point c, Clause 1, Article 47 of this Decree also stipulates: For subcontractors not listed in the attached subcontractor list, they must be approved by the investor.

According to the information you provided, the construction project you are currently executing has a subcontractor failing to meet the progress. Referencing the above regulations, the primary contractor can enter into a contract with another subcontractor to continue the construction to ensure progress.

However, this subcontracting contract must be approved by the investor, which is your unit, and the subcontractor must meet the competency requirements to perform the assigned tasks accordingly. Also, the primary contractor still has to bear responsibility to the investor for the progress, quality, safety, and other obligations concerning the tasks performed by the subcontractor.

Respectfully!

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