What are cases of adjustment of construction contracts in Vietnam?

What are cases of adjustment of construction contracts in Vietnam?

Pursuant to Article 143 of the Law on Construction in 2014 (amended by Clause 64.c Article 1 of the Law on amendments to the Law on Construction in 2020) stipulating adjustment of construction contracts as follows:

Adjustment of construction contracts

1. Adjustment of a construction contract includes adjustment of volume, schedule, contract unit prices and other contents agreed upon in the contract. Adjustment of a construction contract may be made only during the period of contract performance.

2. A construction contract may be adjusted in the following cases:

a/ The case(s) agreed upon by the parties in the contract in accordance with this Law and relevant laws;

b/ When the State changes its policies directly affecting the contract performance, unless otherwise agreed upon by the contractual parties;

c/ When the project is adjusted, affecting the contract, unless otherwise agreed upon by the parties;

d/ Force majeure circumstances as prescribed by law.

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As regulations above, a construction contract may be adjusted in the following cases:

- The case(s) agreed upon by the parties in the contract in accordance with the Law on Construction in 2014 and relevant laws;

- When the State changes its policies directly affecting the contract performance, unless otherwise agreed upon by the contractual parties;

- When the project is adjusted, affecting the contract, unless otherwise agreed upon by the parties;

- Force majeure circumstances as prescribed by law.

What are principles of signing construction contracts in Vietnam?

Pursuant to Clause 2 Article 138 of the Law on Construction in 2014 stipulating general provisions on construction contracts as follows:

General provisions on construction contracts

1. Construction contracts are civil contracts established in writing between principals and contractors to perform in part or wholly the work in construction investment activities.

2. The principles of signing construction contracts include:

a/ Voluntariness, equality, cooperation, non-violation of law and social ethics;

b/ Assurance of adequate funds for payment according to contractual agreement;

c/ Having completed the selection of contractor and concluded the process of contract negotiation;

d/ If the contractor is a partnership of contractors, there must be a partnership agreement. The partners shall sign and append their seals (if any) to the construction contract, unless otherwise agreed by the parties.

3. The principles of performance of construction contracts include:

a/ The contractual parties shall properly implement their commitments in the contract regarding the scope of work, quality requirements, quantity, category, schedule, methods and other agreements;

b/ Honesty, cooperation and lawfulness;

c/ No infringement upon the interests of the State and community and lawful interests of other organizations and individuals.

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As regulations above, the principles of signing construction contracts in Vietnam are as follows:

- Voluntariness, equality, cooperation, non-violation of law and social ethics;

- Assurance of adequate funds for payment according to contractual agreement;

- Having completed the selection of contractor and concluded the process of contract negotiation;

- If the contractor is a partnership of contractors, there must be a partnership agreement. The partners shall sign and append their seals (if any) to the construction contract, unless otherwise agreed by the parties.

What are conditions for an effective construction contracts in Vietnam?

Pursuant to Clause 1 Article 139 of the Law on Construction in 2014 stipulating conditions for an effective construction contracts in Vietnam as follows:

Effect of construction contracts

1. A construction contract becomes effective when fully meeting the following conditions:

a/ The contract signees have full civil act capacity and act according to their competence in accordance with law;

b/ The principles of signing of construction contracts prescribed at Point a, Clause 2, Article 138 of this Law are adhered to;

c/ The contractor has full construction operation and practice capability conditions prescribed by this Law.

2. The time when a construction contract becomes effective is the time of its signing or another specific time as agreed upon by contractual parties.

As regulations above, a construction contract becomes effective when fully meeting the following conditions:

- The contract signees have full civil act capacity and act according to their competence in accordance with law;

- The principles of signing of construction contracts are adhered to;

- The contractor has full construction operation and practice capability conditions prescribed by the Law.

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