What are regulations on adjustments in quantity of work to construction contract in Vietnam?

What are regulations on adjustments in quantity of work to construction contract in Vietnam?

Pursuant to Article 37 of the Decree 37/2015/NĐ-CP (amended by Clause 13 Article 1 of the Decree 50/2021/NĐ-CP) stipulating adjustments in quantity of work to construction contract in Vietnam as follows:

1. The parties to the contract must carry out negotiations on specific adjustments in quantity of work, scope, sequence and procedures for adjustments;

2. Adjustments in quantity of work to construction contract are prescribed as follows:

a) As for a lump sum contract: additional quantity of work beyond the signed contract's scope of work are considered as appropriate (as for the contract for work execution, procurement contract, additional quantity of work beyond the design’s scope of work; and as for the contract for consultancy, additional quantity of work beyond the scope of consultancy service as agreed in the contract).

In this case, if the adjusted price does not exceed the bid package’s price, both the investor and contractor shall carry out calculations, negotiations and sign an appendix to the contract; if the adjusted price exceeds the bid package’s price, this must be examined and decided by the competent person; if no agreement is reached, such additional quantity of work shall constitute a new bid package and selection of contractors for the execution of this package shall conform to applicable regulations.

b) As for a fixed unit price contract and an adjustable unit price contract: if the addition of appropriate quantity of work (without unit price in the contract) to the contract does not make the price exceed the bid package’s price, both the investor and contractor shall carry out calculations, negotiations and signing an appendix to the contract; if such addition of quantity of work makes its price exceed the bid package's price, it must be examined and decided by the competent person; any quantity of work (with unit price in the contract) shall be determined on the basis of actual completed quantity of work (increasing or decreasing versus the quantity of work set out in the contract.

3. For the volume of the extra-contractual work for which a unit price or method of determining the unit price has yet to be set out in the contract, the parties to the contract shall agree upon the unit price or principles and method of determining the unit price to perform such work prior to performance.

Pursuant to Clause 1 Article 12 of the Circular 08/2016/TT-BXD stipulating as follows:

1. The workloads shall be adjusted in accordance with Article 37 of the Decree No. 37/2015/ND-CP, Article 16 hereof and the following provisions:

a) Any force majeure event causing changes in workloads shall be dealt with in accordance with Article 16 hereof.

b) For lump-sum contracts: the workload shall be reasonably adjusted as the basis for adjusting contract value at the hirer’s requests (whether increase or decrease) under clause 3 of this Article.

c) Fixed-price contracts and adjustable price contracts shall conform to Article 14 of the Decree No. 37/2015/ND-CP and clause 2, Article 12 hereof.

d) The parties shall negotiate the price of workload whose cost is not included in the contract price prior to the execution.

dd) The workload price shall be calculated according to terms of the contract and provisions of laws on construction cost management. The contract Annexes as the basis of contract settlement shall be signed by the parties.

Where the parties fail to reach an agreement on the additional workload price, the additional workload shall be included in a new contract and contractor selection for carrying out the new contract shall be made in accordance with current provisions of laws.

What are regulations on adjustment of prices of package contracts in Vietnam?

Pursuant to Article 5 of the Circular 07/2016/TT-BXD stipulating adjustment of prices of package contracts in Vietnam as follows:

1. When there are reasonable additional work volumes outside the signed contract or reasonable additional work volumes without unit prices specified in the signed contract, the contract parties shall agree on unit prices for performance of these work volumes before performing them. A new unit price shall be determined on the principle agreed upon in the contract regarding unit prices of additional work volumes arising outside the signed contract, or work volumes without any unit prices specified in the contract. A new unit price shall be determined under the Ministry of Construction’s Circular guiding the estimation and management of work construction investment costs and agreements in the contract.

2. Lower contract prices for works, work items or jobs not to be performed according to the design dossier attached to the signed contract shall be based on the contract’s unit prices. When signing a package contract, the parties shall attach a table of unit prices to the contract to facilitate the adjustment of contract prices for work volumes not to be performed under the contract.

3. For force majeure events or other force majeure circumstances: The determination of unit prices for works performed to remedy consequences of force majeure events or circumstances must be based on practical conditions and comply with the Ministry of Construction’s Circular guiding the estimation and management of work construction investment costs; the signed contract’s unit prices; or the units prices determined on the principle agreed upon in the signed contract regarding new unit prices for additional work volumes outside the signed contract may be applied.

What are regulations on revision of construction estimates in Vietnam?

Pursuant Article 15 of the Decree 10/2021/NĐ-CP stipulating revision of construction estimates in Vietnam as follows:

1. Approved construction estimates shall be revised according to Clause4 Article 135 of Law on Construction.

2. Construction estimates for revision includes unrevised construction estimates and revised construction estimates. Details related to revised construction estimates must be appraised according to Article 13 of this Decree.

3. Entitlement for appraisal and approval of revised construction estimates shall conform to regulations on entitlement for appraisal and approval of revised construction design implemented after fundamental design under Decree on elaborating to regulations on management of construction investment projects.

4. In case revised construction estimates exceed approved estimates but not approved total construction investment, investors organize revision, report to investors for acceptance prior to approval.

5. In case revised estimates do not exceed approved estimates but alter structure of costs in total construction investment, investors shall organize revision, approval, report to investment deciders and are responsible for revision results.

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