When can I receive bonuses for construction contract packages of transport projects in Vietnam?

When can I receive bonuses for construction contract packages of transport projects in Vietnam?

Pursuant to Article 3 of Decree 15/2023/ND-CP stipulating rules for payment of contract bonuses as follows:

1. Works and work items shall be built in accordance with the contract (in terms of quantity, volume and quality), be built according to technical regulations and standards, and be accepted and handed over according to regulations of law on construction.

2. The payment of contract bonuses shall be public, transparent and fair; it shall be clearly stated in bidding documents, requests for proposals and contracts signed between investors and contractors.

3. The payment of contract bonuses shall be applied to each contract package.  The bonus shall not exceed unused fund after bidding specified in Article 4 of this Decree.

4. Contract bonuses shall be only paid to contractors who comply with the law when executing contract packages and there is an actual bonus fund.

5. Contract bonuses shall not be paid in cases where the price of the contract package is defined, the bidding document or request for proposals is made and the contract is signed in contravention of law on construction in order to profiteer from such bonuses.

Pursuant to Article 4 of Decree 15/2023/ND-CP stipulating contract bonus source as follows:

Contract bonus source is unused fund after bidding (including direct contracting).

Thus, the house is entitled to receive bonuses for construction contract packages of transport projects in Vietnam when:

- Price of bidding packages, preparation of bidding documents, dossiers of requirements and signing of contracts in accordance with the law on construction in order to take advantage of bonuses.

- The remaining amount after bidding (including appointment of contractor).

What are components of application for contract bonuses of construction contract packages of transport projects in Vietnam?

Clause 1, Article 7 of Decree No. 15/2023/ND-CP stipulates components of application for contract bonuses of construction contract packages of transport projects as follows:

1. After the contract is accepted and handed over according to regulations, the contractor shall submit 05 applications for contract bonuses to the investor in person or by post (the duration of submission of such applications shall not exceed the deadline for work warranty). An application includes the original of the written request for contract bonuses (Form No. 02, Appendix II), the original of the written commitment to repay any or all of bonuses in case of adjustment or withdrawal of such bonuses (Form 03, Appendix II), copy of contract/contract appendix signed between the investor and the contractor with clause on contract bonuses, copies of records of acceptance or handover, copies of documents on work warranty and other documents under the contract as the basis for payment of contract bonuses (if any).

According to the above provisions in Vietnaqm, components of application for contract bonuses of construction contract packages of transport projects include:

- The original of the written request for contract bonuses;

- The original of the written commitment to repay any or all of bonuses in case of adjustment or withdrawal of such bonuses;

- A copy of contract/contract appendix signed between the investor and the contractor with clause on contract bonuses, copies of records of acceptance or handover, copies of documents on work warranty and other documents under the contract as the basis for payment of contract bonuses (if any).

What are procedures for contract bonuses of construction contract packages of transport projects in Vietnam?

In Article 7 of Decree No. 15/2023/ND-CP stipulating procedures for contract bonuses of construction contract packages of transport projects as follows:

1. After the contract is accepted and handed over according to regulations, the contractor shall submit 05 applications for contract bonuses to the investor in person or by post (the duration of submission of such applications shall not exceed the deadline for work warranty). An application includes the original of the written request for contract bonuses (Form No. 02, Appendix II), the original of the written commitment to repay any or all of bonuses in case of adjustment or withdrawal of such bonuses (Form 03, Appendix II), copy of contract/contract appendix signed between the investor and the contractor with clause on contract bonuses, copies of records of acceptance or handover, copies of documents on work warranty and other documents under the contract as the basis for payment of contract bonuses (if any).

2. The investor shall receive applications at the request of the contractor according to regulations in Clause 1 of this Article.  If these applications are invalid, within 03 working days from the date of receipt of these applications, the investor shall give written notification and request the contractor to supplement such applications.

3. If these application are valid, the investor shall consider and decide payment of contract bonuses to the contractor within 30 days after receiving such valid applications. Decision on payment of contract bonuses shall clearly state contractor's name, name of contract package, the reduced time, bonuses, payment method, and expected time of payment and requirements for withdrawal of bonuses in case of adjustment of bonuses or occurrence of violations against rules for payment of contract bonuses (Form No. 04, Appendix II).

According to this Article, the procedures for contract bonuses of construction contract packages of transport projects include the following steps:

Step 1:

After the contract is checked, accepted and handed over according to regulations, the contractor sends directly or via postal service to the investor 05 sets of dossiers of request for contract bonuses (the time of submission of dossiers shall not exceed the deadline for closing the contract).

Step 2: The investor receives the dossier at the request of the contractor.

- In case the dossier is not valid, within 03 working days after receiving the dossier, the investor shall notify in writing and request the contractor to supplement the dossier for contract bonuses.

- In case the dossier is valid, the investor shall consider and decide to award the contract to the contractor within 30 days from the date of receipt of the valid dossier.

Best Regards!