Decree 95: Adjustment to price and quantity of CPTPP procurement contracts in Vietnam

Decree 95: Adjustment to price and quantity of CPTPP procurement contracts in Vietnam (illustrative image)

Decree 95/2020/ND-CP stipulates the adjustment to the price and quantity of CPTPP procurement contracts in Vietnam. The content of the contract price adjustment, principles and time of the adjustment, and input data used to calculate the adjustment must be clearly defined in the contract.

For adjustable unit price contracts, the contract must clearly specify the following details:

- The time for calculating the original unit price (usually determined 28 days before the bid closing date) to serve as a basis for determining the difference between the winning unit price and the adjustable unit price;

- The input data used for calculating the unit price adjustment, including the price index as announced by the General Statistics Office of Vietnam or the construction price index announced by the Ministry of Construction or the provincial People's Committee;

- The method and formula for calculating the unit price adjustment: The determination of the method and formula for calculating the unit price adjustment must be based on scientific grounds, and suitable for the nature of the package. Encouraged is the application of widely used international market methods such as the templates stipulated by the International Federation of Consulting Engineers, guidelines from the World Bank, and the Asian Development Bank.

For construction packages, in case the quantity of construction services arises outside the initial contract but within the objective of the bidding documents, due to unforeseen circumstances that need to be carried out to complete the construction service package as required by the bidding documents and without exceeding the approved package price, the investor and contractor shall calculate, negotiate, and sign an additional contract appendix. If it exceeds the approved package price, the additional quantity outside the contract may only be adjusted if the total value of the arising construction quantity does not exceed 50% of the original contract value, and must be reviewed and decided by the competent authority prior to signing the supplementary contract appendix. For arising quantities outside the scope of the signed contract without an agreed unit price therein, the contracting parties must agree on the unit price to perform this quantity of work in accordance with construction law regulations. If no agreement is reached, the arising work quantity shall form a new package, and the selection of contractors shall follow the current regulations.

For procurement, consulting service, and non-consulting service packages, in case of arising quantities of goods or services within the optional additional procurement, the investor and contractor shall sign a supplementary contract appendix. The investor may only supplement the quantity of goods and services within the optional additional procurement upon determining the funding source for this quantity.

Details are available in Decree 95/2020/ND-CP effective August 24, 2020.

Ty Na

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