Progress in the Execution of the Construction Contract

Accordingly, Circular 09 stipulates that the duration of contract execution is calculated from the effective date of the contract until the parties have fulfilled their obligations under the signed construction contract.

The contractor is responsible for preparing a detailed schedule for contract execution and submitting it to the client for approval, which includes:

- The sequence, timeline for executing tasks; construction time for each main phase of the project, project items, and the project itself;- Inspection and testing times of the tasks, items, and the project;- Accompanying reports include: an overall report on the methods that the contractor intends to apply and the main phases in executing the project; the number of staff, workers, and equipment of the contractor required for each main phase. The contractor must follow the detailed construction schedule after obtaining the client's approval.

The contract execution schedule must indicate the completion milestones and the handover of main tasks and products.

Additionally, Circular 09 stipulates that the client and the contractor must agree on cases where schedule adjustments are permissible. If adjusting the contract schedule does not extend the overall contract execution period (including the extension period as defined in the construction contract), the client and the contractor must agree on the adjustments. If the schedule adjustment extends the contract execution period, the investor must report to the competent authority for review and decision, and the parties must clarify each party’s responsibility for any damages caused by the delay.

It is encouraged by regulation to expedite the contract schedule while ensuring the quality of the construction project.

Note that the contractor must inform the client about specific circumstances that may arise in the future, which could adversely impact or delay the construction project or increase the contract cost.

For detailed information, refer to Circular 09/2016/TT-BXD, effective from May 01, 2016.

- Thao Uyen -

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