Three General Principles of Procurement Contracts under the CPTPP Agreement

03 general principles of procurement contract for CPTPP Agreement (Illustrative Image)

Decree 95/2020/ND-CP stipulates 03 general principles of procurement contract according to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

1. The contract signed between the parties is a civil contract; agreed upon in writing to establish the responsibilities of the parties in performing the entire scope of work under the contract. The contract, once signed by the parties, becomes effective and complies with the laws of Vietnam, and serves as a legal document binding the responsibilities of the parties during the contract's execution.
2. The content of the contract must be formulated according to the template specified in the bidding documents, the request dossier, and must be in line with the contract negotiation results, and the results of selecting contractors based on the requirements of the procurement package and the guidance of the specialized state management agency.
3. Before signing the contract, the parties may agree on using arbitration to resolve any disputes arising during the contract's execution. The arbitration-related content must be specifically stipulated in the contract.

Additionally, this Decree specifies that the contract price must be clearly defined in the contract along with the principles of managing changes and adjustments (if any). The contract price must be detailed to an appropriate level in the contract price schedule, as specified in the bidding documents, request dossier, and must be negotiated and finalized before signing the contract.

For details, see Decree 95/2020/ND-CP effective August 24, 2020.

Ty Na

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