Vietnam: The project owner cooperates with local authorities when clearing the site

According to Article 9 of the Circular No. 39/2015/TT-BNNPTNT of the Ministry of Agriculture and Rural Development of Vietnam, project owners and investors manage contract performance according to the provisions of Articles 62, 63, 64, 65, 66 and 67 of the Law on Procurement No. 43/2013/QH13 of Vietnam; Articles 89, 90, 91, 92, 93, 94, 95, 96, 97, 98 and 99 of Decree No. 63/2014/NĐ-CP; provisions of the Decree No. 37/2015/NĐ-CP dated April 22, 2015 detailing construction contracts; provisions on the Donor's contract for ODA projects and comply with the following provisions:

- In the course of contract performance, when the contractor has a proposal different from the Bid Documents, Request for Proposals, the investor considers the reasonableness to make a decision but must ensure the quality, progress, work safety and save more effectively and take responsibility for their decisions.

- The investor must supervise the contractor, ensure the contract performance according to the plan, schedule and quality stated in the Bid Documents, Bids, Request for Proposals, Proposals and the signed contract. Strictly implement the handling of contract violations for acts of delay, failure to ensure the quality of works. Publicize information on handling of violations according to the provisions of Clause 4 Article 90 of the Law on Procurement No. 43/2013/QH13 of Vietnam and the Ministry's regulations on evaluation of contractor capacity.

- Before the effective date of the contract, the investor must receive the contract performance guarantee from the contractor (even in the case of extending the contract performance period during the performance). Guarantee the performance of the contract made according to the prescribed form to ensure that the investor can immediately withdraw without any conditions when the contractor refuses to perform the contract after the contract takes effect and the circumstances that the contractor violates the contract, concurrently, the investor shall handle the contract according to regulations and report to the investment decision level.

- Before the time of advance, the investor must receive the contract advance guarantee from the contractor as prescribed in Clause 4 Article 18 of the Decree No. 37/2015/NĐ-CP equivalent to the advance value, the advance guarantee period must be valid until the contractor fully refunds the advance value. Guarantee the contract advance according to the prescribed form, ensuring that the investor can immediately withdraw without any conditions when the contractor violates. The investor is responsible for supervising the contractor to use the advance for the right purposes and requirements of the bidding package and to pay the advance payment according to current regulations.

- The project owner and investor must provide design documents, compensation scope and closely coordinate with local authorities in site clearance to ensure the progress of the bidding package. When there are problems about the construction site, the investor and the locality agree on the solution. In case of exceeding the authority, the investor must report to the competent authority for consideration and decision.

- For bidding packages under ODA projects, the contract must clearly specify the source of the price index, the method of calculating the equivalent value, and the conversion rate. There are measures to manage risks related to fluctuations in foreign currency rates in the contract in case the contractor offers costs related to the performance of the bidding package in foreign currency.

View more details at the Circular No. 39/2015/TT-BNNPTNT of the Ministry of Agriculture and Rural Development of Vietnam, effective from December 10, 2015.

Le Vy

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