Vietnam: What are the payment principles for a fixed unit price contract?

Vietnam: What are the payment principles for a fixed unit price contract? (Illustrative photo)

Decree 95/2020/ND-CP stipulates the payment principles for CPTPP procurement contracts with fixed unit prices in Vietnam as follows:

- Payment value is calculated by multiplying the fixed unit price in the contract with the actual quantity and quantity of work performed by the contractor;

- For construction services, if the actual work quantity performed by the contractor to complete according to the design is less than the work quantity stated in the contract, the contractor is only paid for the actual work quantity done. If the actual work quantity completed by the contractor according to the design is more than the work quantity stated in the contract, the contractor is paid for this excess work quantity with the same unit price stated in the contract;

- The investor, supervisory consultant, and contractor are responsible for confirming the acceptance record of the completed quantity as a basis for payment to the contractor.

Simultaneously, the payment dossier for CPTPP procurement contracts with fixed unit prices in Vietnam includes:

- Acceptance record of the completed quantity in the payment stage confirmed by the contractor’s representative, investor, and supervisory consultant (if any);

- Confirmation of the adjusted quantity increased or decreased compared to the contract confirmed by the contractor’s representative, investor, and supervisory consultant (if any);

- Calculation table for the payment value based on the confirmed completed work quantity and the unit price recorded in the contract;

- Payment request from the contractor, stating the completed quantity and value, increased (decreased) value compared to the contract, advanced value, payment request value in the payment stage;

- For procurement of goods: Depending on the nature of the goods, prescribe a suitable payment dossier such as the contractor’s invoice, list of packed goods, transport documents, insurance policy, Quality Certificate, Goods Acceptance Record, Certificate of Origin, and other related documents and evidence.

Details can be found in Decree 95/2020/ND-CP effective August 24, 2020.

Ty Na

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