What principles govern the payment of a fixed-price lump-sum contract?

How is the lump-sum contract with fixed unit prices paid? (Illustrative photo)

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

- Payment value is calculated by multiplying the fixed unit price in the contract with the actual volume and quantity of work performed by the contractor;- For construction services, if the actual work volume performed by the contractor to complete according to the design is less than the work volume stated in the contract, the contractor is only paid for the actual work volume done. If the actual work volume performed by the contractor to complete according to the design is more than the work volume stated in the contract, the contractor is paid for this excess work volume with the same unit price stated in the contract;- The investor, supervisory consultant, and contractor are responsible for confirming in the acceptance record of the completed volume as a basis for payment to the contractor.

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

- Acceptance record of the completed volume in the payment stage confirmed by the contractor’s representative, investor, and supervisory consultant (if any);- Confirmation of the adjusted volume 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 volume and the unit price recorded in the contract;- Payment request from the contractor, stating the completed volume 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 to 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 at Decree 95/2020/ND-CP effective August 24, 2020.

Ty Na

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