Recently, the Government of Vietnam announced a Draft Decree amending Decree 37/2015/ND-CP detailing regulations on construction contracts. Notable amendments and supplements include provisions regarding Contracts for Design - Supply of Technological Equipment and Construction (EPC).
Article table of contents
Accordingly, EPC contracts are only applicable to projects and construction packages that need to shorten the implementation time; projects and construction packages with high technical and technological requirements, and must ensure synchronization from the design stage, supply of equipment, construction to the training and operation, and transfer of the project.
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Illustrative image (source: internet)
Before proceeding with the procurement of materials and technological equipment for the EPC contract, the contractor must prepare the requirements to submit to the employer for approval before procurement if agreed upon in the contract.
The contractor may proceed with direct procurement or hire subcontractors to procure materials and equipment for the EPC contract. In case of hiring subcontractors for procurement, the contractor must agree and unify with the employer on the requirements for subcontractors providing materials and equipment before selecting the subcontractors, but must not change the technical requirements, origin, or technology stated in the signed EPC contract.
During the payment process of the contract, for essential specific materials, equipment, and items that need to be procured and paid for before being brought to the site to meet the project schedule, the parties may agree to pay for the value of these materials and equipment once the contractor has brought them to the site and they have been accepted by the employer.
See detailed contents of other amendments and supplements at Draft Decree amending Decree 37/2015/ND-CP detailing construction contracts.
