Termination of Construction Consulting Contract in Case of Force Majeure

This content is stipulated in Circular 08/2016/TT-BXD issued by the Ministry of Construction on March 10, 2016, to provide guidance on construction consultancy contracts.

Circular 08 stipulates that if the execution of contractual work is halted due to force majeure that has been notified according to the contract's provisions, and the total number of days halted exceeds the days notified due to force majeure, either party has the right to send a termination notice to the other party.

In the case of such termination, the Employer shall pay the Contractor:

- Payments for any work done whose price has been stated in the contract.- Costs for equipment and materials ordered for the project that has been delivered to the Contractor, or for items the Contractor is responsible for accepting delivery: This equipment and materials will become the property (and risk) of the Employer upon payment, and the Contractor will allow the Employer to use them.

For more details, refer to Circular 08/2016/TT-BXD which takes effect from May 1, 2016.

- Thao Uyen -

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