Decree 139/2017/NĐ-CP of Vietnam’s Government providing for penalties for administrative violations against regulations on investment and construction; extraction, processing and trading of minerals used in construction, production and trading of building materials; management of infrastructural constructions; real estate business, housing development, management and operation of apartment buildings and office buildings will come into force from January 15, 2018.
Article table of contents
According to Decree No. 139/2017/NĐ-CP of Vietnam’s Government, failure to enter into a joint-venture agreement with the contractor that is a party of the construction contractor partnership shall be fined up to VND 30 million. Specifically, according to Clause 1 Article 18 of Decree No. 139/2017/NĐ-CP of Vietnam’s Government, fines for violations against regulations on construction contracts are as follows:
Article 18. Violations against regulations on construction contracts
1. A fine ranging from VND 20,000,000 to VND 30,000,000 shall be imposed for one of the following violations:
a) Failure to enter into a joint-venture agreement with the contractor that is a party of the construction contractor partnership;
b) Failure to prepare a construction contract in Vietnamese language in accordance with applicable regulations.
A fine ranging from VND 80,000,000 to VND 100,000,000 shall be imposed for one of the following violations:
- Concluding a construction contract with the contract price greater than the bid price or contract negotiation result (except additional work volume outside the contract package as approved by the investment decision-making officer);
- Agreeing upon an advance payment percentage higher than the prescribed one or making advance payment when the advance payment bond is unavailable as regulated by law;
- Failure to comply with the number of payments, payment period, payment time or time-limit for payment as specified in the construction contract, unless otherwise agreed upon by the parties;
- Failure to carry out finalization or liquidation of the contract for construction of state-funded work on the prescribed schedule.
Moreover, in addition to being fined, the violating entity is also applied with remedial measures as follows:
- Enforced compliance with regulations for failure to enter into a joint-venture agreement with the contractor that is a party of the construction contractor partnership; failure to prepare a construction contract in Vietnamese language in accordance with applicable regulations; agreeing upon an advance payment percentage higher than the prescribed one or making advance payment when the advance payment bond is unavailable as regulated by law.
- Enforced application of the bid price for concluding a construction contract with the contract price greater than the bid price or contract negotiation result (except additional work volume outside the contract package as approved by the investment decision-making officer);
- Enforced payment, finalization or liquidation of construction contract in accordance with regulations for failure to comply with the number of payments, payment period, payment time or time-limit for payment as specified in the construction contract, unless otherwise agreed upon by the parties; failure to carry out finalization or liquidation of the contract for construction of state-funded work on the prescribed schedule.
Nguyen Trinh
