Additional regulations on the performance of construction contracts in Vietnam

According to Vietnam's Decree 50/2021/ND-CP, additional regulations on contract performance management for contract for engineering - procurement of materials and equipment - construction of works (abbreviated as: is an EPC contract) after Clause 6, Article 7 of Vietnam's Decree 37/2015/ND-CP are as follows:

Before procuring materials and equipment for the EPC contract, the receiving party shall lay down requirements pertaining to technical specifications, technology and origin and submit them to the awarding party for approval prior to the procurement if agreed upon by the parties in the contract. The approval by the awarding party does not reduce the receiving party’s responsibility for procuring materials and equipment for the EPC contract.

If the parties do not specify any agreement in the EPC contract, the receiving party shall comply with the approved design documentation and technical specifications, technology and origin coming with the materials and technological equipment in the EPC contract.

The receiving party may directly procure or hire a sub-contractor to procure materials and equipment for the EPC contract.

Note: An EPC contract is prioritized for a project that is complex, requires high technology and strictly complies with the uniformity and consistency between the phases ranging from the design to supply of equipment phase, execution of construction of works and training in technology transfer.

More details can be found in: Vietnam's Decree 50/2021/ND-CP takes effect from April 1, 2021.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE