To amend the detailed regulations on construction contracts

Published on 07 - 04 - 2021
100%

On 01/4/2021, the Government has just issued the Decree No. 50/2021 / ND-CP amending and supplementing a number of articles of the Government's Decree No. 37/2015 / ND-CP dated April 22, 2015 detailing the regulations on construction contracts.

In particular, the Decree amends and supplements many provisions related to contracts for design, procurement of materials and equipment and engineering procurement and construction (EPC). According to the Decree, EPC contracts are prioritized for the projects that are complex, with high-tech requirements and adhering to the consistency from the design stage to the supply of equipment, construction, training and technology transfer. Before deciding to apply the EPC contract type, the investment decider is responsible for organizing the evaluation of technical and technological requirements, shortening the project's execution time and the consistency from the design stage, supply of equipment, construction of the work to the operation training and work transfer to meet the objectives and requirements of the approved project and ensure the feasibility of applying this type of EPC contract as compared to other types of contracts.

In the Decree No. 50/2021 / ND-CP, the regulation at Point b, Clause 2, Article 38 of the Decree No. 37/2015 / ND-CP is amended and supplemented as follows: In case the actual work volume increases or reduces by more than 20% of the corresponding workload stated in the contract, at the same time changing over 0.25% of the contract value and more than 1% of the unit price of such work or the arising volume without unit price in the contract, the parties agree to determine the new unit price according to the principle agreed in the contract on the unit price for these volumes for payment.

In case the actually performed work volume increases by more than 20% of the corresponding workload stated in the contract, the new unit price is only applied to the actually performed volume in excess of 120% of the volume stated in the contract.

In case the actual work volume reduces more than 20% of the corresponding workload stated in the contract, the new unit price is applied to the entire volume of actually completed and accepted work.

To amend and supplement Point a, Clause 3, Article 38 as follows: Methods of contract price adjustment include: direct clearing method and adjustment method by adjustment formula as specified at Point b of this Clause. The application of the price adjustment method must be suitable to the nature of the work, type of contract price, payment currency and agreed upon by the parties in the contract. The price index for construction contract price adjustment using the adjustment formula at Point b, Clause 3 of this Article is the construction price index.

The Decree has transition guidance. In particular, for construction contracts that are under negotiation and have not been signed, if their contents are not consistent with the provisions of this Decree, report to the competent persons to decide on investment for consideration and decision, which is based on the principle of ensuring the quality, progress and effectiveness of the project and not affecting the legitimate rights and interests of parties ...

This Decree takes effect from the date of its signing.

Latest new

The Conference to study and thoroughly grasp the Party's directives, resolutions and conclusions...(27/03/2024 2:19 CH)

To review and comment on a number of reports in the fields of religion, irrigation, and land(25/03/2024 8:33 SA)

The conference to exchange, learn from experience, seek investment opportunities, and promote trade(22/03/2024 1:29 CH)

To deploy the emulation movement "For Homeland Security" in 2024(19/03/2024 2:04 CH)

To review, adjust the roadmap and implement a number of tasks in the administrative units...(18/03/2024 1:54 CH)

To digitally transform the banking sector, bolster the development of convenient financial services(14/03/2024 8:41 SA)

The guidance on removing difficulties and obstacles in implementing real estate projects for...(12/03/2024 7:50 SA)

To implement the Prime Minister's Official Telegram on strengthening the management and use of...(11/03/2024 8:50 SA)

°