Notes About Construction Contracts

Currently, in the settlement of contract disputes, disputes over construction contracts account for a large proportion. The reason is that the construction contracts have great value, do not have to buy and sell available products, but most are future transactions, so it is very easy to dispute arising during the implementation of the contract. Lac Duy & Associates has construction contracts notes for readers to limit disputes arising when making this transaction.

Firstly, about the form of the contract: a construction contract must be made in writing.

Secondly, about the content of the contract:

According to Article 141 of the Law on Construction 2014, guided by Decree 37/2015/ND-CP of the Government, the content of a construction contract must include:

• Applied legal basis;

• Language used in the contract,

• Content and volume of work;

• Quality, technical requirements of work; pre-acceptance test and handover;

• Contract performance duration and schedule;

• Contract price, advance payment, currency used in payment, and payment for the contract;

• Contract performance security, contract advance guarantee;

• Adjustment of the construction contract;

• Rights and obligations of the parties to the construction contract;

• Liability for violations of the contract, rewards, and fines for violations of the contract;

• Suspension and termination of the contract;

• Settlement of disputes over the contract;

• Risks and force majeure events;

• Settlement and liquidation of the contract;

• Other contents such as insurance and guarantee under construction contracts, subcontracting, labor, safety, environmental protection, and fire prevention.

These contents must be clearly and specifically shown to limit disputes when performing the contract.

For example:

• To limit the often occurring disputes that change work items compared to contracts, responsibilities should be clearly defined under the contract. Thus, when additional work arises, we only need to comply with the correct process and contract.

• To prevent disputes in late-progress penalties, it is necessary to specify in the contract what the work is to complete. From there, avoid confusion in taking over the works under contract, in practice or by law.

Above are the notes of Lac Duy & Associates on construction contracts. This is also a reference source for readers to resolve this dispute. In addition, readers can contact Lac Duy & Associates to receive timely advice and support on other issues such as: construction contract disputes, consulting construction contract