Form Of Construction Contract 2021 in Vietnam

The construction contract is one of the most popular in the construction field. However, not everyone knows about this contract. Lac Duy & Associates will provide you with construction contract form 2021 in Vietnam.

SOCIALIST REPUBLIC OF VIET NAM
Independence – Freedom – Happiness

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CONSTRUCTION CONTRACT

No……………./HĐ-XD

Today, date…… month ……year……., we are……………………………………

1. The Owner (hereinafter referred to as Party A):

• Unit name: ……………………………………………………………………………………………………………..

• Address of head office……………………………………………………………………………………………..

• Full name and position of the representative (or authorized person): …………………………….

• Phone: …………; Fax:………………; Email:………………………………………………..(if any)

• The number of transaction accounts at the treasury or the credit institution of the unit: …….

• Tax code: ……………………………………………………………………………………………………………….

• Establish by Decision No.: ………… (Or business registration) issued on…month…year…

• According to the authorization document no…………………………………………………….(if any)

2. The contractor (hereinafter referred to as Party B):

• Unit name: ……………………………………………………………………………………………………………..

• Address of head office: ……………………………………………………………………………………………

• Full name and position of the representative (or authorized person): …………………………….

• Phone: ……..………………………Fax: …………………..; Email:……………………………………………..(if any)

• The number of transaction accounts at the treasury or the credit institution of the unit: …….

• Tax code: ……………………………………………………………………………………………………………….

• Establish by Decision No.: ………… (Or business registration) issued on…month…year….

• According to the authorization document no. ………………………………………………(if any)

• Practicing capacity certificate number: ……………………..………………… issued on … month … year…

TWO PARTIES AGREEMENT TO SIGN CONSTRUCTION CONTRACT WITH THE FOLLOWING TERMS

Article 1. Work contents and products of the contract:

Party A assigns Party B to carry out the construction and installation of the work in accordance with the approved design, be accepted and put into use in accordance with the provisions of law.

Article 2. Quality and technical requirements:

Must comply with the design; ensure the sustainability and accuracy of construction structures and install equipment according to Vietnamese construction codes and standards.

Article 3. Time and progress of implementation:

The construction contract form must specify the starting time, the time for completing product hand-over under the contract; the implementation progress of each item, each job must be consistent with the total progress of the project. Where the owner signs many contracts with the contractor to perform construction jobs, the progress of the contracts must be coordinated to implement the total progress of the project. The contracting parties must set up an appendix to an integral part of the contract to specify the progress requirements for each type of work to be performed.

Article 4. Conditions for the pre-acceptance test and hand-over of construction works

4.1 Acceptance conditions:

• Comply with the regulations on construction quality management.

Party A will carry out the pre-acceptance test of each construction job; each construction part, construction stage; each construction item, construction work is put to used. For hidden parts of works, the pre-acceptance test and construction completion drawings must be checked before proceeding to the next jobs;

Party A will carry out the pre-acceptance test of each construction job; each construction part, construction stage; each construction item, construction work is put to used. For hidden parts of works, the pre-acceptance test and construction completion drawings must be checked before proceeding to the next jobs;

Party A will carry out the pre-acceptance test of each construction job; each construction part, construction stage; each construction item, construction work is put to used. For hidden parts of works, the pre-acceptance test and construction completion drawings must be checked before proceeding to the next jobs;

4.2 Conditions for the handover of works to be put into use:

• Ensure the requirements on principles, content, and order of handling over the works that have been completed and put into use in accordance with the construction law;

• Ensure safety in operation and exploitation when the project is put into use.

• The pre-acceptance test and hand-over of construction work must be established with a Construction Acceptance Council and a member of the Acceptance Council in accordance with the law on the pre-acceptance test and handover of construction works.

Article 5. Construction warranty:

• The construction party is responsible for performing the warranty for the work after it is handed over to the investor. Contents of warranty for works include repair, repair, and replacement of damaged or defective equipment or when the work is operated or used abnormally due to the contractor’s fault;

• The work warranty period is counted from the date the construction contractor hands over the work or work item to provide warranty to the investor (not less than 24 months for special grade and grade works I. Not less than 12 months for the remaining works);

• Commitment amount for project warranty:

Party B (construction contractor and construction CT equipment supplier) is responsible for paying warranty money to the investor’s account at the rate: 3% of the contract value for construction works or items construction works have a term of not less than 24 months; 5% of the contract value for works with a term not less than 12 months;

Party B is only entitled to a refund for the work warranty after the warranty period expires and the investor confirms that the warranty has been completed

Construction works warranty money,money; construction equipment warranty is calculated according to the bank interest rate agreed by the two parties. Warranty money can be replaced by a letter of guarantee from a bank of equivalent value, or it may be deducted from the payment for the completed work as agreed by the two parties.

Article 6. Contract value:

− Contract price: Based on the agreement between the principal and the contractor to determine the type of contract price;

− The contract value is based on the type of contract price, legal documents guiding the establishment of construction cost management of works under investment projects, and the agreement of the two parties (post-bidding negotiation ) valuation of the contract;

− The whole value of the contract includes the value of each specific part:

6.1 Contract value part: ………………………….. (Details in the appendix of the contract): ………………………….

6.2 Contract value part: ……………………. (Details in the appendix of the contract): ………………………………

6.3 Contract value part: …………………….. (Details in the appendix of the contract): ……………………………….

The total value of the contract: …………………………………….. ………………………VND

(Details of each part are shown in detailsdetail in the appendix of the contract)

− The contract value above may be adjusted in the following cases:

a. Supplement and adjust the volume of performance compared to the contract:

• If the generated work volume has unit price in the contract, the value of the generated work volume is calculated according to that unit price;
• If the generated workload does not have the unit price stated in the contract, the value arising is calculated according to the unit price in the locality where the work is built, if there is no unit price in the locality, the two parties agree to build the new price and submit to competent authorities for approval for application;
• If the change (increase or decrease) in the workload compared to the contract is greater than 20%, the two parties may agree to determine a new unit price.

b. State policy changes: changes in salaries, changes in prices of raw materials under state management of price changes in exchange rates for capital using foreign currencies or changes to new regimes and policies changing the work construction investment price level. In this case, the adjustment can only be made when authorized by the competent authority.

c. In case of force majeure caused by natural disasters such as earthquakes, storms, floods, tornadoes, tsunamis, landslides; fire; war or risk of war, … and other catastrophes not yet fully anticipated. Then the parties to the contract negotiation to determine the adjusted contract value in accordance with the provisions of law.

Article 7. Contract payment:

7.1. Advances:

The advance of capital is agreed upon by the two parties and made right after the construction contract takes effect.

7.2. Contract payments:

− The two contracting parties agree on the method of payment by time or in stages of completion based on the completed volume and the signed price;

− After the finished product handover, the two parties conduct acceptance, settlement, and contract liquidation. Party A pays the notes to Party B.
In case an investment project using foreign capital has provisions on advances and payments other than domestic regulations, the contract is signed.

7.3 Payment method: cash or bank transfer

7.4 Payment currency:

Currency applied for payment: Vietnamese currency; or foreign currency (in the case of payment with a foreign contractor with an agreement on payment in a foreign currency)

Article 8. Measures to secure the performance of the contract:

− A contract performance guarantee is applied to all forms of contractor selection.

− The contractor must have a performance guarantee from a reputable credit institution accepted by the principal;

− The value of the performance guarantee must not exceed… the contract value depends on the type and size of the contract;

− The guaranteed value is gradually released according to the corresponding implementation volume;

Article 9. Insurance:

During the construction process, the parties must buy insurance according to current regulations:

− Investors must buy construction insurance

− The contractor must buy insurance for materials, equipment, construction workshops, employeeworkers’ insurance, civil liability insurance for third parties.

Article 10. Disputes and dispute settlement:

− In the event of any problems during the performance of the contract, the parties try their best to actively discuss to remove and negotiate and settle.

− In case of failure to reach an agreement between the parties, the dispute is resolved through conciliation, arbitration, or court settlement in accordance with law.

Article 11. Force majeure:

11.1 Force majeure event is an event that happens objectively and beyond the control of parties such as an earthquake, storm, flood, storm, tsunami, landslide; fire; war or risk of war,… and other unforeseen disasters, a change in policy or prohibition by the competent authorities of Vietnam…
The failure of one party to fulfill its obligations due to force majeure events will not be the basis for the other party to terminate the contract. However, the party affected by the force majeure event is obliged to:

• Carry out reasonable preventive measures and necessary alternative measures to minimize the impact caused by force majeure events.
• Immediately notify the other party of the force majeure event occurring within 7 days immediately after the force majeure event occurred.

11.2 In the event of a force majeure event, the contract performance period will be extended by the time the force majeure event takes place while the affected party is unable to perform its contractual obligations.

Article 12. Suspension or cancellation of the contract

12.1 Suspension of contract performance:

Cases of suspension of contract performance:

− Due to the hirer’s or the contractor’s fault;
− Force majeure cases.
− Other cases agreed upon by both parties

One party has the right to decide to suspend the contract due to the fault of the other party, but must notify the other party in writing and discuss the settlement together to continue to properly perform the signed construction contract; in case the temporarily suspended party does not give notice but the pause causes damage, it must compensate the aggrieved party.

The time and level of compensation for damage caused by contract suspension shall be agreed upon by the two parties to overcome.

12.2 Cancellation of contract:

a. One party has the right to cancel the contract and not have to compensate for damage when the other party breaches the contract which is a cancellation condition agreed by the parties or provided by law. The breaching party must compensate for any damage;

b. The cancellation of the contract must immediately notify the other party of the cancellation; if the party fails to give notice and causes damage to the other party, the party canceling the contract must compensate;

c. When the contract is canceled, the contract becomes invalid from the time it is canceled and the parties must return to each other property or money.

Article 13. Bonus and penalty for breach of contract:

13.1 Contract bonus:

If Party B completes the work contents of the contract according to the schedule at the point and the quality at the point of the contract, Party A will reward Party B with: … contract value (no exceed 12% of the contract value for benefit).

13.2 Contract penalties:

− Party B violates the quality of the penalty % of the contract value is violated in terms of quality;

− Party B breaches the contract performance term without being caused by a force majeure event or not caused by Party A’s fault, Party B will be fined % of the value of the breached contract term;

− Party B violates because it does not complete the quantity for products or the product quality does not meet the requirements specified in the economic contract, Party B must rework the quality.

In cases where the law does not yet provide a fine level, the parties have the right to agree on the fine level equal to a percentage of the value of the breached part of the contract or by an absolute number.

The total amount of fines for a contract must not exceed 12% of the breached contract value.

Article 14. Rights and obligations of Party B:

Pursuant to the provisions of law, the work requirements of the principal and contractor, the two parties agree on the rights and obligations of Party B.

Article 15. Rights and obligations of Party A:

Pursuant to the provisions of law, the work requirements of the principal and contractor, the two parties agree on the rights and obligations of Party A.

Article 16. Languages used:

The language of the Contract will be Vietnamese. Where to use English, both written agreement of the contract and the contract documents must be in Vietnamese and English and have legal value as each other.

Article 17. General Terms

17.1. The following annexes are an integral part of this contract:

− Time and progress made
− Design documents,…documents, …
− payment schedule

17.2 . This contract, as well as all documents and information related to the contract, will be managed by the parties in accordance with current state regulations on confidetiality.

17.3 The two parties commit to well implement the terms agreed in the contract.

17.4 Contracts made in 10 copies with legal value as each other, hold 6 of Party A holds 6 copies, Party B holds 4 copies;

17.5 Validity of the contract: This contract takes effect from the date … (under the agreement of the two parties)

REPRESENTATIVE OF PARTY A Position (Sign and stamp)

REPRESENTATIVE OF PARTY B Position (Sign and stamp)

The above is a construction contract form. In addition, readers can contact Lac Duy & Associates to receive timely advice and assistance on other issues such as construction contracts, construction contracts or the settlement of construction contract disputes, construction contract disputes, consulting construction contract disputes…

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