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THE
GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No.
207/2013/ND-CP
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Hanoi,
December 11, 2013
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DECREE
AMENDING AND
SUPPLEMENTING A NUMBER OF ARTICLES OF GOVERNMENT’S DECREE NO. 48/2010/ND-CP DATED
MAY 07, 2010, ON CONTRACTS IN CONSTRUCTION ACTIVITIES
Pursuant to the December 25, 2001 Law on
Organization of the Government;
Pursuant to the June 14, 2005 Civil Code;
Pursuant to the November 26, 2003 Construction
Law;
Pursuant to the November 29, 2005 Bidding Law;
Pursuant to the June 19, 2009 Law Amending and
Supplementing a Number of Articles of the Laws Concerning Capital Construction
Investment;
At the proposal of the Minister of Construction;
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Article 1. To amend and supplement a number of
articles of Government’s Decree No. 48/2010/ND-CP dated May 07, 2010, on contracts
in construction activities as follows:
1. To supplement Clause 8 to Article 4 as
follows:
“Article 4. Principles of signing construction
contracts
8. A construction contract shall be signed only
after the principal has had capital plan to pay for the contractor according to
the payment progress of contract, unless works are build under urgent orders.”
2. To amend and supplement Clause 6 to Article
15 as follows:
“ Article 15. Prices of construction contracts
and conditions for application
6. Conditions for application of contractual prices
are prescribed as follows:
a) For lump-sum contracts: Price of bidding
package, contractual price must be included full relevant risky elements such
as slippage in price during performing contract and parties must take
responsibility for their risks related to contractual price.
Price of lump-sum contract is only applied to
bidding packages which have been eligible for clarifying volume, quality,
progress, and unit price for performing works at time of selecting contractors
and negotiation for signing contract, or in some cases fail to clarify volume
and unit price (such as: EC, EP and EPC contracts, and turnkey contracts) but
the contractor has full capacity and experiences to calculate, determine the
price of lump-sum contract.
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Contractual price under a fixed unit price is only
applied to bidding packages which have been eligible for clarifying quality,
progress, and unit price for performing works at time of selecting contractors
and negotiation for signing contract, but the work volume has not yet been
determined exactly.
c) For contracts under an adjustable unit-price: To
apply to bidding packages which have not yet been eligible for clarifying
volume and elements of price slippage in unit price for performing the
contractual works at time of selecting contractors and negotiation for signing
contract.
d) Contractual price under duration and percentage
(%) is applied to contracts with the work of construction investment advisory
(except for construction survey) and insurance operation in construction.”
3. To amend and supplement Clause 7 of Article
16 as follows:
"Article 16. Security for construction
contract performance and guarantee for contract advance payment
7. Guarantee for contract advance payment
a) Before the principal makes a contract advance
payment to the contractor, the contractor shall pay to the principal a
guarantee for the contract advance payment of a value equal to the advance
amount. In case the contractor is a partnership of contractors, each partner
shall pay to the principal a guarantee for contract advance payment of a value
equal to the advance amount paid to it, unless partners agreed to let the head
of partnership to pay guarantee for the contract advance payment to the
principal.
b) The validity time of guarantee for the contract
advance payment must be prolonged until the principal has withdrawn the advance
payment amount. The value of the guarantee for contract payment advance shall
be subtracted equal to the value of reduced advance amount upon each payment as
agreed upon by the contracting parties.”
4. To supplement point d to Clause 4 Article 17
as follows:
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d) For contracts under an adjustable unit-price: Do
not adjust unit price for work volume in contract corresponding to the
contractual advance payment amounts.”
Article 2. Effect
1. This Decree takes effect on February 01, 2014.
Construction contracts which have been signed and performed before the
effective day of this Decree shall not be required to perform in accordance
with provisions in this Decree.
2. Ministers, Heads of ministerial-level agencies,
Heads of Governmental agencies, the chairpersons of the People’s Committees of
central-affiliated cities and provinces shall implement this Decree.
ON BEHALF OF
THE GOVERNMENT
PRIME MINISTER
Nguyen Tan Dung