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THE
MINISTRY OF CONSTRUCTION
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SOCIALIST REPUBLIC
OF VIET NAM
Independence -
Freedom – Happiness
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No.
03/2004/TT-BXD
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Hanoi, May 7,
2004
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CIRCULAR
GUIDING
THE IMPLEMENTATION OF THE MODE OF GENERAL CONTRACTOR FOR CONSTRUCTION AND
INSTALLATION OF ELECTRICITY GENERATION PROJECTS ENTITLED TO DESIGNATION OF
CONTRACTORS
Pursuant to the Investment
and Construction Management Regulation promulgated together with the
Government's Decree No. 52/1999/ND-CP and amended and supplemented by the
Government's Decrees No. 12/2000/ND-CP and No. 07/2003/ND-CP;
Pursuant to the Government's Documents No. 797/CP-CN of June 17, 2003 on
electricity projects started in 2003-2004 and Document No. 400/CP-CN of March
26, 2004 on the mechanism applicable to hydroelectric power projects;
With a view to speeding up the tempo to complete electricity generation
projects, and concurrently bringing into full play the internal resources and
creating conditions for raising the capability of State enterprises, the Prime
Minister has permitted the application of the mode of construction and
installation general contractors being conglomerates of contractors, formed
from State corporations and companies for the construction and installation of
electricity generation projects. The been agreed upon by contractors and investors. A
conglomerate is headed by a principal contractor, which is called general
contractor, while other contractors are called member contractors. General
contractors shall have to organize the general administration of construction
sites and coordinate construction and installation activities of member
contractors, in order to ensure the tempo and quality of projects.
The Ministry of Construction hereby guides a number of contents in implementing
the mode of general contractor for construction and installation of electricity
generation projects as follows:
I. SIGNING MODES AND TYPES OF
ECONOMIC CONTRACTS
1. Contract signing modes:
Basing themselves on the written contractor designations by competent
a/ The first mode (hereinafter
called mode 1): The investor signs a contract with the general contractor
(which represents member contractors of a conglomerate), then the general contractor
shall sign contract with every member contractor for performance of work
portions already assigned under written agreements among the member contractors
of the conglomerate and approved by the investor.
By this mode, the general
contractors shall be answerable to investors for the volume, tempo and quality
of the whole construction and installation work of projects under contracts
already signed with the investors. The member contractors of conglomerates
shall be answerable to the general contractors for the performance of work
portions they undertake to perform under contracts already signed with the
general contractors.
According to the Government's
Document No. 797/CP-CN of June 17, 2003, for the hydroelectric power projects
of Plei Krong, A Vuong, Quang Tri, Ban La and Buon Kuop, the signing of
economic contracts shall be
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By this mode, each member
contractor of a conglomerate shall be answerable to the investor for the
volume, progress and quality of the construction and installation work it
performs under the contract signed with the
c/ Apart from being answerable
for the volume, tempo and quality of the construction and installation work
they perform under contracts, the general contractor and member contractors
shall also be responsible to the heads of the superior management agencies and
the Prime Minister for their assigned tasks.
2. Types of contracts: Economic
contracts signed by mode 1 or mode 2 are contracts with price adjustment
according to the current regulations.
3. To simplify the administrative
procedures and save time for project execution, investors are encouraged to
sign package contracts with contractors to perform such works as: preparation
of construction sites, erection of makeshift tents, building of supporting
works and public works in service of construction sites. Investors must notify
contractors of the cost estimates of package-contracted works and make
payments, thus ensuring the interests of the involved parties.
II. REQUIREMENTS ON
CONTRACTUAL CONTENTS
1. Investors, general contractors
and member contractors shall agree to incorporate in the contracts the
following principal contents: Scope of work, responsibilities of contractual
parties, mode of management of construction sites, organization of management
of project work volume and quality, construction tempo, pre-acceptance test and
payment mode compatible with the contract signing mode.
The settlement provisions of
contracts between investors, general contractors and member contractors must be
consistent and compliant with the legislation on contracts.
2. For contracts signed by mode
1, such a contract between the investor and the general contract must ensure
that the investor assigns the general contractor to perform and bear
responsibility for the volume, tempo and quality of the whole construction and
installation work of the project. The general contractor must have full power
to direct and administer all over the construction site in order to ensure the
project's work volume, tempo and quality. The general contractor may also
consider and adjust the work scopes and volumes of member contractors in cases
where the latter fail to meet the requirements on tempo and quality of their
assigned works.
Contracts between the general
contractor and member contractors must state that the general contractor
assigns member contractors to perform work portions and bear responsibility for
the volume, progress and quality of such assigned works.
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3. For contracts signed by mode
2, such a contract between the investor and each member contractor must ensure
that the investor assigns member contractors to perform and bear responsibility
for the volume, tempo and quality of the assigned work portions. Member
contractors shall commit to submit to the general direction and administration
by the general contractor at the construction site. Contracts must clearly
state the pre-acceptance test, handover, payment and construction and
installation warranty of the project, and contain penalties in cases member
contractors breach their commitments or fail to submit to the general
contractor's direction and administration.
In the contract between the
investor and a conglomerate's member being the general contractor, apart from
the above-said requirements, the investor must create conditions for the
general contractor to direct and administer the construction site, especially
in assigning responsibilities to build and use supporting works to avoid
wastefulness, responsibilities to use and protect construction site ground, and
assuming the prime responsibility for briefing on the situation of the
construction site in order to direct the implementation of the project
construction and installation schedule.
III. QUALITY MANAGEMENT AND
PRE-ACCEPTANCE TEST
1. The management of quality of
construction works under electricity generation projects shall comply with the
Regulation on management of quality of construction projects, promulgated together
with the Construction Minister's Decision No. 18/2003/QD-BXD of June 27, 2003.
2. The elaboration of the
construction drawing design and detailed cost estimates: The general contractor
and member contractors shall have to organize the elaboration of construction
drawing designs and detailed cost estimates for work items, then send them to
the project management board for carrying out the procedures for approval
thereof according to regulations. The general contractor shall coordinate with
member contractors in elaborating the construction drawing design and detailed
cost estimates, ensuring the general tempo and compatibility with the approved
technical design dossier.
The general contractor and
member contractors shall enjoy a designing charge for construction drawing
design and detailed cost estimates equal to 40% of the value of designing costs
according to the provisions of the Construction Minister's Decision No.
12/2001/QD-BXD of July 20, 2001.
3. Pre-acceptance test
- Pre-acceptance test of works
and parts: The investor shall organize and directly conduct the pre-acceptance
test of works and parts of the project, performed by the general contractor and
each member contractor. Upon the pre-acceptance test of works and parts of the
project performed by member contractors, the general contractor may join the
investor therefor.
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- Each member contractor shall
have to complete the dossier on completed work and relevant documents to serve
the pre-acceptance test and hand over the work portion it has performed.
- Pre-acceptance test of works
and parts: The investor shall organize and directly conduct the pre-acceptance
test of works and parts of the project performed by the general contractor and
member contractors respectively.
- Pre-acceptance test of completed
project phases and items: The investor shall organize and directly conduct the
pre-acceptance test of project phase or item performed by each member
contractor with the participation of the general contractor.
- Each member contractor shall
have to complete the dossier on completed work and relevant documents to serve
the pre-acceptance test and hand over the work portion it has performed.
IV. ADVANCES AND PAYMENTS
1. Advances: Due to the fact
that electricity generation projects are of large scale, require complicated
techniques, their technical designs and total cost estimates cannot be promptly
approved, and for their construction the contractors have to mobilize large
volumes of equipment, supplies and manpower, etc., in order to ease
difficulties met by the contractors, the investors and conglomerates of
contractors may agree and propose the Prime Minister to permit the advance of
capital to enable the contractors to ensure the set construction tempo.
2. Payment for completed work
volume:
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- The investor shall pay for the
value of construction and installation volume performed by member contractors
through the general contractor, then the general contractor shall have to pay
in full and on time to member contractors strictly according to the signed
contracts and other agreements.
- The investor shall directly
pay for the value of construction and installation volume to each member
contractor after obtaining approval of the competent representative of the
legal person being the general contractor.
3. For construction and
installation works not yet specified in the State-promulgated system of
econo-technical norms, investors shall reach agreements with the Construction
Ministry to organize the elaboration of econo-technical norms for such works
and submit them for approval according to regulations.
For construction and
installation works requiring separate unit costs, investors shall organize the
elaboration of separate unit costs, and submit them for approval according to
regulations.
V. GENERAL CONTRACTOR'S
EXPENSES
By mode of construction and
installation general contractors, general contractors shall have to organize
the management and administration of construction sites and coordinate member
contractors in performing the construction and installation, ensuring the
projects' work volume, tempo and quality. As a result, general contractors
shall enjoy management funds provided for in the Construction Ministry's
Circular No. 09/2000/TT-BXD of July 17, 2000 and Circular No. 07/2003/TT-BXD of
June 17, 2003. The funds enjoyed by general contractors shall be equal to 40%
of the project management funds. In cases where the project management funds
under the current regulations are not enough for the operations of the project
management boards and general contractors, the investors and general
contractors shall agree to propose the competent agencies to incorporate more
funds in total cost estimates.
VI. CONTRACT PERFORMANCE
GUARANTEE
For electricity generation
projects eligible for designation of contractors, having large scales and total
investment capital, and facing difficult construction conditions, for which the
Prime Minister has designated conglomerates of contractors being fully capable
and experienced State enterprises to perform every specific work thereof, in
order to reduce procedures and capital difficulties for contractors, the investors
and contractors shall agree possibly not to apply the form of guarantee for
contract performance to the contractors already designated to execute such
projects. In cases where investors do not require the making of contract
performance guarantees, the general contractors must also not require member
contractors to make contract performance guarantees.
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1. Conglomerates of contractors
must make written agreements on division of works and responsibilities for each
contractor; the general contractors' role of construction site administration;
the coordination in rational use of supporting works and works in service of
construction to avoid wastefulness; the use and protection of construction
ground.
2. The general contractors shall
have to administer construction sites, hold briefings, monitor the construction
tempo and perform the administration of construction sites according to written
agreements of contractors' conglomerates and other relevant works under the
signed contracts.
Member contractors of
conglomerates must submit to the direction and administration by general
contractors in the administration of construction sites.
VIII. ORGANIZATION OF
IMPLEMENTATION
1. This Circular takes effect 15
after its publication in the Official Gazette.
2. The concerned agencies, units
and enterprises shall have to organize the implementation of this Circular; and
report arising problems (if any) to the Construction Ministry for solution.
FOR THE MINISTER
OF CONSTRUCTION
VICE MINISTER
Dinh Tien Dung
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