On December 11, 2013 the Government issued the Decree No. 207/2013/ND-CP amending and supplementing a number of Articles of the Decree No. 48/2010 dated May 07, 2010 of the Government on contracts in construction activities. Under this Decree, the construction contract shall be signed only when the principla has set up the capital plan to pay the contractor according to the payment progress of contract, except the construction works under the urgent command.
This Decree also regulated on condtions for application of kinds of contract prices. Specifically, for the lump-sum contract and fixed price contract, the bidding package price, contract price and unit-pirce for the contractual work must be included risk factors related to the slippage of price in the time of performing the contract and contracting parties must take responsibility for risks related to the contract price. Adjustable unit-price contract shall be applied only for bidding packages at the time of selecting contractor and negotiating to sign the contracts that are unqualified to determine the volume and factors on price slippage in unit-price to perform contractual work.
Under this Decree, 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. The valid time of a guarantee for the contract advance payment shall be extended until the principal recovers all advance amount. Value of guarantee for the contract advance payment shall be subtracted equal to the value of recovered advance amount upon each payment as agreed upon by the principal and the contractor.
This Decree takes effect on February 01,2014.
To download this Decree, please click this link: 54908_207-2013-ND-CP
Source: www.luatvietnam.vn
