GUIDING THE MODEL CONTRACT FOR SOME CONSTRUCTION CONSULTANCY JOBS
On June 28, 2011, the Ministry of Construction issued the Circular No. 08/2011/TT-BXD of June 28, 2011, guiding the model contract for some construction consultancy jobs including consultancy on work construction survey; consultancy on elaboration of work construction investment projects; elaboration of econo-technical reports on work construction; and consultancy on work construction designing for application to projects with 30% or more state capital.
Subjects of application are organizations and individuals related to construction consultancy contracts, inspection, examination on, auditing and payment of investment capital of construction works under projects with 30% or more state capital.
The model construction consultancy contract promulgated together with this Circular (not printed herein) consists of Grounds for contract signing; Clauses and conditions of the contract. This Circular guides the model construction consultancy contract between investor and contractor. In case the principal is a general contractor or principal contractor, the parties shall apply this model contract.
When applying the model contract, parties shall base themselves on the provisions of the Government's Decree No. 48/2010/ND-CP of May 7, 2010, on contracts in construction activities and other relevant state regulations and the following guidance to reach an agreement in contract. Investors and contractors shall apply the model contract based on specific consultancy jobs of each bid package. For each consultancy job, they shall specify its content and volume, quality and quantity requirements, takeover of consultancy products and payment dossier.
Parties shall specify in the contract the advance payment level, payment schedule, payment installments, contract performance security (if any), time of contract settlement, effective duration of the contract, percentage of the contract price (for contract prices calculated in percentage), termination time of the contract, etc.
This Circular takes effect on August 15, 2011. Contracts signed before August 15, 2011 is not required to comply with this Circular.