Circular No. 09/2011/TT-BXD dated June 28, 2011 of the Ministry of Construction guiding the model contract for work construction

GUIDING THE MODEL CONTRACT FOR WORK CONSTRUCTION

On June 28, 2011, the Ministry of Construction issued the Circular No. 09/2011/TT-BXD of June 28, 2011, guiding the model contract for work construction applicable to projects with 30% or more state capital, including: state budget capital, official development assistance (ODA) capital, state development investment credit capital, state-guaranteed credit capital and other state investment capital.

Subjects of application are organizations and individuals related to the signing and the performance of the construction contracts, inspection, examination, auditing and payment of investment capital of construction works under projects with 30% or more state capital. And organizations and individual related to construction contracts under projects with less than 30% state capital are encouraged to apply this Circular.

The model construction contract promulgated together with this Circular (not printed herein) consists of two parts: Grounds for contract signing; Clauses and conditions of the contract (25 articles). Based on kinds of contracts, parties shall reach agreement on contract prices and payment dossier as stated in the model contract. A contract may be different contract prices; this model contract is set for all kinds of construction contract (including construction equipment installment under construction design).

The model contract shall be used between investor and contractors. In case the principal is a general contractor or principal contractor, the parties may apply this model contract.

The parties may 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 to reach an agreement on specific provision on job and work volumes, hiring of consultancy service, contract advance payment level, contract performance security, warranty level, payment schedule, payment level for each payment  installment, suspension duration, time of contract termination, work warranty period and similar cases, in their contract.