Decree No. 207/2013/ND-CP dated December 11, 2013 of the Government amending and supplementing a number of Articles of the Decree No. 48/2010/ND-CP dated May 07, 2010 of the Government on contracts in construction activities

THE GOVERNMENT

Decree No. 207/2013/ND-CP dated December 11, 2013 of the Government amending and supplementing a number of Articles of the Decree No. 48/2010/ND-CP dated May 07, 2010 of the Government 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,

The Government promulgated the Decree amending, supplementing a number of Articles of the Decree No. 48/2010/ND-CP dated May 07, 2010 of the Government on contracts in construction activities.

Article 1. Amending, supplementing a number of Articles of the Decree No. 48/2010/ND-CP dated May 07, 2010 of the Government on contracts in construction activities as follows:

1. To supplement Clause 8 in Article 4 as follows:

“Article 4. Principles of signing construction contracts

8. A construction contract shall be only signed when the principal 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.”

2. To amend, supplement Clause 6 in Article 15 as follows:

“Article 15. Prices of construction contracts and conditions for application

6. Conditions for application of kinds of contract prices shall be as follows:

a) The lump-sum contract: bidding package price, contract price 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.

The lump-sum contract price shall be applied only for bidding packages at the time of selecting contractor and negotiating to sign the contracts that are qualified to determine the volume, quality, performance progress and unit-price to perform jobs. Or in some cases, it is impossible to determine the volume, unit price (such as EC, EP, EPC contract and turnkey contracts), but the contractor is qualified to determine the lump sum contract price;

b) Fixed unit-price contract: Unit-price 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.

The fixed unit-price contract price shall be applied only for bidding packages at the time of selecting contractor and negotiating to sign the contracts that are qualified to determine the quality, performance progress and unit-price to perform jobs, but has not determined the work volume yet.

c) Adjustable unit-price contract: it 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 price slippage factors in unit-price to perform contractual work.

d) Time-based contract price and percentage contract price shall be applied for contracts that cover the job subject to the construction investment consultation (except the construction survey) and insurance operation in construction.”

3. To amend, supplement Clause 7 in 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; except the case that partners agree to let the leading contractor pay to the principal a guarantee for the contract advance payment.

b) The valid time of a guarantee for the contract advance payment shall be extended until the principal recovers the 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.”

4. To supplement Point d Clause 4 Article 17 as follows:

“Article 17. Construction contract advance payment

d) For adjustable unit-price contract: not adjusting unit-price for contractual work volume corresponding with the contract advance payment amount.”

Article 2. Effect

1. This Decree takes effect on February 01, 2014. Construction contracts that have been signed and being performed before the effective day of this Decree shall not comply with this Decree.

2. Ministers, heads of ministerial-level agencies and government-attached agencies, chairpersons of provincial-level People s Committees shall implement this Decree./.

ON BEHALF OF THE GOVERNMENT

PRIME MINISTER

NGUYEN TAN DUNG