Official Dispatch No. 1764/BXD-KTXD dated October 24, 2011 of the Ministry of Construction on adjusting the construction contract’s value

THE MINISTRY OF CONSTRUCTION

Official Dispatch No. 1764/BXD-KTXD dated October 24, 2011 of the Ministry of Construction on adjusting the construction contract’s value

To: The Department of Construction of Bac Lieu province

On answering the Official Dispatch No. 464/SXD-QLXD dated September 29, 2011 of the Department of Construction of Bac Lieu province on adjusting the construction contract’s value, the Ministry of Construction has opinion as follows:

1. For the packaged contracts which are signed in compliance with the Decree No. 48/2010/ND-CP dated May 7, 2010 of the Government on contracts in construction activities, contract prices are not allowed to be adjusted when the prices of materials, fuels and construction materials have great fluctuation or the State changes policies on tax, salary or investment.

2. For fixed unit-price contracts and time-based contracts, when prices of fuels, supplies and equipment subject to valorization measures applied by the State under the Ordinance on Prices abnormally fluctuate or when the State revises tax and salary policies, directly affecting the contract price, unit price adjustment may be made when it is permitted by the investment decider and agreed upon in the contract, the adjustment on contract prices is suitable with current contract regulations in construction activities (Decree No. 48/2010/ND-CP).

The Ministry of Construction has opinions as above and the Department of Construction of Bac Lieu takes as the guidance for implementing in compliance with regulations./.

For the Minister

Deputy Minister

TRAN VAN SON