Price-adjusting methods applicable to construction contracts for projects with 30 per cent state budget funds are specified by the Construction Ministry in Circular No. 08/2010/TT-BXD of July 29.
Accordingly, such an adjustment may be made only during performance of the signed contract, including any extended period as agreed upon. Project owners are entitled to approve adjusted prices provided that these prices do not result in an excess of approved total investment capital. Otherwise, they will be decided by investment deciders.
For percentage-based contracts, price adjustments are permitted only for newly arising work volumes beyond the level already agreed by the contracting parties. In these cases, the parties should sign an annex specifying new work volumes and unit prices. For lump-sum payment contracts, the parties will have to determine new unit prices for additional works in the absence of prior agreement.-