Construction contracts under construction investment projects with 30% or more of their capital funded by the State are required to clearly indicate reasonable costs, taxes and charges in their prices but may have their prices adjusted depending on their categories and any change in work items to be performed.
Government Decree No. 48/2010/ND-CP of May 7 specifies eight categories of construction contracts based on their purposes (construction consultancy, construction, equipment provision…) and five categories based on contract prices (package contracts, contracts with fixed or adjustable unit prices, contracts for given periods and percentage-based contracts).
A contract performance security value must be stated in bidding or requirement dossiers and at most equal to 10% of the contract price. To offset risks, this value may be higher up to 30% of the contract price as approved by the investor decider.
For newly arising work items which exceed by 20% of total work volume indicated in a contract or those without unit prices, contractual parties should fix a new unit price thereby changing the contract price. Small new items accounting for under 20% of the total work volume will be subject to unit prices already agreed in the contract.
Insurance for construction works is at the expense of investors or purchased by contractors if insurance costs are already included in contract prices.
The minimum warranty period is 24 months for special and grade-I works and 12 months for other works. The warranty value for these works is 3% or 5% of the contract value, respectively.-