The Ministry of Finance has recently issued a legal document to specify cases in which insurers are not responsible for paying compensation for losses arising in construction investment activities.

In the context that there are different regulations of the Civil Code, the Commercial Law and the Construction Law regarding the maximum amount of penalty for breach of construction contract, this article will discuss about two legal issues: (i) principles for resolution of the conflict of laws that regulate construction contracts between the Civil Code, the Commercial Law and the Construction Law and (ii) the maximum amount of penalty for breach of construction contracts (including both state-funded construction works and private construction works).

State-funded projects will be subject to the new rule on management of construction investment costs, reads a decree recently issued by the Government.

Providing a number of contents on financial management of investment projects in the form of public-private partnership and investor selection expenses