Form of construction contract: What is the standard?
TProud to be a pioneer law firm in consulting construction contracts, including from drafting, reviewing and managing contracts to solving problems arising from contracts for many clients. In January 2019, CNC was honored to be selected as the exclusive legal unit to review the entire content, conditions and terms of the sample contract for a customer who is a major customer across the country owned by the real estate brand “The Pegasuite” and the brand “The Little Village”.
What is the Form of construction contract?
This is a set of contracts that have been carefully prepared by the customer and is intended to be used as a set of standards applied in general contractor projects, complex and high-value bidding packages, and equipment supply bidding packages. and construction; or other important projects considered by the Client in the course of business operations.
On the basis of experience in handling model contracts of the International Association of Consulting Engineers (FIDIC), the Australian Standard Contract and the sample contract set are specified in circulars 08/2016/TT-BXD, Circular 09/2016/TT-BXD và Circular 30/2016/TT-BXD, CNC have helped complete customers have a completely new view on many issues posed to the model contract, for example:
- Structure and coherence of the sample contract set
- The relationship between obtaining a legally enforceable contract and obtaining reasonable offers from participating bidders.
- The use of terms in the model contract
- Roles and responsibilities of other parties in concurrent cooperation such as project management consultants, supervision consultants and subcontractors
- Sanctions provisions and their application in the Vietnamese context such as “predetermined compensation” sanctions, “anti-corruption, hardship, or bribery” sanctions, “scope” sanctions co-range”, and
- Issues related to effectiveness and practical enforceability
However, with the position of a reputable Investor, directly implemented many large projects in Ho Chi Minh City. In Ho Chi Minh City, it is not difficult for the Client to have the regulations to protect the maximum interests in transactions with the Contractor or the Consultant. However, the Client has stood outside his position and wishes to maintain a safe, objective legal relationship that can ensure the rights and interests of the parties to the contract.
On that basis, the Customer completely agreed with the above proposals of CNC and learned very valuable experience that
“the drafting and adjustment of model contracts not only stops at the best protection the interests of customers but more importantly, it must create an effective enforcement mechanism and at the same time create a solid foundation to regulate the good relationship and mutual development of all parties when participating in the project. contract. In other words, it is an unsuccessful contract when the provisions defined in the model contract lead the parties to a dispute and are not enforceable”.
For CNC, each project and work has its own specific characteristics, from the relationship of the parties, the investor’s financial arrangement ability, the prestige and capacity, and the experience of the contractor. contractor. Therefore, each contract needs to be adjusted to ensure that the benefits that the parties to the contract are able to achieve, one way or another.
In other words, there will not be a model contract that is suitable for all circumstances and each contract will only be considered as a model when its implementation does not incur unnecessary costs such as litigation costs, and expenses. attorney, project implementation and completion costs.
That may be CNC’s greatest success when Customers agree highly in flexibly applying consulting opinions in editing the available sample contracts.
