Penalty and compensation for damage in the FIDIC contract is always a hot issue in contract disputes settlement
The two issues of Penalty and Compensation for damage caused by the breach of this Contract’s obligations are also of topics often discussed by law practitioners but have not yet found a common voice.
Commonly discussed issues include:
- What is the violation penalty?
- What is the basis for applying the violation penalty?
- Is there a limit on the fine for violations?
- Is it possible to apply a Penalty and Compensation for Damage at the same time?
- Is it possible to fix the damage with the agreement of the parties?
- Is the compensation agreement violated the law, í it declared valid?
- What is the total value of the applicable fines and damages?
- For construction contracts, will the Construction Law, Commercial Law, or Civil Code be the governing law?
While, in Vietnam, the precedent on Penalty and Compensation for damage has not been born yet. Therefore, the application of the law is still different, inconsistent, and lengthy.
In particular, the question of whether the dispute in a construction contract is governed by Construction Law, Civil Law, or Commercial Law has not yet come to the end.
It is not uncommon for courts to use the provisions of Commercial Law to adjudicate and the application of such legal provisions is not correct. The Decision on Cassation No. 12/2019/KDTM-GDT dated September 24, 2019, is an example of the Court’s position on this issue.
In order to contribute more voices of users in choosing the right legal solution, help balance and harmonize the interests of the Investor, Contractor, and Subcontractor, and also help the application of the law to be agreed upon, CNC would like to send to users of FIDIC Contract in Vietnam topic 6 – Penalty and Compensation for damage caused by delay in Construction Contract.
Nội dung chuyên đề 6 – Phạt và Bồi thường thiệt hại do chậm trễ trong Hợp đồng Xây dựng
More information
This Topic on Fines and Compensation is part of a series of 12 Topics on various issues of the FIDIC Contract that have been carried out by CNC since 2020.
Every Saturday, CNC topics on Construction Contracts in general and FIDIC Contracts, in particular, have become regular categories, well received by FIDIC users in Vietnam.
Previously, Session 5 – Appointment of Designated Subcontractors took place successfully, with the participation of more than 60 previously registered users. If you need to follow up on this exchanged content, readers can follow the following link: https://www.youtube.com/watch?v=1HJPdUJ2ggk
Bổ nhiệm Nhà thầu phụ chỉ định
With the goal of providing FIDIC users in Vietnam with the most basic knowledge about Contracts published by FIDIC, CNC will be honored to receive questions and practical situations to exchange and discuss. discuss and find the best solution for the situation.
Mọi vấn đề có liên quan, xin vui lòng gửi về:
Công ty Luật TNHH CNC Việt Nam
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28 Mai Chí Thọ, Phường An Phú, Tp. Thủ Đức, Hồ Chí Minh, Việt Nam
Điện thoại: 028 6276 9900 | 0916 545 618
Email: contact@cnccounsel.com