Project Management Consultancy Contract

Project Management Consultancy Contracts are the key to project success and are one of the most important types of construction consultancy agreements. These contracts enable the implementation of part or all of the project management and coordination tasks during the investment and construction phase of a project[1].

Regarding the definition, Project Management Consultancy Contracts are an agreement between the Employer and the Consultant (the consultancy service provider). Under this agreement, the Consultant is responsible for providing consultation and management of the implementation of a project, while the Employer is obligated to pay consultation service fees as agreed upon.

Accordingly, the role of Project Management Consultancy Contracts include:

Establishing the terms and conditions under which the consultation services will be delivered;
Providing the legal basis for the Consultant to perform project management duties; and
Serving as the foundation for the Employer to supervise and fulfill financial obligations.

Overview of Project Management Consultancy Contracts

Below, CNC has listed 6 crucial factors that contribute to the success of every Project Management Consultancy Contract for clients’ consideration during their application.

**First, Project Management Consultancy Contracts share characteristics of General Construction Consultancy Contracts**

Project Management Consultancy Contracts also include the fundamental elements of construction consultancy agreements, such as master planning; project investment establishment; design; survey; project management; supervision of the implementation of construction contracts; construction supervision; design and cost–estimate verification; and other advisory services related to the construction investment process.[2]

The fundamental elements of Construction Consultancy Contracts

Second, Benefits of Project Management Consultancy Contracts

Any contract that is properly drafted and recognized by law has legal effect before the state, with its primary purpose being to protect the rights and interests of both parties.

In the context of growing demand for consultation services during project implementation – to ensure timely project delivery, quality outcomes, and an effective project management consultancy contract that meets the Employer’s requirements – the contract must satisfy the following conditions:

The contract must record all agreements between the parties on a voluntary basis and in compliance with the laws
The contract’s scope and provisions must be tailored to the needs and expectations of the parties concerned.
The parties must be bound by and obligated to perform their obligations to safeguard each other’s interests.

Conditions of Project Management Consultancy Contracts

Based on the above, a Project Management Consultancy Contract offers the parties several benefits, such as:

Clearly delineating each Party’s responsibilities.
Serving as a coherent, streamlined, and convenient framework for project implementation.
Ensuring compliance with legal requirements.
Particularly, project management consultancy contracts also serve as the basis for resolving any future disputes. To safeguard against potential conflicts, both parties should specify the dispute-resolution mechanisms in the contract, thereby mitigating unnecessary risks.

Third, the role of the Project Management Consultant

Aims of Project Management Consultancy Contracts

Project Management Consultancy Contracts focus on project management consultancy services, including advising on planning, organizing, monitoring, and controlling the project development process. All of this aims to ensure that projects are completed on time and within the approved budget, while guaranteeing quality and achieving the project’s objectives.

The project management consultant participates in the evaluation of progress, review of the project’s current status, and selection of suitable contractors by the Employer. This helps the Employer make informed decisions and ensures the project is executed efficiently.

The objective of project management consultancy is to meet the required deliverables and ensure quality within the approved scope, on schedule, and without altering the project’s parameters.

Fourth, the role of Project Management Consultancy Contracts in relation to other parties

The role of Project Management Consultancy Contracts

Serving as the basis for the Employer to manage the Contractor participating in the project, Project Management Consultancy Contracts clearly define the scope of work, responsibilities, and authority of each party so that the Employer can oversee and ensure that all project-related activities are carried out in accordance with the approved plan, on schedule, and within the budget.

Coordination of Tasks: Project Management Consultancy contracts assist the parties in coordinating project-related tasks—such as inspection and supervision of works before, during, and after construction, and upon completion—to ensure that the quality of the works meets the highest standards.

Acing as the decision-making “authority” when necessary: Project Management Consultancy Contracts establish each party’s decision-making authority to optimally resolve project-related issues, safeguard each party’s interests, and ensure compliance with legal regulations.

Fifth, the fundamentals of Project Management Consultancy Contracts

So, what would constitute an adequate and appropriate Project Management Consultancy Contract? Below, CNC has prepared a list of 16 important clauses that are present in Project Management Consultancy Contracts:

Definition and interpretation
Scope of project management consultancy services
Schedule for the implementation of Project Management Consultancy Project
General responsibilities of the Project Management Consultant
Authority of the Project Management Consultant
Mobilized personnel of the Project Management consultant
Utilities and equipment provided by the Employer
Contract Price (Service Fee)
Payment
Professional Liability Insurance
Replacement of the Project Management Consultant
Legal compliance obligations of the Project Management Consultant
Variation and Adjustment to the Contract Price
Dispute Resolution
Attached appendices

Please contact CNC to request detailed templates of the Project Management Consultancy contract, professionally drafted by CNC’s team of lawyers.

Sixth, Project Management Consultancy Contracts

Currently, there are many sample Project Management Consultancy Contracts circulating online that DO NOT accurately reflect all the issues regulated by these contracts. In fact, many of these templates are merely patched together from various sources. Using such flawed templates could lead to unforeseen legal risks.

Based on our experience, we recommend two reliable sources for Project Management Consultancy Contract templates:

Templates issued by the Ministry: The templates of Project Management Consultancy Contract enclosed with Dispatch No. 99/BXD-KTTC in 2008 on the publication of the Project Management Consultancy Contract Templates by the Ministry of Construction.
Templates introduced by net: This platform offers a wide range of Project Management Consultancy Contract Templates—in both English and Vietnamese—covering everything from simple to complex agreements. All are drafted by experienced professionals and provided at optimal cost.

Whether you are a prominent corporation or an individual investor, CNC’s contract templates are and will be a powerful tool to help you manage your projects professionally, effectively, and with confidence.

Contact information

In the construction industry, professionalism and credibility are the key factors that ensure the success of your project. That is why CNC is proud to be the sole partner that clients have trusted and relied upon for more than 13-years.

CNC’s specialized construction contract advisory service is a comprehensive legal tool designed to best protect our clients’ interests. Moreover, CNC accompanies clients throughout the entire contract performance process with its Construction Contract Management services.

Please contact CNC via the following contact information below:

CNC Vietnam Law Firm Co., Ltd.

Address: 28 Mai Chi Tho, An Phu Ward, Thu Duc City, Ho Chi Minh, Vietnam

Phone: (84) 28-6276 9900

Hotline: (84) 916-545-618

Email: contact@cnccounsel.com

Website: https://cnccounsel.com

[1] Point a, Clause 1, Article 13, Decree No. 37/2015/ND-CP supplementing and amending Decree No. 50/2021/ND-CP

[2] Point a, clause 1, Article 12, Decree 37/2015/ND-CP