Variations and Changes in Construction Contracts have always been a matter of great concern not only for Employers, Contractors, and Engineers but also Lawyers, Judges, and Arbitrators. For each party, depending on the degree of involvement, the perspective toward Variations and Changes in Construction Contracts may vary.
Thus, in order to adopt an objective and complete view of the issues of Variations and Changes in Construction Contracts, CNC was honored to accompany the Society of Construction Law – Viet Nam (SCLVN) and participate in the organization of the Conference highlighting the “Variations and Changes in Construction Contracts” on October 13, 2023 at the Ho Chi Minh City University of Law.
CNC received SCLVN’s letter of gratitude
Mr. Tran Pham Hoang Tung was directly in charge of Session A – “Causes and solutions to managing variations and Changes in construction projects in Vietnam”, and demonstrated the perspective of legal practitioners in Vietnam on the basic and commonly found causes that potentially lead to Variations and Changes in Construction Contracts. Mr. Tung shared a variety of solutions and recommendations, accordingly, so that Parties could avoid the possibility of disputes and disagreements pertaining to Variations and Changes in Construction Contracts.
Mr. Tran Pham Hoang Tung gave the opening speech of Session A
Mr. Tran Pham Hoang Tung as the host of Session A
Speakers of Part discuss practical situations pertaining to Variations and Changes
Commemorative Picture of Session A Speakers
The Conference demonstrated that the application of stipulations on Variations and Changes in Construction Contracts continues to exhibit many shortcomings, causing many challenges and problems between the parties of construction contracts. In some cases, even the interpretation of the term “Variations and Changes” is not unified.
Participants voiced their questions at the Conference
The origin of difficulties, disadvantages, and obstacles encountered by Parties upon the application of the stipulations of Variations and Changes in Construction Contracts originate from (3) primary reasons, which are (i) the translation of the term “Variations and Changes” from English to Vietnamese; (ii) the diversity and depth in Vietnamese semantics and (iii) other provisions of and within the law.
In almost all Conditions of Contract published by FIDIC, for instance, Conditions of Contract for Building and Engineering Works designed by the Employer, 2nd Edition, 2017 (“Red Book 2017”), the term “Variations and Adjustments” is used instead of the term “Variations and Changes”. Similarly, in the Vietnamese language, the terms “Variations”, “Transformations”, “Adjustments” or “Changes” are not used consistently and are often mistakenly used interchangeably. Meanwhile, in Article 143 Law of Construction of 2014, or Article 35, 36, 37, 38, 39 in Decree No. 37/2015/ND-CP dated April 22nd, 2015, the terms “Adjustments” might be intended to include the meanings of the term “Variations and Adjustments” in FIDIC Red Book 2017.
The opinions on provisions of the laws of Vietnam pertaining to “Variations and Changes” are given by, not only domestic experts, but also many foreign experts in the subsequent Sessions.
Speakers of other Sessions at the Conference
Once again, the significance of “Variations and Changes” in Construction Contracts is emphasized. By acknowledging and addressing the problems encompassing “Variations and Changes” in Construction Contracts, the possibility of disputes and disagreements would also be lowered, thereby helping the Parties to complete Projects on time.
This Conference is not the first time CNC collaborated with SCLVN as CNC has always accompanied SCLVN in previous workshops, conferences, and other important events. CNC’s personnel have always been optimally mobilized to assist with “behind-the-scenes” works or express their professional opinions to the speakers with the aim of making the Conference a huge success.
CNC’s personnel at the Conference
CNC believes, that, together with SCLVN’s efforts and contributions from participants, the reception and study from the experience of developed countries serves as the foundation for Vietnam’s approach to international stipulations on “Variations and Changes” in the future.
Commemorative picture of speakers, participants together with the Organization Committee