For contracts based on adjusted unit price, the adjustment of the contract unit price is made by determining the unit price at the time of 28 days prior the date of submission of payment dossier in accordance with the contract and the time of 28 days prior the  bid opening date.

Mr. Nguyen Hoang Giang's company (in Bac Kan Province) is verifying a settlement of construction works. The project was approved in October 2012 (the minimum wage approved in the estimate is VND 1,400,000 / month according to the Document No. 1730 / BXD-KTXD dated October 20, 2011 of the Ministry of Construction guiding adjusted construction cost estimates according to the new minimum wage from October 1, 2011) and approved for bidding plan in April 2013, and approved construction result in June 2013.

At the time of bidding, the minimum wage was adjusted to VND 1,650,000 / month according to the Document No. 551 / BXD-KTXD dated April 2, 2013 of the Ministry of Construction guiding People's Committees of provinces and centrally-run cities. ; ministries, ministerial-level agencies and government-attached agencies; economic groups and State Corporations on adjusting labor costs in setting up and managing work construction investment expenses.

According to the regulation “the works and work items have been approved by the competent authorities for the total cost estimates or cost estimates but it has not yet been organized for bidding, designation of contractors or the bidding results have been completed but it has not yet signed. At the same time, the investor shall readjust the total cost estimate or estimate and price of the bidding package according to the regulations ”.

However,in case the investor has not yet adjusted the estimate according to the Document No. 551 / BXD-KTXD dated April 2, 2013 but it still proceeds to bid according to the previously approved bidding plan in accordance to the old salary level of VND 1,400,000 / month, implements contract signing and construction.

The construction was completed in 2014, the investor has adjusted and approved the estimate according to the Document No. 551 / BXD-KTXD dated April 2, 2013 of the Ministry of Construction and the guiding documents of State management agency in the locality.

When approving the final settlement, the finance agency will not accept the adjustment of additional estimates from the salary of VND 1,400,000 / month to the salary of VND 1,650,000 / month because it is considered that at the time of bidding (June 2013), according to the regulation, the minimum wage is calculated at 1,650,000 VND / month.

In the approved bid and the signed contract, the tenderer only calculates the labor unit price with the minimum wage of VND 1,400,000 / month (form of contract based on adjusted unit price) of the whole volume work performed from 2013 to 2014.

Mr. Giang would like to ask, so ishis company settled according to the adjusted unit price with the salary of VND 1,650,000 / month according to the Document No. 551 / BXD-KTXD dated April 2, 2013 and the local guiding documents? If his company does not adjust salary from VND 1,400,000 / month to VND 1,650,000 / month, is it assure guarantee the benefits of employees?

The Ministry of Construction answers this issue as follows:

The payment and settlement of construction contracts shall comply with the contents of the contracts signed between the parties and in accordance with the provisions of law applicable to the contracts and not contrary to bidding dossiers or request for proposalsin principle of ensuring the rights and obligations of the parties.

For contracts based on adjusted unit price, the adjustment of the contract unit price is made by determining the unit price at the time of 28 days prior the date of submission of payment dossier in accordance with the contract and the time of  28 days prior the bid opening date (the highest price in prices: Price notice of the locality where the project is located, the contract price, the market price for the price that is not included in the price notice).