In what cases is a lump-sum contract adjusted?

Wed, 20 Oct 2021 12:20:00  |  Print  |  Email   Share:

For a lump sum contract, it shall only be adjusted for the additional quantity of work beyond the signed contract’s scope of work and in force majeure.

Mr. Nguyen Van Nam (Hanoi) works at the Project Management Board. His unit has a lump sum contract to construct the sewage system. In the bidding forecast, the sewerage item is a reinforced concrete sewer pipe D300. Therefore, in the contract, the wastewater sewer item is also recorded as “Reinforced concrete sewer pipe D300”.

However, the construction drawing design documents (issued with the bid documents) for the sewerage item are stated as “UPVC CLASS plastic pipe connecting rubber gasket”. In fact, on the construction site, the contractor has constructed the UPVC CLASS plastic pipe connecting the rubber gasket. Mr. Nam asked for guidance on payment procedures for the above items of sewerage.

In this regard, the Ministry of Construction replied as follows:

The payment, settlement, and contract adjustment shall be based on the contents of the contract signed between the parties following the bid documents, the bid proposals, and the provisions of law applicable to such contract.

According to the provisions of Clause 2, Article 36 of Decree No. 37/2015/ND-CP dated April 22, 2015, of the Government detailing regulations on construction contracts, then “For lump-sum contracts, it shall only be adjusted for the additional quantity of work beyond the signed contract's scope of work (for the work execution contracts, equipment procurement contracts, adjustments are made to the additional quantity of work beyond the designs, requirements of the bid documents, or request for proposals; for consultancy contracts, adjustments are made to the additional quantity of work beyond the scope of consultancy work as agreed in the contract), and in other force majeure events”.

According to the provisions of Clause 3, Article 142 of the Law on Construction No. 50/2014/QH13 dated June 18, 2014, “The priority order for the application of documents enclosed with a construction contract shall be agreed upon by the contractual parties. In case the contractual parties have no agreement thereon, the order prescribed in Clause 2 of this Article will apply”.

The parties, based on the above provisions, evaluate the priority order of the documents enclosed with the contract to make the payment appropriate and in compliance with the law, and at the same time, clarify the responsibilities of the parties to the difference among the bid documents, the signed contract, and the construction drawing design documents.

By: Online Newspaper of the Government/ Translator: Viet Nguyen-Bizic

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