Recommendation on solutions reducing the situation of basic construction debt

Detailed remedial measures are needed to address specific sectoral and project-specific regulations (both outstanding and future projects). • To develop the Law on Construction, the Law on Bidding for the Guarantee Mechanism of the Owner. Accordingly, when the value of the remaining package is from 30 to 40% (depending on the form of payment for the bidding package), the investor...

Detailed remedial measures are needed to address specific sectoral and project-specific regulations (both outstanding and future projects).
• To develop the Law on Construction, the Law on Bidding for the Guarantee Mechanism of the Owner. Accordingly, when the value of the remaining package is from 30 to 40% (depending on the form of payment for the bidding package), the investor shall have to guarantee the bidding package price. The contractor has the right to stop construction if the investor does not guarantee payment.
Regarding warranty funds to be retained: When the contractor performs the warranty obligation, the warranty fund shall be managed by the bank, when the contractor has fulfilled the warranty obligation as prescribed in the contract the investor will return to the contractor.
The funds of the contractor kept waiting for the final settlement is not known when it was newly acquired, so the proposal at the end of the settlement period as prescribed, the investor must pay all the contractor, over above duration the bidder must be calculated the interest according to regulations.

VCCI

Recommendation on solutions reducing the situation of basic construction debt

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March 2026