(Chinhphu.vn) – The agency of Ms. Tran Kim Lan (in Dong Nai Province) signed a contract to repair the headquarters worth VND 200 million from investment sources of a nature. There is no provision in the contract that requires contractors to perform warranty guarantee for construction and also do not require to retain 5% of the work warranty.

When the dossier was brought to the Treasury, the Treasury requested Ms. Lan's agency to adjust the contract, requested the contractor to perform the warranty for the project and retain 5% of the warranty under Decree No. 37/2015 / ND- CP and Decree No. 46/2015 / ND-CP.

Ms. Lan would like to ask, Is it correct as the Treasury request above?, is her agency required to withhold 5% of the warranty?

The Ministry of Construction answers this issue as follows:

According to Clause 6, Article 35 of the Decree No. 46/2015 / ND-CP dated May 12, 2015 of the Government regulating quality management and maintenance of construction works thì “The investor shall negotiate in the construction contract with the construction contractors about the rights and responsibilities of the parties in the warranty of construction works; warranty duration of construction works, construction equipment, technological equipment; warranty deposit; the retention, use and refund of warranty deposit and the replacement of warranty amount with the warranty guarantee letter from the bank that has equal value. The contractors mentioned above shall have the warranty deposit refunded or have the guarantee letter annulled only when the warranty period expires and   the investor confirms the completion of warranty…?.

The warranty amount is based on Clause 7, Article 35 of Decree No. 46/2015 / ND-CP for implementation.