Through the receiving and responding system to businesses’ recommendations, the Eastern Urban Construction and Development Joint Stock Company (in Quang Ninh Province) would like to request the authorities to answer, the package contract and contract based on fixed unit price, when verifying the settlement, can the unit price be recalculated?

In the opinion of the Company, this is a problem that many businesses are facing, the ministries also do not answer clearly, leading to the lower level units (inspection and inspection units) to misunderstand, causing difficulty for businesses.

Regarding this issues, the Ministry of Construction has the following opinions:

When performing a construction contract, the contracting parties must ensure the construction contract execution principles as prescribed in Clause 3, Article 138 of the Law on Construction No. 50/2014 / QH13.

- For package contracts: According to Point a, Clause 3, Article 15 of the Government's Decree No. 37/2015 / ND-CP dated April 22, 2015 detailing construction contracts, prices package contract is the contractual price that does not change during the process, performance of the contract for the volume of work within the signed contract, except for force majeure and changes to the scope of work that has to perform.

Payment for package contracts shall comply with Clause 5, Article 19 of the Government's Decree No. 37/2015 / ND-CP.

Adjustments to package contracts comply with Clause 1, Article 3 and price adjustments for package contracts comply with Article 5 of Circular No. 07/2016 / TT-BXD dated March 10, 2016 of the Ministry of Construction lead to the price adjustment of construction contracts.

- For contracts based on fixed unit price: Under the provisions of Point b, Clause 3, Article 15 of Decree No. 37/2015 / ND-CP dated April 22, 2015 of the Government detailing about construction contracts, contractual price is based on fixed unit price that be determined on the basis of the fixed unit price for the jobs multiplied by the corresponding workload.

Fixed unit price is a unit price that is unchanged during the performance of the contract, except in case of the force majeure.

Contract payment according to fixed unit price is specified in Clause 6, Article 19 of Decree No. 37/2015 / ND-CP.

Adjustment of contract based on fixed unit price is done in accordance with Clause 2, Article 3 and adjustment of contract price for fixed unit price contract is in accordance with Article 6 of Circular No. 07/2016 / TT-BXD dated March 10/2016 of the Ministry of Construction guiding the construction contract price adjustment.

The payment and settlement for a construction contract shall comply with the content of the contract signed between the parties and comply with the provisions of law applicable to the contract and not contrary to the bidding documents or request for proposals on the principle of ensuring the rights and obligations of the parties.

State management agencies, agencies controlling, allocating, lending, inspecting, auditing and other relevant agencies must base themselves on the content of a legally effective construction contract. To perform their functions and duties as prescribed, not to infringe upon the legitimate rights and interests of the contracting parties.

In the course of payment and settlement for a construction contract, if detecting any wrong will cause loss or waste, such subject shall be held responsible before law.