Settlement of the package contract according to the signed agreement
Ms. Nguyen Thi Uyen (Thai Binh) company won the bid to execute a project in December 2020, with state capital, a package contract. Up to now, the company has completed the construction and is doing the settlement.
According to the approved design, the road surface is 7m wide, including 25cm dredging on each side. But in the design, the volume of the road surface does not exclude the part of the trench that occupies the space.
Ms. Uyen asked, is the volume of road surface occupied by dredging on your company's side to be paid?
The Ministry of Construction responded to this issue as follows:
The payment and settlement of construction contracts shall comply with the contents of the signed contract and in accordance with the bidding documents, bid documents and the law applicable to the contract.
According to the content of Ms. Nguyen Thi Uyen's question, the contract signed between the parties is a package contract and falls within the scope of the Government's Decree No. 37/2015/ND-CP dated April 22, 2015. Accordingly, the payment of the package contract shall comply with the following provisions:
Article 15 stipulates: “The package contract price is the contract price that remains unchanged throughout the contract performance for the volume of work within the scope of the signed contract, except for force majeure and change the scope of work to be performed”;
Article 19 stipulates: “A package contract is paid according to a percentage of the contract price or the price of the work, work items, and work volume corresponding to the payment stages agreed upon by the parties in the contract, when doing the settlement does not require confirmation of the detailed completed volume”.
Thus, in case the parties have fully performed the obligations and scope of work to be performed in the signed contract, the payment and settlement of the package contract shall comply with the contents agreed upon in the signed contract, except in case of change of scope of work outside the signed contract and/or force majeure.
By: Translator: LeAnh-Bizic
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