What is considered a subcontractor of the project?

Wed, 30 Mar 2022 10:50:00  |  Print  |  Email   Share:

Ms. Tran Thu Phuong's company (HCMC) signed a contract to install equipment with a subcontractor of a project. She asked, is your company considered a subcontractor of the project (actually a sub of a sub) and whether the contract your company signed with the subcontractor is invalid or not?

If the above contract is not invalid, is it considered the subject of regulation of the Law on Construction and whether the investor and main contractor have any binding relationship with Ms. Phuong's company (in terms of legal regulations of construction law, not on a contract basis)?

The Ministry of Construction responded to this issue as follows:

The content of Ms. Tran Thu Phuong's question did not specify the source of construction investment capital used for the project, so the Ministry of Construction did not have enough grounds to determine the law governing the project for specific guidance.

In case the contract falls within the scope of regulation and subject to application of Decree No. 37/2015/ND-CP dated April 22, 2015 of the Government detailing the amended and supplemented construction contract, Decree No. 50/2021/ND-CP dated April 1, 2021 of the Government, the signing of subcontracting contracts must comply with the provisions of Article 47 of Decree No. 37/2015/ND-CP.

The law on construction investment does not stipulate subcontractors of subcontractors. Ms. Tran Thu Phuong is requested to base on this provision, relevant laws, contents and signed contract documents to perform.

According to the Government Newspaper

By: Translator: LeAnh-Bizic

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