THE GOVERNMENT

Decree No. 207/2013/ND-CP dated December 11, 2013 of the Government amending and supplementing a number of Articles of the Decree No. 48/2010/ND-CP dated May 07, 2010 of the Government on contracts in construction activities

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 14, 2005 Civil Code;

Pursuant to the November 26, 2003 Construction Law;

Pursuant to the November 29, 2005 Bidding Law;

Pursuant to the June 19, 2009 Law Amending and Supplementing a Number of Articles of the Laws Concerning Capital Construction Investment;

At the proposal of the Minister of Construction,

The Government promulgated the Decree amending, supplementing a number of Articles of the Decree No. 48/2010/ND-CP dated May 07, 2010 of the Government on contracts in construction activities.

Article 1. Amending, supplementing a number of Articles of the Decree No. 48/2010/ND-CP dated May 07, 2010 of the Government on contracts in construction activities as follows:

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1. To supplement Clause 8 in Article 4 as follows:

“Article 4. Principles of signing construction contracts

8. A construction contract shall be only signed when the principal has set up the capital plan to pay the contractor according to the payment progress of contract, except the construction works under the urgent command.”

2. To amend, supplement Clause 6 in Article 15 as follows:

“Article 15. Prices of construction contracts and conditions for application

6. Conditions for application of kinds of contract prices shall be as follows:

a) The lump-sum contract: bidding package price, contract price must be included risk factors related to the slippage of price in the time of performing the contract and contracting parties must take responsibility for risks related to the contract price.

The lump-sum contract price shall be applied only for bidding packages at the time of selecting contractor and negotiating to sign the contracts that are qualified to determine the volume, quality, performance progress and unit-price to perform jobs. Or in some cases, it is impossible to determine the volume, unit price (such as EC, EP, EPC contract and turnkey contracts), but the contractor is qualified to determine the lump sum contract price;

b) Fixed unit-price contract: Unit-price for the contractual work must be included risk factors related to the slippage of price in the time of performing the contract and contracting parties must take responsibility for risks related to the contract price.

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