New rules ensure validity of construction contracts
A new decree recently issued by the Government is expected to provide a better basis for the entry into and performance of construction contracts.
Decree No. 37/2015/ND-CP on construction contracts will take effect on June 15, 2015.
Compared to Decree No. 48/2010/ND-CP and Decree No. 207/2013/ND-CP, which it will replace, Decree No. 37
has a broader scope of regulation. While current regulations govern only construction contracts signed under construction investment projects of state agencies, organizations and enterprises and projects with the capital contribution of the State or state-owned enterprises accounting for 30 percent or more of the total investment capital, the new regulations cover also projects in which the state capital makes up less than 30 percent of the total funding level but is valued over VND 500 billion. It also applies to contracts to implement bidding packages under BOT, BTO, BT and PPP projects…
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