VINACHEM

Contractual matters in construction projects with 30 per cent or more of their budgets coming from State capital will be governed by new regulations set forth in Government Decree No 48/2010/ND-CP issued on May 7 and effective on July 1.

The new decree replaces Decree No 99/2007/ND-CP of June 2007 and governs all types of contracts, including contracts for consulting services; construction services; engineering, procurement and construction (EPC); and turnkey contracts.

The decree also includes a number of regulations applicable to contractor performance under contracts. Specifically, the contractor is either compelled to buy insurance to ensure its performance as well as insure onsite construction and equipment for a period of at least 24 months, with premiums equal to 3-5 per cent of the value of the construction. The contractor must also provide a guaranty of 10 per cent of the contract price.

(Source: http://vietnamnews.vnagency.com.vn)