Draft Circular on Construction Contracts – VICMC’s comments

Regarding the comments on the draft Circular detailing a number of contents on Construction Contracts

With the responsibility of providing comments on the draft legal regulations, the Vietnam International Commercial Mediation Center (VICMC) commented on the draft Circular detailing a number of contents on Construction Contracts (Draft) according to Official Letter No. 1334/BXD-KTXD of the Ministry of Construction dated 20/04/2022. These comments are mainly technical in drafting the legal content without affecting the regulations and policy guidelines of the Draft.

As the first commercial mediation center in Vietnam, VICMC focuses on analyzing and commenting on terms related to dispute settlement in general and the dispute board in particular. See detailed comments on the draft Circular of the Vietnam International Commercial Mediation Center (VICMC) here.

Download the full text of the draft Circular at the following attachment: Draft Circular

VICMC commented on the draft Circular detailing a number of contents on Construction Contracts
VICMC commented on the draft Circular detailing a number of contents on Construction Contracts
About commercial negotiation and mediation

Article 146 of the Law on Construction clearly defines negotiation and mediation as two different dispute resolution methods. Negotiation is a method of dispute resolution conducted by the parties themselves. And mediation is a settlement method with a third party (mediator) participating as an intermediary to assist in the settlement of disputes (see Article 3 of Decree 22/2017/ND-CP on commercial mediation).

About the Dispute Board 

With the strong development of construction projects, the increase in construction disputes is inevitable. For construction contracts of great value and long duration, it is essential to maintain a long-term cooperative relationship so that the two parties can continue to complete the project, even if a dispute occurs. Therefore, when a conflict arises, it is important to come up with a solution that satisfies the parties so that an agreement can be reached.

Dispute Board in construction contracts was born for that purpose. The Dispute Board performs the task of reviewing and detecting to handle conflicts and arbitrate disputes. This feature is very consistent with the goal of the mediation method, providing a satisfactory solution for both parties, thereby helping to maintain a long-term cooperative relationship. 

The formation and operation of the Dispute Board are specified in Article 45 of Decree 37/2015/ND-CP on construction contracts. According to this provision, the conclusion of the Dispute Resolution Board is the “mediation conclusion”. Thus, the dispute settlement procedure of the Dispute Board can be considered a mediation procedure.

According to the provisions of the Commercial Law, the Construction Law, and other relevant laws, construction is a commercial activity. Therefore, the application of the commercial mediation mechanism for construction disputes is consistent with the provisions of law, especially Decree 22/2017/ND-CP on commercial mediation. The application of the commercial mediation method will help the results of the Dispute Board to be enforced in accordance with the provisions of the Civil Procedure Code. 

VICMC's experience related to the Dispute Board when commenting on the draft Circular detailing a number of contents on Construction Contracts
VICMC’s experience related to the Dispute Board when commenting on the draft Circular detailing a number of contents on Construction Contracts

VICMC Secretariat

Các bài viết trước

CUSTIOMS IN INTERNATIONAL TRADE

Promoting the development of international trade is a trend in countries around the world; therefore,  international trade contracts are increasingly popular and widely used. However, in international trade, the  parties are from various countries that under the same contract, which causes differences in the application of regulatory laws as well as differences in the way the law is applied when resolving disputes. So in those cases, what do businesses need to keep in mind when entering the market?

Training program on PPA organized by ERAVCTED on October 12-13, 2023

Training program on PPA organized by ERAVCTED on October 12-13, 2023, coordinated with Bitexco Energy Joint Stock Company (Bitexco Power) on “Construction investment, Operational management of power plants and contract dispute resolution, legal issues arising during the implementation of electricity purchase contracts” with the offline and online participation of senior experts and Bitexco Power staves.

INTERNATIONAL FRANCHISING ESSENTIALS: WHAT YOU MUST KNOW

Vietnam’s business landscape has transformed, shifting from hosting international franchise brands to witnessing a surge in domestic enterprises venturing into global markets, spurred by the challenges of COVID-19. Leveraging Vietnam’s culinary heritage and technological advancements, local businesses are making significant contributions to economic growth on the international stage. However, as businesses embrace this global expansion, they must equip themselves with knowledge, conduct thorough research, and formulate effective strategies to capitalize on opportunities while mitigating risks inherent in this model.

E-COMMERCE CONTRACTS: CRITICAL FACTORS TO BEAR IN MIND

In recent years, Vietnam’s e-commerce sector has witnessed remarkable growth, emerging as the preferred choice for both businesses and consumers. The surge in e-commerce contracts across this platform showcases a varied range of formats, content, and execution methods, facilitating the expansion and deregulation of commercial dealings. Yet, beneath the apparent convenience lies a web of legal intricacies, exposing implementing entities to unforeseen risks and lacking necessary legal protections.

Talkshow on the Business and Law program

When entering the market, lack of information related to legal regulations during operations will cause many disadvantages for enterprises not only in the domestic market but also in the international market. Therefore, it is necessary for enterprises to actively access to legal information.

Leave a Comment