NEW GUIDANCE ON PAYMENT OF CONSTRUCTION CONTRACT PRICES FROM APRIL 20, 2023
On March 03, 2023, the Ministry of Construction issues Circular No. 02/2023/TT-BXD guiding a number of contents on construction contracts.
Article 3 prescribes the payment, temporary payment, and temporary payment dossiers of construction contracts as follows:
- The payment of construction contracts shall comply with Article 19 of Decree No. 37/2015/ND-CP.
- For the manufacture of structures, semi-finished products of high value, or construction materials to be seasonally reserved that are required the advance payment for performance as specified in Clause 7 Article 18 of Decree No. 37/2015/ND-CP.
The advance payment dossier must comprise the list, unit prices, and total values of materials, structures, and semi-finished products.
The subtraction of the value of completed work volume subject to the pre-acceptance test corresponding to the value of advance payment under the contracts must be conducted upon payment.
- The temporary payment under Clause 4 Article 19 of Decree No. 37/2015/ND-CP, the temporary payment value, and security interests for the temporary payment shall be decided based on the specific conditions of each temporary payment. A number of specific cases are as follows:
For adjustable unit price-based contracts, if there is no data on adjustment of unit price or contract price upon payment deadline, the unit price in the contract shall be used to make temporary payment.
For a product or work that is under construction and has not yet been completed, the temporary payment shall be made based on the completion, for each specific case, and the details of the unit price in the contract.
- The subtraction of the value of the completed work volume subject to the pre-acceptance test corresponding to the value of advance payment under the contracts must be conducted upon payment.
- A temporary payment dossier includes: Written record of the testing and acceptance of completed work volume/Written record of certification of completed work volume; Table of calculation of temporary payment value and payment request.
Circular No. 02/2023/TT-BXD takes effect on April 20, 2023.
