TO PROVIDE ADDITIONAL CONDITIONS FOR ADJUSTMENT OF UNIT PRICES AND CONTRACT PRICES
This is the noticeable provision prescribed in the Decree No. 50/2021/ND-CP dated April 01, 2021 of the Government amending and supplementing a number of articles of the Government’s Decree No. 37/2015/ND-CP of April 22, 2015, prescribing in detail construction contracts.
According to the new provision, if the actually completed work volume increases or decreases by more than 20% of the work volume stated in the contract and, at the same time, changes the contractual value by over 0.25% and changes the unit price of such work by over 1% or the contract does not state the unit price for the additional work volume, the parties shall agree on a new unit price for this work volume on the principle agreed in the contract to serve the payment.
If the actually completed work volume increases by more than 20% of the work volume stated in the contract, the new unit price may only be applied for the completed volume exceeding 120% of the volume stated in the contract.
If the actually completed work volume decreases by more than 20% of the work volume stated in the contract, the new unit price shall be applied for the actually completed work volume tested before acceptance.
Also, in accordance with the new provisions, contract price adjustment methods include a direct clearing method and a method of adjustment by the adjustment formula. Price indexes for adjustment of construction contract prices by the prescribed formula are construction price indexes.
This Decree takes effect on the date of its signing.
