On September 29, 2021, the Vietnam Association of Road Traffic Construction Investors (VARSI) sent a document to the Ministry of Construction to comment on a number of problems when applying the guiding circulars on contracts. construct.

Document No. 21/2021/VARSI has pointed out the difficulties that contractors face when applying a number of provisions in the Government's Decree No. 37/2015/ND-CP dated April 22, 2015 regulating expenditures. construction contract details.
Specifically, in Article 17 of this Decree, the payment security for construction contracts, the payment of construction contracts for construction projects implemented by the method of public-private partnership with the participation of the State budget capital is stipulated in Article 17 of this Decree. Depends heavily on the capital allocation plan of the State agency, it is difficult to issue the investor's guarantee.
Also in this Decree, Article 18 stipulates advance construction contract, but does not provide detailed guidance on the advance value frame for advanced components, semi-finished products of great value, and reserve materials. seasonally to stabilize prices and ensure contract performance.
In fact, there are many cases where, after winning the bid and in the process of performing the contract, the contractor encountered a capacity problem due to objective and subjective conditions that could not meet the schedule specified in the contract. However, carrying out the procedures for contract termination and re-selecting another contractor to transfer the remaining unconstructed items takes a long time and incurs costs.
Therefore, VARSI proposed the Ministry of Construction to consider and guide the addition of procedures for appointing additional contractors to the joint venture to participate in the contract implementation and ensure the project progress.
In addition, Circular No. 09/2016/TT-BXD dated March 10, 2016 of the Ministry of Construction guiding work construction contracts stipulates the responsibility to buy compulsory insurance in construction activities in Clause 1. Article 8. Accordingly, the investor buys insurance for the work, and the construction contractor buys third party insurance.
However, in fact, the insurance unit does not sell insurance to third parties separately, so in order to limit risks and fulfill the responsibilities of related parties, usually the investor's construction insurance will have the following contents: third party insurance. This leads to additional costs for the investor and difficulty in requiring the contractor to carry out the insurance liability.
Since then, VARSI has proposed to the Ministry of Construction to adjust the investor's responsibility to compulsorily purchase both construction insurance and third-party insurance.
VARSI also pointed out the shortcomings when applying the regulations on the time of determining the prime price index of the contract price adjustment method using the price adjustment coefficient, which is within the period of 28 days before the bid closing date in Circular 07. /2016/TT-BXD of the Ministry of Construction. This is not appropriate in the case that the estimated price of the bidding package is approved before the above time period and the locality announces the price on a quarterly basis, leading to a reflection that is not close to the price in this period. However, the original price index to determine the price offset is still calculated within a period of 28 days before the bid closing date, and the contract value after the offset must not exceed the approved bid package estimate.
On that basis, VARSI proposes to supplement regulations on the time to determine the base price index of the contract price adjustment method using the price adjustment coefficient in case the market has large price fluctuations, the parties agree on the time of taking the original price index to ensure that it is consistent with the time of making the estimate of the bidding package and approved by the competent authority. At the same time, it is necessary to stipulate that localities must issue monthly material price notices to ensure that the construction of the estimated bid package price is consistent with actual conditions.
In addition, VARSI also wants the Ministry of Construction to clarify how to calculate the cost of consulting contracts for making construction investment feasibility study reports, construction design consulting and construction supervision consulting. Works with expenses mentioned in Sections b, c, d, dd, e Clause 2, Article 10 of Circular 08/2016/TT-BXD dated March 10, 3012 are expenses that have not been included in the taxable income. pre-calculated tax (TN) and Value Added Tax (VAT) as guided by Circular 16/2019/TT-BXD dated December 26, 2019 of the Ministry of Construction guiding the determination of project management costs. projects and construction investment consulting. That is the basis for determining the consulting contract price.
In addition, VARSI's document has raised a number of other problems in the process of applying Circulars on construction contracts such as adjustment of contract prices, form of package contract payment, project settlement. complete.
Previously, on September 9, 2021, the Ministry of Construction issued Document No. 3664/BXD-KTXD to collect comments on guiding circulars on construction contracts to replace the guiding circulars on construction contracts. 
Khanh Phuong
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