Official letter No. 2143/BXD-KTXD dated June 11th, 2021 of the Ministry of Construction regarding guidelines on settlement of a lump-sum contract

Relating to lump-sum construction contract, the Ministry of Construction notes some regulations below:

- Lump sum contract price is only changed in case of force majeure or compulsory changes to scope of work (addition of quantity of work beyond the signed contract's scope of work, addition of quantity of work beyond the scope of consultancy (Point a clause 3 Article 15 of Decree No. 37/2015/ND-CP ).

- Lump sum contract is only applied to bid packages that at the date of contract signing have met conditions for determination of quantity and unit price or in some cases in which quantity and unit price are not yet determined but the parties are qualified to calculate (Point a clause 5 Article 15 of Decree No. 37/2015/ND-CP ).

- Upon making payment for a lump sum construction contract, the confirmation of completed quantity of work is not required (Clause 5 Article 19 of Decree No. 37/2015/ND-CP ).