Official letter No. 754/BXD-KTXD dated March 10th, 2022 of the Ministry of Construction regarding guidelines for finalization and liquidation of a contract with contractor breaching the contract

With regard to a construction contract applying according to Decree No. 37/2015/ND-CP , the liquidation, finalization in case of the contractor’s breach in the contract need to pay attention to these points:

- The determination of volume of uncompleted work already tested by the parties as the basis for making payment, finalization shall be based on agreements in the contract and actual construction.

- With regard to volume of work already performed without the dossier of quality testing as prescribed, there are not enough grounds to conduct the testing and make payment.

- The evaluation of quality before conducting the testing, payment and finalization with regard to a construction works suddenly terminated does not base on result of construction testing, it shall comply with the regulations at Article 123 of 2014 Law on Construction and Decree No. 06/2021/ND-CP.