Vietnam: 02 principles of execution of contracts for construction of maintenance dredging of navigation channels

Execution of contracts for construction of maintenance dredging of navigation channels must comply with the principles specified in Article 24 of Circular No. 35/2019/TT-BGTVT of the Ministry of Transport of Vietnam, specifically as follows:

- Vietnam Maritime Administration shall act as developer to assign the enterprises providing public services some tasks of the developer regarding maintenance dredging of navigation channels via contracts for provision of public services financed by state budget to conduct maintenance dredging of navigation channels signed by Vietnam Maritime Administration and the enterprises providing public services.

- The enterprises providing public services shall negotiate with construction contractors about the contents of the contracts for maintenance dredging of navigation channels based on contracts for provision of public services financed by the state budget to conduct maintenance dredging of navigation channels.

Also according to Circular No. 35/2019/TT-BGTVT, contracts for construction of maintenance dredging of navigation channels are divided into 02 groups as follows:

- First: Contracts for construction of maintenance dredging of navigation channels following practical workload maintenance (applicable to annual maintenance dredging and irregular maintenance dredging to guarantee traffic safety) are contracts whose unit price remains unchanged during implementation period applied to all work contents included in the contracts (unit price contracts).

- Second: Contracts for construction of maintenance dredging of navigation channels following quality maintenance (applicable to turnkey standard maintenance dredging in a definite period) are contracts with fixed rates during implementation period applied to all work contents included in the contracts (package contracts). 

Thus, execution of contracts for construction of maintenance dredging of navigation channels must comply with the principles specified in Circular No. 35/2019/TT-BGTVT.

Other provisions can be found in Circular No. 35/2019/TT-BGTVT of the Ministry of Transport of Vietnam, which takes effect from November 01, 2019.

Thu Ba

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