Guide to adjusting the progress of construction contracts

Article overview

Adjusting the progress of construction contracts there may be many different reasons that lead to having to adjust the implementation schedule. This process requires agreement between the investor and contractor and compliance with certain conditions. In the article below, we provide detailed instructions on adjusting the progress of construction contracts.

Instructions for adjusting the progress of construction contracts
Instructions for adjusting the progress of construction contracts

Cases requiring adjusting the progress of construction contracts

In a construction contract, the parties must agree on cases where progress can be adjusted.

According to the provisions of Clause 1, Article 5 of Circular 02/2023/TT-BXD, adjusting the progress of construction contracts are implemented according to the provisions of Article 39 of Decree 37/2015/ND-CP. Specifically as follows:

  • Case 1: Due to the effects of earthquakes, storms, floods, tsunamis, fires, enemy attacks or other force majeure events.
  • Case 2: Changing or adjusting the project, scope of work, design, and construction methods at the request of the contractor affects the progress of contract implementation.
  • Case 3: Due to the handover of the site not being in accordance with the agreements in the contract, the contract is suspended due to the contractor’s fault, and related procedures affect the progress of the construction contract without being caused by the contractor’s fault.
  • Case 4: Temporarily suspending work at the request of a competent state agency without the fault of the contractor.

When adjusting the contract progress does not prolong the contract implementation progress (including the time allowed for extending the contract implementation progress according to the provisions of the construction contract), the investor and contractor shall negotiate and agree on the adjustment.

In case the schedule adjustment prolongs the contract implementation progress, the investor must report to the person with investment decision-making authority for consideration and decision.

Effects of natural disasters, floods, earthquakes
Effects of natural disasters, floods, earthquakes

Guidance on adjusting construction contract progress in certain cases

When adjusting the progress of a construction contract according to case 1, the Principal and the Contractor are responsible for assessing the impact of force majeure events on the progress of the construction contract to determine and decide. Adjust accordingly.

In case of temporary suspension of work at the request of the competent state agency in case 4, the following tasks must be performed:

  • The contracting party and the contractor shall, based on the request for suspension by the competent State agency, assess the impact on the progress of the construction contract as a basis for determining and agreeing to adjust the progress of the contract.
  • In case costs arise due to prolonging the contract implementation time, the Principal and Contractor shall, based on the contract content and instructions of the competent state agency on the event leading to temporary suspension of contract performance, Construction contract serves as a basis for determining and agreeing on reasonable cost items.

Procedure for adjusting the progress of construction contracts

When falling into one of the cases of adjusting the progress of construction contracts implementation, the following steps must be taken;

Step 1: Identify the cause and evaluate the impact

The party requesting the adjustment needs to provide evidence of the event affecting progress. The parties will jointly evaluate the impact of the event on the progress of contract implementation. The assessment should be based on specific data such as:

  • Workload is affected
  • Time interrupted.

Step 2: The parties agree on an adjustment plan

Based on the evaluation results, the principal and contractor will discuss and agree on the level of progress adjustment. This agreement should note the following issues:

  • Expressed in writing
  • Clearly state the reason for the adjustment
  • Adjustment time
  • Related terms.

If the adjustment does not prolong the overall progress of the contract, the two parties can reach an agreement.

Step 3: Approve and make adjustments

If the adjustment prolongs the overall progress of the contract, the investor must report to the person with investment decision-making authority for consideration and decision. After approval, the parties will sign a contract appendix on schedule adjustment. This appendix becomes an integral part of the original contract and has legal effect.

Approve the adjustment
Approve the adjustment

Support services for adjusting the progress of construction contracts in Long Phan

Long Phan provides professional consulting services on adjusting construction contracts. A team of experienced experts is ready to support customers. Our services include:

  • Consulting on cases of adjusting the progress of construction contracts
  • Consulting and supporting negotiations with relevant parties agreement on adjusting the progress of construction contracts
  • Advise on notes and difficulties that may be encountered during the process of adjusting implementation progress
  • Consulting on preparing documents to adjust implementation progress
  • Guidance on the process of adjusting contract implementation progress
  • Other relevant consulting after adjusting the progress of construction contracts.

Adjusting the progress of construction contracts requires a clear understanding of adjustment cases and implementation processes. Long Phan brings optimal solutions for all your construction projects. For detailed advice on adjusting construction contract progress, please contact the hotline 0906735386 for the best support.