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Advance construction contracts are an essential financial solution that helps contractors have timely capital to implement projects. With professional consulting services, businesses can optimize the advance payment process, thereby ensuring construction progress and improving capital use efficiency. In the article below, Long Phan will provide information about the latest advance rates for construction contracts for businesses today.
An advance on a construction contract is an amount of money that the contractor advances without interest to the contractor, in order to carry out the necessary preparations before implementing the work under the contract.
Construction contract advance conditions include:
In addition, it can be understood that a construction contract advance is an interest-free advance payment to the contractor, made when the contract takes effect and meets the conditions of the site clearance plan and guarantees advance money.
CSPL: Clauses 1, 2, 3 of Decree 37/2015/ND-CP, amended and supplemented by Decree 50/2021/ND-CP.
The current construction contract advance level is regulated as follows:
Advance limit: The advance amount does not exceed 30% of the contract value at the time of signing (including provisions, if any).
Approval of higher advanced level:
Minimum advance level:
Advance agreement exceeding the minimum level: If the parties agree on an advance payment higher than the minimum amount, the excess amount will not be subject to price adjustment from the time of advance payment.
Advance recovery process: Advances are recovered gradually through payments, the recovery level must ensure that all advances are recovered when the payment value reaches 80% of the signed contract price.
CSPL: Clause 5, Article 18 of Decree 37/2015/ND-CP, amended and supplemented by Decree.
Consulting on construction contract advances requires in-depth professional knowledge of the Law on Construction. Using the contract advance consulting service will bring customers the following benefits:
Construction contract advances are not only a necessary form of financial support but also the key to promoting project progress and efficiency. With a team of experienced professionals in the field of consulting, Long Phan provides in-depth consulting services, including:
Construction contract advance consulting services at Long Phan play an important role in ensuring that the parties involved effectively and legally carry out the contract. These services not only help optimize the advance and recovery process but also minimize risks and disputes that may arise during project implementation. For detailed advice on appropriate advance level construction contracts suitable for your project, please contact Long Phan via the hotline: 0906735386.
Note: The content of the articles published on the website of Long Phan Investment Consulting Company is for reference only regarding the application of legal policies. Depending on the time, subject, and amendments, supplements, and replacements of legal policies and legal documents, the consulting content may no longer be appropriate for the situation you are facing or need legal advice on. In case you need specific and in-depth advice according to each case or incident, please contact us through the methods below. With our enthusiasm and dedication, we believe that Long Phan will be a reliable solution provider for our clients.
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