Regulations on business investment project contracts in bidding

Business investment project contracts are an important factor ensuring transparency and accountability in investment projects. Signing a contract in accordance with regulations helps the participating parties commit to fulfilling their obligations, protecting their legal rights, and ensuring the project is implemented on schedule, with quality and efficiency. Complying with contract regulations will minimize legal risks and create a solid basis for project success.

Principles for signing and implementing business investment project contracts

According to Article 71 of the Law on Bidding 2023, regulations on signing business investment project contracts are as follows:

1. Principles for signing business investment project contracts:

• Bidding documents of the investor are still valid: At the time of signing the contract, the bidding documents of the selected investor must be still valid, meaning that there is no change or cancellation of important information related to the investor during the bidding process.
• Ensuring the investor’s capacity: The selected investor must demonstrate adequate technical and financial capacity to implement the business investment project according to the requirements of the bidding documents. This ensures that the investor has enough capacity to fulfill contractual commitments.
• Signing a contract between the parties: The competent authority or the bidding party (if authorized) will sign a contract with the selected investor. In particular, in the case of joint venture investors, all joint venture members must directly sign and stamp (if any) the contract document.

2. Principles for implementing business investment project contracts:

• Responsibility for contract performance: Contracting parties are responsible for fully implementing their obligations under the signed contract. This includes ensuring quality, schedule, costs and other conditions related to contract performance.
• Ensuring honesty, cooperation and lawfulness: Contracting parties must perform the contract with honesty, cooperation and lawfulness. This means that all actions and decisions related to contract performance must comply with legal regulations, avoiding violation of the legal rights of the parties.
• No infringement of the interests of the State and the community: The implementation of investment and business project contracts must not affect the interests of the State, the community, as well as the legitimate interests of other organizations and individuals. Acts that infringe upon these interests will be handled according to the provisions of law.

Content of business investment project contract

Regulations on basic content

Pursuant to Clause 1, Article 73 of the Law on Bidding 2023, basic content in business investment project contracts includes:

• Information of the parties signing the contract: Including effective date and contract duration.
• Project information: Objectives, location, progress, scale, total investment capital, land use conditions, resources, compensation, resettlement support, safety and environmental protection.
• Responsibility for implementing procedures: Including compensation, resettlement support, land allocation, and land lease.
• Obligations of the investor: Fulfill bidding commitments and establish a project management enterprise (if any).
• Contract guarantees: Conditions for contract modification, termination and transfer of rights and obligations.
• Law governing contracts: Dispute resolution mechanism.

Regulations on contract term

According to the provisions of Article 74 of the Law on Bidding 2023, regulations on business investment project contract duration in bidding are:

• Contract term: Is the period of contract performance, determined in the contract signed between the parties.
• Calculating contract term: The contract term begins from the time the contract takes effect and lasts until the investor completes its obligation to implement the commitments proposed in the bid, along with other obligations. Other services as agreed in the contract.
• End of contract term: After the contract term expires, the investor continues to implement the project in accordance with the provisions of investment law and relevant laws.

Business investment project contract documents in bidding

According to the provisions of Article 72 of the Law on Bidding 2023, business investment project contract documents include the following documents:

• Contract documents;
• Contract appendix (if any);
• Minutes of negotiation and contract completion;
• Decision to approve investor selection results;
• Bid documents and documents clarifying the bid documents of the selected investor;
• Bidding documents and documents amending and supplementing bidding documents;
• Other relevant documents.

Cases of amending business investment project contracts in bidding

Pursuant to Clause 1, Article 76 of the Law on Bidding 2023, business investment project contracts can be amended in the following cases:

• Adjusting investment projects: Amending the contract when adjusting the project according to law, after approval by the competent authority.
• Project transfer: Modify the contract when transferring the project according to legal regulations.
• Other agreements: The parties agree to amend the contract in cases consistent with the law.

Consulting services and support for drafting business investment project contracts in bidding

At Long Phan, we provide consulting services and support for drafting business investment project contracts in bidding with comprehensive service packages, including:

• Consulting on regulations on business investment project contracts.
• Support drafting business investment project contracts according to your requirements.
• Consulting on investors’ rights and obligations in contracts.
• Evaluate contract terms to ensure fairness and protect your rights.
• Consulting on contract appraisal between parties to ensure legality and minimize disputes throughout project implementation.
• Consulting on other regulations related to contracts in investment and bidding business.

With a team of experienced consultants and in-depth expertise, Long Phan will provide effective and professional consulting services and drafting business investment project contracts in bidding. Please contact Long Phan today via the hotline 0906735386 to receive dedicated advice and quality support services. Long Phan is your trusted partner in all business investment projects!