What rights and obligations do construction contractors have?

Article overview

Construction contractors play an important role in the construction project implementation process, from planning, and construction to supervision and acceptance of the project. In the following article, Long Phan will provide detailed information about the rights and obligations of construction contractors according to the law, helping customers clearly understand their responsibilities when participating in construction activities. This contributes to ensuring the project takes place safely, effectively, and on schedule.

Rights and obligations of construction contractors
Rights and obligations of construction contractors

Requirements for construction contractors

Construction contractors must comply with a series of strict requirements to participate in construction work. The contractor’s capacity is not only limited to the ability to perform but also requires the contractor to have a certificate of construction capacity. This includes certified personnel and technological equipment appropriate to the type, scale, and level of the project.

For projects with special technical and safety requirements, contractors need to prove their capabilities through similar projects that they have successfully implemented. A key factor is that the contractor must have enough financial potential to ensure the construction process is not interrupted. This financial potential includes the ability to mobilize capital to carry out the procurement of materials and equipment, and pay wages to workers on schedule.

In addition, the contractor needs to fully meet the regulations of Decree 06/2021/ND-CP on quality management and construction maintenance. The contractor must establish a construction management system with an organizational chart and specific tasks for each individual in charge of construction supervision, quality management, labor safety management, and construction document management. This system must ensure transparency and compliance with approved technical regulations.

In particular, the contractor needs to make a detailed construction plan, including:

  • Progress of implementation of each stage.
  • Construction methods and construction organization plans.
  • Measures to ensure labor safety and environmental hygiene.

In particular, the contractor must submit this plan to the investor for approval before implementation. This is to ensure that the contractor complies with regulations and does not arbitrarily change the construction plan, affecting the quality and safety of the project.

Rights of construction contractors

According to Clause 1, Article 113 of the Law on Construction 2014, amended and supplemented in 2020, construction contractors have many rights throughout the process of implementing the construction contract. These rights help the contractor protect its legal interests, while ensuring the quality and efficiency of the project.

  • Right to refuse illegal requests: The contractor has the right to refuse illegal requests from the investor or related parties, especially when such requests affect labor safety and project quality.
  • Right to propose design modifications: If the design is discovered to be inconsistent with reality, the contractor has the right to propose modifications to ensure construction efficiency, usually due to changes in terrain or technical factors.
  • Payment request: The contractor has the right to request payment for work completed according to schedule, ensuring cash flow is maintained for subsequent activities such as purchasing materials and paying salaries.
  • Right to stop construction when there is a risk: If a labor safety risk or failure is detected, the contractor has the right to stop construction to fix the problem, to protect the safety of workers and property.
  • Right to claim compensation for damages: When the investor violates the contract, the contractor has the right to claim compensation to protect its rights and reduce damages due to delay.
  • Right to request acceptance: The contractor has the right to request the investor to request acceptance of the project after each stage, helping to determine the value of completed work and ensuring transparency in payment.
Rights of construction contractors
Rights of construction contractors

Obligations of construction contractors

Construction contractors have a series of obligations to comply with to ensure the quality and progress of the project. Clause 2, Article 113 of the Law on Construction 2014, amended and supplemented in 2020, stipulates the obligations of construction contractors, including:

  • Receiving appropriate bids: Contractors may only accept bids for jobs that are consistent with their construction capacity and perform in accordance with the signed contract.
  • Designing construction methods: The contractor is responsible for preparing and submitting to the investor for approval of construction methods, including measures to ensure safety for people, machinery, equipment and works.
  • Construction according to standards: Contractors must construct in accordance with designs, standards and technical regulations, ensuring quality, progress, safety and environmental protection.
  • Quality management: It is necessary to have an appropriate quality management system and establish quality management records for the project.
  • Comply with construction site regulations: Contractors must comply with construction site requirements.
  • Quality of materials: Contractors are responsible for the quality and origin of materials, raw materials, materials, equipment and construction products they provide.
  • Labor management: It is necessary to manage labor on the construction site, ensuring security, order and environmental protection.
  • Completion and acceptance: The contractor is responsible for preparing as-built drawings and participating in acceptance of the project.
  • Construction warranty: The contractor must provide a construction warranty according to regulations.
  • Compensation for damages: When violating the contract or using incorrect materials, the contractor must compensate for damages caused by his actions, including environmental pollution and other violations.
  • Responsible for quality: The contractor is responsible for the quality of construction, including the work of subcontractors. Subcontractors must also be responsible for their work before the main contractor and the law.
Obligations of construction contractors
Obligations of construction contractors

Consulting services on the rights and obligations of construction contractors in Long Phan

Long Phan will provide professional legal consulting services, helping customers understand their rights and obligations in the field of construction. Long Phan’s consulting services include:

  • Consulting on new legal regulations related to construction.
  • Support contractors in determining their legal rights during negotiations and signing contracts with investors.
  • Support drafting construction contracts, ensuring clear and legal terms.
  • Evaluate clauses that may pose risks to the contractor and propose mitigation measures.
  • Consulting and supporting contractors in registration, and issuance of construction activity licenses and related documents.
  • Support contractors in negotiating and resolving disputes with investors or third parties.
  • Instruct contractors to handle situations of contract violations from the investor or related parties.
  • Provide solutions when the contractor is fined or requires compensation.

Consulting on the rights and obligations of construction contractors is an important factor in ensuring the success of construction projects. By understanding their rights and responsibilities, contractors can operate effectively, thereby improving the quality of the project and protecting their rights. If you need more information or legal advice, please contact us via the hotline 0906735386.