HANDLING DISPUTE ON CONSTRUCTION CONTRACT IN VIETNAM

Dispute of construction contract is the dispute form of great value and causes serious consequences to the parties affected, causing damage not only financially but also affect the credibility and reputation of the Contractor.

I. The common types of disputes in the field of construction

1. Disputes for violating the payment schedule

The dispute occurred when the contractor has completed construction but the investor does not pay or can give many reasons to delay payment which leads to damage to the Contractor. Note: To avoid disputes occur, both parties should agree on payment against progress of work penalty for delayed payment terms in the contract. In addition, the parties should note rate of penalty must comply with regulation of law and the time limit for late payment in a particular case, after this period that the investor does not pay, the contractor is entitled to cease construction of the works. 

2. Disputes by failing to ensure the quantity and quality of works

In the field of construction work, quality issues is the most important factor is usually tightly regulated in the construction contract between the Contractor and Investor. The parties should note that the issue of quality work when entering into and performing contracts of construction:

  • Need to prepare the estimates, which lists in detail the expected volume of materials used and the unit price of the work performed under the construction contract.

  • Need clearly define technical guidelines and specifications on the type of construction materials used for projects such as commodity name, type, manufacturer, number, size ... in the contract.

  • For large construction projects, the Investor needs to hire an independent unit working in consultancy and construction supervision of construction works to ensure the implementation of the Contractor in compliance with proper quantity and quality regulations.

3. Disputes due to failing to ensure the construction schedule

Construction progress is a matter of investor’s interest and also the heavy responsibility of the Contractor. During the construction process due to the impact of many subjective factors, different objective such as weather, conditions of capital, human resources has led to the construction contractor does not guarantee in terms of time or quality of the works. This led to a dispute arises between the investor and the contractor. Therefore, the parties should be noted:

  • Need agreement on the specific time, the progress of construction of each item of construction.

  • Need agreement payment schedule for each completed project items based on commissioning report between the parties.

  • When there are violations on construction progress:

  • For Investors: required documents on the request for contractors to complete the works on schedule, if a violation occurs, the parties need to work to prepare minutes of content which is the evidence that the contractor did not complete the progress and the investor is entitled to require the contractor to remedy at a specific time. However, the investor needs to fix a time limit, if past this time, the investor is entitled to suspend the payments and make penalties for contractors.

  • For contractors: To limit compensation for damage, it needs to prove fault due to objective reason or the fault of the investor ...

II. Dispute settlement procedures for construction contracts

In the process of resolving disputes, it often has the stages: Stage before the lawsuit (pre-legal proceedings), the stage of the legal proceedings (and the Court has accepted handling and settling the case) and the stage of civil law enforcement.

  1. In the pre-litigation stage, when receiving the client’s requests, Lawyers of resolving civil disputes will determine whether the applicant's request is under any legal relationship, including disputes resolved under the jurisdiction of the court? Or else by a competent authority addressed. That case should be sued or not? If suing, how is the procedure? The statute of limitations is valid or not? 

  2. If the concerned party decides to file a lawsuit in the Court, that means the starting stage of the proceedings at the Court, Lawyers of resolving civil dispute will draft a petition to the Court for accepting to request of lawsuits, collect evidence and submit evidence to the court, suggest the Court to collect evidence which the parties did not keep; guide to the parties to establish the self-declaration, the report to clarify the content of dispute of the case, conduct of the mediation process, confrontation .... Lawyers petitions Court conducting the proceedings may be necessary to clarify the content of dispute for the case. 

  3. At the trial of the case, the Lawyer protects the rights and legal benefits to the person concerned, will exercise the rights of arguments at the trial to protect the rights and benefits for the clients and clarify the truth of the case. 

  4. At the stage of law enforcement: Lawyers advise or represent clients in enforcement procedures, draft applications for enforcement, search, verify assets for law enforcement, require enforcement agencies to apply coercive measures, prevent the trading of assets to help law enforcement with the best results.

LVT Lawyers with a team of lawyers with many years of experience in resolving disputes of construction contracts for many foreign companies in Vietnam. With enthusiasm and dedication in work, we are committed we always put interests of client on top to fit the motto "Our service, your success". LVT Lawyers, Lawyers specialize in providing legal services in settlement of dispute of construction contract through the following tasks:

  • Consulting on how to deal with contractual disputes, the dispute settlement procedures of the contract.

  • Guiding and advising clients the lawsuit procedures, conditions of lawsuit to the competent court.

  • Drafting applications, requests and other relevant documents to clients;

  • Conducting to gather evidence - documents, examination and assessment of the evidence - documents to be submitted before the Court;

  • Making specific plans most beneficial during negotiation, mediation (if any);

  • Participating in the proceedings as a defense attorney, to protect the rights and legitimate interests in court for clients at all levels;

  • Participating in legal proceedings as authorized representative of the client to perform all the measures and the manner prescribed by law to protect the legitimate rights and interests of the client in the best way at the court level.

  • Implementing procedures for enforcement: verifying conditions for law enforcement, requiring the application of preventive measures to ensure assets for law enforcement, requiring enforcement of judgment ...