Construction contracts are the form of contracts performed by two or more parties over a long and complicated period of time. Contracts of great value, complex objects, mostly future transactions. Therefore, it is easy to dispute construction contracts during the performance of contracts.
Disputes in construction are often concentrated in such issues as: due to violations of schedule, not ensuring the quality of works; disputes over compensation in unilateral termination of construction contracts; requirements related to construction insurance, delay in performing payment obligations under contracts ...
DFC lawyers as one of the law organizations operating intensively in resolving commercial business disputes, including disputes in the field of construction. Therefore, in 17 years of providing consulting services to resolve construction contract disputes,we give some opinions on the causes of the following disputes:
Dispute resolution service of construction contract at DFC - 19006512
1. Firstly, regarding the progress and quality of construction works:
- Progress and quality of works are the two most important requirements of a construction product and are clearly and strictly regulated in the construction contract. The quality of the works is to ensure safety and security for the building users and for those around them. Progress is the basis for determining the time and timeline of completion as planned; if the violation causes serious economic damage as well as other consequences arise. However, in the actual construction activities, to ensure the right quality, the schedule as agreed is not easy to implement.
According to statistics of the first 06 months of 2020 of VIAC; violations of quality and construction progress accounted for 76%, violations due to unilateral termination of contracts accounted for 17%, the rest were other causes. According to DFC lawyers, we have noticed that some of the main reasons for the quality and progress of the works are not guaranteed as prescribed by: Capital capacity, people, technological equipment; due to objective factors such as weather, natural disasters, epidemics; or because contractors take economic benefits too seriously, ignore technical requirements, building standards ... So when there is a dispute how the parties are resolved.
+ Settlement of disputes over construction contracts in case of contractor errors:
On the investor's side: If the violation of schedule and quality of works is correct due to the fault of the contractor. The investor shall, based on the provisions of the contract, compare with the minutes of commissioning and error conclusions notified by the investor to work and request the contractor to have satisfactory remedy. Note that; all errors and technical errors of investors must be made in writing and notified to new contractors with grounds for consideration of liability.
On the contractor side: The contractor needs to prepare sufficient documents and evidence to prove that the error of quality is due to undesirable factors. The contractor has tried to do all the responsibility, use all measures and abilities but the results still do not reach the agreement. It is recommended to ask the investor to consider reducing liability for contractors.
+ Due to faults that do not belong to contractors:
On the contractor side: In fact, the contractor's violation of the quality and progress of the project is caused by the Investor, or by objective factors that are not caused by the teacher. The investor has changed the design, adjusted the input material equipment without the two parties or has not yet made a written agreement on this adjustment. Therefore, when a problem such as slower progress occurs, or during construction installation there are some errors that cannot be handled. The investor shall conclude that the project is not guaranteed based on the fact of the field.
And then the contractor must be held accountable for these errors. Therefore, when there is any adjustment change from the investor, if the two parties do not sign the appendix and the minutes of agreement on this, the contractor needs to have a document from the contractor.
On the investor'sside: The investor needs to have a comprehensive objective assessment, if it is not goodwill but still deliberately requests to penalize contractors, surely the case will be complicated. Negotiations between contractor investors are difficult; may have to ask the legal authorities to resolve it. At that time, the right or wrong conclusion about which party is uncertain, but economically both sides suffer because they have to insing unnecessary expenses for stakeholders.
2. Secondly, on violations of theinvestor's obligations to pay
- In the field of basic construction, this is a type of construction contract dispute that usually occurs between the investor and the construction contractor. When contractors have fulfilled their construction obligations under contracts, investors do not pay the full volume that contractors have constructed or may seek to cause difficulties and delays in payment.
- To ensure that their dossiers are eligible for payment, contractors need to complete all documents such as volume commissioning minutes, payment commissioning minutes, Full VAT invoices, Send payment request letters to investors ...
- In case your application has not completed the documents proving the payment obligation, you need to have the operation to complete the dossier before proceeding to initiate a dispute resolution lawsuit.
3. Thirdly, disputes over construction contracts due to the termination ahead of time.
- The type of dispute caused by unilateral termination of a contract is a type of construction contract dispute that usually occurs to all parties (the investor or the construction contractor).
- During construction, it may be due to various reasons that either party has terminated the contract ahead of time. When either party terminates the contract, there will be damage to the other party. When a party's rights and interests are infringed upon, the inevitable consequence is that a dispute will occur between the parties over claims for damages and penalties for breach of contract.
- According to the provisions of civil law: to prove that the claim for damage is well-founded, forcing the violating party to prove that damage has occurred and the extent of the damage.
3. Consulting and dispute resolution services for construction contracts
The above analysis is some common construction contract disputes. Hopefully, with what DFC lawyers have come up with, you will help you choose the best solution to your problem.
For detailed advice on contract drafting, contract negotiation, dispute resolution of construction contracts and other legal assistance, please contact DFC via Hotline 19006512.
Ls. Le Minh Cong
Luật Sư: Lê Minh Công
Với bề dày kinh nghiệm hơn 15 năm trong ngành tư vấn pháp luật, Luật sư tranh tụng tại Tòa án, Ông Lê Minh Công đã dẫn dắt DFC trở thành một thương hiệu uy tín và chất lượng cho người dân và là một trong những công ty đi đầu tại Việt Nam trong lĩnh vực tư vấn luật qua tổng đài.
