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Disputes in construction contracts involve different sides: expert
Saturday,  4/20/2019, 16:16 

Disputes in construction contracts involve different sides: expert

By Do Lan

Nguyen Van Hiep, former deputy director of the HCMC Construction Department, speaks at the workshop on April 19 – PHOTO: VIAC

HCMC – Disputes in construction contracts can come from consulting, construction, or sales, said Nguyen Van Hiep, former deputy director of the HCMC Construction Department, speaking at a workshop on disputes in engineering, procurement and construction contracts in HCMC on April 19.

Hiep, who is currently an arbitrator for the Vietnam International Arbitration Center and a senior lecturer at the Construction Faculty at the HCMC University of Technology, said that construction contracts are complicated and disputes are likely to arise, since the sides have often not read their contracts properly before signing.

He also pointed out some possible cases, such as foreign investors having Vietnamese people become their legal representatives on paper, or the application of international regulations, or the adoption of design standards from different countries.

Additionally, various sources of capital or changes of investors during the execution process can also cause trouble when carrying out construction contracts.

Consultancy issues, such as the unclear division of design stage work, the failure of adopting international practices, delayed payments, unsatisfactory work quality, as well as consulting units that are incompetent, yet still securing contracts, can be the causes of disputes.

In the construction process, investors and the relevant sides disagree over construction quality, or when a party breaks their contracts, or investors fail to either make payments or meet their commitments – which can lead to disputes, as well.

In the sales of housing properties, disputes can occur in cases of the late handover of houses and apartments, or housing projects being revoked, but already sold to mobilize capital, or turning over apartments different from its housing samples.

For the sake of avoiding disputes, Hiep said contracts need to be logical, and it is essential to hire well-qualified and experienced lawyers for writing contract and when seeking legal advice, especially for new, complicated technology projects.

He added that it is also a necessity to hire consulting units for project and construction management. At the same time, he stressed the need for certain divisions and individuals to keep a close eye on the execution and compliance of their contracts.

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