Decree No. 15/2023/ND-CP dated April 25, 2023 on piloting payment of contract bonuses for construction contract packages of transport projects under socio-economic recovery and development program

DECREE

PILOTING PAYMENT OF CONTRACT BONUSES FOR CONSTRUCTION CONTRACT PACKAGES OF TRANSPORT PROJECTS UNDER SOCIO-ECONOMIC RECOVERY AND DEVELOPMENT PROGRAM

Pursuant to the Law on Government Organization dated June 19, 2015; the Law on amendments to some Articles of the Law on Government Organization and Law on Local Government Organization dated November 22, 2019;

Pursuant to the Law on Construction dated June 18, 2014; the Law on amendments to the Law on Construction dated June 17, 2020;

Pursuant to the Law on Procurement dated November 26, 2013;

Pursuant to Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies for supporting socio-economic recovery and development program;

At the request of the Minister of Planning and Investment of Vietnam;

The Government hereby promulgates a Decree on piloting payment of contract bonuses for construction contract packages of transport projects under socio-economic recovery and development program

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GENERAL PROVISIONS

Article 1. Scope

This Decree provides for piloting payment of contract bonuses for construction contract packages of transport projects under socio-economic recovery and development program in Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly, prescribed in Appendix I- List of projects eligible for piloting payment of contract bonuses enclosed with this Decree.

Article 2. Regulated entities

Agencies, organizations and individuals that participate in or are involved in the process of investment in projects specified in Article 1 of this Decree.

Chapter II

PAYMENT OF CONTRACT BONUSES

Article 3. Rules for payment of contract bonuses

1. Works and work items shall be built in accordance with the contract (in terms of quantity, volume and quality), be built according to technical regulations and standards, and be accepted and handed over according to regulations of law on construction.

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3. The payment of contract bonuses shall be applied to each contract package.  The bonus shall not exceed unused fund after bidding specified in Article 4 of this Decree.

4. Contract bonuses shall be only paid to contractors who comply with the law when executing contract packages and there is an actual bonus fund.

5. Contract bonuses shall not be paid in cases where the price of the contract package is defined, the bidding document or request for proposals is made and the contract is signed in contravention of law on construction in order to profiteer from such bonuses.

Article 4. Contract bonus source

Contract bonus source is unused fund after bidding (including direct contracting).

Article 5. Bonus calculation

Bonus (T) = TD x TG x K.

Where:

- TD is the unused fund after bidding and equals (=) approved price of the contract package (excluding contingency cost) minus (-) the successful bid (excluding contingency cost).

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Contractual duration refers to duration specified in the contract signed between the investor and the contractor, excluding the interruption duration due to subjective factors from the investor, or objective factors from force majeure as agreed by both parties.

The reduced time equals (=) Contractual duration minus (-) actual duration of contract package execution.

- K is an incentive factor and equals (=) 5.

Chapter III

PAYMENT OF CONTRACT BONUSES, INSPECTION AND SUPERVISION

Article 6. Authority

1. Investment-deciding persons have authority to decide application of regulations on payment of contract bonuses when approving plans for contractor selection.

2. Investors have authority to decide payment of contract bonuses, pay contract bonuses, adjust and withdraw bonuses.

Article 7. Procedure and application for contract bonuses

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2. The investor shall receive applications at the request of the contractor according to regulations in Clause 1 of this Article.  If these applications are invalid, within 03 working days from the date of receipt of these applications, the investor shall give written notification and request the contractor to supplement such applications.

3. If these application are valid, the investor shall consider and decide payment of contract bonuses to the contractor within 30 days after receiving such valid applications. Decision on payment of contract bonuses shall clearly state contractor's name, name of contract package, the reduced time, bonuses, payment method, and expected time of payment and requirements for withdrawal of bonuses in case of adjustment of bonuses or occurrence of violations against rules for payment of contract bonuses (Form No. 04, Appendix II).

Article 8. Bonus payment

1. Within 03 working days from the effective date of the Decision on payment of contract bonuses, the investor shall send an application for payment to the State Treasury in person or by post. An application includes:

a) Decision on payment of contract bonuses;

b) Written request for provision of funds for payment of contract bonuses (Form No. 06, Appendix II);

b) Written document on capital withdrawal (Form No. 07, Appendix II).

2. According to the application for payment of the investor, the State Treasury shall control and make payment of contract bonuses within 03 working days from the date of receipt of the application according to regulations in Clause 1 of this Article.  The control and payment shall comply with Government's regulations on management, disbursement, payment and final settlement of investment funds for publicly-funded projects.

Article 9. Inspection and supervision

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2. Investors shall be responsible for supervision of execution of contracts, including Clauses and Articles on payment of contract bonuses until the end of time for warranty according to regulations in such contracts.

Article 10. Bonus adjustment and withdrawal

1. Bonuses shall be adjusted or withdrawn if there are errors arising from calculation of bonuses or violations against rules for payment of bonuses according to inspection conclusion.  Within 30 days after the effective date of inspection conclusion, the investor shall issue a decision on withdrawal of the incorrectly paid bonuses according to the inspection conclusion and request the contractor to transfer such amount to the State Treasury according to the contractor's written commitment in the application for contract bonuses.

2. Decision on withdrawal of contract bonuses shall clearly state contractor's name, name of contract package, reasons for withdrawal, bonuses to be withdrawn, payment method and payment time (Form No. 05, Appendix II).

3. The contractor shall return the incorrectly paid bonuses to the state budget within 30 days from the effective date of the decision on bonus withdrawal. Otherwise, the contractor shall incur additional penalty interest at the interbank exchange rate at the time of return.

Chapter IV

IMPLEMENTATION CLAUSE

Article 11. Transition clauses and effect

1. This Decree comes into effect from April 25, 2023.

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Article 12. Implementation

1. The Ministry of Construction shall be responsible for providing guidelines for organizations and individuals if there are difficulties that arise during the implementation of this Decree.

2. The Ministry of Construction shall take charge and cooperate with the Ministry of Planning and Investment, the Ministry of Transport and relevant agencies in reporting the implementation of this Decree.

3. Ministries, Heads of ministerial agencies and Governmental agencies, the Presidents of People's Committees of provinces and central-affiliated cities and relevant organizations and individuals shall be responsible for implementation of this Decree./.

ON BEHALF OF THE GOVERNMENTPP. THE PRIME MINISTERDEPUTY PRIME MINISTERTran Hong Ha