Construction contract based on FIDIC Red Book 1999 Contract Form Review

CNC assisted Kinden Vietnam in signing contruction contract based on FIDIC Redbook 1999 Contract Form

May 2021, CNC is honored to be choosen by Kinden Vietnam Ltd. Co to review the construction contract,
which used FIDIC Red Book Contract Form as a basis, of a large information tecnology project in Nghe An
province.

In recent years, FIDIC Redbook 1999 Contract is one of the usual go-tos for customers in Vietnam

However, to Contractors who are used to working with Japan based partners such as Kinden Vietnam, FIDIC
Red Book 1999 Contract posed an enormous challenge.

This particular phenomena could be explained through the following reasons:

Firstly, Japanese - based Contractors and Employers (fundings, owners or managers) has always remained
loyal to the contract form which had been proven to be effective in previous transactions and almost no
changes could be observed in their usage of contract form. Therefore, FIDIC Contrac Form usages are
limited

Secondly, Japanese – based Contractors and Employers are dedicated, honest and always diligent so they
prefer simple and straightforward construction contracts. Therefore, Construction Contract published by
FIDIC in which articles and clauses contain considerable amount of words aren’t favored

Finally, with their traditional cost-effective and good faith approach to dispute settlements, Japanese –
based Contractors and Employers always seek the most optimal solution which would benefits the
longevity of their business and its diplomatic relationship with their partners. Consequently, FIDIC Contract
Forms which usually contain the tri-factor Contract management systems (managed by Engineer/Project
Management Board) and dispute resolutions through Dispute Settlement Board or Arbitration aren’t the
most optimal choice for many Japanese businesses.

Hình ảnh

Thường sử dụng các mẫu hợp đồng đơn giản, dễ Simple and Straightforward Contract forms are
hiểu favored

Giữ ổn định mẫu hợp đồng trước đó Remain loyal to the previous contract form

Cơ chế quản lý các hợp đồng FIDIC, cơ chế giải Complicated Contract Management and Dispute
quyết tranh chấp phức tạp Settlement System

Ít sử dụng mẫu Hợp đồng do FIDIC ban hành Limited use of FIDIC Contracts

Vì sao doanh nghiệp Nhật Bản ít sử dụng mẫu Hợp Why Japanse businessses rarely use FIDIC Contract
đồng FIDIC

The Open-Minded Mindset:

 In order to adapt to the everchanging market, especially under the influence of COVID 19 pandemic
currently occuring all over the globe which lead to less investment Japan, Kinden Vietnam always keep their
open-minded mindset and welcome changes and new elements such as contracts based on never before
seen forms, even if the said changes come at the cost of facing certain challenges.

On that account, CNC is chosen to assist Kinden Garden with their aim to gain a concrete
understanding of FIDIC 1999 Contract Forms and directly learning through a real contract with CNC’s input
would provide Kinden Vietnam’s personel with the best opportunity to do so.

With extensive experience, CNC had proven Construction Contract prepared by following FIDIC’s
recommendations would have tremendous advantages, to illustrate:

- The Coherent Structure of FIDIC 1999 Contract Forms

- The allocation of risks principle in each FIDIC 1999 Contract Editions

- Organize and manage contract matching with the Project’s progression

- Setting reasonable timeframe for each event in FIDIC 1999 Contract

- Keeping the Condition of General Application and Adjusting the Condition of Particular Application
of FIDIC 1999 Condition

- Logical process of payment, appeal and dispute settlement

Cấu trúc mạch lạc Coherent Structure

Phân chia rủi ro hợp lý Fair Allocation of Risks

Sắp xếp theo tiến trình Công việc Organizing works matching with Project’s
Progression

Các thời hạn hợp lý Reasonable Timeframe

Vai trò của điều kiện riêng Condition of Particular Application’s Role

Chu trình thanh toán, khiếu nại, Giải quyết tranh Logical payment, appeal and dispute settlement
chấp khoa học process

Hợp đồng FIDIC 1999 FIDIC 1999 Contract

Những điểm tích cực của mẫu Hợp đồng FIDIC FIDIC 1999 Contract Merits:
1999

Naturally, the process of learning and applicating the provisions within Construction Contract based
on FIDIC Contract Form require time and practical experience. However, CNC still hold the belief that, with
the existing foundation, Kinden Vietnam would find an efficient solution to contract management
 This is the basis for the continuation of CNC and Kinden Vietnam’s partnership for future projects

Additional Information:

Kinden Vietnam has operated in Vietnam since 1997, with the main office located in Hanoi and
many other offices, factories in Hung Yen, Hai Phong, Binh Duong, Bien Hoa and Ho Chi Minh City.

Over the past few years, Kinden Vietnam had started and completed various important projects,
such as Waterina Suites, Binh Tan Aeon Mall, Toto, Konishi Biotechnology, Hitachi Cable, Kyocera Document
Technology, MEKTEC Manufacturing.

Customer Appreciation:

For more Information, please contract:

CNC Counsel

Address: 28 Mai Chi Tho, An Phu Ward, Thu Duc City, Ho Chi Minh City, Vietnam

Phone Number: (84) 28 6276 9900

Hotline: (84) 916-545-618

Email: contact@cnccounsel.com

Website: cnccounsel.com

Administered by:

Mr. Le The Hung| Managing Partner

Phone Number: (84) 916 545 618

Email: hung.le@cnccounsel.com

Or

Mrs. Nguyen Thi Kim Ngan| Partner

Phone Number: (84) 919 639 093

Email: ngan.nguyen@cnccounsel.com

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Disclaimer:

This article is prepared or used for the purpose of introducing or updating cilent on information about
matter and/or the developments of legal perspective in Vietnam. The information contained within this
article does NOT constitute an advice in any form and could be subjected to changes without prior notice.