Construction contracts to be adjusted amid surging material prices

Construction contracts to be adjusted amid surging material prices

There are currently 44 projects under the supervision and direction of the Steering Committee for key projects, with a total investment capital of approximately VNĐ569 trillion (US$21.63 billion).

The construction costs for key transportation projects alone would increase by approximately VNĐ42.3 trillion, placing a significant burden on the State budget. —Photo baochinhphu.vn

As prices of construction materials have nearly doubled compared to the beginning of 2026, the Ministry of Construction has issued guidance on contract adjustments to resolve difficulties for construction companies.

The ministry has requested localities to guide investors and contractors to adjust construction prices based on existing legal regulations. According to the current regulations, lump-sum contracts and fixed-price contracts can only have their prices adjusted in cases of force majeure as stipulated.

In addition, construction contracts may be amended in cases where the circumstances of contract execution change fundamentally.

Based on recent fluctuations in fuel and construction material prices, provincial People's Committees must direct investors to work with contractors. The two sides will jointly analyse and assess the impact of price fluctuations on each contract to propose appropriate amendments, ensuring the investment efficiency, preventing losses and waste, harmonising interests and sharing risks among all parties.

There are currently 44 projects under the supervision and direction of the Steering Committee for key projects, with a total investment capital of approximately VNĐ569 trillion (US$21.63 billion). Of the total, the construction portion accounts for approximately VNĐ413 trillion.

Earlier, the ministry’s Institute of Construction Economics estimated under a scenario of a 100 per cent increase in fuel prices, the construction costs for key transportation projects alone would increase by approximately VNĐ42.3 trillion, placing a significant burden on the State budget.

To mitigate the impact of fuel and material price fluctuations on projects, the institute requested that local construction departments closely monitor market developments to publish construction material prices and construction price indices monthly or earlier, promptly reflecting strong market fluctuations into project costs; and strengthen inspections and address the hoarding of sand and stone at material quarries. 

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