In which, the Decree stipulates the settlement of construction contract disputes. Accordingly, the choice of method of settling construction contract disputes according to the provisions of Clause 5, Article 86 of the Construction Law is agreed upon by the parties. When resolving disputes, the parties must respect contract agreements and commitments in the contract implementation process, ensuring objectivity, equality and cooperation.
In the process of resolving disputes, the parties are responsible for continuing to perform the obligations of the contract for work not affected by the content of the dispute; not to interrupt the performance of the contract, except in cases of force majeure or at the request of competent authorities or cases of temporary suspension of construction contracts specified in points a, b, clause 2, Article 26 of this Decree.
The application of the dispute resolution model according to international practice (referred to as the dispute settlement board) is specified in point b, clause 5, Article 86 of the Construction Law as follows:
The parties agree specifically in the contract on the time of establishment of the dispute settlement board (which may be formed immediately after signing the contract, standing activities during the contract implementation or after disputes arise), the number, standards, qualifications, and experience of members participating in the dispute settlement board, in accordance with the requirements of the contract, the nature and content of work in the construction contract; the binding nature of the dispute settlement decision or recommendation; the process of selecting members to participate in the dispute settlement board and the order and procedures for further handling when one party does not agree with the dispute settlement decision or recommendation.
The selected members participating in the dispute settlement board must ensure objectivity, independence, and no conflict of interest with the parties.
Expenses paid to members participating in the dispute settlement board and other related expenses are borne by each party in half, unless other parties have an agreement.
The Decree takes effect from July 1, 2026.
