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The Government has just issued Decree No. 210/2026/ND-CP dated June 15, 2026 detailing and guiding the implementation of a number of articles of the Construction Law on construction contracts. Download The contract advance level must not exceed 30% of the contract price at the time of conclusion. The contract advance level must not exceed 30% of the contract price at the time of conclusion. In particular, the Decree clearly regulates construction contract advances. An advance on a construction contract is an amount of money that the contractor advances without interest to the contractor to carry out the work under the contract. The amount of advance, number of advances, time of advance, guarantee of advance, level of advance recovery through payments are agreed upon by the parties in the construction contract, including cases where the contractor is a joint venture contractor. In case of a joint venture contractor, the advance payment to the contractors in the joint venture shall be agreed upon by the parties in the construction contract or joint venture agreement. In addition to the above regulations, advances on construction contracts in public investment projects and PPP projects are regulated as follows: Contract advances are made after the construction contract takes effect and the contractor has received an advance guarantee (for cases requiring an advance guarantee) corresponding to the value of each currency agreed upon by the parties; Particularly for construction contracts, there must be a site clearance plan or site handover record (full or partial) from the organization performing site clearance to the investor in accordance with the agreement in the contract. The amount of advance, number of advances, time of advance and level of advance recovery through payments are specifically recorded in the bidding documents, request documents or in the draft construction contract sent to the contractor so that the contractor can use it as a basis for calculating the price. bid, proposed price and must be consistent with the ability to balance, arrange, and allocate capital to implement the contract. For construction contracts with a contract advance value of more than 01 billion VND, before the contractor advances the contract to the contractor, the contractor must submit to the contractor a contract advance guarantee with a value and currency equivalent to the contract advance amount. Contract advance guarantees are not required for construction contracts with a contract advance value of less than or equal to 01 billion VND and self-executed construction contracts, including those performed by residential communities under target programs. Contract advance guarantees must be valid until the contractor has recovered all the advance amount. The value of the contract advance guarantee is gradually reduced corresponding to the value of the advance money recovered through each payment between the parties or the guarantee value that the guarantor has paid to the contractor (if any); The contractor must use the contract advance for the right purpose and object. For construction contracts that require the production of components and semi-finished products of great value or must reserve materials to ensure the construction plan and progress according to the signed contract, the parties shall agree on the advance plan and advance level for these jobs (not included in the contract advance level) to ensure contract implementation progress. The contract advance level must not exceed 30% of the price. contract at the time of conclusion (including provisions if any). In case it is necessary to advance at a higher level for the contractor to deposit or pay in advance to the manufacturer, supplier of materials and equipment according to the technological design to ensure the requirements of the project and other necessary cases, permission must be obtained from the investment decider. For projects where the person deciding to invest is the Prime Minister, the decision on the advance level higher than 30% is decided by the Minister, Head of ministerial-level agencies, and Chairman of the Provincial Peoples Committee. Minimum advance level for consulting contracts: 15% of the contract price for contracts worth over 10 billion VND; 20% of the contract price for contracts worth up to 10 billion VND. Minimum advance level for construction contracts: 10% of the contract price for contracts worth over 50 billion VND; 15% of the contract price for contracts worth from 10 billion VND to 50 billion VND; 20% of the contract price for contracts worth less than 10 billion VND. Minimum advance level for contracts to supply materials, equipment, EC, EP, PC and EPC contracts, turnkey contracts and other types of construction contracts: 10% of the contract price. In case the parties agree to advance at a level higher than the minimum advance level mentioned above, the contract price corresponding to the contract advance level exceeding the minimum advance level will not be adjusted. price adjustment from the time of advance (including cases of multiple advances). Advances are recovered gradually through payments, the recovery level of each time is agreed upon by both parties stated in the contract but must ensure that the advance is fully recovered when the payment value (including contract advances, payment for completed volume) cumulatively reaches 80% of the concluded contract price. Resolving construction contract disputes In addition, the Decree also stipulates the resolution of disputes.resolve construction contract disputes. Accordingly, the choice of method to resolve 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 contractual agreements and commitments during contract implementation, ensuring objectivity, equality and cooperation. During the dispute resolution process, t
