In practice, many contractors encounter difficulties during project implementation due to insufficient legal knowledge, lack of experience, or challenges in coordinating with project owners and other relevant parties. The following article by NPLaw provides essential information for contractors to support the execution of contractors’ obligations in accordance with laws. 

I. The need for support in the execution of contractors’ obligations

In current construction, public investment, and bidding activities, contractors are required not only to ensure project progress and quality but also to strictly comply with obligations stipulated in contracts and applicable laws. Such obligations may include performing work in accordance with approved designs and technical requirements, complying with regulations on occupational safety, insurance, taxation, warranty obligations, as well as other financial and legal responsibilities.

However, currently, many contractors face significant challenges in executing these obligations, particularly small and medium-sized enterprises, due to:

  • Insufficient understanding of relevant laws and regulations;
  • Lack of clarity regarding contractual provisions or appropriate approaches to handling disputes;
  • Difficulties in legal and administrative procedures or coordination with project owners;
  • Pressure related to timelines, financial matters, or changes imposed by partners without effective response strategies.

Accordingly, the demand for legal advisory and support in the execution of contractors’ obligations has been increasing. Engaging professional legal advisory services enables contractors to:

  • Clearly understand their legal obligations and adopt appropriate compliance measures;
  • Prevent contractual breaches and avoid fines or reputational damage;
  • Receive assistance in drafting and reviewing contracts, and working with partners or competent authorities;
  • Have legal representation when resolving disputes or filling complaints. 

II. Legal regulations relating to support for the execution of contractors’ obligations 

1. What is support for the execution of contractors’ obligations?

Pursuant to Clause 26, Article 4 of the Law on Bidding 2023, a contractor is defined as an organization, individual, or a consortium of organizations and/or individuals established on the basis of a consortium agreement to participate in bidding, submit bids in their own name, and directly sign and execute contracts if selected.

Based on such a definition, contractors’ obligations may be understood as the entirety of responsibilities that contractors must execute in accordance with commitments stated in bidding documents, contracts, and relevant legal provisions. These obligations may include construction, supply of goods or services in accordance with schedules, quality assurance, fulfillment of financial obligations, warranty obligations, occupational safety, environmental protection, and other related duties.

Support for the execution of contractors’ obligations refers to legal, technical, or professional advisory activities aimed at assisting contractors in properly and fully executing their contractual obligations, complying with applicable laws, and minimizing legal risks arising during project implementation.

2. What does support for the execution of contractors’ obligations typically include?

  • Legal advisory on contract contents and the specific rights and obligations of contractors;
  • Guidance on compliance with bidding regulations and contract execution;
  • Drafting and review of contracts, contract appendices, and related documents;
  • Assistance in addressing issues arising during construction or the provision of goods and services;
  • Advisory on tax, insurance, labor, and environmental laws applicable to contractors’ operations;
  • Representation in working with relevant parties, including project owners, regulatory authorities, and supervisory units;
  • Assistance in dispute resolution, complaints, and management of contractual breaches, if any arise.

Such support not only ensures compliance but also reduces the risk of fines, contract termination, or inclusion in lists of contractors with inadequate capacity or violations.

3. Are there legal provisions governing support for the execution of contractors’ obligations?

At present, support activities for contractors are not governed by a specific legal instrument but are recognized and regulated through various related legal provisions, including:

  • Law on Bidding 2023, as amended and supplemented in 2024 and 2025: Governing contractors’ obligations at different stages of the bidding process and contract execution, including responsibilities of procuring entities (Article 79) and responsibilities of contractors and investors (Article 82);
  • Circular No. 22/2024/TT-BKHĐT guiding the provision and publication of information on contractor selection and standard bidding documents on the National Bidding Network System, particularly Article 26 governing contractors’ responsibilities during participation in the system;
  • Law on Construction 2014 (as amended and supplemented in 2020): Regulating contractors’ obligations, such as obligations of construction contractors (Article 113) and consulting contractors involved in project formulation and construction project management (Article 70);
  • Civil Code 2015: Governing contracts and civil liabilities, including liability for breach of obligations (Article 351) and liability for damages caused by breach of obligations (Article 360);
  • Law on Lawyers 2006 (as amended in 2012 and 2015) and relevant guiding documents: Regulating legal advisory and representation activities supporting contractors, including scope of legal practice (Article 22), provision of legal services under legal service contracts (Article 26), and legal consultancy activities of lawyers (Article 28);
  • Law on Tax Administration, Law on Social Insurance, Environmental Protection Law, and other relevant laws governing contractors’ obligations in taxation, insurance, and environmental compliance.

Accordingly, support activities for contractors are lawful and recognized within the framework of multiple specialized legal instruments, depending on the specific scope and nature of support provided.

III. Questions regarding support for the execution of contractors’ obligations

1. Does support for the execution of contractors’ obligations include legal advisory services?

Legal advisory services constitute a critical and essential element of support for the execution of contractors’ obligations. Contractors’ obligations are closely associated with provisions of the Law on Bidding, Law on Construction, Civil Code, Insurance Law, Tax Law, and other relevant regulations.

The involvement of lawyers or legal experts enables contractors to clearly understand their rights and obligations, effectively handle contractual issues, and avoid legal violations.

2. What risks may arise in the absence of support for the execution of contractors’ obligations?

Without appropriate support, contractors may face various risks, including:

  • Contractual breaches due to misunderstanding contractual terms or legal provisions;
  • Administrative fines related to construction, environmental protection, taxation, or insurance;
  • Project delays or technical deficiencies, leading to liability claims or compensation demands by project owners;
  • Prolonged disputes with project owners, subcontractors, or other stakeholders without effective resolution strategies.

3. When facing complaints regarding construction quality, may contractors seek third-party support?

In cases of complaints, contractors may engage third parties (technical experts, lawyers, independent consultants, etc.) to assess the situation and propose appropriate solutions. Such engagement not only facilitates objective and lawful resolution but also protects contractors’ legitimate rights and interests if the complaints lack legal or factual grounds.

4. Can support for the execution of contractors’ obligations help minimize contractual disputes?

Timely advisory and support enable contractors to execute contracts in compliance with procedures and legal requirements, while identifying and addressing potential conflicts during construction or service provision. Furthermore, supporting experts may assist in negotiation, mediation, or dispute resolution when necessary, thereby reducing the likelihood of litigation.

5. Is periodic reporting to the project owner required when receiving support for contractors’ obligations?

Generally, obligations to report project progress and contract execution with the contractor. However, when third-party support is engaged (e.g., supervisory consultants or legal advisors), such parties may assist contractors in preparing, reviewing, or verifying reports. Whether direct reporting is required depends on the agreement between the contractor and the supporting party.

6. If a project is suspended, should support for the execution of contractors’ obligations continue?

Project suspension does not result in termination of contractors’ obligations. During suspension, contractors remain responsible for asset protection, document maintenance, and handling arising legal procedures. Accordingly, supporting parties may continue to assist contractors by:

  • Handling procedures related to project suspension;
  • Negotiating with project owners on contract amendments or schedule extensions;
  • Providing legal support in cases of disputes arising from project suspension.

Accordingly, support for contractors should be maintained even during project suspension to safeguard rights and promptly address legal issues.

IV. Legal advisory services relating to support for the execution of contractors’ obligations

The above constitutes comprehensive information provided by NPLaw to support clients in matters relating to assistance in the execution of contractors’ obligations. Should you have any questions regarding the above issues or other legal matters, please contact NPLaw for direct consultation and guidance from our professional team.