In Quang Nam province, many enterprises that have won bids have been made difficult in the procedures for signing contracts, making advances, and making final payments. At a dialogue with enterprises operating in the construction sector held on the afternoon of October 10, Mr. Le Van Dung, Chairman of the Quang Nam Provincial People's Committee, affirmed that the situation of "front yard" and "back yard" must be eliminated; investors, departments and branches of the province must closely follow and thoroughly resolve the difficulties of enterprises.
Construction contractors, design consultants, and project supervision consultants in Quang Nam province have pointed out the difficult situation of unit prices of labor, transportation fees, and construction material prices that are estimated to be too low compared to reality. Contractors are having to make up for huge losses in cost differences. Unit prices of labor in this province are lower than those applied in Quang Ngai province 3 years ago, greatly affecting the interests and competitiveness of businesses in the area. Contractors are having to make up for huge losses in cost differences.
At the dialogue, representatives of construction enterprises raised a series of difficulties in accessing bank loans, and investors "made it difficult" for contractors when carrying out capital advance procedures. According to regulations, when signing a construction contract, contractors are allowed to advance capital from 10% to 30% of the total investment capital, but many investors only allow advance payments at the lowest level of 10%. In addition, the procedure for payment of completed construction volume is too long, leading to financial difficulties for contractors, affecting construction progress.
Mr. Tran Phu Hoa, Director of Trung Trung Bo Construction Investment Consulting Joint Stock Company, commented: “Currently, some projects have construction volume but no capital for payment, contractors are forced to work at a slow pace because they are waiting for capital. Currently, the financial situation of contractors is very difficult. We have completed 5 billion, 10 billion, but we have to wait for payment to have capital to continue construction. We can no longer borrow from banks because the limit has been exhausted.”
Many businesses are frustrated because all difficulties in mechanisms and policies are pushed onto contractors. The procedures for design, design adjustment, acceptance, and project settlement take longer than the construction time, causing contractors to wait for capital. Mr. Le Van Dung, Director of Ky Trung Company Limited, expressed frustration that most contractors are facing difficulties but settlement documents have been "frozen" for months.
“Circular 02/2023 of the Ministry of Construction provides detailed guidance on a number of contents of construction contracts, clearly stating the regulations. For example, the regulation stipulates that payment procedures must be completed within 45 days. If it takes more than 45 days, the investor must pay interest on the principal payment. However, when negotiating the contract, the investor omitted the contents that were disadvantageous to him,” added Mr. Le Van Dung, Director of Ky Trung Company Limited.
Recently, difficulties in site clearance have greatly affected the progress of key projects in Quang Nam province. Many districts, towns and cities are facing difficulties in adjusting local planning and have not yet redefined land use criteria, leading to difficulties in land acquisition and handover for projects. Construction contractors have requested the Quang Nam Provincial People's Committee to direct the Department of Natural Resources and Environment to find solutions and promptly adjust internal planning to implement pricing, land acquisition and site clearance for projects.
At the dialogue with enterprises operating in the construction sector, Mr. Le Van Dung, Chairman of the People's Committee of Quang Nam province, requested the provincial departments, branches and investors to find solutions to overcome difficulties in capital sources for projects. Problems related to mechanisms and policies such as those related to common raw material mines; adjusting labor unit prices, transportation costs and construction material prices to be closer to reality.
The Chairman of the People's Committee of Quang Nam province requested the State Bank of Vietnam, Quang Nam branch, to create favorable conditions for businesses to access loan capital, while shortening the time for procedures for capital advance and volume payment.
The Chairman of the People's Committee of Quang Nam province raised the question, has the investor really fulfilled its responsibility in coordinating with contractors to speed up the construction progress of key projects? There is a situation where the winning bidder but not "familiar" with the investor is made difficult, "files are frozen" from contract signing procedures, advance payment, payment settlement...
Mr. Le Van Dung, Chairman of the People's Committee of Quang Nam province, requested the investor to create the best conditions for the contractor to carry out the project. There should be no "backyard" or "front yard" situations, favoring one contractor and making things difficult for another.
“There is never a case of this project belonging to the Provincial Chairman, that project belonging to the Provincial Vice Chairman, absolutely not. I request that the investor strictly comply with the legal regulations on public and transparent bidding. Enterprises that have won the bid must sign a contract and advance capital according to the law so that the construction unit can start construction soon. Many investors are also very complicated, causing difficulties for contractors, winning the bid but refusing to sign the contract and deliberately delaying this and that. That situation must be stopped immediately” - Chairman of the Quang Nam Provincial People's Committee emphasized.
Source: https://vov.vn/kinh-te/quang-nam-kien-quyet-loai-bo-san-truoc-san-sau-gay-kho-nha-thau-xay-dung-post1127587.vov
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