Compare the package implementation time and contract implementation time

(PLVN) - Whether it is a construction, goods procurement or consulting package, clearly defining the implementation time not only helps ensure project progress but also serves as a basis for assessing the capacity and responsibility of the parties involved. However, the package implementation time and the contract implementation time are two concepts that are often confused in the bidding process. Although closely related, they have different meanings and scopes.

What is the Contract performance period?

Pursuant to the provisions of Clause 1, Article 12 of Circular 22/2024/TT-BKHĐT:

...Contract performance period (calculated from the effective date of the contract to the date the parties complete their obligations as stipulated in the contract) ...

In other words, the contract performance period is the period of time calculated from the date the contract comes into legal effect until the date when the parties to the contract complete all obligations and responsibilities stipulated in the contract. This means that not only the time to perform the main work is calculated, but also the time to complete procedures, acceptance, payment and other related obligations.

What is the implementation time of the Bidding Package?

Up to now, the law has not had specific regulations on the time of implementation of the bidding package. However, enterprises can understand as follows: "The time of implementation of the bidding package is the period of time calculated from the effective date of the contract to the date of completion of all contractual obligations that the contractor must perform, including handover and acceptance, according to the provisions in the bidding documents and the signed contract.

In other words, this is the deadline that the contractor must comply with to complete the package on schedule as committed. This time is often clearly defined in the contractor selection plan and is one of the important criteria for evaluating the bidding documents.”

According to Clause 7, Article 39 of the Law on Bidding 2023, the time for implementing the bidding package is calculated from the effective date of the contract to the date of acceptance of the completion of the works, goods (including related services, if any), non-consulting services, and consulting. The time for implementing the bidding package is calculated in days, weeks, months or years, excluding the time for completing warranty obligations and the time for author supervision of the consulting bidding package (if any).

Compare the package implementation time and contract implementation time

Criteria	Contract performance time	Package implementation time
Concept	The period of time starting from the date the contract comes into effect until the parties have fulfilled all their contractual obligations, including the warranty period (if any). This time is a concretization of the time in the contractor selection plan, the time can be shorter or longer as negotiated and determined by the parties according to the contract.	This is the time recorded in the contractor selection plan, this is the time to base on preparing bidding documents and contractors to offer the time to implement that bidding package. Is the period of time starting from the effective date of the contract until the acceptance of completed works, goods and services (excluding the warranty period).
Start time	Calculated from the effective date of the contract.	Calculated from the effective date of the contract.
End time	The date on which all contractual obligations, including the warranty period, are completed.	Acceptance date of completed works, goods and services.
Content	All stages of contract implementation, from the start of construction, provision of goods and services to completion and warranty.	Only includes the main work performance phase of the contract, excluding the warranty period.
Purpose	Clearly define the time for performing the obligations of the parties in the contract, ensuring project implementation progress.	Determine project timeline to plan, allocate resources, and track progress.
Legal regulations	Specifically stipulated in the contract, based on the provisions of the law on bidding and civil contracts.	Stipulated in Clause 7, Article 39 of the Law on Bidding 2023.
Each relationship	Contract performance period includes package implementation period and warranty period.	The package implementation time is part of the contract implementation time.

03 frequently asked questions about contract execution time

1. Does the contract performance period include the warranty period?

Normally, the warranty period is not included in the contract performance period, the warranty period is performed according to the contract warranty and the contractor has a warranty guarantee when performing (if any).

2. Can the contract performance time be adjusted?

Pursuant to Clause 3, Article 70 of the Law on Bidding 2023, the following cases are allowed to amend the contract:

During the contract performance, the parties may adjust the timeframes for completing specific provisions in the contract in the following cases:

a) In case of force majeure or adverse conditions arising, hindering the contractor in performing the contract and not related to breach or negligence of the parties to the contract;

b) Changes and adjustments to the project, scope of work, scope of supply, design, key construction solutions, and supply measures due to objective requirements that affect the contract progress;

c) One or more parties propose initiatives or improvements to the contract implementation that require changes in progress in order to bring higher benefits to the investor;

d) The handover of the site is not in accordance with the agreement in the contract, the contract is suspended due to the investor's fault affecting the contract progress without the contractor's fault;

d) Temporarily suspending work performance at the request of a competent state agency without fault of the investor or contractor.

Thus, you have the right to adjust the contract performance time if you fall into one of the above cases.

3. What is the maximum extension period for contract performance?

Pursuant to the provisions of Clause 4, Article 106 of Decree 24/2024/ND-CP:

For procurement packages for goods and provision of non-consulting services under procurement estimates applying fixed unit price contracts and adjustable unit price contracts, in case the contract performance period expires but the volume of work specified in the original contract has not been fully performed, the investor may report to the competent authority for consideration and decision on an extension of the contract performance period, but not more than 06 months, except for the case specified in Clause 5, Article 93 of Decree 24/2024/ND-CP (In case the contract performance period expires but the number of technical services specified in the contract has not been fully performed, the investor may report to the competent authority for consideration and decision on an extension of the contract performance period, but not more than 12 months).

Thus, enterprises are allowed to extend the contract performance period but not more than 06 months. If it is the case specified in Clause 5, Article 93 of Decree 24/2024/ND-CP, the contract performance period is allowed to be extended but not more than 12 months for the procurement package of goods and non-consulting service provision under the procurement estimate applying fixed unit price contracts and adjustable unit price contracts.

Nguyen Vu

Source: https://baophapluat.vn/so-sanh-thoi-gian-thuc-hien-goi-thau-va-thoi-gian-thuc-hien-hop-dong-post552006.html