On 08 May 2026, the Ministry of Construction issued Official Letter No. 6761/BXD-KTQLXD regarding the adjustment of construction contracts in the context of significant fluctuations in fuel and construction material prices.

This guidance carries substantial practical implications for:
🏗 Project owners
🏗 Contractors
🏗 EPC projects
🏗 Infrastructure and public investment developments in Vietnam

🔍 Key Legal Highlights
📌 Recognition of “Force Majeure” & “Fundamental Change of Circumstances”

The Ministry reaffirmed the legal basis under:
– The 2015 Civil Code
– The amended Law on Construction 2025 (effective from 01 July 2026)

Accordingly, severe fluctuations in fuel and construction material prices may be considered:
✔ Force majeure events; or
✔ Fundamental changes of circumstances affecting contract performance.

👉 This creates an important legal foundation for:
– Contract renegotiation
– Price adjustment requests
– Risk-sharing mechanisms between parties

📌 Lump-Sum & Fixed-Price Contracts May Still Be Adjusted
One of the most notable points is the confirmation that:

⚠️ Even lump-sum and fixed-price construction contracts may be adjusted where:
– Force majeure occurs; or
– Circumstances fundamentally change during contract performance.

👉 This is particularly significant for:
✔EPC contracts
✔Infrastructure projects
✔Large-scale public investment works

📌 Strong Emphasis on Contract Risk Management
The Ministry encourages parties to:
✔ Assess the actual impact of market fluctuations
✔ Review contract timing and completed workloads
✔ Carefully evaluate adjustment mechanisms, price indices, and supporting data

👉 The guidance reflects a growing legal and practical trend toward:

⚖️ Fair risk allocation and flexible contract management rather than rigid enforcement under extraordinary market conditions.

📌 Potential Impact on Construction Disputes & Claims
In practice, significant price volatility often leads to:
❗ Delays in project execution
❗ Claims for price adjustment
❗ Extension of time requests
❗ Construction disputes and arbitration proceedings

👉 Businesses should therefore pay close attention to:
✔Price adjustment clauses
✔Force majeure provisions
✔Claims management procedures
✔Evidence and cost fluctuation documentation

🎯 Practical Perspective
As Vietnam continues accelerating major:
🏗 Infrastructure
🏗 Energy
🏗 Public investment projects
…the importance of adaptive contract structures and effective risk management mechanisms will continue to increase.

At TheLamLaw, we continue monitoring legal developments relating to:
⚖️ Construction contracts
⚖️ Infrastructure disputes
⚖️ Project risk management
⚖️ Arbitration & dispute resolution

📖 Source: Official Letter No. 6761/BXD-KTQLXD.

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