Risk Management in Construction - Challenging and Emerging Issues (in Vietnam) Part 4

Dr. Roland Amoussou – Guenou made a presentation on Legal Risks And Construction Contracts In Vietnam.

In his presentation, he discussed many issues: Overview of the legal and regulatory environment for doing business in Vietnam, Overview of the legal and regulatory environment for doing construction business in Vietnam, Is Vietnam is risk country?, Fact and figures on construction risks in Vietnam, Risk in general, Legal risk and liability in general, Construction contract environment and parties, Risk management road map, Construction contract Claims and Construction contract dispute resolution.

According to him, projects must consult with lawyers in order to protect the project from risks. Risks such such Act of God, Nature and Man-Made risk can be managed if they are properly addressed in the contract.

He also provided a road map to manage risk using a good contract mechanism:
First Step: Choice of Law (Determining Applicable Law)
Second Step: Contract Formation
Third Step: Breach of Contract
Fourth Step: Claimant's remedies for the respondent's breach of contract.

During the Question and Answer Session, a participant asked Dr. Roland's opinion regarding a case that his company is facing. The contractor rented an expensive equipment from oversea supplier. The equipment is shipped. During the shipment, there was a strong storm and the equipment was damaged. Is it an Act of God? According to Dr. Roland, as far as in the contract between the shipping company and the contractor wrote in detail what are considered as ACT of GOD, then the contractor might win the case. In addition, Dr. Roland also added that for user/buyer Cost, Insurance and Freight (CIF) contract is must saver compared to Free On Board (FOB) contract.

Posted by

Dr. BHW Hadikusumo
CEIM Coordinator
http://www.set.ait.ac.th/ceim/

" CEIM offers Master and Doctoral degrees in Construction Project Management and Infrastructure Management in Indonesia, Thailand and Vietnam "