4 things you need to know about major construction contractors in Vietnam

Nowadays, along with the development of the economy and society, many constructions are being built. Owners should choose major construction contractors for their buildings. In this writing, let’s learn about 4 essential things you need to know about major construction contractors in Vietnam.

1. The term construction contractor

A construction contractor is an organization or enterprise that can legally work on construction contracts. This company can deal with construction owners and manage all related businesses. A professional contractor must meet the requirements for legal standards and other regulations enacted by the authorities. 

4 critical factors for major construction contractors in Vietnam:

• Business License
• Unexpired construction certificates and licenses 
• Professional teams of architects, teams of engineers, and quality control teams
• Skillful and qualified worker force

To sum up, major construction contractors in Vietnam must have sufficient required skills and knowledge because they are essential for owners to evaluate when considering who to work with.

2. 5 common types of major construction contractors in Vietnam

2.1 Prime Contractor

This type of contractor is directly in charge of all aspects of the project throughout the duration. They are responsible for signing contracts and legally endorsing signatures on the related documents. Prime contractors can be either organizations or individuals.

2.2 Subcontractor

Subcontractors are responsible for only some particular contracts according to their agreement with the prime contractors.  

2.3 Domestic Contractor

Domestic contractors are Vietnamese individuals or organizations registered according to Vietnamese legal regulations.

2.4 Foreign Contractor

Foreign contractors are organizations registered in foreign countries but legally work and operate in Vietnam, participating in contracting Vietnamese projects.

2.5 Special Contractor

Special contractors are responsible for specific aspects of the projects mentioned in bidding documents. 

However, prime and subcontractors are Vietnam's two most common types of major construction contractors. Subcontractors must commit to the following regulation for subcontractors strictly.

3. Duty of major construction contractors in Vietnam

No matter how big they are, all contractors must follow the below requirements:

• Ensuring quality of all aspects of the projects
• Providing sufficient labor force as well as materials 
• Taking responsibility for all potential risks and emergencies caused by subcontractors during the manufacturing process
• Managing all equipment and tools and having effective solutions to the construction during the whole process

4. Strengths and weaknesses of some standard packages 

Currently, there are a variety of packages in the market, meeting different requirements of different owners, of which are raw building selective packages, complete packages, labor packages, and so on.

4.1 Strengths and weaknesses of raw building selective packages

This is a common form of package that can be seen in developed cities. Raw selective means contractors are only responsible for the initial steps, including labor and raw building (without decoration and furniture).

One of its significant advantages is that it helps save a lot of time and effort in constructing the raw part of the project. On the other hand, the most critical disadvantage is that the prime contractor must involve detailed design drawings with values mentioned in the contract. Besides, the company must include its quality controllers to prevent risky situations.

4.2 Strengths and weaknesses of complete packages

In choosing the complete package, contractors are responsible for all aspects of the project, from labor to necessary tools and equipment. Meanwhile, owners are only responsible for payment and acceptance after construction.

The significant advantage of this package is that owners do not need to spend time and effort on the project but only need to make payment and acceptance timely after construction is finished. One of the main disadvantages is that contractors must provide detailed designs so that the building strictly follows the owners' requirements.

4.3 Strengths and weaknesses of the labor package

The labor package involves the labor force provided by contractors and payment for the labor force made by owners. Other contractors do all other aspects of the project. This package form is commonly used in projects in countryside areas.

One of the benefits of this form of package is low labor cost and that owners do not need to contract on procuring construction support materials. The drawback is that owners must spend time supervising the process and searching for pricing conditions to save labor costs.

Above are 4 crucial things you need to know about major construction contractors in Vietnam. BMB Steel also wants to share some information with enterprises and owners. We hope that what is in our writing may be helpful for you in choosing contractors for construction projects. If you have any further questions, contact us at BMB Steel.