Walls crack and roofs leak a few months after handover — who pays for repairs, and for how long? The answer lies in the construction warranty regime (Article 64 of the 2025 Construction Law, detailed in Article 32 of Decree 207/2026/ND-CP): the contractor undertakes to remedy defects arising during operation.
This article systematizes minimum warranty periods by project grade and the warranty sums investors should know.
1. Minimum warranty periods: 24 months or 12 months?
Warranty periods run from the investor’s acceptance (Clause 5, Article 32 of Decree 207/2026):
- At least 24 months: special-grade and Grade I works using public investment capital, recurrent state budget expenditure, or other state budget capital;
- At least 12 months: works of remaining grades (II, III, IV) using the same capital sources;
- Works using other capital (private, corporate): may reference the above levels in contractual agreements.
Investors and contractors may agree on longer warranty periods — the minimum is a legal “floor”, not a “ceiling”.
2. Equipment warranty: per contract but not below manufacturer’s
For work equipment and technological equipment, the warranty period follows the construction contract but must not be shorter than the manufacturer’s warranty, counted from acceptance of completed equipment installation and commissioning. This matters greatly for high-value technology equipment supply-and-installation packages.
3. Minimum warranty sums: 3% and 5%
Many confuse “warranty period” with “warranty sum” — two different concepts. For works using public investment capital, recurrent state budget expenditure or other state budget capital, the minimum warranty sum (Clause 7, Article 32):
- 3% of contract value: special-grade and Grade I works;
- 5% of contract value: works of remaining grades;
- Works using other capital: reference the above.
This minimum applies within the minimum warranty period (Clause 8). If parties agree on a longer warranty period, they must separately agree on the warranty sum, its refund, or replacement with security assets or warranty guarantees for the excess period.
4. Cases of extended warranty periods
For work items with quality defects or incidents during construction that the contractor has repaired, the warranty period for such items may be extended by agreement between the investor and the contractor before acceptance. This is the investor’s tool for managing risk on items with an incident “history”.
5. Process upon discovering defects and warranty closure
- During the warranty period, upon discovering damage or defects: the investor, owner or manager/user notifies the construction contractor and equipment supplier to perform warranty;
- At warranty expiry: the contractor prepares a warranty completion report for the investor; the investor confirms in writing and refunds the warranty sum (or releases the equivalent bank warranty guarantee) if inspection and acceptance of the warranty work meet requirements.
Frequently asked questions
Q: Do the 12/24-month periods apply to household individual houses?
A: The 24/12-month framework is mandatory for works using public investment capital, recurrent state budget expenditure or other state budget capital. Individual houses using private capital reference these levels in contractual agreements — the law does not impose them rigidly.
Q: What if defects remain unrepaired at warranty expiry?
A: The contractor must complete warranty for defects notified within the warranty period. The investor confirms completion and refunds the warranty sum only when inspection and acceptance of the warranty work meet requirements.
Q: Are warranty sums and warranty guarantees the same?
A: Not exactly. The warranty sum is money (usually retained from payments); a warranty guarantee is a bank’s undertaking of equivalent value that may substitute for cash retention — the law permits this form.
Need advice on warranty clauses in construction contracts? Contact us for advice.
This article was prepared by the FLAW AI Legal Council. Content is pending QA Council review before submission for approval; information is for reference only and does not replace legal advice for your specific case.