In construction projects, accurately determining the construction area is a decisive factor directly affecting the contract value, project timeline, and overall quality of the works. When a dispute arises regarding the construction area, how should the parties address it? The following article by NPLaw provides further insights into this issue.

I. Common legal risks related to construction-area disputes

In the context of Vietnam’s rapidly expanding construction sector, with thousands of projects implemented each year, disputes over construction areas have become increasingly frequent, resulting in project delays, increased costs, or even project suspension.

Such disputes often lead to significant consequences, including delays in acceptance, non-payment of contractual value, or prolonged claims between the investor and the contractor. Where the incorrect identification of area affects the project’s quality or safety, the parties may even face administrative or criminal liabilities.

II. Understanding construction-area disputes

To fully grasp the matter, it is essential to understand the concept, causes, and methods of determining the construction area, main elements that help prevent disputes in construction projects.

1. How can construction-area disputes be defined?

A construction-area dispute is understood as a conflict arising between the Employer and the Contractor regarding the determination, calculation, or recognition of the actual area to be constructed as compared to the area stipulated in the design documents, the contract, or the completion and acceptance records.

Such disputes have direct implications for payment obligations, acceptance & handover progress, and the economic interests of the parties.

2. What causes construction-area disputes in construction projects?

Some common causes leading to disputes concerning construction area in current construction projects include:

  • Errors in design drawings or cost estimation documents;
  • Inaccurate measurements or recording during the construction process;
  • Design changes, expansion/reduction of the construction scope that are not timely documented;
  • Fraudulent acts or intentional misreporting of figures for personal gain.

Early identification of these causes enables enterprises to implement preventive measures, such as adopting modern measurement technologies, in order to mitigate potential risks.

3. How can construction areas be accurately determined to avoid disputes?

To ensure accurate determination of the construction area, the parties should take note of the following matter:

  • Engage independent, competent measurement and supervision units;
  • Regularly update and maintain complete design documents, as-built drawings, and site diaries;
  • Prepare area-verification minutes duly signed by all relevant parties;
  • Utilize modern, high-accuracy measurement devices.

These measures not only ensure high accuracy but also provide strong legal evidence to avoid disputes and optimize project costs.

III. Legal provisions related to construction-area disputes

Vietnamese law provides a comprehensive legal framework governing construction-area disputes to safeguard the rights of the parties and ensure transparency in construction projects.

1. What legal provisions govern construction-area disputes?

Construction-area disputes are governed by several legal instruments, primarily:

  • Law on Construction 2014 (amended 2020): Article 138 on construction contracts; Article 146 on dispute resolution; Article 147 on settlement and liquidation of construction contracts.
  • Decree 37/2015/NĐ-CP detailing construction contracts: Article 6 on validity and legality of construction contracts; Article 45 on dispute resolution.
  • Civil Code 2015: Article 13 on compensation for damage; Article 419 on damages due to contractual breach; Article 584 on grounds for liability to compensate for damage.

These provisions offer a solid legal basis ensuring fairness and efficiency in handling construction-area disputes.

2. What common violations relate to construction-area disputes?

Some common violations related to disputes concerning construction area include:

  • Overstating or understating the construction area to alter the contract value;
  • Failing to amend the contract when construction area changes arise;
  • Failing to record design modifications or conducting work beyond the approved scope;
  • Skipping acceptance procedures, resulting in discrepancies in actual constructed area;
  • Lack of diligence in measurement, resulting in deviations from the actual area.

These violations not only give rise to disputes regarding payment obligations but may also trigger liability for damages, seriously affecting the rights and interests of the parties.

3. What signs indicate intentional creation of a construction-area dispute?

Some typical indicators that a party may be deliberately causing a dispute over construction area, which the other parties can recognize, include:

  • Frequently refusing to sign off on construction quantity records;
  • Providing measurement data inconsistent with independent supervision results;
  • Frequent, unfounded requests for design changes;
  • Intentional delays in acceptance or withholding as-built drawings.

These actions often indicate a lack of cooperative intent and may serve as a basis for the other party to consider filing a lawsuit or requesting competent authorities to resolve the dispute in order to protect their lawful rights and interests.

IV. Questions regarding construction-area disputes

In practice, many issues arise concerning jurisdiction, evidence, and legal consequences of inaccurate construction-area determination.

1. When can a construction-area dispute be brought to court?

Under point b clause 8 Article 146 of the Law on Construction 2014, as amended and supplemented  in 2020: Parties must first attempt negotiation. If unsuccessful, the dispute may be resolved through mediation, commercial arbitration, or the court.

Article 186 of the Civil Procedure Code 2015 (amended and supplemented in 2025) provides that any agency, organization, or individual may file a lawsuit with a competent court to protect their lawful rights and interests.

When a party perceives that its lawful rights and interests have been infringed by the other party and negotiation or mediation fails, the aggrieved party has the right to file a lawsuit with the court to request resolution of the dispute.

2. What are the conditions for recognizing measurement results in disputes concerning construction area?

Measurement results are only recognized if conducted by qualified organizations or individuals with proper professional certificates, following technical construction standards (e.g., the National Technical Regulation on Construction Planning QCVN 01:2021/BXD).

If the dispute reaches court, the Court may conduct on-site inspection, re-measurement, or valuation under Articles 101 and 104 of the Civil Procedure Code 2015, as amended and supplemented in 2025.

3. If a party deliberately falsifies construction area data causing a dispute, can it be subject to criminal liability?

Intentional misreporting constitutes a contractual breach and may incur criminal liability if serious consequences arise.

Where fraudulent acts aim to misappropriate assets, for example, overstating an area to claim excess payment, the offender may be charged with “Abuse of trust to appropriate property” under Article 175. If the act involves persons holding official positions who misuse authority to falsify acceptance or payment records, they may be prosecuted under Article 356 of the Penal Code 2015 (amended 2017, 2025).

4. How does an unresolved construction-area dispute affect project operation?

If a dispute over construction area is not conclusively resolved, it may lead to serious consequences:

  • The works cannot be accepted and handed over on schedule due to unclear boundaries, construction scope, or areas to be delivered.
  • The works may not meet the conditions for use or commercial exploitation, resulting in significant economic losses for the parties.
  • It disrupts operational plans, affecting investment schedules and the reputation of the enterprises.
  • It may even generate legal costs and contractual compensation obligations.

Therefore, early verification, re-measurement, and prompt resolution of disputes are necessary to ensure that the works can be put into use in accordance with regulations and in an efficient manner.

5. Can parties claim damages for delays caused by construction-area disputes?

Delays attributable to construction-area disputes may constitute contractual breaches.

A dispute over a construction area that results in project delays may be considered a breach of contractual obligations.

Under the provisions of the Civil Code 2015:

  • Article 13: Individuals and legal entities whose civil rights are infringed shall be fully compensated for damages, except in cases where the parties have agreed otherwise or the law provides otherwise.
  • Article 360: In cases where damage is caused by the breach of an obligation, the obligor must compensate for the full extent of the damage, except where otherwise agreed by the parties or provided by law.
  • Article 419:
  • Damages arising from the breach of obligations under a contract shall be determined in accordance with Clause 2 of this Article, Article 13, and Article 360 of this Code.
  • The entitled party may claim compensation for the benefits that it would have received under the contract. The entitled party may also require the obligor to pay costs arising from non-performance of contractual obligations, provided that such compensation does not duplicate the damages for contractual benefits.
  • At the request of the entitled party, the court may require the obligor to compensate for non-pecuniary damages. The amount of such compensation shall be determined by the court based on the specifics of the case.

Therefore, when a dispute over construction area causes delays, the aggrieved party has the right to claim compensation under the Civil Code, provided that it can demonstrate the fault of the other party and the actual damages arising from the breach.

V. Are you seeking reputable legal counsel for construction-area disputes?

Disputes concerning construction area or project quality are often complex and require profound knowledge of construction law, contracts, and acceptance procedures.

With a team of experienced lawyers and legal specialists, NPLaw provides professional, reputable legal services ensuring optimal protection of clients’ lawful rights and interests. For assistance, please contact NPLaw.