When Can A Construction Contract Be Terminated

Most construction contracts reach the point of termination after months of difficulty on the project, usually overdue payments, delayed work or both. Vietnamese law allows the contract to be ended in those circumstances, but only on recognised grounds and after the required notice, and a party that acts before its right has arisen can be held to have breached the contract itself.

Under the Construction Law 2025 and Decree 210/2026, a construction contract in Vietnam can be terminated for a serious breach under the Civil Code and on specific grounds listed in the decree. These include the contractor abandoning the work for 56 consecutive days, the employer causing a stoppage of more than 56 consecutive days, the employer failing to pay for more than 56 days after the payment deadline, and either party assigning the contract without consent. Termination requires 28 days’ written notice unless the contract provides otherwise.