The Ca Mau Provincial Construction Project Management Board has proposed advance payments above 30% of contract values for the 1,200-bed hospital project. According to contractors' submission, suppliers are asking for higher deposits or full payment before equipment leaves the factory.
On October 14, the Ca Mau People's Committee said it had assigned the director of the Department of Construction to coordinate with the Department of Finance and other agencies to study the board's proposal. The proposal concerns advance payments above 30% of contract values for packages under the investment project to build Ca Mau General Hospital, which will have 1,200 beds.
Deposit pressure and delivery times
According to the submission signed by Trinh Thanh Sang, director of the Ca Mau Provincial Construction Project Management Board and the project's investor, some material and equipment supply packages already have advance payments equal to 30% of contract values. The project is also preparing to award several more supply contracts.
Contractors reported sharp fluctuations in material and equipment prices and higher input costs than when the contracts were signed. Much of the equipment must be imported, while some materials are made to order, resulting in long waiting times.
According to contractors, factories, transport companies and customs services are often overloaded toward the end of the year. To keep production and delivery schedules, suppliers have collectively asked for higher deposits or full payment before shipment.
The project also has little time left. The contractor needs funds to mobilize workers and machinery, work on several fronts, and place orders and make advance payments to suppliers.
The project is a major provincial facility with many parts that must be carried out together, including mechanical and electrical systems, water supply and drainage, wastewater treatment, operating rooms and equipment for running the hospital. A delay in supplying materials or equipment for one package could affect other packages and the date when the hospital enters service.
The board asked to allow advance payments above 30% for contracts already awarded or about to be awarded when contractors have a real need to place deposits, make advance payments or cover other necessary cases to protect the schedule.
Advance payments must be controlled and recovered
The project management board said raising the advance does not increase contract values, the total investment or the approved scope of work. The money is paid to contractors in advance to perform the contracts and is recovered gradually through payments for completed work.
For contracts with advance payments above VND 1 billion, contractors must provide a guarantee equal to the advance. The guarantee must remain valid until the money has been fully recovered. Contractors must also prepare detailed spending plans and prioritize direct costs for construction and the supply of materials and equipment.
The investor will check the use of the money through sales contracts, purchase orders, payment documents, invoices and delivery records. If the money is unused, misused or used ineffectively, the investor will demand repayment and take action under the contract and the law.
The advance must be fully recovered when cumulative payments reach 80% of the contract value. Contractors receiving higher advances must commit to adding resources and speeding up the work. If progress does not improve accordingly, the investor will increase inspections, require corrective action or take contractual measures.
The board pledged to be accountable to the provincial People's Committee and the law for making advances to the proper recipients, for the proper purposes and under the contracts, within the allocated funding. It also pledged to control guarantees and recover the money as required. The proposal is intended to ease contractors' working-capital problems, speed up the project and accelerate public investment disbursement in the final months of the year.
Construction of the 1,200-bed hospital project was launched in 2021 and officially began on April 19, 2025. The site covers more than 12 hectares and the total investment exceeds VND 3.3 trillion. It is one of Ca Mau's major projects, with completion planned for September 2026.
Package No. 27 has an estimated value of more than VND 822 billion and includes construction of the main building, static pile-load testing, and water supply and drainage systems. On February 2, 2026, the Ca Mau Provincial Police's Investigation Agency decided to process a crime report related to the package.
In May, the Ca Mau provincial inspectorate also began inspecting Package No. 28, the mechanical and electrical systems package. Its estimated value exceeds VND 1.013 trillion, while the winning bid is more than VND 891 billion. The inspection covers the entire process of selecting the contractor and publishing the result, from preparing the bidding documents to approving the outcome.
Sources: Thanh Niên
