THEGOVERNMENT
No. 59/2015/ND-CP | THE SOCIALIST REPUBLIC OF VIETNAM Independence- Freedom - Happiness Hanoi, June 18, 2015 |
DECREE
On management of construction investment projects
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the June 18, 2014 Law on Construction;
Pursuant to the June 18, 2014 Law on Public Investment;
Pursuant to the June 17, 2009 Law on Urban Planning;
At the proposal of the Minister of Construction;
The Government promulgates the Decree on management of construction investment projects.
Chapter I
GENERAL PROVISIONS
Article 1.Scope of regulation and subjects of application
1. Scope of regulation
This Decree details a number of provisions on management of construction investment projects in the 2014 Law on Construction, including formulation, appraisal and approval of projects; implementation of projects; completion of construction and putting to operation and use of projects; and forms and contents of management of projects.
Projects using official development assistance (ODA) loans or concessional loans of foreign donors must comply with this Decree and regulations on management and use of ODA loans and concessional loans of foreign donors.
2. Subjects of application
This Decree applies to domestic agencies, organizations and individuals; and foreign organizations and individuals carrying out construction investment activities on Vietnam’s territory.
Article 2.Interpretation of terms
1. Main work or main item of a work of a construction investment project means a work or an item of a work whose sizes and utilities are decisive to the project’s investment objective.
2. Work greatly affecting community safety is defined in the Decree on quality management and maintenance of construction works.
3. Work greatly affecting the environment means a work of a project prescribed in the law on environmental protection that is required to have an environmental impact assessment report.
4. Construction work greatly affecting landscape means a work for which an architectural design shall be selected through contest or simply selected as prescribed in Article 15 of this Decree.
5. Line-based construction work means a work which is constructed along a line in one or through more than one administrative area, such as road; railway; power transmission line; telecommunications cable; oil pipeline, gas pipeline and water supply and drainage pipeline; and other similar works.
6. Housing construction project means a housing construction investment project under approved planning with synchronous technical and social infrastructure and at least two housing works.
7. Project manager means a person who is assigned to lead the performance of project management tasks of a particular construction investment project by the director of a specialized or regional project management unit or by the at-law representative of a project management consultancy organization.
8. Construction operation license means a contract-based license granted by a competent Vietnamese state agency to a foreign contractor winning a contract in accordance with Vietnamese law.
9. Phased construction permit means a permit granted to the project owner to build each part of a construction work, such as pile foundation, foundation and main body; or to build each construction work under a construction investment project.
10. Foreign contractor means a foreign organization having civil legal capacity or a foreign individual having civil legal capacity and civil act capacity to conclude and perform contracts. Civil legal capacity and civil act capacity of a foreign contractor shall be determined according to the laws of the country of which the foreign contractor is a citizen. A foreign contractor may be a general contractor, main contractor, partnership contractor or subcontractor.
11. General construction contractor of an EPC (engineering, procurement and construction) contract means the contractor that performs all tasks from engineering, procurement of technological equipment and construction of a work(s) of a construction investment project.
12. General construction contractor of a turnkey contract means the contractor that performs all tasks from project formulation, engineering, procurement of technological equipment to construction of a work(s) of a construction investment project.
13. Executive office means an office of a foreign contractor that is registered to operate in the locality where the construction work is located in order to perform contracted tasks after obtaining a construction operation license. The executive office may only exist within the duration of contract performance and shall be closed when the contract expires.
14. Non-budget state funds means state funds as prescribed by law but excluding state budget funds.
Article 3.Basic principles of management of construction investment projects
1. Construction investment projects shall be managed according to investment plan and policy to meet the requirements set out in Article 51 of the 2014 Law on Construction and must comply with relevant laws.
2. Responsibilities and powers of state management agencies, investment deciders, project owners and organizations and individuals involved in carrying out construction investment activities of the projects, shall be clearly identified.
3. Project implementation management must suit the type of funding source used for construction investment:
a/ Construction investment projects using state budget funds shall be managed strictly and comprehensively and according to the prescribed order so as to ensure investment objectives, quality, schedule of implementation and cost saving, and achieve project effectiveness;
b/ Investment projects in the form of PPP (public-private partnership) involving a construction component shall be managed like projects using non-budget state funds in accordance with this Decree and other relevant laws;
c/ Construction investment projects using non-budget state funds shall be managed by the State in terms of investment policy, objectives, scope, expenditures, impacts on landscape, environment, community safety, national defense and security, and project effectiveness. Project owners shall take responsibility for managing project implementation in accordance with this Decree and other relevant laws;
d/ Construction investment projects using other funds shall be managed by the State in terms of investment objectives and scope and impacts on landscape, environment, community safety and national defense and security.
4. Construction investment activities of projects shall be managed according to the principles prescribed in Article 4 of the 2014 Law on Construction.
Article 4.Construction investment project owners
Construction investment project owners defined in Clause 9, Article 3 of the 2014 Law on Construction shall be decided by the investment decider, and are specified as follows:
1. For a project decided by the Prime Minister, the project owner is the agency, organization or unit assigned by the Prime Minister. The project owner shall exercise the competence of the person in charge of deciding on construction investment and approving designs and construction cost estimates.
2. For a project using state budget funds or non-budget state funds decided by a minister, the head of a ministerial-level agency, a government-attached agency, or the central agency of a political or socio-political organization, the chairperson of a provincial-level People’s Committee, or the chairperson of a district-level People’s Committee, the project owner is the specialized or regional project management unit established under Article 63 of the 2014 Law on Construction, or is the agency, organization or unit that is assigned to manage and use funds to invest in the construction of works. For a project using commune-level budget funds, the project owner is the commune-level People’s Committee. For a national defense or security project, the project owner shall be decided by the investment decider based on particular conditions.
3. For a project using non-budget state funds that is decided by a state economic group or corporation, the project owner is the specialized or regional project management unit established by such group or corporation, or is the agency, organization or unit that is assigned to manage and use funds to invest in the construction of works.
4. For a project using other funds, the project owner is the agency, organization or individual owning funds or borrowing loans for construction investment. For a project using mixed funds, capital contributors shall reach agreement on the project owner.
5. For a PPP project, the project owner is the project enterprise set up by investors in accordance with law.
Article 5.Classification of construction investment projects
1. Construction investment projects shall be classified according to the size, nature and type of their main works, including projects of national importance, group-A projects, group-B projects and group-C projects according to criteria prescribed in the law on public investment and specified in Appendix I to this Decree.
2. Construction investment projects only requiring construction investment economic-technical reports include:
a/ Construction works used for religious purposes;
b/ New, repaired, renovated or upgraded construction works with total investment of under VND 15 billion (excluding land use levy).
3. Construction investment projects classified according to their types of funding sources include projects using state budget funds, projects using non-budget state funds and projects using other funds.
Article 6.Order of construction investment
1. The order of construction investment prescribed in Clause 1, Article 50 of the 2014 Law on Construction is specified as follows:
a/ Project preparation: formulation, appraisal and approval of pre-feasibility study report (if any); formulation, appraisal and approval of feasibility study report or construction investment economic-technical report for consideration and decision on construction investment and performance of other necessary tasks related to project preparation;
b/ Project implementation: land allocation or land lease (if any); preparation of construction ground and mine sweeping (if any); construction survey; formulation, appraisal and approval of design and construction cost estimate; grant of construction permit (if required); selection of contractor and signing of construction contract; construction of work; supervision of construction; advance payment and payment for completed volume; acceptance test of completed work; handover of completed work for putting to use; operation, trial operation and performance of other necessary tasks;
c/ Completion of construction and putting of work to operation and use: finalization of construction contract, warranty of constructions work.
2. Depending on specific conditions and technical requirements of a project, the investment decider shall decide whether the tasks prescribed at Points a, b and c, Clause 1 of this Article shall be performed in succession or simultaneously.
3. Design drawings which have been appraised and stamped shall be returned to the project owner for preservation in accordance with the law on archives. The project owner shall comply with requests of specialized construction agencies when they want to see these drawings. The project owner shall submit electronic files of these drawings and cost estimates or scanned files (already modified according to the appraisal result) to the specialized construction agencies prescribed in Clause 13, Article 3 of the 2014 Law on Construction for management.
Chapter II
FORMULATION, APPRAISAL AND APPROVAL OF PROJECTS AND FORMS OF ORGANIZATIONS OF MANAGEMENT OF PROJECT IMPLEMENTATION
Section 1
FORMULATION, APPRAISAL AND APPROVAL OF CONSTRUCTION INVESTMENT PROJECTS
Article 7.Construction investment pre-feasibility study report
1. The project owner or agency or organization assigned to prepare a project of national importance or a group-A project shall formulate a pre-feasibility study report as a basis for consideration and decision on construction investment policy. Pre-feasibility study report shall not be required for group-A projects (excluding projects of national importance) under approved planning having the contents specified in Clause 2 of this Article.
2. Contents of a pre-feasibility study report must comply with Article 53 of the 2014 Law on Construction, in which the preliminary design must contain:
a/ Preliminary information about construction location; project scale; locations, types and grades of main works;
b/ Preliminary design drawings of the total project ground; layouts, elevations and cross-sections of main works of the project;
c/ Preliminary drawings and description of selected foundation design solutions of main works;
d/ Preliminary information about technology lines and technological equipment (if any).
Article 8.Appraisal of pre-feasibility study reports and decision on construction investment policy
1. For projects using public investment funds, the appraisal of their pre-feasibility study reports and decision on their construction investment policy must comply with the law on public investment.
2. For group-A projects using non-budget state funds or other funds (excluding projects specified in Clause 1 of this Article) that are not incorporated in any approved sectoral master plan or construction master plan, the project owner shall send a report to the line ministry, the Ministry of Construction or locality as decentralized to consider and approve additions to the master plan according to its competence, or propose the Prime Minister to approve such additions before formulation of the pre-feasibility study report as prescribed.
The agency or organization in charge of appraising the pre-feasibility study report shall solicit opinions on construction investment policy from the line ministry and related agencies, summarize these opinions and report them to the investment decider for consideration and decision on investment policy. The time limit for giving opinions on construction investment policy is 20 (twenty) days from the date of receipt of a complete dossier.
Article 9.Construction investment feasibility study report
1. The project owner shall formulate a feasibility study report under Article 54 of the 2014 Law on Construction then submit it to the investment decider for appraisal of the project and investment decision, excluding cases specified in Clause 4, Article 52 of the 2014 Law on Construction and Clause 2, Article 5 of this Decree.
For PPP projects, the construction investment feasibility study report shall be formulated by the agency or organization prescribed by the law on investment in the form of PPP. Contents of the feasibility study report shall be prepared as prescribed in this Decree and the Government’s Decree on investment in the form of PPP.
2. For projects using public investment funds, the project owner shall formulate the feasibility study report after obtaining the investment policy decision of competent authorities as prescribed in the Law on Public Investment.
3. For construction investment projects not incorporated in any approved sectoral master plan or construction master plan, the project owner shall send a report to the line ministry, the Ministry of Construction or locality as decentralized to consider and approve additions to the master plan according to its competence, or propose the Prime Minister to approve such additions before formulation of the feasibility study report. The time limit for consideration and approval of additions to a sectoral or construction master plan is 45 (forty five) days.
4. For construction investment projects for civil works or industrial works in places where there is no zoning planning or detailed construction planning approved by a competent state agency, the project owner shall apply for a construction planning license as prescribed in Article 47 of the 2014 Law on Construction for use as a basis for formulation of the feasibility study report.
5. For projects of national importance or group-A projects involving compensation, ground clearance and resettlement requirements, when approving the pre-feasibility study report, the investment decider may, depending on the specific conditions of the project, decide to separate compensation, ground clearance and resettlement into an independent project and assign it to the locality where the project is located, for implementation. The formulation, appraisal and approval of this project shall be carried out as for an independent project.
Article 10.Competence to appraise projects and basic designs
1. For projects of national importance: The Prime Minister shall decide to establish the State Appraisal Council to appraise pre-feasibility study reports and feasibility study reports as prescribed by law.
2. For construction investment projects using state budget funds:
a/ The specialized construction agencies under the Ministry of Construction and the ministry managing specialized construction works prescribed in Article 76 of this Decree shall take charge of appraising the contents specified in Article 58 of the 2014 Law on Construction, of group-A projects, and projects of group B and lower groups in which investment is decided by ministries, ministerial-level agencies, government-attached agencies, or central agencies of political or socio-political organizations. For projects assigned by the Prime Minister to the ministries managing specialized construction works for appraisal, the specialized construction agencies under these ministries shall conduct the appraisal;
b/ Provincial-level Departments of Construction or Departments managing specialized construction works prescribed in Article 76 of this Decree shall take charge of appraising the contents specified in Article 58 of the 2014 Law on Construction, of projects of group B and lower groups which are located in the provinces, excluding the projects specified at Points a and c of this Clause;
c/ According to the decentralization by the provincial-level People’s Committee, the Division in charge of construction management of the district-level People’s Committee shall take charge of appraising projects requiring construction investment economic-technical reports in which investment is decided by the district- or commune-level People’s Committees.
3. For construction investment projects using non-budget state funds:
a/ The specialized construction agencies under the Ministry of Construction and the ministries managing specialized construction works prescribed in Article 76 of this Decree shall take charge of appraising the contents of the basic designs specified in Clause 2, Article 58 of the 2014 Law on Construction (excluding technological design) of group-A projects, and projects of group B and lower groups in which investment is decided by ministries, ministerial-level agencies, government-attached agencies, central agencies of political or socio-political organizations, or state economic groups or corporations. For projects assigned by the Prime Minister to the ministries managing specialized construction works for appraisal, the specialized construction agencies under these ministries shall appraise their basic designs;
b/ Provincial-level Departments of Construction or Departments managing specialized construction works prescribed in Article 76 of this Decree shall take charge of appraising the contents of the basic designs specified in Clause 2, Article 58 of the 2014 Law on Construction (excluding technological design) of projects of group B and lower groups which are located in the provinces, excluding the projects specified at Points a and c of this Clause;
c/ According to the decentralization by the provincial-level People’s Committee, the Division in charge of construction management of the district-level People’s Committee shall take charge of appraising construction drawing designs and construction cost estimates (excluding technology design) of projects requiring construction investment economic-technical reports in which investment is decided by the district- or commune-level People’s Committees;
d/ The specialized agency under the management of the investment decider shall take charge of appraising the technology design (if any) and other contents of the feasibility study report prescribed in Article 58 of the 2014 Law on Construction, summarize the appraisal results and submit proposals for project approval; and take charge of appraising repair, renovation, maintenance and upgrading projects with total investment of less than VND 5 (five) billion.
4. For PPP projects, the specialized construction agency mentioned in Clause 3 of this Article shall take charge of appraising the contents of the basic designs prescribed in Clause 2, Article 58 of the 2014 Law on Construction (excluding technological design); give opinions on unit prices and norms and assess design solutions in terms of construction cost saving for the projects; the focal unit managing PPP activities under the management of the state agency competent to sign the project contract shall take charge of appraising other contents of the feasibility study report and technology design (if any), and summarize the result of appraisal of the basic design conducted by the specialized construction agency, and submit proposals for project approval.
5. For construction investment projects using other funds:
a/ The specialized construction agencies under the Ministry of Construction and the ministries managing specialized construction works prescribed in Article 76 of this Decree shall take charge of appraising the contents of the basic designs specified in Clause 2, Article 58 of the 2014 Law on Construction (excluding technological design) of construction investment projects of special grade and grade I;
b/ Provincial-level Departments of Construction or Departments managing specialized construction works prescribed in Article 76 of this Decree shall take charge of appraising the contents of the basic designs specified in Clause 2, Article 58 of the 2014 Law on Construction (excluding technological design) of investment projects to construct public works, works greatly affecting landscape, environment and community safety of grade II and lower grades in their provinces;
c/ The investment decider shall organize the appraisal of all the contents of a project as prescribed in Article 58 of the 2014 Law on Construction, excluding the contents of appraisal of the basic design conducted by the specialized construction agency under Points a and b of this Clause.
6. The agency in charge of appraising the project or basic design shall consult related agencies and organizations about the contents of the project. The consulted agencies and organizations shall give written opinions based on their functions and tasks by the given deadline on the basic design; fire and explosion prevention and fighting; environmental protection; use of land and natural resources; technical infrastructure connection and other necessary contents.
7. During the appraisal, the agency in charge of appraisal shall organize the appraisal of the basic design, technological design and other contents of the project, specifically as follows:
a/ The agency in charge of appraisal may invite specialized and experienced organizations and individuals to participate in appraising each part of the project, basic design, technological design and other contents of the project;
b/ If it lacks conditions for conducting the appraisal, the specialized construction agency or the investment decider may request the project owner to directly select an organization or individual with appropriate capacity conditions of which information about its/his/her construction capacity has been publicly posted on the website of the Ministry of Construction or provincial-level Department of Construction for the project owner to conclude an appraisal contract with such organization or individual. If such consultancy organization or individual has not yet had its/his/her information about construction capacity publicly posted on the website of the Ministry of Construction or provincial-level Department of Construction, it/he/she must obtain written approval from a specialized agency of the Ministry of Construction or provincial-level Department of Construction. The organization that has provided consultancy on the formulation of a project may not appraise such project.
Article 11.Order of appraising projects and basic designs
1. For construction investment projects using state budget funds:
a/ The project owner shall send the project dossier to the investment decider and concurrently to the specialized construction agency prescribed in Clause 2, Article 10 of this Decree for appraisal. The dossier for appraisal of the construction investment project must comprise a written request for project appraisal, made according to form No. 01 provided in Appendix II to this Decree; a project dossier comprising descriptions and basic design; and relevant legal documents;
b/ Within 5 (five) working days after receiving a complete project dossier, the specialized construction agency shall send a document together with the relevant dossier extracts to agencies and organizations prescribed in Clause 6, Article 10 of this Decree for opinion on relevant contents of the project. When appraising a group-A project constructed in an urban area, the agency in charge of appraisal shall consult the Ministry of Construction on the basic design.
2. For projects using non-budget state funds and projects using other funds requiring appraisal of basic design:
a/ The project owner or the focal unit managing PPP activities shall send the basic design dossier of the project to the investment decider and concurrently to the specialized construction agency prescribed in Clause 3 or 4, Article 10 of this Decree for appraisal;
b/ Within 5 (five) working days after receiving a complete project dossier, the specialized construction agency shall send a document together with the dossier to related agencies and organizations prescribed in Clause 6, Article 10 of this Decree for opinion on relevant contents of the basic design of the project.
3. The time limit for written replies from agencies and organizations related to the project or the basic design prescribed at Point b, Clause 1, or Point b, Clause 2, of this Article is 30 (thirty) days for projects of national importance; 20 (twenty) days for group-A projects; 15 (fifteen) days for group-B projects; or 10 (ten) days for group-C projects. If the related agencies or organizations do not send any written replies after the above-said time limit, they shall be considered approving the basic design and shall take responsibility for the contents under their management.
4. The time limit for project appraisal is prescribed in Article 59 of the 2014 Law on Construction. The time limit for basic design appraisal is 60 (sixty) days for projects of national importance; 30 (thirty) days for group-A projects; 20 (twenty) days for group-B projects; or 15 (fifteen) days for group-C projects.
5. In case the specialized construction agency requests the project owner to directly select the appraisal consultancy unit under Point b, Clause 7, Article 10 of this Decree, within 5 (five) working days from the date a valid dossier is submitted, the specialized construction agency shall send a written notice of issues that need appraisal for the project owner to select and conclude a contract with the appraisal consultant. The time limit for appraisal is 30 (thirty) days for projects of national importance; 20 (twenty) days for group-A projects; 15 (fifteen) days for group-B projects; or 10 (ten) days for group-C projects. The project owner shall send the appraisal result to the specialized construction agency and the investment decider for project and basic design appraisal.
6. The agency in charge of appraising a project or basic design shall organize the appraisal under the inter-agency one-stop-shop mechanism in accordance with the 2014 Law on Construction and this Decree. The document on project or basic design appraisal results shall be made according to form No. 02 or 03 provided in Appendix II to this Decree.
Article 12.Approval of construction investment projects, and construction investment decision
1. A construction investment project shall be approved in the construction investment decision. The competence to make construction investment decision is prescribed in Article 60 of the 2014 Law on Construction.
2. Major contents of a construction investment decision include:
a/ Project title;
b/ Project owner;
c/ The organization that provides consultancy on project formulation, survey (if any) and basic design formulation;
d/ Objectives and scale of construction investment, and implementation schedule of the project;
dd/ Main construction works, construction works and grades of construction works of the project;
e/ Construction location and area of land used;
g/ Basic design, technological design (if any), selected technical regulations and standards;
h/ Requirements on resources, use of natural resources (if any), operation and use of works; compensation and ground clearance plan, environmental protection plan (if any), fire and explosion prevention and fighting;
i/ Total investment and tentative allocation of funding sources according to implementation schedule;
k/ Form of project management applied.
2. The Ministry of Construction shall provide detailed guidance on the dossier for project or basic design appraisal and form of the construction investment decision.
Article 13.Construction investment economic-technical report
1. Only the construction investment economic-technical report is required for a construction investment project prescribed in Clause 2, Article 5 of this Decree.
2. A dossier of request for appraisal of construction investment economic-technical report must comprise:
a/ A written request for appraisal of construction investment economic-technical report, made according to form No. 4 provided in Appendix II to this Decree;
b/ The construction economic-technical report with the contents prescribed in Article 55 of the 2014 Law on Construction.
3. Appraisal and approval of construction investment economic-technical reports:
a/ The competence to appraise construction investment economic-technical reports and construction drawing designs and cost estimates is prescribed in Article 10 of this Decree; the document on construction investment economic-technical report appraisal result shall be made according to form No. 05 provided in Appendix II to this Decree;
b/ The specialized agency of the investment decider shall summarize the appraisal results and submit the project dossier to the investment decider for investment consideration and decision.
Article 14.Adjustments to construction investment projects and basic designs
1. Adjustments to a project using state budget funds or non-budget state funds prescribed at Points b and d, Clause 1, Article 61 of the 2014 Law on Construction, are specified as follows:
a/ The project owner shall give explanations proving additional effects to be brought about by the adjustments, including financial effect and socio-economic effect, for production and business projects and projects requiring capital recovery; effect during the construction stage and socio-economic effect, for projects not requiring capital recovery;
b/ The basic design of the project shall be adjusted when the changes in construction planning directly affect the construction location, direction of the construction line, sizes and utilities of works of the project;
c/ Adjustments to the project due to construction cost rises must comply with the Government’s Decree on management of construction investment costs.
2. Adjusted construction investment projects or basic designs shall be appraised in accordance with Article 11 of this Decree.
3. The project owner shall propose adjustments to the project or basic design to the investment decider for consideration and decision.
Article 15.Contests or selection of architectural designs for construction works
1. Public works of a large scale or with particular architecture requirements that require contests or selection of architectural design plans include:
a/ Grade-I or special-grade public works;
b/ Head offices of the Party and State agencies, administrative-political centers, and radio and television centers;
c/ Central railway stations of provinces, civil airports;
d/ Traffic works in urban centers of grade II or higher grades that have high aesthetic requirements (river bridges, overpasses, railway stations in downtown areas);
dd/ Works located in crucial places, works with high architectural requirements (monuments, prominent works in urban centers).
2. The Ministry of Construction shall detail other works of importance in urban centers and along major roads for which contests shall be held to select construction architectural designs; and promulgate specific regulations on forms of contests or selection of construction architectural designs; rights and responsibilities of agencies, organizations and individuals involved in the contests or selection, and expenses for such contests or selection.
The organization or individual having its/his/her architectural design selected may carry out subsequent designing steps if it/he/she is qualified as prescribed.
Section 2
ORGANIZATION OF MANAGEMENT OF CONSTRUCTION INVESTMENT PROJECTS
Article 16. Forms of organization of management of construction investment projects
1. The investment decider shall decide on the form of organization of project management under Article 62 of the 2014 Law on Construction.
2. For projects using state budget funds or non-budget state funds, the form of organization of project management is the specialized or regional construction investment project management unit prescribed in Article 63 of the 2014 Law on Construction and Article 17 of this Decree.
In case the investment decider assigns the agency or organization managing and using funds to invest in the construction of works as the project owner, the investment decider shall assign the project owner to sign a contract on hiring a specialized or regional project management unit to perform the project management as prescribed.
3. For projects using ODA loans or concessional loans granted by foreign donors, the form of organization of project management must comply with the provisions of ODA treaties or agreements with donors. If the ODA treaty or the agreement with a donor contains no specific provisions on the form of organization of project management, such form must comply with this Decree.
4. For projects using other funds, the investment decider shall decide on the form of organization of project management to meet the management requirements and actual conditions of each project.
5. For PPP projects, the project enterprise shall select the form of organization of project management in accordance with Articles 19 and 20 of this Decree.
Article 17.Specialized and regional construction investment project management units
1. Ministers, heads of ministerial-level agencies, chairpersons of provincial- and district-level People’s Committees, chairpersons of the Boards of Directors of state economic groups or corporations shall decide to establish specialized or regional construction investment project management units (below referred to as specialized or regional project management units) that act as the project owners and concurrently manage more than one project using state budget funds or non-budget state funds.
2. A specialized or regional project management unit shall be established for managing:
a/ Projects implemented in the same administrative division or in the same line;
b/ Investment projects to construct works of the same specialized field;
c/ Projects using ODA loans or concessional loans granted by the same donor that require unified management of funding source.
3. Specialized or regional project management units which are established by ministers, heads of ministerial-level agencies, or chairpersons of provincial- or district-level People’s Committees are public non-business units; specialized or regional project management units which are established by competent representatives of state enterprises are member units of the enterprises.
A specialized or regional project management unit has full legal status and its own seal and may open its accounts at a state treasury and a commercial bank as prescribed; may perform the functions and tasks and exercise the powers of the project owner and directly manage the implementation of its assigned projects; shall take responsibility before law and the investment decider for its operations; and shall manage the operation and use of the completed works when so assigned by the investment decider.
4. According to the number of projects to be managed, management requirements and actual conditions, the structure of a specialized or regional project management unit may be organized according to construction investment management procedures or for each project.
5. A specialized or regional project management unit may provide project management consultancy for other projects, provided that it ensures fulfillment of the assigned project management tasks and is qualified for management of such projects.
Article 18.Organization and operation of specialized or regional project management units
1. The person establishing a specialized or regional project management unit shall decide on the number, functions, tasks, organizational structure and operation of such unit, specifically as follows:
a/ For ministries or ministerial-level agencies: Specialized or regional project management units shall be established suitable to the field of their management or meeting requirements on construction of physical foundations and infrastructure in each locality or region. The organization of specialized or regional project management units under the Ministry of National Defense or the Ministry of Public Security shall be decided by the Ministers to meet particular management requirements;
b/ For provinces: Specialized or regional project management units established by provincial-level People’s Committees include project management units for civil and industrial works, project management units for transport works, and project management units for agricultural and rural development works. For centrally run cities, project management units for urban and industrial park infrastructure construction investment and project management units for urban development may be additionally established.
Provincial-level People’s Committees shall manage specialized or regional project management units they have established.
c/ For districts: Project management units under district-level People’s Committees shall act as the project owners and manage construction investment projects decided by district-level People’s Committees;
d/ For communes: Commune-level People’s Committees shall act as the project owners of investment projects they have decided and concurrently conclude contracts with district-level project management units or project management units prescribed in Clause 5, Article 17 of this Decree for project management;
dd/ For state economic groups and corporations: Specialized or regional project management units shall be established in conformity with their main business lines or according to localities or regions determined as the key in their construction investment policy.
2. Specialized or regional project management units shall be organized in conformity with their assigned functions and tasks and the number and sizes of their projects and must each consist of the following main divisions:
a/ The Board of Managers, project managers and attached units that help the specialized or regional project management unit perform the functions of the project owner and management of the projects;
b/ The project managers of a specialized or regional project management unit must possess all capacity conditions specified in Article 54 of this Decree; persons holding positions in project execution divisions or boards must possess trained qualifications and practice certificates relevant to their jobs.
3. The operation regulation of a specialized or regional project management unit shall be approved by the person deciding on its establishment, which must clearly define rights and responsibilities of the division performing the functions of the project owner and the division performing project management functions in accordance with the 2014 Law on Construction and relevant laws.
4. The Ministry of Construction shall provide detailed guidance on operation regulations of specialized or regional project management units.
Article 19.Single-project management unit
1. The project owner shall decide to establish a single-project management unit to manage a group-A project having special-grade works, a hi-tech project certified in writing by the Minister of Science and Technology, a national defense or security project that involves state secrets, or a project using other funds.
2. The single-project management unit is a public non-business unit attached to the project owner, which has independent legal status, may use its own seal and open its account at a state treasury and a commercial bank as prescribed to perform project management tasks assigned by the project owner; and take responsibility before law and the project owner for its project management activities.
3. The single-project management unit must fully satisfy the capacity conditions specified in Clause 3, Article 64 of this Decree and may hire qualified consultancy organizations and individuals to perform a number of its project management tasks.
4. The project owner shall define the functions, tasks, powers, organizational structure and activities of the single-project management unit as prescribed in Clause 2, Article 64 of the 2014 Law on Construction.
Article 20.Hiring of construction investment project management consultants
1. In case the specialized or regional project management unit is not qualified to perform a number of construction investment project management tasks, it may hire a qualified consultancy organization or individual as prescribed in this Decree to perform such tasks.
2. In case an enterprise which is a member unit of a state economic group or corporation is not qualified to manage construction investment projects using non-budget state funds or other funds, it may hire a qualified consultancy organization or individual as prescribed in this Decree to manage such projects.
3. A project management consultancy organization may perform some or all of project management tasks according to the contract concluded with the project owner.
4. The selected project management consultancy organization shall set up a project management office in the area where the project is implemented and send a written notice of tasks and powers of the representative and the project management apparatus to the project owner and relevant contractors.
5. The project owner shall supervise the performance of the project management consultancy contract, deal with issues arising between the project management consultancy organization, contractors and local administrations during the project implementation.
Article 21.Project owners directly performing project management
1. The project owner shall use its legal status and attached professional units to directly manage small-scale construction work renovation, repair or upgrading projects each with total investment of under VND 5 (five) billion, projects involved by the community, and projects with total investment of under VND 2 (two) billion whose owners are commune-level People’s Committees.
2. Persons engaged in project management shall work on a part-time basis and must have professional qualifications relevant to their jobs. The project owner may hire qualified organizations and individuals to supervise the construction and carry out acceptance test of completed items or works. Project implementation expenses shall be separately accounted in accordance with law.
Article 22.Project management by general contractors
1. General contractors of EPC or turnkey contracts shall manage part or the whole of the projects as agreed in the contracts with the project owners and must fully meet the construction capacity conditions prescribed in this Decree and relevant laws to perform their tasks.
2. Project management tasks of a general contractor include:
a/ Establishing an executive committee to perform the management as contracted;
b/ Managing total construction ground;
c/ Managing construction engineering, manufacture, processing, procurement of supplies and equipment, technology transfer, and operation training;
d/ Managing the construction stage and connections with jobs of subcontractors;
dd/ Coordinating the implementation progress, inspecting and supervising occupational safety and hygiene and environmental protection at construction site;
e/ Carrying out acceptance test of completed items and works for handover to the project owner;
g/ Managing other construction activities at the request of the project owner.
3. The general contractor is entitled to part of the project management budget as agreed with the project owner.
Chapter III
IMPLEMENTATION OF CONSTRUCTION INVESTMENT PROJECTS
Section 1
CONSTRUCTION DESIGN
Article 23.Construction design steps
1. Construction design must involve the following steps: preliminary design (for making the pre-feasibility study report), basic design, technical design, construction drawing design and other design steps (if any) in conformity with international practices decided by the investment decider when making project investment decision.
2. A construction investment project may comprise one or a number of types of construction works, each type having one or a number of grades. Depending on types and grades of works and form of project implementation, the number of construction designing steps shall be decided by the investment decider, specifically as follows:
a/ One-step design, which is the construction drawing design applied to a work requiring the making of a construction investment economic-technical report;
b/ Two-step design, which involves basic design and construction drawing design applied to a work requiring the formulation of a construction investment project;
c/ Three-step design, which involves basic design, technical design and construction drawing design applied to a work requiring the formulation of a construction investment project, of large size, and with complicated technical requirements and construction conditions;
d/ Other designs (if any) in conformity with international practices.
3. If the construction design of a work involves two or more steps, the subsequent designing step must conform to the major contents and specifications of the preceding one.
4. For three-step designs, if the construction contractor is qualified as prescribed by law, it may carry out the construction-drawing designing step.
Article 24.Competence to appraise and approve construction designs and cost estimates of projects using state budget funds
1. Competence to appraise designs and cost estimates:
a/ The specialized construction agency of the Ministry of Construction or a ministry managing specialized construction works prescribed in Article 76 of this Decree shall take charge of appraising technical designs and construction cost estimates (for three-step designs); construction drawing designs and cost estimates (for two-step designs) of special-grade or grade-I works; works assigned by the Prime Minister, and works of investment projects decided by the agency;
b/ Provincial-level Departments of Construction or Departments managing specialized construction works prescribed in Article 76 of this Decree shall take charge of appraising technical designs and construction cost estimates (for three-step designs); construction drawing designs and cost estimates (for two-step designs) of works of grade II or lower grades which are located in their provinces, excluding works prescribed at Point a of this Clause.
2. Competence to approve construction designs and cost estimates:
a/ The investment decider shall approve technical designs and construction cost estimates for three-step designs; and approve construction drawing designs and cost estimates for two-step designs;
b/ The project owner shall approve construction drawing designs and cost estimates for three-step designs.
Article 25.Competence to appraise and approve construction designs and cost estimates of works of projects using non-budget state funds
1. Competence to appraise construction designs and cost estimates:
a/ The specialized construction agency of the Ministry of Construction or a ministry managing specialized construction works prescribed in Article 76 of this Decree shall take charge of appraising technical designs and construction cost estimates (for three-step designs); construction drawing designs and cost estimates (for two-step designs) of special-grade and grade-I works; works of grade III and higher grades of investment projects in the fields decided by state economic groups or corporations under the agency’s management; works assigned by the Prime Minister, and works of investment projects decided by the agency;
b/ Provincial-level Departments of Construction or Departments managing specialized construction works prescribed in Article 76 of this Decree shall take charge of appraising technical designs and construction cost estimates (for three-step designs), construction drawing designs and cost estimates (for two-step designs) of works of grade III and higher grades which are located in their provinces, excluding works prescribed at Point a of this Clause;
c/ The investment decider shall appraise the designs and cost estimates of technological work (if any) of works prescribed at Points a and b of this Clause; and appraise designs and cost estimates of remaining works and medium-voltage power grid works.
The investment decider shall take responsibility for their appraisal results and send them (excluding appraisal of technological work) to the specialized construction agency according to the decentralization prescribed in Clause 1, Article 24 of this Decree for monitoring and management.
2. Competence to approve construction designs and cost estimates:
a/ The investment decider shall approve technical designs and construction cost estimates for three-step designs;
b/ The project owner shall approve construction drawing designs and cost estimates for three-step designs and two-step designs;
c/ For PPP projects, the project owner shall approve construction designs and cost estimates.
Article 26.Competence to appraise and approve construction designs and cost estimates of works of projects using other funds
1. Competence to appraise construction designs and cost estimates:
a/ The specialized construction agency of the Ministry of Construction or a ministry managing specialized construction works prescribed in Article 76 of this Decree shall take charge of appraising technical designs (for three-step designs), and construction drawing designs (for two-step designs) of special-grade and grade-I works, works constructed in a line running through at least two provinces, and works assigned by the Prime Minister;
b/ Provincial-level Departments of Construction or Departments managing specialized construction works prescribed in Article 76 of this Decree shall take charge of appraising technical designs (for three-step designs); and construction drawing designs (for two-step designs) of public works of grade III and higher grades, works greatly affecting landscape, environment and community safety which are located in their provinces, excluding works prescribed at Point a of this Clause;
c/ The investment decider shall appraise construction designs of remaining works (excluding works prescribed at Points a and b of this Clause), technological designs (if any) and construction cost estimates.
2. Competence to approve construction designs and cost estimates:
The investment decider and project owner shall approve technical designs, construction drawing designs and cost estimates.
Article 27.Contents of appraisal of construction designs and cost estimates
1. Appraisal of construction designs and cost estimates must comply with Article 83 of the 2014 Law on Construction, this Decree and the Decree on management of construction investment costs.
2. The results of appraisal of construction designs and cost estimates shall be presented according to form No. 07 provided in Appendix II to this Decree.
Article 28.Contents of approval of construction designs
1. General information about the work: name of work, items (types and grades) of the work; project owner; engineering contractor; construction location and land area used.
2. Size, technology, technical specifications and essential economic-technical norms of the work.
3. National technical regulations and primary standards applied.
4. Major design solutions of items and the whole work.
5. Construction cost estimate.
6. Requirements on completion of the design dossier and other contents (if any).
Article 29.Dossiers of appraisal of technical designs, construction drawing designs and construction cost estimates
The project owner shall send a design dossier to the specialized construction agency for appraisal, comprising:
1. A written request for design appraisal, made according to form No. 06 provided in Appendix II to this Decree.
2. A description of the design, drawings, and relevant construction survey documents.
3. A copy of the decision approving the construction investment project enclosed with the approved basic design dossier or approving investment policy, except for separate houses.
4. A copy of the dossier on capacity conditions of chief construction surveyors and designers; a written approval of the fire prevention and fighting plan and an environmental impact assessment report (if any).
5. A summarization report on the conformity of the design dossier with the contract, made by the project owner.
6. The construction cost estimate, for projects using state budget funds or non-budget state funds.
Article 30.Procedures for appraisal of construction designs and cost estimates
1. After receiving the dossier, the specialized construction agency or the investment decider shall take charge of appraising the construction design and cost estimate according to the provisions of Article 27 of this Decree.
2. The agency in charge of appraisal shall organize the appraisal of all contents of the construction design and cost estimate. During the appraisal, it may invite organizations and individuals with relevant expertise and experiences to appraise each part of the construction design, technological design and construction cost estimate to serve the appraisal.
In case the specialized construction agency or the investment decider is not qualified to carry out the appraisal, it/he/she may request the project owner to directly select a qualified organization or individual that has been registered and publicly posted information about its/his/her construction capacity on the website of the Ministry of Construction or provincial-level Department of Construction, and the project owner shall conclude an appraisal contract with such organization or individual. If such organization or individual has not registered and publicly posted information about its/his/her construction capacity on the website of the Ministry of Construction or provincial-level Department of Construction, it/he/she shall obtain written approval from the specialized construction agency of the Ministry of Construction or provincial-level Department of Construction. The design consultancy organization may not appraise the work it has designed.
3. During the appraisal of a construction design, the specialized construction agency shall request competent state management agencies to appraise issues related to environment, fire and explosion prevention and fighting and other contents as prescribed by law.
The time limit for notification of appraisal results by competent state management agencies in charge of appraising issues related to environment, fire and explosion prevention and fighting and other contents must comply with specialized laws but must not exceed the time limit for appraisal of construction designs and cost estimates specified in Clause 4 of this Article. If the related agencies or organizations do not send any written replies after the aforesaid time limit, they shall be considered approving the contents subject to appraisal and take responsibility for issues under their respective management.
4. In case the specialized construction agency requests the project owner to directly select the appraisal consultancy unit under Clause 2 of this Article, within 5 (five) working days after receiving a complete and valid dossier, the specialized construction agency shall send a written notice of issues subject to appraisal to the project owner for selecting and concluding a contract with the appraisal consultancy unit. The time limit for appraisal is 20 (twenty) days for grade-I and special-grade works; 15 (fifteen) days for grade-II and grade-III works; or 10 (ten) days for remaining works. The project owner shall send the appraisal results to the specialized construction agency and the investment decider as a basis for appraisal of construction designs and cost estimates.
5. If the construction investment project consists of multiple works of different types and grades, the agency in charge of appraisal must be the agency responsible for appraising the main work or item of the project.
6. For works involving state secrets, works built under emergency orders or makeshift works, their designs shall be appraised and approved in accordance with the law on management of construction of special-type works.
7. Agencies, organizations and individuals that appraise or approve construction designs and cost estimates shall take responsibility before law for their appraisal or approval results.
8. The time limit for appraisal of construction designs and cost estimates by the specialized construction agency, which is counted from the date of receipt of a complete and valid dossier, is as follows:
a/ Forty days for grade-I and special-grade works;
b/ Thirty days for grade-II and grade-III works;
c/ Twenty days for remaining works.
Section 2
CONSTRUCTION MANAGEMENT
Article 31.Contents of construction management
Construction management includes:
1. Construction quality management.
2. Construction schedule management.
3. Construction volume management.
4. Construction investment cost management during the construction.
5. Construction contract management.
6. Occupational safety and construction environment management.
Article 32.Construction schedule management
1. Before commencement, any construction work must have a construction schedule. The construction schedule prepared by the contractor must conform to the overall project schedule approved by the project owner.
2. For a construction work of a large size to be constructed over a long period, the construction schedule shall be made on a monthly, quarterly and yearly basis.
3. The project owner, construction contractor, construction supervision consultant and related parties shall monitor and supervise the construction progress and may adjust the construction schedule if some stages are extended, provided that it does not affect the overall project schedule.
4. If seeing that the overall project schedule is to be extended, the project owner shall report it to the investment decider to decide to adjust the overall project schedule.
Article 33.Construction volume management
1. Construction shall be executed according to the volume stated in the approved design.
2. The construction volume shall be calculated and certified between the project owner, construction contractor and supervision consultant according to construction time or stage and it shall be compared with the approved design volume as the basis for acceptance test and payment according to the contract.
3. If arises any additional construction volume beside the design volume, the project owner and the construction contractor shall consider handling it.
The additional construction volume approved by the project owner or the investment decider shall be paid for.
4. Declaration of fictitious volume or volume higher than actually executed volume or collusion between contracting parties leading to incorrect payment is prohibited.
Article 34.Occupational safety management at construction sites
1. The construction contractor shall work out safety measures for workers, equipment and machines of construction and the work before commencement of construction. If the safety measures are related to multiple parties, they shall be agreed upon by these parties.
2. Safety measures and rules shall be publicly displayed at the construction site for everyone to know and obey; and at dangerous locations on the construction site there must be persons who give instructions and warnings.
3. The construction contractor, project owner and related parties shall regularly inspect and supervise the occupational safety on the construction site. If an incident occurs, construction activities shall be stopped until the incident is completely handled. Those who let violations of occupational safety rules occur within the area of their management shall take responsibility before law.
4. The construction contractor shall organize instruction, publicity and training in occupational safety rules. For some tasks subject to strict occupational safety requirements, workers must possess a certificate of training in occupational safety as prescribed by the law on occupational safety. Any worker who has not been trained and instructed in occupational safety may not be employed.
5. The construction contractor shall provide sufficient personal protection and occupational safety equipment as prescribed for workers at the construction site.
6. The construction contractor shall arrange full-time or part-time employees in charge of occupational safety and hygiene as follows:
a/ If there are fewer 50 (fifty) direct workers at the construction site, the construction engineering employee may take charge of occupational safety and hygiene as a part-time job;
b/ If there are at least 50 (fifty) direct workers at the construction site, at least 1 (one) full-time employee shall take charge of occupational safety and hygiene;
c/ If there are at least 1,000 (one thousand) direct workers at the construction site, a division or a board of occupational safety and hygiene shall be formed or at least 2 (two) full-time employees shall take charge of occupational safety and hygiene;
d/ Each full-time employee in charge of occupational safety and hygiene must possess a practice certificate as prescribed in Article 51 of this Decree.
7. The number of full-time employees in charge of occupational safety and hygiene prescribed at Points a, b and c, Clause 6 of this Article must be suitable to the construction site area and level of risk of occupational accidents at the construction site.
8. The construction state management agency shall, as decentralized, inspect regularly or unexpectedly the occupational safety management on the construction site of the project owner and contractors. For a construction work subject to acceptance test inspection by a state management agency, the inspection of occupational safety shall be conducted at the same time with such inspection.
9. The Ministry of Construction shall prescribe occupational safety work in construction activities.
Article 35.Construction environment management
1. The construction contractor shall implement measures to ensure environmental protection for workers at the construction site and for the surrounding areas, including anti-dust, noise control, scrap disposal and construction site cleanup. For construction works in urban areas, measures shall be taken to cover and collect scraps and deliver them to designated places.
2. During the transportation of building materials and scraps, they shall be covered to ensure safety and environmental sanitation.
3. The construction contractor and project owner shall supervise and inspect the protection of construction environment and concurrently submit to the inspection and supervision by the environment state management agency. If the construction contractor fails to comply with regulations on environmental protection, the project owner and environment state management agency are entitled to suspend construction activities and request the contractor to properly implement environmental protection measures.
4. Any person who lets environment-damaging acts occur during the construction process shall take responsibility before law and pay compensations for damage caused by their fault.
Article 36.Othermanagement tasks
1. Construction quality management
Construction quality management must comply with this Decree, the Decree on quality management of construction works and guiding documents.
2. Construction cost management
The construction cost management must comply with this Decree, the Decree on management of construction investment costs and guiding documents.
3. Contract management in construction activities
The contract management in construction activities must comply with this Decree, the Decree on contracts in construction activities, and guiding documents.
Section 3
COMPLETION OF CONSTRUCTION AND PUTTING OF
WORKS OF PROJECTS TO OPERATION AND USE
Article 37.Acceptance test and putting of works to operation and use
1. A construction work shall be put to operation and use after it is completely constructed according to the approved design, operates up to technical requirements and is tested to satisfy quality requirements.
2. Depending on specific conditions of each work, every completed part or item of a work of the project or component project may be handed over for operation at the request of the project owner.
3. The written record of acceptance test and handover of each completed part, item or the whole completed work is a valid document for the project owner to put the work to operation and use and finalize the invested funds.
4. A work handover dossier must comprise a work completion dossier; use and operation manual; and maintenance regulations.
5. The construction work dossier shall be archived in accordance with the law on state archives.
Article 38.Completion of construction
1. Construction is completed when the project owner receives the whole work and the prescribed warranty period expires.
2. Before handing over the work, the construction contractor shall move all its assets out of the construction site.
Article 39.Operation of construction works and construction investment projects
1. After receiving a construction work or construction investment project, the project owner or the organization assigned to manage the use of the construction work shall operate the work or the project effectively, according to proper purposes and approved economic-technical norms.
2. The project owner or the organization assigned to manage the use of a construction work shall maintain the work as prescribed.
Section 4
CONSTRUCTION PERMITS
Article 40.Conditions for grant of construction permits
1. The conditions for grant of construction permits in specific cases are prescribed in Articles 91, 92 and 93 of the 2014 Law on Construction.
2. If the construction investment project is located in an urban area without any zoning planning or detailed construction planning approved by competent authorities or where detailed planning is not required under the law on urban planning, the construction planning license or the planning information provided by a competent state agency shall be used as a basis for considering the grant of the construction permit.
Article 41.Dossier of application for a construction permit
1. Dossiers of application for permits for new construction; repair and renovation; relocation of works; separate houses; works built not in lines; works built in lines in urban centers; religious works; monuments or murals; and advertising works must comply with Articles 95, 96 and 97 of the 2014 Law on Construction.
2. A dossier of application for a construction permit for a belief work must comprise:
a/ An application for a construction permit, made according to the form prescribed by the Ministry of Construction;
b/ A copy of one of papers proving land use rights as prescribed by the land law;
c/ A construction design drawing appraised as prescribed;
d/ A declaration of the capacity and experience of the design organization or the construction design manager, enclosed with a copy of his/her practice certificate.
3. A dossier of application for a construction permit for a work of a diplomatic agency or an international organization must comprise:
a/ An application for a construction permit, made according to the form prescribed by the Ministry of Construction;
b/ A copy of one of papers proving land use rights as prescribed by the land law;
c/ A construction design drawing appraised as prescribed;
d/ Other documents as prescribed by a treaty or international agreement concluded with the Government of Vietnam.
4. A dossier of application for a definite-term construction permit must comply with regulations applicable to each type of construction works or separate houses prescribed in Clause 1 of this Article.
5. A dossier of application for a phased construction permit must comprise:
a/ An application for a construction permit;
b/ A copy of one of land-related lawful papers as prescribed by the land law;
c/ A construction design drawing as prescribed; a written design appraisal issued by the specialized construction agency for each phase (if any);
d/ A copy of the decision approving the construction investment project, for works that require project formulation.
6. A dossier of application for a construction permit for a project must comprise:
a/ The documents specified at Points a, b, c and dd, Clause 2, Article 95 of the 2014 Law on Construction;
b/ Design drawings of each work that requires a construction permit, written design appraisals issued by the specialized construction agency, for works requiring appraisal.
Section 5
CONSTRUCTION MANAGEMENT OF SPECIAL-TYPE WORKS
Article 42.Special-type construction works
Special-type construction works prescribed in Article 128 of the 2014 Law on Construction include:
1. Works involving state secrets:
a/ Works involving state secrets, including construction works that require confidentiality in construction investment activities in the fields of national defense, security, foreign relations, economy, science and technology and other particular fields; and construction works to be managed in accordance with the law on state secret protection;
b/ The Prime Minister shall decide to build works involving state secrets when there are construction investment requirements.
2. Construction works built under emergency orders, including:
a/ Works built under emergency orders to protect national sovereignty or ensure national security and safety of community life;
b/ Works of projects with emergency requirements to ensure energy security and safety, environment safety, national reserves, or science and technology, that are certified in writing by the Ministry of Science and Technology;
c/ Works built under emergency orders to save life, health and assets of the community from disasters or protect adjacent works from extremely severe damage;
d/ Works built under emergency orders to remedy or respond to in time or prevent consequences that are likely to occur due toforce majeureevents, construction incidents, or to respond to extremely severe environmental incidents;
dd/ Works of other projects built under emergency orders of the Prime Minister.
3. Makeshift construction works include:
a/ Works built to serve the construction of main works prescribed in Clause 2 of this Article;
b/ Auxiliary works built to serve main works prescribed at Points c and d, Clause 2 of this Article.
Article 43.Construction investment management of special-type construction works
1. For works involving state secrets:
a/ Ministers, heads of ministerial-level agencies and government-attached agencies, and chairpersons of provincial-level People’s Committees shall decide on the construction of works involving state secrets after the Prime Minister decides on the investment policy on these works;
b/ The investment decider of the construction of a work involving state secrets may decide or authorize the project owner to decide on, and take responsibility for, the organization of management and implementation of the construction investment project, and may appoint contractors (not through contractor selection) from the project formulation, survey, design, construction to completion and putting of the work to operation and use.
2. For construction works built under emergency orders:
a/ The investment decider of the construction of a work under an emergency order shall decide on the procedures for construction investment and the form of project management; appraise and approve the project, construction design and cost estimate, supervise construction, carry out acceptance test and handover of the completed work by itself in accordance with the law on construction;
b/ Works built under emergency orders shall be exempted from construction permit as prescribed at Point a, Clause 2, Article 89 of the 2014 Law on Construction;
c/ The Prime Minister shall decide to permit the investment deciders of the construction of works under emergency orders to decide or authorize the project owners to decide on, and take responsibility for, the organization of management and implementation of construction investment projects and appoint contractors (not through contractor selection) from the project formulation, survey, design, construction to completion and putting of works to operation and use.
3. For makeshift construction works:
a/ The project owner shall itself organize the management and implementation of construction investment projects in accordance with this Decree; appraise and approve construction designs and cost estimates; and decide to appoint construction contractors or carry out the construction by itself;
b/ The project owner or the construction contractor of main works shall dismantle or clean up makeshift construction works (if any) to restore the ground to its original state before handing over the completed work.
Chapter IV
CONSTRUCTION OPERATION CAPACITYCONDITIONS
Section 1
CONDITIONS ON CONSTRUCTION OPERATION CAPACITYOF INDIVIDUALS
Article 44.Construction practice certificates
1. Construction practice certificates shall be granted to Vietnamese citizens, overseas Vietnamese or foreigners who legally carry out construction activities in Vietnam for them to hold certain titles or perform tasks for certain title holders or work as independent practitioners as prescribed in Clause 3, Article 148 of the 2014 Law on Construction.
2. Foreigners or overseas Vietnamese who possess practice certificates granted by a foreign agency or organization and conduct construction activities in Vietnam for under 6 (six) months shall be allowed to practice construction activities. An individual who conducts construction activities in Vietnam for 6 (six) months or longer must have his/her construction practice certificate changed at the Ministry of Construction.
3. The construction practice certificate must be valid for 5 (five) years at most. When it expires, procedures shall be carried out for re-grant.
4. The Ministry of Construction shall uniformly manage construction practice certificates nationwide, including issuance of forms of construction practice certificates prescribed in this Decree.
5. Competence to grant construction practice certificates:
a/ The specialized construction agency of the Ministry of Construction shall grant class-I construction practice certificates; and grant construction practice certificates to foreigners and overseas Vietnamese;
b/ Provincial-level Departments of Construction shall grant class-II and class-III construction practice certificates;
c/ Socio-professional organizations satisfying prescribed conditions shall grant class-II and class-III construction practice certificates to their individual members, for areas within their operation scope according to regulations of the Ministry of Construction.
Article 45.General conditions for grant of construction practice certificates
An individual shall be granted a construction practice certificate if he/she meets the following conditions:
1. Having full civil act capacity as prescribed by law; possessing a residence permit in Vietnam, for foreigners and overseas Vietnamese.
2. Possessing trained qualifications and working time and experience relevant to the practice certificate applied for, specifically as follows:
a/ Class I: Possessing a bachelor’s degree in a relevant specialty and at least 7 (seven) years’ experience of work relevant to the practice certificate applied for;
b/ Class II: Possessing a bachelor’s degree in a relevant specialty and at least 5 (five) years’ experience of work relevant to the practice certificate applied for;
c/ Class III: Possessing relevant professional qualifications and at least 3 (three) years’ experience of work relevant to the practice certificate applied for, for those who possess a bachelor’s degree; or at least 5 (five) years’ experience of work relevant to the practice certificate applied for, for those who possess a college or professional secondary school degree.
3. Passing the test in working experience and legal knowledge relevant to the field of practice.
Article 46.Construction survey practice certificates
1. Construction survey practice certificates shall be granted for the following fields:
a/ Topographical survey;
b/ Geological and hydro-geological survey of works.
2. Conditions for the grant of a certificate to survey construction suitable to each type of construction survey prescribed in Article 73 of the 2014 Law on Construction include:
a/ Class I: Having worked as specialized construction survey manager for at least 1 (one) group-A project or 5 (five) group-B projects or for at least 2 (two) grade-I works or 3 (three) grade-II works of the same type;
b/ Class II: Having worked as specialized construction survey manager for at least 2 (two) group-B projects or 5 (five) group-C projects or at least 2 (two) grade-II works or 3 (three) grade-III works of the same type;
c/ Class III: Having participated in specialized construction survey of at least 3 (three) group-C projects or at least 2 (two) grade-III works or 3 (three) grade-IV works of the same type.
3. Construction survey scope:
a/ Class I: Being eligible to act as construction survey manager for all project groups and work grades in the same field and of the same type recorded in the practice certificate;
b/ Class II: Being eligible to act as construction survey manager for group-B projects, and works of grade II and lower grades in the same field and of the same type recorded in the practice certificate;
c/ Class III: Being eligible to act as construction survey manager for group-C projects, and works of grade III and lower grades in the same field and of the same type recorded in the practice certificate.
Article 47.Construction planning design practice certificates
1. To be granted a construction planning design practice certificate, an individual must possess a bachelor’s or a higher degree in architecture, planning or other disciplines suitable to the requirement of the plan and meet the following conditions corresponding to each class:
a/ Class I: Having worked as chief designer or chief design appraiser in his/her specialty for at least 1 (one) inter-provincial construction plan, 2 (two) provincial construction plans, 3 (three) inter-district construction plans, 5 (five) district construction plans, or 5 (five) general plans for construction of particular-function zones;
b/ Class II: Having worked as chief designer or chief design appraiser in his/her specialty for at least 1 (one) provincial construction plan, 2 (two) inter-district construction plans, 3 (three) district construction plans, or 3 (three) general plans for construction of particular-function zones;
c/ Class III: Having designed or appraised designs related to his/her specialty for at least 1 (one) district construction plan, 3 (three) general plans for construction of particular-function zones, or 5 (five) rural construction plans.
2. Operation scope:
a/ Class I: Being eligible to work as manager or chief in his/her specialty of construction plans;
b/ Class II: Being eligible to work as manager or chief in his/her specialty of provincial, inter-district or district plans or general plans for construction of particular-function zones with a population equivalent to that of urban centers of grade II and lower grades, zoning plans and detailed plans for construction of particular-function zones, and rural construction plans;
c/ Class III: Being eligible to work as manager or chief in his/her specialty of district plans, zoning plans and detailed plans for construction of particular-function zones, and rural construction plans.
Article 48.Construction design practice certificates, construction design appraisal certificates
1. Construction design practice certificates shall be granted for the following fields:
a/ Architectural design of works;
b/ Interior-exterior design of works; landscape design;
c/ Structural design of works;
d/ Electrical-electrical mechanic design of works;
dd/ Water supply and drainage design;
e/ Air ventilation and heat supply and dissipation design;
g/ Information and communications network design in construction works;
h/ Fire prevention and fighting design.
2. To be granted a certificate for construction design practice, an individual must meet the following conditions:
a/ Class I: Having worked as chief designer or design appraiser or design appraisal manager for activities related to the practice certificate applied for, of at least 2 (two) grade-II works, and having made or appraised designs of at least 1 (one) work of grade I or higher grades of the same types as those of works specified in the practice certificate;
b/ Class II: Having worked as chief designer or design appraiser or design appraisal manager for activities related to the practice certificate applied for, of at least 5 (five) grade-III works, and having made or appraised designs of at least 1 (one) work of grade II or higher grades of the same types as those of works specified in the practice certificate;
c/ Class III: Having made or appraised designs relevant to the practice certificate applied for, of at least 3 (three) grade-III works or at least 5 (five) grade-IV works of the same types as those of works specified in the practice certificate.
3. Operation scope:
a/ Class I: Being eligible to work as design or appraisal manager or chief designer or appraiser for works of the same types as those of works specified in his/her practice certificate. Being eligible to work as manager of formulation of all project groups of the same types as those of projects specified in his/her practice certificate;
b/ Class II: Being eligible to work as design or appraisal manager or chief designer or appraiser for works of grade II or lower grades of the same types as those of works specified in his/her practice certificate; being eligible to work as manager of formulation of group-B and group-C projects of the same types as those of projects specified in his/her practice certificate;
c/ Class III: Being eligible to work as chief designer or appraiser or design or appraisal manager for works of grades III and IV of the same types as those of works specified in his/her practice certificate; being eligible to work as manager of formulation of group-C projects of same types as those of projects specified in his/her practice certificate.
Article 49.Construction supervision practice certificates
1. Construction supervision practice certificates shall be granted for the following fields:
a/ Construction and finishing supervision;
b/ Equipment installation supervision;
c/ Technological equipment installation supervision;
2. To be granted a construction supervision practice certificate, an individual must meet the following conditions:
a/ Class I: Having directly supervised activities related to the practice certificate applied for, of at least 1 (one) grade-I work or at least 2 (two) grade-II works of the same type;
b/ Class II: Having directly supervised construction or worked as chief designer or construction leader for activities related to the practice certificate applied for, of at least 1 (one) grade-II work or at least 2 (two) grade-III works of the same type;
c/ Class III: Having directly supervised or designed or appraised designs of, or constructed, at least 1 (one) grade-III work or 2 (two) grade-IV works of the same type.
3. Operation scope:
a/ Class I: Being eligible to work as chief supervisor directly supervising construction of all grades of works of the same types as those of works specified in his/her practice certificate;
b/ Class II: Being eligible to work as chief supervisor directly supervising works of grade II and lower grades, supervising certain parts of grade-I works of the same types as those of works specified in his/her practice certificate;
c/ Class III: Being eligible to work as chief supervisor directly supervising works of grade III and lower grades, supervising certain parts of grade-II works of the same types as those of works specified in his/her practice certificate.
Article 50.Construction quality inspection practice certificates
1. To be granted a construction quality inspection practice certificate, an individual must meet the following conditions:
a/ Class I: Possessing a class-I construction supervision practice certificate; a class-I construction design certificate; having worked as chief quality inspector or chief designer or directly supervised the construction of at least 1 (one) grade-I work or at least 2 (two) grade-II works of the same types as those of works for which a certificate is applied;
b/ Class II: Possessing a class-II construction supervision practice certificate; a class-II construction design certificate; having worked as chief quality inspector or chief designer or directly supervised the construction of at least 1 (one) grade-II work or at least 2 (two) grade-III works of the same types as those of works for which a certificate is applied;
c/ Class-III: Possessing a class-III construction supervision practice certificate; a class-III construction design certificate; having worked as chief quality inspector or chief designer or directly supervised the construction of at least 2 (two) grade-III works or at least 3 (three) grade-IV works of the same types as those of works for which a certificate is applied.
2. Operation scope:
a/ Class I: Being eligible to work as chief quality inspector of all works of the same types as those of works specified in his/her practice certificate;
b/ Class II: Being eligible to work as chief quality inspector of works of grade II and lower grades of the same types as those of works specified in his/her practice certificate;
c/ Class III: Being eligible to work as chief quality inspector of works of grades III and IV of the same types as those of works specified in his/her practice certificate.
Article 51.Construction safety practice certificates
1. To be granted a construction safety practice certificate, an individual must meet the following conditions:
a/ Class I: Having directly constructed works or worked as full-time occupational safety officer at construction site for at least 1 (one) grade-I work or 2 (two) grade-II works;
b/ Class II: Having directly constructed works or worked as full-time occupational safety officer at construction site for at least 1 (one) grade-II work or 2 (two) grade-III works;
c/ Class III: Having directly constructed works or worked as full-time occupational safety officer at construction site for at least 1 (one) grade-III work or 2 (two) grade-IV works.
2. Operation scope:
a/ Class I: Being eligible to take charge of occupational safety work or to work as full-time occupational safety officer in the construction of works of all grades;
b/ Class II: Being eligible to take charge of occupational safety work or to work as full-time occupational safety officer in the construction of works of grade I and lower grades;
c/ Class III: Being eligible to take charge of occupational safety work or to work as full-time occupational safety officer in the construction of grade-II and grade-III works.
Article 52.Construction valuation practice certificates
1. An individual possessing a construction valuation practice certificate may take charge of the following construction cost management tasks:
a/ Determining and appraising total construction investment; analyzing risks and assessing investment effectiveness of projects;
b/ Determining investment rates, construction norms, construction prices of works, and construction price indexes;
c/ Measuring construction volume;
d/ Determining and appraising construction cost estimates;
dd/ Determining bidding package and contract prices in construction activities;
e/ Controlling construction costs;
g/ Compiling and appraising dossiers of payment and finalization of construction investment and converting construction investment after completion of acceptance test, handover and putting of works to operation and use.
2. Conditions for an individual to be granted a construction valuation certificate:
a/ Class I: Having participated in construction cost management or taken charge of estimating total investment of at least 1 (one) group-A project or 3 (three) group-B projects, or made construction cost estimates of at least 2 (two) grade-I works or 5 (five) grade-II works;
b/ Class II: Having participated in construction cost management or taken charge of estimating total investment of at least 1 (one) group-B project or 3 (three) group-C projects, or made construction cost estimates of at least 1 (one) grade-I works, 3 (three) grade-II works or 10 (ten) grade-III works;
c/ Class III: Having participated in estimating total investment of at least 1 (one) group-C project or 2 (two) construction investment economic-technical reports, or made construction cost estimates of at least 2 (two) grade-III works or 10 (ten) grade-IV works.
3. Operation scope:
a/ Class I: Being eligible to take charge of construction valuation consultancy for all project groups and work grades;
b/ Class II: Being eligible to take charge of construction valuation consultancy for projects of group B and lower groups and works of grade I and lower grades;
c/ Class III: Being eligible to take charge of construction valuation consultancy for group-C projects, projects requiring construction investment economic-technical reports and works of grade II and lower grades.
Article 53.Conditions on construction site commanders
1. To work as construction site commander, an individual must meet the following conditions corresponding to each class:
a/ Class I: Possessing a class-I construction supervision consultancy practice certificate or construction safety practice certificate; having worked as construction site commander in the construction of at least 1 (one) grade-I work or 2 (two) grade-II works of the same type;
b/ Class II: Possessing a class-II construction supervision consultancy practice certificate or construction safety practice certificate; having worked as construction site commander in the construction of at least 1 (one) grade-II work or 2 (two) grade-III works of the same type;
c/ Class III: Possessing a class-III construction supervision consultancy practice certificate or construction safety practice certificate; having worked as construction site commander in the construction of at least 1 (one) grade-III work or 2 (two) grade-IV works of the same type.
2. Operation scope:
a/ Class I: Being eligible to work as construction site commander for all grades of works of the same type;
b/ Class II: Being eligible to work as construction site commander for works of grade II and lower grades of the same type;
c/ Class III: Being eligible to work as construction site commander for works of grade III or grade IV of the same type.
Article 54.Capacity conditions on project managers
1. Project managers of specialized or regional project management units, project management consultants, project owners directly managing projects, and single-project management units must fully satisfy the capacity conditions prescribed in this Article.
2. A project manager must possess construction qualifications meeting the project requirements, possess a project management certificate, and meet the following conditions corresponding to each class:
a/ Class-I project manager: Possessing a class-I design practice certificate or construction supervision practice certificate or having worked as project manager of 1 (one) group-A project or 2 (two) group-B projects of the same type or as class-I construction site commander;
b/ Class-II project manager: Possessing a class-II design practice certificate or construction supervision practice certificate or having worked as project manager of 1 (one) group-B project or 2 (two) group-C projects of the same type or as class-II construction site commander;
c/ Class-III project manager: Possessing a class-III design practice certificate or construction supervision practice certificate or having worked as project manager of 1 (one) group-C project or as grade-III construction site commander.
3. Operation scope:
a/ Class-I project manager: Being eligible to work as project manager for all project groups;
b/ Class-II project manager: Being eligible to work as project manager of group-B and group-C projects;
c/ Class-III project manager: Being eligible to work as project manager of group-C projects and projects that require only construction investment economic-technical reports.
Article 55.Dossiers of application for construction practice certificates
A dossier of application for a construction practice certificate must comprise:
1. An application for a construction practice certificate, made according to the form provided by the Ministry of Construction.
2. Copies of professional training degrees and certificates granted by lawful institutions.
3. A declaration of working experience in construction activities related to the field of the practice certificate applied for, made according to the form provided by the Ministry of Construction, enclosed with copies of contracts related to construction activities that he/she has involved in as declared. The declarant shall take responsibility for the truthfulness and accuracy of his/her declaration.
Article 56.Test for grant of construction practice certificates
1. A test must include 2 parts related to the field of practice:
a/ Professional knowledge;
b/ Legal knowledge.
2. Testing organization:
a/ The practice certificate-granting agency shall form a council for organizing the test;
b/ The council of test for grant of practice certificates must be composed of the representative of the practice certificate-granting agency as chairperson and standing member of the council; representative(s) of related professional associations; and senior specialists in the field to be tested who are invited by the council chairperson;
c/ The Ministry of Construction shall uniformly manage construction practice certificates nationwide by issuing and managing certificate numbers and publicly posting lists of holders of construction practice certificates on its website.
3. The Ministry of Construction shall issue detailed regulations on the council of test for grant of practice certificates; and the form, time and content of test for grant and re-grant of construction practice certificates.
Section 2
CONSTRUCTION CAPACITY CONDITIONS OF
ORGANIZATIONS
Article 57.General conditions
1. Possessing a business registration certificate granted or an establishment decision issued by a competent agency as prescribed by law.
2. The contents of the application for a construction capacity certificate must conform to the business registration certificate granted or the establishment decision issued by a competent agency as prescribed by law.
3. Individuals holding key positions must have labor contracts with the organization applying for a construction capacity certificate.
4. For particular projects or works, such as nuclear power plants, toxic chemical plants or explosive plants, in addition to possessing practice certificates required for their work, individuals holding key positions shall participate in training courses related to the particular fields of their projects.
5. The construction capacity certificate of organizations must be valid for 5 (five) years at most. Within 20 (twenty) days from the date the certificate changes or expires, re-grant procedures shall be carried out.
Article 58.Grant of construction capacity certificates
1. A dossier of application for a construction capacity certificate must comprise:
a/ An application for a construction capacity certificate, made according to the form provided by the Ministry of Construction;
b/ A copy of the business registration certificate or the establishment decision;
c/ A list and professional experiences of individuals holding key positions enclosed with their practice certificates and labor contracts, made according to a set form;
d/ A declaration of professional experience of the organization that includes at least 3 (three) typical latest tasks in each field relevant to the registration;
dd/ A declaration of financial capacity; machinery, equipment and computer software as required for each registered field;
e/ The performance management process; and a quality management system corresponding to each registered field.
2. Competence to grant construction capacity certificates:
a/ The specialized construction agency of the Ministry of Construction shall grant class-I construction capacity certificates;
b/ Provincial-level Departments of Construction shall grant class-II and class-III construction capacity certificates to organizations headquartered in administrative areas under their management.
3. The Ministry of Construction shall issue detailed regulations on dossiers of application; forms of certificates; methods and process for grant and re-grant of construction capacity certificates.
Article 59.Capacity certificates of construction survey organizations
1. Class I:
a/ Having at least 3 (three) persons possessing class-I construction survey practice certificates relevant to the field in which the certificate is applied for;
b/ Having at least 10 (ten) persons in the quality management system of the construction survey organization who possess professional qualifications and skills relevant to the form of construction survey for which the certificate is applied;
c/ Having conducted construction survey for at least 1 (one) group-A project; 1 (one) grade-I work, or construction surveys of the same form for 2 (two) group-B projects or 2 (two) works of grade II or higher grade.
2. Class II:
a/ Having at least 3 (three) persons possessing class-II construction survey practice certificates relevant to the field in which the certificate is applied for;
b/ Having at least 10 (ten) persons in the quality management system of the construction survey organization who possess professional qualifications and skills relevant to the form of construction survey for which the certificate is applied;
c/ Having conducted construction survey for at least 1 (one) group-B project; 1 (one) grade-II work or construction surveys of the same form for 2 (two) group-C projects or 2 (two) works of grade III or higher grade.
3. Class-III:
a/ Having at least 3 (three) persons possessing class-III construction survey practice certificates relevant to the field in which the certificate is applied for;
b/ Having at least 5 (five) persons in the quality management system of the construction survey organization who possess professional qualifications and skills relevant to the form of construction survey for which the certificate is applied.
4. Operation scope:
a/ Class I: Being eligible to conduct construction survey for all projects and work grades of the same type;
b/ Class II: Being eligible to conduct construction survey for projects of group B and lower groups and works of grade II and lower grades of the same type;
c/ Class III: Being eligible to conduct construction survey for projects of group C and lower groups and works of grade III and lower grades of the same type.
Article 60.Capacity certificates of construction planning consultancy organizations
1. Class I:
a/ Having at least 10 (ten) persons possessing class-I construction planning practice certificates; persons in charge of specialized tasks possessing class-I practice certificates relevant to their professional tasks;
b/ Having at least 30 (thirty) persons having qualifications relevant the type of construction planning registered for the grant of the construction planning capacity certificate;
c/ Having made at least 1 (one) provincial construction plan or 2 (two) general plans for the construction of grade-I urban centers or 2 (two) construction plans of particular-type zones.
2. Class II:
a/ Having at least 10 (ten) persons possessing class-II construction planning practice certificates; persons in charge of specialized tasks possessing class-II practice certificates relevant to their professional tasks;
b/ Having at least 20 (twenty) persons having qualifications relevant the type of construction planning registered for the grant of the construction planning capacity certificate;
c/ Having made at least 1 (one) inter-district construction plan or 2 (two) general plans for the construction of grade-II urban centers or 2 (two) construction plans of particular-type zones.
3. Class-III:
a/ Having at least 5 (five) persons possessing class-III construction planning practice certificates; persons in charge of specialized tasks possessing class-III practice certificates relevant to their professional tasks;
b/ Having at least 10 (ten) persons having qualifications relevant the type of construction planning registered for the grant of the construction planning capacity certificate.
4. Operation scope:
a/ Class I: Being eligible to formulate all types of construction plans;
b/ Class II: Being eligible to formulate provincial, inter-district and district construction plans, general plans for construction of urban centers of grade II and lower grades, provincial plans of particular-type zones, detailed construction plans and rural construction plans;
c/ Class III: Being eligible to formulate district construction plans, general plans for construction of urban centers of grade IV and lower grades, district plans of particular-function zones, detailed construction plans and rural construction plans.
Article 61.Capacity certificates of construction design and construction design appraisal organizations
1. Class I:
a/ Having at least 10 (ten) persons possessing class-I design certificates relevant to types of works for which the certificate is applied; persons in charge of specialized designs possessing class-I design certificates relevant to their tasks;
b/ Having at least 15 (fifteen) persons in the quality management system of the construction design organization who have professional qualifications and skills relevant to types of works registered for the grant of the capacity certificate;
c/ Having made or appraised designs of at least 1 (one) grade-I work or 2 (two) grade-II works of the same type.
2. Class II:
a/ Having at least 10 (ten) persons possessing class-II design certificates relevant to types of works for which the certificate is applied; persons in charge of specialized designs possessing class-II design certificates relevant to their tasks;
b/ Having at least 10 (ten) persons in the quality management system of the construction design organization who have professional qualifications and skills relevant to types of works registered for the grant of the capacity certificate;
c/ Having made designs of at least 1 (one) grade-II work or 2 (two) grade-III works of the same type.
3. Class III:
a/ Having at least 5 (five) persons possessing class-III design certificates relevant to types of works for which the certificate is applied; persons in charge of specialized designs possessing class-III design certificates relevant to their tasks;
b/ Having at least 5 (five) persons in the quality management system of the construction design organization who have professional qualifications and skills relevant to types of works registered for the grant of the capacity certificate.
4. Operation scope:
a/ Class I: Being eligible to design, and appraise designs of, works of all grades of the same type;
b/ Class II: Being eligible to design, and appraise designs of, works of grade II and lower grades;
c/ Class III: Being eligible to design, and appraise designs of, works of grade III and lower grades.
Article 62.Capacity certificates of construction investment project formulation and appraisal organizations
1. Class I:
a/ Having at least 3 (three) persons qualified to work as manager of formulation of group-A projects for the type of projects for which the certificate is applied;
b/ Persons in charge of specialized matters of the project possessing class-I practice certificates relevant to their tasks;
c/ Having at least 30 (thirty) persons who possess professional qualifications and skills relevant to the type of projects registered for the grant of the project formulation capacity certificate;
d/ Having formulated and appraised at least 1 (one) group-A project or 2 (two) group-B projects of the same type.
2. Class II:
a/ Having at least 3 (three) persons qualified to work as manager of formulation of group-B projects for the type of projects for which the certificate is applied;
b/ Persons in charge of specialized matters of the project possessing class-II practice certificates relevant to their tasks;
c/ Having at least 20 (twenty) persons who possess professional qualifications and skills relevant to the type of projects registered for the grant of the project formulation capacity certificate;
d/ Having formulated and appraised at least 1 (one) group-B project or 2 (two) group-C projects of the same type.
3. Class III:
a/ Having at least 3 (three) persons qualified to work as manager of formulation of group-C projects for the type of projects for which the certificate is applied;
b/ Persons in charge of specialized matters of the project possessing class-III practice certificates relevant to their tasks;
c/ Having at least 10 (ten) persons who possess professional qualifications and skills relevant to the type of projects registered for the grant of the project formulation capacity certificate.
4. Operation scope:
a/ Class I: Being eligible to formulate and appraise projects of the same type;
b/ Class II: Being eligible to formulate and appraise projects of group B and lower groups of the same type;
c/ Class III: Being eligible to formulate and appraise group-C projects and construction investment economic-technical reports of the same type.
Article 63.Capacity certificates of project management consultancy organizations
1. Class I:
a/ Having at least 3 (three) persons qualified to work as group-A project managers;
b/ Persons in charge of specialized matters possessing class-I practice certificates relevant to their tasks;
c/ Having at least 20 (twenty) persons in the quality management system of the consultancy organization or project management unit who possess professional qualifications and skills relevant to the type of projects registered for the grant of the capacity certificate;
d/ Having managed at least 1 (one) group-A project or 2 (two) group-B projects of the same type.
2. Class II:
a/ Having at least 3 (three) persons qualified to work as group-B project managers;
b/ Persons in charge of specialized matters possessing class-II practice certificates relevant to their tasks;
c/ Having at least 15 (fifteen) persons in the quality management system of the consultancy organization or project management unit who possess professional qualifications and skills relevant to the type of projects registered for the grant of the capacity certificate;
d/ Having managed at least 1 (one) group-B project or 2 (two) group-C projects of the same type.
3. Class III:
a/ Having at least 3 (three) persons qualified to work as managers of group-C projects of the same type;
b/ Persons in charge of specialized matters possessing class-III practice certificates relevant to their tasks;
c/ Having at least 10 (ten) persons in the quality management system of the consultancy organization or project management unit who possess professional qualifications and skills relevant to the type of projects registered for the grant of the capacity certificate.
4. Operation scope:
a/ Class I: Being eligible to manage projects of the same type;
b/ Class II: Being eligible to manage projects of group B and lower groups of the same type;
c/ Class III: Being eligible to manage group-C projects and works requiring only construction investment economic-technical reports.
Article 64.Capacity conditions on project management units
1. Specialized or regional project management units attached to ministries, ministerial-level agencies, provincial-level People’s Committees or state economic groups or corporations must meet the following conditions:
a/ Project managers satisfy the capacity conditions prescribed in Clause 2, Article 54 of this Decree;
b/ Persons in charge of specialized matters possess practice certificates suitable to the project size, work grade and their tasks;
c/ There are at least 20 (twenty) persons who possess professional qualifications and skills suitable to each specialized project.
2. Specialized or regional project management units attached to district-level People’s Committees must meet the following conditions
a/ Project managers satisfy the capacity conditions prescribed in Clause 2, Article 54 of this Decree;
b/ Persons in charge of specialized matters possess practice certificates suitable to the project size, work grade and their tasks;
c/ There are at least 10 (ten) persons who possess professional qualifications suitable to each specialized project.
3. Single-project management units must meet the following conditions:
a/ Project managers must satisfy the capacity conditions prescribed in Clause 2, Article 54 of this Decree;
b/ Persons in charge of specialized matters possess practice certificates suitable to the project size, work grade and their tasks;
c/ There are at least 10 (ten) persons who possess professional qualifications suitable to each specialized project.
Article 65.Capacity certificates of construction organizations
1. Class I:
a/ Having at least 3 (three) persons qualified to work as class-I construction site commander for construction works of the same type;
b/ Persons in charge of specialized construction activities possessing bachelor’s degree or vocational college degree relevant to their tasks and at least 3 (three) years’ working experience, for those with bachelor’s degree, or at least 5 (five) years of working experience, for those with vocational college degree;
c/ Having at least 15 (fifteen) persons in the quality management system and occupational safety management who possess professional qualifications and skills suitable to the type of works;
d/ Having at least 30 (thirty) technical workers who possess professional training certificates relevant to the content registered for the grant of the capacity certificate;
dd/ Being capable of mobilizing sufficient main machinery and equipment meeting construction requirements of works suitable to their tasks;
e/ Having acted as main construction contractor for at least 1 (one) grade-I work or 2 (two) grade-II works of the same type.
2. Class II:
a/ Having at least 2 (two) persons qualified to work as class-II construction site commander for construction works of the same type;
b/ Persons in charge of specialized construction activities possessing college, vocational college or vocational secondary school degree relevant to their tasks and at least 3 (three) years’ working experience;
c/ Having at least 10 (ten) persons in the quality management system and occupational safety management who possess professional qualifications and skills suitable to the type of works;
d/ Having at least 20 (twenty) technical workers who possess professional training certificates relevant to the content registered for the grant of the capacity certificate;
dd/ Having acted as main construction contractor for at least 1 (one) grade-II work or 2 (two) grade-III works of the same type.
3. Class III:
a/ Having at least 1 (one) person qualified to work as class-III construction site commander for construction works of the same type;
b/ Persons in charge of specialized construction activities possessing vocational qualifications relevant to their tasks;
c/ Having at least 5 (five) persons in the quality management system and occupational safety management who possess professional qualifications and skills suitable to the type of works;
d/ Having at least 5 (five) technical workers who possess professional training certificates relevant to the content registered for the grant of the capacity certificate.
4. Operation scope:
a/ Class I: Being eligible to construct works of all grades of the same type;
b/ Class II: Being eligible to construct works of grade II and lower grades of the same type;
c/ Class III: Being eligible to construct works of grade III and lower grades of the same type.
Article 66.Capacity certificates of construction supervision and quality inspection organizations
1. Class I: Having at least 10 (ten) persons who possess class-I construction supervision and quality inspection certificates relevant to the field of construction supervision.
2. Class II: Having at least 10 (ten) persons who possess class-II construction supervision and quality inspection certificates relevant to the field of construction supervision.
3. Class III: Having at least 5 (five) persons who possess class-III construction supervision and quality inspection certificates relevant to the field of construction supervision and quality inspection.
4. Operation scope:
a/ Class I: Being eligible to supervise and inspect construction of works of all grades of the same type;
b/ Class II: Being eligible to supervise and inspect construction of works of grade II and lower grades of the same type;
c/ Class III: Being eligible to supervise and inspect construction of works of grade III and lower grades of the same type;
Article 67.Capacity certificates of construction cost management consultancy organizations
1. Class I:
a/ Having at least 5 (five) persons who possess class-I construction valuation practice certificates;
b/ Having at least 15 (fifteen) persons who possess professional qualifications relevant to the construction cost management;
c/ Having managed costs of at least 2 (two) group-A projects or 5 (five) group-B projects.
2. Class II:
a/ Having at least 3 (three) persons who possess class-II construction valuation practice certificates;
b/ Having at least 10 (ten) persons who possess professional qualifications relevant to the construction cost management.
3. Class III:
a/ Having at least 3 (three) persons who possess class-III construction valuation practice certificates;
b/ Having at least 5 (five) persons who possess professional qualifications relevant to the construction cost management.
4. Operation scope:
a/ Class I: Being eligible to perform construction cost management for all projects;
b/ Class II: Being eligible to perform construction cost management for projects of group B and lower groups;
c/ Class III: Being eligible to perform construction cost management for projects of group C and projects that require only construction investment economic-technical reports.
Article 68.Conditions on construction training institutions
1. The following institutions are entitled to provide training in construction activities: professional secondary and higher-degree training institutions; training institutions for officials of ministries, ministerial-level agencies; non-business units of the State; construction associations and societies; and other institutions as considered and recognized by the Ministry of Construction.
2. Physical foundations serving training in construction activities:
a/ Sizes and conveniences of classrooms are appropriate to the number of trainees and equipment meets teaching and learning requirements;
b/ There are laboratories or video tapes for presentation of construction experiments.
3. Lecturers:
a/ A construction training institution must have at least 40% of lecturers on its payroll or having indefinite-term contracts over the total number of lecturers involved in lecturing;
b/ Criteria: Having bachelor’s or higher degree in disciplines relevant to their lectures; lecturers involved in lecturing having at least 7 (seven) years’ working experience in project management, construction economic management; survey, design; construction; construction supervision; and study and teaching about construction disciplines;
c/ Lecturers having their declarations of professional qualifications and experience posted on the website of the Ministry of Construction.
4. Teaching materials:
a/ Teaching materials shall be printed, bound and enclosed with test paper sets of the training program;
b/ Contents of teaching materials are appropriate to the frame program prescribed by the Ministry of Construction.
5. Management of training institutions:
a/ Having a management apparatus that satisfies professional requirements for provision of training courses, preservation of trainee records and documents related to the training;
b/ Having a process for managing and controlling quality of training;
c/ Having persons in charge of training courses who have at least 5 (five) years’ experience in provision of training courses in construction activities.
6. The Ministry of Construction shall issue detailed regulations on regular and irregular inspections of construction training institutions, and the frame program for construction training.
Article 69.Posting of information on capacity of organizations participating in construction activities
1. Organizations participating in construction activities shall provide their construction capacity information to specialized construction agencies for posting on these agencies’ websites. The competence to receive and post information is prescribed below:
a/ The specialized construction agency of the Ministry of Construction shall receive and post information of organizations and individuals participating in construction activities in projects of national importance, group-A projects, and works of grade I and higher grades; wholly foreign-owned organizations, foreigners participating in construction activities in Vietnam; and organizations under the management of ministries, ministerial-level agencies, government-attached agencies, central agencies, and state economic groups and corporations;
b/ Provincial-level Departments of Construction shall receive and post information of organizations participating in construction activities having head offices based in the localities under their management and individuals to whom they have granted practice certificates (other than organizations and individuals specified at Point a of this Clause).
2. Within 30 (thirty) days after receiving dossiers of request for information posting from the organizations, the specialized construction agencies shall, as decentralized, consider, appraise and post information about construction capacity of the organizations on their websites.
3. Information about construction capacity serving as the basis for the selection of organizations and individuals participating in construction activities includes:
a/ Construction planning;
b/ Construction investment project formulation and appraisal;
c/ Construction investment project management; construction cost management of construction investment projects using state budget funds;
d/ Construction survey;
dd/ Construction designing and cost estimation; construction design and cost estimate appraisal;
e/ Construction experiments;
g/ Construction supervision;
h/ Construction;
i/ Quality inspection and assessment of construction works.
4. The Ministry of Construction shall issue detailed regulations on dossiers and process of posting information about construction capacity.
Section 3
GRANT OF CONSTRUCTION OPERATION LICENSES TO FOREIGN CONTRACTORS
Article 70.Principles of management of activities of foreign contractors
1. A foreign contractor may only conduct construction activities in Vietnam after obtaining a construction operation license granted by a construction state management agency.
2. Activities of a foreign contractor in Vietnam must comply with Vietnamese law and relevant treaties which Vietnam has signed or acceded to.
Article 71.Conditions for grant of construction operation licenses
1. A foreign contractor participating in construction activities prescribed in Clause 3, Article 69 of this Decree shall post information on the websites of the Ministry of Construction and provincial-level Department of Construction as decentralized.
2. If bidding packages are compelled to comply with Vietnamese law on bidding, the foreign contractor shall satisfy the condition that there is a decision on its winning bid or selection for the contract.
3. If bidding packages are not compelled to comply with Vietnamese law on bidding, the foreign contractor must satisfy the following conditions:
a/ It has a decision on its winning bid or selection for the contract, issued by the project owner;
b/ It is qualified to perform the contract in accordance with the law on construction.
4. The foreign contractor shall enter into a partnership with a Vietnamese contractor or employ Vietnamese subcontractors, unless Vietnamese contractors are not qualified to perform any tasks of the bidding package. Upon the entry into a partnership or employment of Vietnamese contractors, the content, volume and value of tasks performed by Vietnamese contractors in the partnership or by Vietnamese subcontractors shall be clearly determined.
5. The foreign contractor shall undertake to fully comply with Vietnamese laws concerning contract performance in Vietnam.
Article 72.Dossiers of application for construction operation licenses and the competence to grant construction operation license
1. A foreign contractor shall send a dossier of application directly or by post to the agency granting construction operation licenses, comprising:
a/ An application for a construction operation license (made according to the form prescribed by the Ministry of Construction);
b/ A certified true copy of the document on bidding results or decision on lawful contractor selection;
c/ A certified true copy of the establishment license or business registration certificate, for institutions, and practice certificate (if any) of the foreign contractor granted by the country of its/his/her citizenship;
d/ A report on operating experience related to the contracted work and a summarization report on financial audits within 3 (three) latest years (for the case prescribed in Clause 3, Article 71 of this Decree);
dd/ A partnership contract with a Vietnamese contractor or an official or in-principle contract with the Vietnamese subcontractor to perform the contracted work (included in the bid dossier);
e/ A lawful power of attorney, for the person who is not the at-law representative of the contractor.
2. The application for a construction operation license shall be made in Vietnamese. The foreign establishment license or business registration certificate shall be consularly legalized, unless the treaty to which Vietnam and the relevant country are contracting parties provides for exemption from consular legalization. If documents prescribed at Points b, c, dd and e, Clause 1 of this Article are made in foreign languages, they shall be translated into Vietnamese and the translations shall be notarized or certified in accordance with Vietnamese law.
3. Competence to grant construction operation licenses:
a/ The specialized construction agency of the Ministry of Construction shall grant construction operation licenses to foreign contractors to perform contracts of group-A projects and construction investment projects located in two or more provinces;
b/ Provincial-level Departments of Construction shall grant construction operation licenses to foreign contractors to perform contracts of group-B and group-C projects located their respective provinces.
Article 73.Time limit and fee for grant of construction operation licenses
1. The specialized construction agencies specified in Clause 3, Article 72 of this Decree shall consider the dossiers of application for construction operation licenses for foreign contractors within 20 (twenty) days after receiving the complete dossiers prescribed in Article 72 of this Decree. If refusing to grant a license, the agency competent to grant construction operation licenses shall issue a written reply clearly stating the reason to the contractor.
2. Upon receiving a construction operation license, the foreign contractor shall pay a fee as prescribed by the Ministry of Finance.
3. The construction operation license shall be invalided in following cases:
a/ The contract is completed and liquidated;
b/ The contract ceases to be invalid when the foreign contractor is suspended from operation, is dissolved, falls bankrupt or for other reasons as prescribed by Vietnamese law and the law of the country of its/his/her citizenship.
Article 74.Rights and obligations of the foreign contractor
1. The foreign contractor has the following rights:
a/ To request functional agencies to give guidance on compilation of dossiers of application for construction operation licenses and other issues related to the foreign contractor’s activities as prescribed in this Decree;
b/ To lodge denunciations and complaints about violations of organizations and individuals performing the tasks prescribed in this Decree;
c/ To have its/his/her lawful business interests protected in Vietnam according to its/his/her contract permit.
2. The foreign contractor has the following obligations:
a/ To register the address, phone number, fax and email of the executive office and the representative in the contract performance with concerned agencies as prescribed by the provincial-level People’s Committee of the place where the project is located. If performing bidding packages of construction planning formulation, construction investment project formulation, construction survey or construction design, the foreign contractor may register the above information in localities other than the locality where the project is located.
After registering the above information, the contractor shall notify such information directly or by post to the Ministry of Construction, the Ministry of Public Security, the Ministry of Finance, the Ministry of Industry and Trade, the State Bank of Vietnam, and the provincial-level People’s Committee of the place where the construction work is located, according to the guidance of the Ministry of Construction;
b/ To register the seal of the executive office with the provincial-level Department of Public Security of the place where the construction work is located. The foreign contractor may only use this seal for the contract performance in Vietnam as prescribed in its contract permit. When the contract is completed, the foreign contractor shall return the seal to the granting agency;
c/ To register and pay taxes in accordance with Vietnamese law, implement the accounting regime, open accounts, and make payments under the guidance of the Ministry of Finance and the State Bank of Vietnam to serve its business activities under the contract;
d/ To recruit employees and employ Vietnamese and foreign workers in accordance with Vietnam’s labor law.
The foreign contractor may only send to Vietnam economic management specialists, technical management specialists and workers with high skills that Vietnam is unable to supply.
Foreigners working for the foreign contractor in Vietnam shall comply with Vietnamese law on exit and entry, temporary or permanent residence registration and application for work permits in accordance with Vietnam’s labor law;
dd/ To carry out procedures for export and import of materials, machinery and equipment related to the contract performed in Vietnam in accordance with Vietnamese law and under the guidance of the Ministry of Industry and Trade, including:
Registering temporary import for re-export of materials, machinery and equipment for construction;
Registering list of imported materials, fuel and equipment in complete and synchronous sets for the work under the contract;
e/ To perform partnership contracts concluded with the Vietnamese contractor or employ Vietnamese subcontractors stated in the dossier of application for a construction operation license;
g/ To buy insurance in accordance with Vietnamese law for contractors’ tasks, including professional liability insurance for construction consultancy contractors; asset and cargo insurance for procurement contractors; various types of insurance for construction contractors and other insurance policies as prescribed by Vietnamese law;
h/ To register for quality inspection of imported materials and equipment supplied under the contract;
i/ To register for inspection of construction equipment safety and means of transport related to business activities of the foreign contractor as prescribed by Vietnamese law;
k/ To conform to regulations on standards, criteria, construction quality management, occupational safety and environmental protection and other relevant Vietnamese regulations;
l/ To make reports as required in the construction operation license;
m/ When the work is completed, to compile as-built documents; to take responsibility for warranty; to settle exported materials and equipment; to handle unused materials and equipment in the construction contract in accordance with regulations on import and export; to re-export materials and equipment registered under the regime of temporary import for re-export; and to liquidate the contract. Concurrently, to notify related state management agencies of the contract termination and shutdown of the executive office.
Article 75.Responsibilities of the project owner to the foreign contractor
The project owner shall:
1. Only sign the contract with the foreign contractor that has been granted the construction operation license by a competent state agency; guide the foreign contractor in complying with this Decree and relevant laws; support the foreign contractor in preparation of documents related to the work that the foreign contractor is required to declare in the dossier of application for a contract permit and relevant procedures as prescribed by Vietnamese law. Together with the foreign contractor register the export and import of materials, machinery and equipment related to the contract performance under the foreign contractor’s responsibility as prescribed in this Decree.
2. Supervise the foreign contractor to properly implement the commitments in the partnership contract with the Vietnamese contractor or employment of Vietnamese subcontractors as prescribed in Article 71 of this Decree.
3. Consider the capacity of domestic construction equipment supply before agreeing with the list of construction machinery and equipment that the foreign contractor seeks permission for temporary import for re-export.
4. Consider the capacity of technical labor supply in Vietnam before reaching agreement with the contractor on the list of foreign staff working for the foreign contractor applying for entry into Vietnam to perform the tasks under the contract of the foreign contractor.
5. Certify the final settlement of imported materials and machinery of the foreign contractor upon completion of the construction work.
6. When employing foreign contractors for project management consultancy and construction quality supervision, send written notices of the functions and tasks these foreign contractors will perform on behalf of the project owner to other contractors and construction quality management agencies.
Chapter V
IMPLEMENTATION PROVISIONS
Article 76.Implementation responsibility
1. The Ministry of Construction shall:
a/ Perform uniform state management of contents within the scope of regulation of this Decree. Guide and inspect the implementation of this Decree by related ministries, sectors, agencies and organizations;
b/ Direct and inspect their attached specialized agencies in the appraisal of projects, basic designs, designs and construction cost estimates of civil works, works of light industries, works of building material industry, technical infrastructure and transport works in urban centers (excluding urban railways, river bridges, and highway sections running through urban centers).
2. Ministries managing specialized construction works shall direct and inspect their attached specialized construction agencies in the appraisal of projects, basic designs, designs and construction cost estimates of specialized construction investment projects, specifically as follows:
a/ The Ministry of Transport, for transport works (excluding works managed by the Ministry of Construction prescribed at Point b, Clause 1 of this Article);
b/ The Ministry of Agriculture and Rural Development, for agriculture and rural development works;
c/ The Ministry of Industry and Trade, for mining and petroleum works, power plants, power transmission lines, power substations, and specialized industrial works (excluding works of light industries);
d/ The Ministry of National Defense or the Ministry of Public Security, for national defense or security works.
3. The Ministry of Finance shall issue detailed regulations on fees and charges for project appraisal; basic design appraisal; design and construction cost estimate appraisal; grant of construction operation licenses to foreign contractors, grant of construction capacity certificates to organizations; test for grant of construction practice certificates; insurance for construction investment activities; accounting regime and use of funds of construction investment project management units.
4. The Ministry of Planning and Investment shall issue detailed regulations on supervision and evaluation of construction investment projects using public investment funds; and the mechanism of operation of the state appraisal council of construction investment projects.
5. Provincial-level People’s Committees shall perform the state management of contents within the scope of regulation of this Decree in their localities as decentralized; decide on decentralization of the competence to appraise projects, basic designs, designs and construction cost estimates of works under their competence; direct and inspect provincial-level Departments managing specialized construction works in the appraisal of projects, basic designs, designs and construction cost estimates of specialized construction works, specifically as follows:
a/ Provincial-level Departments of Construction, for civil works, works of light industries, works of building material industry, and technical infrastructure and transport works in urban centers (excluding urban railways, river bridges, and highway sections running through urban centers).
b/ Provincial-level Departments of Transport, for transport works (excluding works appraised by the Departments of Construction prescribed at Point a of this Clause);
c/ Provincial-level Departments of Agriculture and Rural Development, for agriculture and rural development works;
d/ Provincial-level Departments of Industry and Trade, for mining and petroleum works, power plants, power transmission lines, power substations and specialized industrial construction works.
6. District-level People’s Committees shall perform state management of contents within the scope of regulation of this Decree in their districts as decentralized; direct and inspect their attached divisions in charge of construction management in the appraisal of projects, designs and construction cost estimates of works as decentralized by provincial-level People’s Committees.
7. Ministries, sectors, provincial-level People’s Committees, and state economic groups and corporations shall establish or reorganize specialized and regional project management units in order to manage construction investment projects using state budget funds or non-budget state funds under their management as prescribed in this Decree. When finding it necessary to issue documents specifically guiding the contents prescribed in this Decree, they shall reach agreement with the Ministry of Construction before issuing them.
8. Ministries managing specialized construction works, provincial-level People’s Committees, and state economic groups and corporations shall quarterly send appraisal reports of projects, designs and construction cost estimates to the Ministry of Construction for summarization and monitoring. The reports shall be made according to a form set by the Ministry of Construction.
Article 77.Transitional handling
1. For basic design dossiers that were submitted to competent state agencies for opinion, and construction designs that were submitted to specialized construction agencies for appraisal before January 1, 2015, the 2003 Law on Construction shall continue to apply. Approval of adjustments to projects or designs after January 1, 2015, must comply with the 2014 Law on Construction.
2. Works that were commenced before January 1, 2015, and are not required to have construction permits may be further constructed. For works that have not yet been commenced and are required to have construction permits, construction permits shall be applied for in accordance with this Decree.
3. Construction practice certificates already granted by competent state agencies may be further used until they expire. Conversion of these practice certificates before their expiry dates must comply with this Decree. After March 1, 2016, individuals who need to use practice certificates shall carry out the application procedures as prescribed in this Decree.
4. Construction training institutions already certified by the Ministry of Construction may continue operating. After January 1, 2016, any training institution that wishes to provide construction training courses shall register for recognition and announcement on the website of the Ministry of Construction as prescribed in this Decree.
5. Organizations participating in construction activities prescribed in the 2014 Law on Construction that are required to possess construction capacity certificates must obtain those certificates before March 1, 2016, as prescribed in this Decree.
Article 78.Effect
1. This Decree takes effect on August 5, 2015, and replaces the Government’s Decree No. 12/2009/ND-CP of February 12, 2009, on management of construction investment projects; Decree No. 83/2009/ND-CP of October 15, 2009, amending and supplementing a number of articles of Decree No. 12/2009/ND-CP; Decree No. 64/2012/ND-CP of September 4, 2012, on the grant of construction permits; provisions on appraisal of designs in Decree No. 15/2013/ND-CP of February 6, 2013, on quality management of construction works; Decree No. 71/2005/ND-CP of June 6, 2005, on management of particular-work construction investment; provisions of Section 1, Chapter II of Decree No. 37/2010/ND-CP of April 7, 2010, on formulation, appraisal, approval and management of urban planning; the Prime Minister’s Decision No. 87/2004/QD-TTg of May 19, 2004, issuing the Regulation on management of activities of foreign contractors in the field of construction in Vietnam; Decision No. 03/2012/QD-TTg of January 16, 2012, amending and supplementing a number of articles of the Regulations on management of activities of foreign contractors in the field of construction in Vietnam issued together with Decision No. 87/2004/QD-TTg; and Decision No. 39/2005/QD-TTg of February 28, 2005, guiding the implementation of Article 121 of the Law on Construction. All regulations of the Government, ministries, ministerial-level agencies and localities which are contrary to this Decree shall be annulled.
2. The Minister of Construction shall guide and organize the implementation of this Decree.-
On behalf of the Government
Prime Minister
NGUYEN TAN DUNG
APPENDIX I
Classification of construction investment projects
(To the Government’s Decree No. 59/2015/ND-CP of June 18, 2015)
No. | Types of construction investment projects | Total investment |
I | PROJECTS OF NATIONAL IMPORTANCE | |
| 1. By total investment: | |
| Projects using public investment funds | VND 10 trillion and higher |
| 2. By degree of impact on the environment or potential serious impact on the environment, including: a/ Nuclear power plants; b/ Use of land requesting changes in land use purpose of national parks, nature reserves, protected landscape areas, scientific research and experiment forests of at least 50 hectares; riverhead protection forests of at least 50 hectares; windbreak, sand break, wave break, sea encroachment or environment protection forests of at least 500 hectares; or production forests of at least 1,000 hectares; c/ Use of paddy land currently under at least two crops requesting changes in the land use purpose, of at least 500 hectares; d/ Relocation of at least 20,000 people in mountainous areas or at least 50,000 people in other areas; dd/ Projects that require special mechanisms and policies to be decided by the National Assembly. | Regardless of total investment |
II | GROUP-A PROJECTS | |
II.1 | 1. Projects located in localities with special national relics. 2. Projects located in localities of special importance to national defense and security as prescribed by the national defense and security law. 3. National defense and security projects involving state secrets. 4. Projects manufacturing noxious substances or explosives. 5. Projects of industrial park or export processing zone infrastructure. | Regardless of total investment |
II.2 | 1. Transport, including bridges, seaports, river ports, airports, railways and highways. 2. Electrical industry. 3. Oil and gas exploitation. 4. Chemical, fertilizer, cement. 5. Mechanical manufacture, metallurgy. 6. Mineral exploitation and processing. 7. Residential area construction. | VND 2,300 billion or higher |
II.3 | 1. Transport projects, excluding projects specified at Point 1 of Section II.2. 2. Irrigation. 3. Water supply and drainage and technical infrastructure works. 4. Electrical engineering. 5. Manufacturing of communication and electronics equipment. 6. Pharmaceutical chemistry. 7. Material manufacture, excluding projects specified at Point 4 of Section II.2. 8. Mechanical construction, excluding projects specified at Point 5 of Section II.2. 9. Post and telecommunications. | VND 1,500 billion and higher |
II.4 | 1. Agricultural production, forestry, aquaculture. 2. National parks, nature reserves. 3. New urban center technical infrastructure. 4. Industry, excluding industrial projects specified in Sections I.1, I.2 and I.3. | VND 1 trillion and higher |
II.5 | 1. Health, culture, education. 2. Scientific research, informatics, radio and television broadcast. 3. Warehouses. 4. Tourism, physical training and sports. 5. Civil construction, excluding housing construction specified in Section II.2. | VND 800 billion and higher |
III | GROUP-B PROJECTS | |
III.1 | Projects specified in Section II.2. | Between VND 120 billion and VND 2,300 billion |
III.2 | Projects specified in Section II.3. | Between VND 80 billion and VND 1,500 billion |
III.3 | Projects specified in Section II.4. | Between VND 60 billion and VND 1 trillion |
III. 4 | Projects specified in Section II.5. | Between VND 45 billion and VND 800 billion |
IV | GROUP-C PROJECTS | |
IV.1 | Projects specified in Section II.2. | Under VND 120 billion |
IV.2 | Projects specified in Section II.3. | Under VND 80 billion |
IV.3 | Projects specified in Section II.4. | Under VND 60 billion |
IV.4 | Projects specified in Section II.5. | Under VND 45 billion |
THE END