Integrated document No. 43/VBHN-VPQH dated February 27, 2025 Law on Construction
|
THE OFFICE OF
THE NATIONAL ASSEMBLY |
THE SOCIALIST
REPUBLIC OF VIETNAM |
|
No. 43/VBHN-VPQH |
Hanoi, February 27, 2025 |
LAW ON CONSTRUCTION
The Law on Construction No. 50/2014/QH13 date June 18, 2014 of the National Assembly, which has been effective since January 01, 2015, is amended by:
1. The Law No. 03/2016/QH14 dated November 22, 2016 of the National Assembly on amendment and supplement to Article 6 and Annex 4 on the List of conditional business lines stipulated in the Law on Investment No. 67/2014/QH13, which has been effective since January 01, 2017;
2. The Law No. 35/2018/QH14 dated November 20, 2018 of the National Assembly on amendments to some articles concerning planning of 37 laws, which has been effective since January 01, 2019;
3. The Law on Architecture No. 40/2019/QH14 dated June 13, 2019 of the National Assembly, which has been effective since July 01, 2020;
4. The Law No. 62/2020/QH14 dated June 17, 2020 of the National Assembly on amendments before the law on Construction, which has been effective since January 01, 2021.
5. The Law on Cultural Heritage No. 45/2024/QH15 dated November 23, 2024 of the National Assembly, which comes into force from July 01, 2025;
6. The Law on Urban and Rural Planning No. 47/2024/QH15 dated November 26, 2024 of the National Assembly, which comes into force from July 01, 2025;
7. The Law on Fire and Rescue No. 55/2024/QH15 dated November 29, 2024 of the National Assembly, which comes into force from July 01, 2025;
8. The Law on Electricity No. 61/2024/QH15 dated November 30, 2024 of the National Assembly, which has been effective since February 01, 2025.
Pursuant to the Constitution of the Socialist Republic of Vietnam;
The National Assembly hereby promulgates the Law on Construction.
Chapter I
GENERAL PROVISIONS
Article 1. Scope
This Law prescribes the rights, obligations and responsibilities of agencies, organizations and individuals and the state management of construction investment activities.
Article 2. Regulated entities
This Law applies to domestic agencies, organizations and individuals; foreign organizations and individuals conducting construction investment activities in the territory of Vietnam.
In case a treaty to which the Socialist Republic of Vietnam is a signatory contains provisions different from those of this Law, the provisions of that treaty shall prevail.
Article 3. Interpretation of terms
For the purpose of this Law, the terms below shall be construed as follows:
1. “construction investment pre-feasibility study report” means a document presenting a preliminary study’s contents, including the necessity, feasibility and efficiency of construction investment, which serves as a basis for decision on or approval for the construction investment policy.
2. “construction investment feasibility study report” means a document presenting a study’s contents, including the necessity, feasibility and efficiency of construction investment in accordance with the selected fundamental design plan, which serves as a basis for consideration of and decision on investment in construction.
3. “construction investment economic-technical report” means a document presenting the contents including the necessity, feasibility and efficiency of investment in construction in accordance with the construction drawing design plan for small-sized works, which serves as a basis for consideration of and decision on investment in construction.
4. “specialized construction work-managing ministry” means a ministry tasked with managing the investment in construction of works in the construction sector under its management in accordance with regulations laid down herein.
5. “red-line boundary” means a boundary drawn on the planning map and on the field for the purpose of demarcating the land on which works are permitted to be constructed and the land reserved for roads or technical infrastructure works and other public spaces.
6. “construction boundary” means the boundary marking the limits within which main works are permitted to be constructed on a land plot.
7. (repealed)
8. (repealed)
9. “construction project owner” (below referred to as “project owner”) means an agency, organization or individual that owns capital, borrows capital or is assigned to directly manage and use capital to conduct construction investment activities.
10. “construction work” means a product constructed according to design, created by human labor and with building materials and equipment installed therein, and affixed to land, which possibly includes underground and surface components, underwater and water surface components.
11. “construction level” means the compulsory minimum construction height selected in conformity with the planning for the foundation and rainwater drainage height.
12. “construction state management agencies” (hereinafter referred to as “construction agencies”) include the Ministry of Construction, People’s Committees of provinces or central-affiliated cities (below collectively referred to as “provincial People’s Committees”) and People’s Committees of rural districts, urban districts, district-level towns or provincial cities (below collectively referred to as “district People’s Committees”).
13. “specialized construction agency” means an agency assigned to manage the construction and affiliated to a specialized construction work-managing ministry, provincial People’s Committee; district People’s Committee; management board of an industrial park, export processing zone, hi-tech park or economic zone.
14. “specialized agency affiliated to an investment decision maker” means an agency or organization which has expertise relevant to the nature and contents of a project and is tasked by the investment decision maker with appraisal.
15. “construction investment project” means a collection of proposals concerning use of capital for construction, repair or renovation of a construction work with a view to developing, maintaining and raising the quality of the work or a product or service within a certain period of time and at fixed costs. At the stage of construction investment project preparation, the project shall be demonstrated in a construction investment pre-feasibility study report, the construction investment feasibility study report or construction investment economic-technical report.
15a. “urban area construction investment project” means a construction investment project whose functions are to serve mixed purposes and synchronize technical infrastructure and social infrastructure with housing construction works or other construction works according to the urban and rural planning which has been approved by a competent authority for construction, repair or renovation of an urban area.
16. (repealed)
17. “construction permit” means a legal document granted by a competent state agency to a project owner for construction, repair, renovation or relocation of a work.
18. “definite term construction permit” means a construction permit granted for construction of a work or single dwelling within a certain period of time.
19. “phased construction permit” means a construction permit granted to every part of a work or every work of a project when the construction design of the work or project is yet to be completely implemented.
20. “construction investment activities” means a process of conducting construction activities including construction, repair and renovation of construction works.
21. “construction activities” comprise the formulation of urban and rural construction planning, formulation of projects on investment in construction of works, construction survey, construction design, execution of construction works, construction supervision, project management, selection of contractors, acceptance and transfer of works for operation, warranty and maintenance of construction works and other activities related to construction of works.
22. (repealed)
23. “technical infrastructure system” includes works for health care, culture, education, sports, commercial and public services, trees, parks and other works.
24. “construction investment consultancy activities” comprise the formulation of urban and rural construction planning, formulation of projects on investment in construction of works, construction survey, design, verification, inspection, testing, management of projects, construction supervision and other consultancy jobs related to construction investment activities.
25. (repealed)
26. “formulation of a construction investment project” includes the preparation of a construction investment pre-feasibility study report (if any), a construction investment feasibility study report or a construction investment economic-technical report and the performance of jobs necessary for preparation for investment in construction.
27. “investment decision maker” means a person or legal representative of an agency, organization or enterprise who is competent to approve projects and make the decision on construction investment.
28. “contractor in construction investment activities” (below referred to as “the contractor”) means an organization or individual satisfying all conditions concerning capability for construction activities or capability for construction practice when participating in a contractual relationship in construction investment activities.
29. (repealed)
30. (repealed)
31. (repealed)
32. (repealed)
33. (repealed)
34. “construction works incident” means a breakdown beyond the allowable safety limit which puts the construction work or supporting structures for execution of the construction work in danger of collapse or breakdown of part or whole of the work in the course of execution of the construction work or exploitation and use of the work.
35. “general construction contractor” means a contractor signing a contract directly with a project owner to undertake one or some jobs or all jobs of a construction investment project.
36. “appraisal” means the inspection and assessment, by the investment decision maker, project owner or specialized construction agency, of necessary contents in the course of preparing and implementing a construction investment project in accordance with regulations laid down herein, including the appraisal made by the investment decision maker or project owner to issue the construction investment decision and give approval for construction design, and the appraisal made by the specialized construction agency to control the compliance with laws and regulations by entities involved in construction activities.
37. “verification” means the professional examination and assessment by an organization or individual satisfying all conditions concerning capability for construction activities or capability for construction practice of necessary contents in the course of preparing and implementing a construction investment project to form a basis for the appraisal work.
38. “execution of a work” includes the construction and installation of equipment in a newly built, repaired, renovated, relocated, embellished or restored work; dismantlement of a work; warranty and maintenance of a construction work.
39. “equipment installed in a work” includes work equipment and technological equipment. Work equipment means equipment installed in a construction work according to its construction design. Technological equipment means equipment included in the technological chain installed in a work according to its technological design.
40. “preliminary design” means a design made in the construction investment pre-feasibility study report, demonstrating the initial ideas on the design of a construction work, preliminary selection of technological lines and equipment to form a basis for determining a construction investment policy.
41. “fundamental design” means a design which is made in the construction investment feasibility study report on the basis of the selected design plan, demonstrating the principal technical specifications suitable for applicable standards and technical regulations and serves as a basis for proceeding with the subsequent design steps.
42. “technical design” means a design which concretizes the fundamental design after the work construction investment project is approved in order to fully demonstrate solutions, technical specifications and materials to be used in conformity with applicable standards and technical regulations and serves as a basis for producing a drawing design for execution of a construction work.
43. “drawing design for execution of a construction work” means a design which fully demonstrates the technical specifications, materials to be used and structural details in conformity with applicable standards and technical regulations, ensuring that all conditions for executing a construction work are met.
44. (repealed)
45. (repealed)
46. “danger zones in execution of construction works” mean areas within or around the construction site where potential hazards may occur and cause harm or damage to human, construction works, property, equipment and/or facilities during the construction process, which is determined according to standards, technical regulations and measures for organizing execution of construction works.
Article 4. Basic principles of construction investment activities
1. Ensure the compliance of work construction investment with planning and designs, landscape and environmental protection; the suitability for natural and social conditions and cultural characteristics of each locality; ensure the stable life of people; combine socio-economic development with national defense and security, disaster management, and response to climate change.
2. Rationally use resources and natural resources in areas where the project is located, ensuring proper purposes, subjects and sequence of investment in construction.
3. Comply with standards and technical regulations, regulations on the use of building materials; meet the demands of people with disabilities, the elderly and children for convenient and safe access to works at public works or high-rise buildings; apply science and technology and information systems to construction works during construction investment activities.
4. Ensure the quality, schedule and safety of works, human lives and health and property; fire and explosion prevention and fighting; and environmental protection.
5. Ensuring synchronous construction of each work and synchronous construction of technical and social infrastructure works.
6. Organizations and individuals involved in construction activities must satisfy capacity requirements as prescribed; assume responsibility for quality of works performed as prescribed by this Law.
7. Ensure the publicity, transparency, thrift and efficiency; prevent and combat corruption, waste, loss and other negative practices during construction investment activities.
8. Clearly define the function of state management in construction investment activities from the function of management of investment decision makers, project owners suitable to each type of sources of capital used.
9. When performing construction investment activities, managing and operating construction works, and developing building materials, technical and managerial solutions must be adopted to ensure thrift and efficient use of energy and natural resources, and environmental protection.
Article 5. Types and grades of construction works
1. Types of construction works shall be determined by structural characteristics and functions of construction works.
2. Grades of construction works shall be determined for each type of construction works, including:
a) Grades of construction works serving the management of construction investment activities as prescribed by this Law shall be determined based on their sizes, importance and technical specifications, including special grade, grade I, grade II, grade III and grade IV, except for the case specified in point b of this Clause;
b) Grades of construction works serving the construction design are provided for in standards and technical regulations. Grades of construction works serving other management tasks shall be determined in accordance with relevant laws.
3. The Government shall elaborate types of construction works.
4. The Minister of Construction shall elaborate grades of construction works prescribed in point a clause 2 of this Article.
Article 6. Application of standards and technical regulations in construction investment activities
1. Construction investment activities must comply with national technical regulations.
2. Standards shall be applied in construction investment activities on the voluntary principle, excluding standards referred to in technical regulations or other relevant legislative documents.
3. Standards applicable to works shall be considered and approved by investment decision makers when deciding the investment.
4. The application of standards must satisfy the following requirements:
a) Conform to the requirements of national technical regulations and relevant laws;
b) Ensure the synchronism and feasibility of the system of standards to be applied.
5. The application of technical solutions, technologies and new materials in construction investment activities must satisfy requirements of the national technical regulations and relevant laws.
6. The Ministry of Construction and specialized construction work-managing ministries shall formulate standards and national technical regulations applicable to specialized construction works in accordance with the law on standards and technical regulations.
Article 7. Project owners
1. The project owner shall be determined before the formulation of or upon the approval of a project or in other cases as prescribed by relevant laws.
2. Depending on the sources of capital used for a project, the project owner shall be specifically determined as follows:
a) For a project using public investment capital, the project owner shall be determined in accordance with the provisions in clause 3 of this Article and the Law on Public Investment;
b) For a project using state capital as prescribed by relevant laws (hereinafter referred to as “project using non-public investment state capital”), the project owner is the agency or organization assigned by the investment decision maker to manage and use the capital for construction investment;
c) For a project to be implemented in the public-private partnership form (hereinafter referred to as “PPP project”), the project owner is the PPP project enterprise established in accordance with the provisions of the law on investment in public-private partnership form;
d) For a project which uses lawful sources of investment capital of organizations and individuals, is other than the one prescribed in point a, b or c of this clause (hereinafter referred to as “project using other capital”) and must be implemented by a project owner as prescribed by the law on investment, the project owner is the investor approved by a competent authority. Where multiple investors involve in the project, they may establish an organization or authorize a qualified investor to act as the project owner. If relevant laws stipulate the selection and certification of project owner, such selection and certification of project owner must meet relevant conditions and comply with relevant laws;
dd) For projects other than those prescribed in points a, b, c and d of this clause, project owners shall be the owners of investment capital.
3. Based on the specific conditions of projects using public investment capital, the investment decision makers shall assign the specialized or regional construction investment project management boards to act as project owners. Where a project management board is not available or it is not qualified to act as a project owner, the investment decision maker shall select an agency or organization that fully meets experience and managerial capacity requirements to act as the project owner.
4. Project owners shall take responsibility before the law, investment decision makers and competent state agency within the bounds of their rights and obligations prescribed in this Law and relevant laws.
Article 8. Monitoring and evaluation of construction investment projects
1. Construction investment projects shall be monitored and evaluated as suitable to each source of capital as follows:
a) For projects using public investment capital, competent state agencies shall conduct the monitoring and evaluation in accordance with the law on public investment and law on construction according to the approved evaluation contents and criteria;
b) For projects using other capital sources, competent state agencies shall conduct the monitoring and evaluation of objectives, conformity with relevant master plans, land use, construction investment schedule and environmental protection.
2. Infrastructure construction investment projects using public investment capital, capital contributed by the community and donations from organizations and individuals shall be subject to community supervision.
Within the ambit of their tasks and powers, the Vietnamese Fatherland Front of the area in which construction is carried out shall organize the community supervision.
3. The Government shall elaborate this Article.
Article 9. Insurance in construction investment activities
1. Insurance in construction investment activities shall include:
a) Work insurance during the construction period;
b) Professional liability insurance for construction investment consultancy;
c) Insurance for supplies, materials, means and equipment for execution of construction works and for employees;
d) Third-party civil liability insurance;
dd) Construction work warranty insurance.
2. Responsibility to buy compulsory insurance in construction investment activities is prescribed as follows:
a) Project owners shall buy work insurance during the construction period for works affecting the community safety, environment, works bound by special technical requirements and complex conditions for execution of construction works;
b) Consultancy contractors shall buy professional liability insurance for construction investment consultancy with regard to construction survey or construction design of construction works of grade II or higher grade;
c) Construction contractors shall buy insurance for employees involved in execution of construction works on construction sites and third-party civil liability insurance.
3. Project owners, consultancy contractors and construction contractors are encouraged to buy types of insurance in construction investment activities, except for the case specified in clause 2 of this Article.
4. The Government shall elaborate the responsibility to buy compulsory insurance, the conditions binding upon extent of cover insurance premiums, minimum amounts required for insurance coverage which the insured and insurers are obliged to comply with.
Article 10. Incentives in construction investment activities
1. Incentives are provided for construction investment activities which are performed to conserve, embellish and promote the value of historical and cultural relics, cultural heritage sites, beliefs and religion; for construction of social housing; and for construction investment activities performed under planning in mountainous areas, islands, areas facing exceptionally difficult socio-economic conditions and areas adversely affected by climate change.
2. Stakeholders of all economic sectors in construction investment activities shall be treated equal before the law, encouraged and enabled in construction investment activities; contractors with works to which the State offers an award for the construction work quality shall be given priority when they participate in bidding in construction activities.
3. A number of public services provided by state management agencies in construction investment activities shall be gradually transferred to fully capable and qualified socio-professional organizations for provision.
4. The State provide incentives for research and application of advanced science and technology, application of information technology to construction investment activities; investment in construction and certification of construction works economically and efficiently using energy and natural resources, and meeting environmental protection requirements; development of eco-cities and smart cities, response to climate change and sustainable development.
Article 11. International cooperation in construction investment activities
1. Domestic organizations and individuals are encouraged to expand international cooperation in construction investment activities, transfer of technologies, techniques, managerial experiences and use of new materials.
2. The State shall protect Vietnamese construction brands overseas; facilitate and work out measures to promote the conclusion and implementation of treaties and international agreements in construction investment activities between domestic organizations or individuals and foreign organizations or individuals on the basis of ensuring the fundamental principles in construction investment activities prescribed in Article 4 of this Law.
Article 12. Prohibited acts
1. Deciding construction investment in contravention of the provisions of this Law.
2. Starting the construction of a work when conditions therefor prescribed in this Law are yet to be fully met.
3. Constructing works in areas in which construction is prohibited; constructing works which encroach upon the protection corridors of national defense, security, traffic or irrigation works, flood control systems, energy facilities, historical and cultural relics and protection zones of other works prescribed by law; constructing works in areas with landslide or flash flood hazard, except works built to deal with such hazard.
4. Constructing works at variance with urban and rural planning, unless there is a definite term construction permit; in violation of construction boundaries or construction levels; constructing works at variance with granted construction permits.
5. Formulating, appraising and approving designs and cost estimates of construction works using public investment capital, non-public investment state capital in contravention of this Law.
6. A contractor participating in construction activities when failing to fully satisfy the conditions concerning capability for construction activities.
7. A project owner selecting a contractor that fails to fully satisfy the conditions concerning capability for construction activities.
8. Constructing works at variance with the standards and technical regulations selected to be applied to such works.
9. Manufacturing or using building materials detrimental to the community’s health and the environment.
10. Violating regulations on occupational safety, property, fire and explosion prevention and fighting, security, order and environmental protection in construction.
11. Using works for improper purposes or functions; building, expanding or encroaching upon spaces which are being lawfully managed or used by another organization or individual and of public areas and common areas.
12. Giving or taking bribes in construction investment activities; abusing other juridical persons to participate in construction activities; making arrangements or entering into collusion to falsify the results of formation of a project, survey, design or supervision of execution of construction works.
13. Abusing a position or power to violate the law on construction; concealing or delay in dealing with acts of violating of the law on construction.
14. Obstructing lawful construction investment activities.
Chapter II (repealed)
Chapter III
CONSTRUCTION INVESTMENT PROJECTS
Section 1. GENERAL PROVISIONS
Article 49. Classification of construction investment projects
1. Construction investment projects shall be classified by the size, importance, functions and characteristics of construction works, management purposes; sources of capital and investment forms.
2. Based on their sizes and importance, construction investment projects are classified as projects of national importance, group-A projects, group-B projects and group-C projects according to the criteria prescribed by the law on public investment.
3. Based on functions and characteristics of the construction works, and management purposes, construction investment projects are classified as follows:
a) Investment projects on construction of civil works;
b) Investment projects on construction of industrial works;
c) Investment projects on construction of technical infrastructure works;
d) Investment projects on construction of traffic works;
dd) Investment projects on construction of agricultural and rural development works;
e) Investment projects on construction of national defense and security works;
g) Housing and urban area construction investment projects, and other construction investment projects that have mixed functions.
Based on funding sources and investment forms, construction investment projects are classified as follows:
4. Based on funding sources and investment forms, construction investment projects are classified as follows:
a) Projects using public investment capital;
b) Projects using non-public investment state capital;
c) PPP projects;
d) Projects using other capital.
5. A construction investment project may use one or more sources of capital, and comprise a single or multiple works of different types and grades.
6. The Government shall elaborate this Article.
Article 50. Sequence of construction investment
1. The sequence of construction investment shall comprise 03 stages, namely project preparation, project implementation and construction completion for putting of the project’s work into operation, except the construction of single dwellings.
2. The division of a construction investment project into constituent projects and investment phasing shall comply with the following provisions:
a) A construction investment project may be divided into constituent projects if each of the constituent projects can operate independently. Such constituent projects shall be managed as independent projects. The division of a project using public investment capital into constituent projects shall comply with provisions of the law on public investment. The division of other projects into constituent projects shall be decided by the investment decision makers before the formulation of projects or when issuing investment decisions, and must ensure the fulfillment of requirements specified in the decisions on or approvals for investment policies or the compliance with relevant laws (if any), unless otherwise prescribed by law;
b) The investment phasing is specified in construction investment feasibility study reports and construction investment decisions, and must be conformable with the progress and time for project implementation specified in decisions on or approvals for investment policies.
3. Based on the specific conditions of projects, investment decision makers shall decide the implementation by taking turns, mixture or alternation of tasks at the stages of project implementation and construction completion to put works into operation.
Article 51. Requirements applicable to construction investment projects
A construction investment project, regardless of its capital sources, must satisfy the following requirements:
1. Conform to national planning, regional planning, provincial planning, planning under the law on urban and rural planning, land use plan and planning in the locality where the investment project is executed.
2. Having appropriate technological and construction design plans.
3. Ensuring quality and safety during construction, operation, exploitation and use of works, fire and explosion prevention and fighting, environmental protection and response to climate change.
4. Ensuring the adequate allocation of capital according to the schedule of the project, financial efficiency and socio-economic efficiency of the project.
5. Complying with other relevant provisions of law.
Section 2. FORMULATION AND APPRAISAL OF PROJECTS AND DECISION ON CONSTRUCTION INVESTMENT
Article 52. Formulation of construction investment projects
1. Upon investment in construction, a project owner or agency or organization tasked with project preparation shall make a construction investment feasibility study reports, except the cases prescribed in clauses 3 and 4 of this Article. Contents of the construction investment feasibility study report must conform to the requirements of each type of project. The formulation of the construction investment feasibility study report must comply with the regulations laid down herein and relevant laws.
2. Before making construction investment feasibility study reports, construction investment pre-feasibility study reports shall be formulated according to the following provisions:
a) For projects of national importance, Group A projects using public investment capital; PPP projects under regulations of law on investment in public-private partnership form; projects subject to investment policy approval by the National Assembly or the Prime Minister as prescribed by the Law on Investment, electricity projects that organize bidding to select investors in accordance with the Electricity Law, the formulation of a construction investment pre-feasibility study report is compulsory;
b) For projects other than those prescribed in point a of this Clause, the formulation of construction investment pre-feasibility study reports shall be decided by the investment decision maker;
c) Procedures for formulation and appraisal of construction investment pre-feasibility study reports shall comply with the provisions of the law on public investment, the law on investment in the public-private partnership form and relevant laws;
d) Contents of construction investment pre-feasibility study reports must comply with the provisions in Article 53 hereof, except those of PPP projects.
3. Construction investment projects shall only require a construction investment economic-technical reports to be prepared in the following cases:
a) Construction works used for religious purposes;
b) Small-scale construction works and other works prescribed by the Government.
4. Upon construction of a single dwelling of a household or individual, neither construction investment pre-feasibility study report nor construction investment economic-technical report is required.
Article 53. Contents of construction investment pre-feasibility study reports
1. The necessity of the investment and conditions for construction investment.
2. Projected objectives, scale, location and form of construction investment.
3. Demand for land and natural resources.
4. Preliminary design plan for construction, explanations, technology, techniques and appropriate equipment.
5. Projected time for project implementation.
6. Preliminary total investment, capital raising plan; ability to recover capital and repay loans (if any); preliminary determination of socio-economic efficiency and evaluation of the project’s impacts.
7. Preliminary assessment of environmental impacts as prescribed in the law on environmental protection and other contents as prescribed in relevant laws.
Article 54. Contents of construction investment feasibility study reports
1. A fundamental design shall be made to achieve the project’s objectives, suit construction works of the project, ensure synchronism between works when they are put into operation. A fundamental design must comprise explanations and drawings expressing the following contents:
a) The construction location, direction of the route of works, list, scale, types and grades of works on the construction site layout plan;
b) Selected technological, technical and equipment plans (if any);
c) Architectural solutions, site plan, cross-sections and elevations of works and their sizes and main structures;
d) Construction solutions, major materials to be used, estimated construction cost of every work;
dd) Plan for connection of technical infrastructures inside and outside works, fire and explosion prevention and fighting solutions;
e) Applicable standards and technical regulations and construction survey results for making of a fundamental design.
2. Other contents of a construction investment feasibility study report include:
a) Necessity for investment and investment policy, construction investment objectives, location of construction and land area to be used, scale, capacity and the form of investment in construction;
b) Capability to ensure factors for project implementation such as use of resources, selection of equipment and technology, employment of labor, technical infrastructure, product consumption, requirements for exploitation and use, implementation period, plan on construction land clearance, resettlement (if any), solutions for organization and management of project implementation, operation and use of works and environmental protection;
c) Assessment of the project’s impacts related to land appropriation, land clearance and resettlement; protection of landscape and ecological environment and safety during construction, fire and explosion prevention and fighting, and other necessary contents;
d) Total investment and capital raising, financial analysis, risks, expenses for exploitation and use of works, evaluation of socio-economic efficiency of the project; recommendations on coordination mechanism, incentives and support for project implementation;
d1) In addition to the contents prescribed in points a, b, c and d of this clause, the construction investment feasibility study report of a housing or urban area construction investment project shall also contain information about types of houses and fulfillment of social housing requirements (if any). The construction investment feasibility study report of an urban area construction investment project must also contain explanations for measures for synchronous construction of technical and social infrastructure facilities within the project, connection of these facilities with those outside the project, and transfer of the construction work. The Government shall elaborate this point;
dd) Other relevant contents.
Article 55. Contents of construction investment economic-technical reports
1. Drawing design for execution of construction works, technological designs (if any) and construction cost estimates.
2. Other contents of a construction investment economic-technical report shall include explanations for the necessity for investment, construction objectives, construction locations, land area to be used, scale, capacity and grades of works, solutions for execution of construction works, construction safety, plans for construction land clearance and environmental protection, allocation of funding for implementation, construction duration, construction investment efficiency of works.
Article 56. Appraisal of construction investment feasibility study reports and construction investment economic-technical reports
1. For projects of national importance using public investment capital, the appraisal shall comply with provisions of the law on public investment.
2. For PPP projects, the appraisal shall comply with provisions of the law on investment in the public-private partnership form. The appraisal by specialized construction agencies shall comply with the provisions in Article 58 hereof.
3. For projects other than those prescribed in clause 1 and clause 2 of this Article, the appraisal shall be carried out as follows:
a) The investment decision makers shall organize the appraisal of construction investment feasibility study reports and construction investment economic-technical reports, and assign their affiliated specialized agencies or organizations or individuals that have qualifications suitable for the nature and contents of the project in case their specialized agencies are not available (hereinafter referred to as “appraising agencies”) to appraise the contents prescribed in Article 57 hereof;
b) For projects prescribed in clause 1 Article 58 hereof, specialized construction agencies shall carry out the appraisal of the contents prescribed in clause 2 and clause 3 Article 58 hereof, except for the projects for which only construction investment economic-technical reports are required;
c) For projects with requirements on fire and explosion prevention and fighting, environmental protection, and national defense and security, projects using technologies restricted from transfer or using technologies and posing negative impacts on the environment, opinions or appraisal of competent authorities are required in accordance with relevant laws;
d) For projects subject to the provisions in point b and point c of this clause, project owners are entitled to send required documents to specialized construction agencies and competent state agencies at the same time. Appraisal results or opinions about the fulfillment of requirements on fire and explosion prevention and fighting, and environmental protection prescribed in point c of this clause shall be sent to specialized construction agencies as the basis for appraisal conclusions.
For procedures for getting opinions about fire prevention and fighting solutions included in the fundamental design dossier as prescribed by the law on fire prevention and fighting, project owners are entitled to send required documents to specialized construction agencies through the inter-agency single-window system. Specialized construction agencies shall send received documents to state competent agencies for their opinions as the basis for appraisal conclusions;
dd) Appraising agencies and specialized construction agencies are allowed to invite experienced and qualified organizations and/or individuals to join the appraisal process or request project owners to select qualified organizations and/or individuals to verify necessary contents as the basis for appraisal conclusions. Selection of qualified organizations and/or individuals to carry out the verification serving the appraisal by specialized construction agencies shall comply with the Government’s regulations. Costs of appraisal of projects and construction designs, and verification costs shall be included in total investment of the relevant project;
e) Appraising agencies shall prepare consolidated reports on the results of the tasks in points a, b, c, d and dd of this clause, and submit them to competent investment decision makers to give approval for projects or issue construction investment decisions.
4. A dossier submitted for appraisal as prescribed in clause 3 of this Article includes:
a) The project owner’s statement;
b) The construction investment feasibility study report or construction investment economic-technical report;
c) Relevant documents.
5. The Minister of National Defense and Minister of Public Security shall elaborate the power and procedures for appraisal of construction investment feasibility study reports and construction investment economic-technical reports of construction investment projects serving national defense and security purposes in conformity with particular management requirements.
Article 57. Appraisal of construction investment feasibility study reports and construction investment economic-technical reports by investment decision makers
1. For construction investment projects prescribed in point a and point c clause 1 Article 58 hereof, investment decision makers shall carry out the appraisal of the following contents:
a) The conformity with planning, objectives and scale of investment and other requirements specified in decisions on or approvals for construction investment policies;
b) The conformity of fundamental design solutions with design tasks; list of applicable standards;
c) Solutions for organizing project implementation, project owner’s experience and managerial capacity, plan on construction ground clearance, and form of project implementation;
d) Factors ensuring the project efficiency, including total investment, funding sources, capability to raise capital according to schedule, risk analysis, financial efficiency and socio-economic efficiency of the project;
dd) The conformity of technological plan (if any);
e) Other contents as prescribed by relevant laws and requested by the investment decision maker.
2. For projects using non-public investment state capital other than those prescribed in point c clause 1 Article 58 hereof, investment decision makers shall carry out the appraisal of the contents prescribed in clause 1 of this Article and clause 2 Article 58 hereof.
3. For projects using public investment capital and projects using non-public investment state capital for which only construction investment economic-technical reports are required, investment decision makers shall carry out the appraisal of the following contents:
a) The conformity with planning, objectives and scale of investment and other requirements specified in decisions on or approvals for construction investment policies;
b) The compliance of the construction drawing design with requirements on ensuring safety of the works and measures for ensuring safety of adjacent works;
c) Formulation of total investment and determination of value of total investment;
d) Solutions for organizing project implementation, plan on construction ground clearance, and form of project implementation;
dd) The conformity of technological plan (if any);
e) Other contents as prescribed by relevant laws and requested by the investment decision maker.
4. For projects using other capital, investment decision makers shall decide the contents to be appraised in conformity with investment and business requirements and relevant laws.
5. For projects using technologies restricted from transfer or using technologies and posing negative impacts on the environment as prescribed in the law on technology transfer, technologies to be applied must be appraised or commented by agencies in charge of managing sectors/fields in accordance with the Government’s regulations. Contents and time limits for appraising or commenting on technologies to be applied shall comply with provisions of the Law on technology transfer. Appraisal results or opinions given by agencies in charge of managing sectors/fields shall be sent to appraising agencies of investment decision makers for consolidation.
Article 58. Appraisal of construction investment feasibility study reports by specialized construction agencies
1. Specialized construction agencies shall carry out the appraisal of construction investment feasibility study reports of the following projects:
a) Projects using public investment capital;
b) PPP projects;
c) Construction investment projects that are classified in group B or larger, or have construction works significantly affecting the community safety and interests, and use non-public investment state capital;
d) Construction investment projects that are of large scale, or have construction works significantly affecting the community safety and interests, and use other capital.
2. For construction investment projects prescribed in points a, b and c clause 1 of this Article, specialized construction agencies shall carry out the appraisal of the following contents:
a) The compliance with law regulations on formulation of construction investment project and fundamental design; the fulfillment of conditions concerning capability for construction activities by organizations and individuals performing construction activities;
b) The conformity of the fundamental design with planning under the law on urban and rural planning, other technically specialized planning under the law on planning or the plan on the work routes and the construction location approved by state competent agencies;
c) The conformity of the project with the investment policy decided or approved by state competent agencies, implementation program or plan, and other project’s requirements as prescribed by relevant laws (if any);
d) For urban area construction investment projects, the regional infrastructure connectivity; the fulfillment of technical infrastructure requirements and assignment of responsibility to manage the works in accordance with relevant laws;
dd) The conformity of fundamental design solutions to ensuring construction safety; the fulfillment of requirements on fire and explosion prevention and fighting, and environmental protection;
e) The compliance with technical regulations and applicable standards as prescribed by the Law on standards and technical regulations;
g) The compliance with laws on determination on total investment.
3. For construction investment projects prescribed in point d clause 1 of this Article, specialized construction agencies shall carry out the appraisal of the contents prescribed in points a, b, c, d, dd and e clause 2 of this Article.
4. The Government shall elaborate large-scale construction investment projects and those having construction works significantly affecting the community safety and interests.
Article 59. Time limits for appraisal of construction investment feasibility study reports
1. The time limit for appraisal of a construction investment feasibility study report shall begin from the date on which the appraisal agency or organization receives a complete and valid dossier.
2. Time limits for appraising construction investment feasibility study reports of projects using public investment capital are as follows:
a) For projects of national importance, the appraisal time limit shall comply with provisions of the Law on public investment;
b) For group-A projects, the appraisal time limit shall not exceed 40 days, including a period for appraisal by a specialized construction agency of not exceeding 35 days;
c) For group-B projects, the appraisal time limit shall not exceed 30 days, including a period for appraisal by a specialized construction agency of not exceeding 25 days;
d) For group-C projects, the appraisal time limit shall not exceed 20 days, including a period for appraisal by a specialized construction agency of not exceeding 15 days.
3. For projects other than those prescribed in clause 2 of this Article, time limits for appraising construction investment feasibility study reports shall be considered and decided by investment decision makers. Where projects must be appraised by specialized construction agencies, periods of appraisal by specialized construction agencies shall comply with the provisions in clause 2 of this Article; for projects of national importance that do not use public investment funds, the period of appraisal by a specialized construction agency shall not exceed 80 days.
Article 60. Power to make construction investment decision
1. For projects using public investment capital, the power to make construction investment decisions shall comply with provisions of the law on public investment.
2. For state-invested construction investment projects of enterprises, the power to make construction investment decisions shall comply with provisions of the law on management and use of state capital invested in production and business activities of enterprises, and relevant laws.
3. For PPP projects, the power to make construction investment decisions shall comply with provisions of the law on investment in the public-private partnership form.
4. For projects using non-public investment state capital, except projects prescribed in clause 2 of this Article, and projects using other funds, project owners or their representatives shall make construction investment decisions or construction investment decisions shall be made in accordance with relevant laws.
Article 61. Adjustment of construction investment projects
1. Cases of adjusting construction investment projects using public investment capital and non-public investment state capital include:
a) Due to being affected by a natural disaster, environmental incident, conflict, fire or other force majeure events;
b) Upon appearance of factors which bring about higher efficiency for the project when the project owner has proved the financial or socio-economic efficiency resulting from the project adjustment;
c) When there is any change to the planning under the law on urban and rural planning which directly affects the project;
d) When the construction price index promulgated by the Ministry of Construction or the provincial People’s Committee during the project implementation is higher than the construction price index used for calculation of a reserve for inflation in the approved total investment capital of the project.
dd) The adjustment of investment policy results in adjustment of project.
2. The adjustment of projects using public investment capital and non-public investment state capital shall be decided by investment decision makers.
3. The adjustment of projects using other capital shall be decided by investment decision makers on the basis of satisfying the requirements for planning, safety, environmental protection, fire and explosion prevention and fighting, and national defense and security approved by competent state agencies.
4. If the project adjustment alters the construction objectives, scale and location of construction, the approval of the competent state agency is required.
5. Any change to a construction investment project must be appraised and approved.
6. The Government shall elaborate on formulation, appraisal, approval and adjustment of construction investment projects.
Section 3. MANAGEMENT OF IMPLEMENTATION OF CONSTRUCTION INVESTMENT PROJECTS
Article 62. Forms of organization of management of construction investment projects
1. Based on the scale, nature, funding sources and conditions for implementation of a construction investment project, the investment decision maker shall decide to apply one of the following forms of organization of project management:
a) Specialized construction investment project management board or regional construction investment project management board;
b) Single-project construction investment project management board;
c) Affiliated professional apparatuses of project owners;
d) Project management consultants.
2. Specialized construction investment project management board or regional construction investment project management board is assigned by the investment decision maker to concurrently or continuously manage a number of projects using public investment capital of the same sector or in the same locality.
3. Construction investment project management boards and construction investment project management consultancy organizations must fully satisfy capacity requirements as prescribed in Article 152 hereof.
4. The Government shall elaborate this Article.
Article 63. Specialized construction investment project management boards, regional construction investment project management boards
1. (repealed)
2. Specialized construction investment project management boards or regional construction investment project management boards shall be assigned to act as project owners of a number of projects and perform the project management functions and tasks or participate as project management consultants when necessary.
3. A specialized construction investment project management board or regional construction investment project management board has the following responsibilities:
a) Exercise the rights and perform the obligations of project owners as prescribed in Article 68 of this Law, directly manage projects assigned by the investment decision maker, and the rights and obligations prescribed in Article 69 of this Law;
b) Transfer works to the agency or unit managing their operation, exploitation or use; where necessary, directly manage their operation, exploitation or use as assigned by investment decision maker.
4. The specialized construction investment project management board or regional construction investment project management board may act as the project management consultant for other projects when so requested and exercise the rights and perform the obligations prescribed in Article 70 of this Law.
Article 64. Single-project construction investment project management boards
1. Project owners shall establish single-project construction investment project management boards to directly manage their projects.
2. A single-project construction investment project management board shall have its own seal and account, perform the tasks and exercise the powers as authorized by the project owner. The organization structure of a project management board shall comprise the director, deputy director(s) and professional staff members depending on the requirements and nature of each project. Members of the project management board shall work on a full-time or part-time basis under the project owner’s decision.
Article 65. Hiring of consultants for construction investment project management
1. A project owner shall sign a project management consultancy contract with an organization or individual fully meeting the conditions concerning capability for construction activities prescribed in this Law to perform one, some or all of the project management jobs.
2. The project owner shall supervise the project management consultancy job and may authorize the consultant to perform the project management tasks under the project management contract.
Article 66. Contents of construction investment project management
1. Contents of construction investment project management shall include management of the scope and plan for works; work volume; construction quality; implementation schedule; construction investment costs; safety during execution of construction works; environmental protection during construction; selection of contractors and construction contracts; risk control; management of the work information system and other necessary contents in accordance with this Law and other relevant laws.
2. The project owner shall undertake or assign the project management board, the project management consultant or the head contractor (if any) to perform some or all of the project management contents prescribed in clause 1 of this Article.
Article 67. Management of schedule for implementation of construction investment projects
1. The investment decision maker shall decide the period and schedule for implementation upon approval of the project. For works under projects funded by public investment capital, the schedule for execution of construction works shall not exceed the period for execution of construction works approved by the investment decision maker.
2. The project owner and contractors executing construction works shall draw up a plan for the schedule and measures for execution of construction works, and manage the project implementation according to the approved schedule for execution of construction works.
3. The project owner shall make advance payments and payments for the completed volume according to the schedule for performance of the construction contract.
4. The project owner and construction contractors are encouraged to propose and apply technical or technological solutions and organize management in a reasonable to shorten the duration of construction of works.
Article 68. Rights and obligations of project owners for formulation and management of implementation of construction investment projects
1. Project owners have the following rights:
a) Formulate and manage projects when fully meeting the capacity conditions prescribed in this Law;
b) Request related agencies and organizations to provide information and documents on project formulation and management;
c) Select, and sign contracts with, consultancy contractors for project formulation and management;
d) Organize the project formulation and management; decide the establishment and dissolution of single-project construction investment project management boards within their competence;
dd) Other rights prescribed by law.
2. Project owners have the following obligations:
a) Identify requirements and contents of project formulation tasks; provide necessary information and documents in case of hiring consultants to formulate projects; organize the acceptance of project formulation results and archive construction investment project dossiers;
b) Select project formulation consultancy organizations fully meeting the capacity conditions prescribed by this Law;
c) Take responsibility for the legal bases and accuracy of the information and documents provided to consultants for project formulation; submit projects to competent approving agencies in accordance with law;
d) Select qualified and experienced consultants being organizations or individuals to verify projects at the request of the project appraising agencies or organizations and investment decision makers;
dd) Organize the management of project implementation as prescribed in Article 66 of this Law;
e) Examine and supervise the project implementation; periodically report the project implementation to investment decision makers and competent state management agencies;
g) Recover capital and repay loans with regard to projects which require capital recovery or loan repayment;
h) Other obligations prescribed by law.
Article 69. Rights and obligations of construction investment project management boards
1. Construction investment project management boards have the following rights:
a) Exercise the rights to manage projects as authorized by project owners;
b) Propose plans and solutions for organizing project management, petition project owners for settlement of matters falling beyond their competence;
c) Hire consultants being organizations to participate in project management where necessary after investment decision makers or project owners so approves.
2. Construction investment project management boards have the following obligations:
a) Fulfill the project owners’ project management obligations within the scope of their authorization;
b) Organize the management of construction investment projects to satisfy the requirements for the schedule, quality, costs, safety and environmental protection during construction;
c) Report their work to project owners in the course of project management;
d) Be answerable for violations of law during project implementation management;
dd) Other obligations prescribed by law.
Article 70. Rights and obligations of construction investment project formulation consultancy and management contractors
1. Construction investment project formulation consultancy and management contractors have the following rights:
a) Request project owners to provide information and documents related to the assigned consultancy tasks;
b) Have their intellectual property rights over their consultancy products protected in accordance with law;
c) Reject unlawful requests of project owners;
d) Other rights stated in the contracts and prescribed by relevant laws.
2. Construction investment project formulation consultancy and management contractors have the following obligations:
a) Fulfill the obligations under the signed contracts in conformity with the conditions concerning capability for construction activities as prescribed by law;
b) Be answerable to the work quality under the signed contracts;
c) Pay compensations for damage caused to project owners upon the inappropriate use of information, documents, standards, technical regulations, technical solutions or inappropriate organization of management and breaches of contracts causing damage to project owners;
d) Discharge other obligations as stated in the contracts and prescribed by relevant laws.
Article 71. Rights and responsibilities of agencies and organizations appraising or verifying construction investment feasibility study reports and construction investment economic-technical reports
1. Appraising agencies have the following rights:
a) Request project owners, organizations and individuals formulating or verifying construction investment feasibility study reports or construction investment economic-technical reports to provide, clarify or explain information for project appraisal;
b) Request project owners to hire consultancy organizations to carry out verification or invite qualified and experienced organizations and individuals to participate in the project appraisal when necessary;
c) Reserve appraisal results and reject requests to falsify appraisal results or requests beyond their capacity or the scope of appraisal as prescribed.
2. Appraising agencies have the following responsibilities:
a) Appraise construction investment feasibility study reports and construction investment economic-technical reports in accordance with regulations laid down herein and send consolidated opinions and appraisal results given by related agencies and organizations to investment decision-makers for approving projects or issue construction investment decisions;
b) Take responsibility before law and investment decision makers for their own appraisal results.
3. Specialized construction agencies have the following rights:
a) Request project owners, organizations and individuals formulating or verifying construction investment feasibility study reports or fundamental designs to provide, clarify or explain information for project appraisal;
b) Request planning or architecture-managing agency of province or city where the project is located to provide relevant planning information when necessary;
c) Request project owners to hire consultancy organizations to carry out verification or invite qualified and experienced organizations and individuals to participate in the project appraisal when necessary;
d) Reserve appraisal results and reject requests to falsify appraisal results.
4. Specialized construction agencies have the following responsibilities:
a) Verify construction investment feasibility study reports in accordance with regulations laid down herein;
b) Send written notices of appraisal opinions and results to project owners and relevant agencies;
c) Take responsibility before the law for their own task performance results.
5. Verifying organizations have the following rights:
a) Request project owners, organizations and individuals formulating construction investment feasibility study reports, construction investment economic-technical reports and fundamental designs to provide, clarify or explain information for project appraisal;
b) Reserve verification results and reject requests to falsify verification results or requests beyond their capacity or the scope of verification.
6. Verifying organizations have the following responsibilities:
a) Verify construction investment feasibility study reports and construction investment economic-technical reports at the request of project owners and in accordance with regulations laid down herein;
b) Explain and clarify verification results for project appraisal;
c) Take responsibility before the law and project owners for their own verification results.
Article 72. Rights and responsibilities of construction investment decision makers
1. Construction investment decision makers have the following rights:
a) Approve or authorize the approval of projects and final statements of construction investment funds. For projects using public investment capital and PPP projects, assignment or authorization to approve projects shall comply with provisions of the law on public investment and the law on investment in the public-private partnership form;
b) Disapprove the projects when the investment objectives and project efficiency cannot be achieved;
c) Suspend the implementation of construction investment projects which have been approved or are underway when deeming it necessary and lawful;
d) Alter or adjust construction investment projects when deeming it necessary and conformable with Article 61 of this Law;
dd) Other rights prescribed by law.
2. Construction investment decision makers have the following responsibilities:
a) Organize project appraisal and decide construction investment;
b) Ensure the availability of capital for implementation of construction investment projects;
c) Examine the implementation of construction investment projects by project owners; organize monitoring and evaluation of construction investment projects as prescribed in Article 8 of this Law;
d) (repealed)
dd) Take responsibility before the law for their own decisions;
e) Other obligations prescribed by law.
Chapter IV
CONSTRUCTION SURVEY AND CONSTRUCTION DESIGN
Section 1. CONSTRUCTION SURVEY
Article 73. Types of construction survey
1. Topographic survey.
2. Engineering geological survey.
3. Hydrogeological survey.
4. Survey of current status of works.
5. Other surveying work that serves construction investment activities as decided by investment decision makers.
Article 74. Requirements for construction survey
1. Construction surveying tasks or technical plan for construction survey must be formulated in a manner that suits types and grades of construction works, types of survey, design steps and requirements for production of construction design.
2. A technical plan for construction survey must meet requirements of construction surveying tasks and comply with applicable standards and technical regulations on construction survey.
3. The construction survey work must comply with the technical plan for construction survey, ensure safety and environmental protection, meet requirements of the approved construction surveying tasks, and be subject to inspection, supervision and acceptance under regulations.
4. Construction survey results shall be presented in a report, must be truthful and objective, and accurately reflect reality, and must be approved.
5. The construction survey contractor must fully satisfy capability conditions suitable for the types and grades of construction work and types of survey.
Article 75. Major contents of a report on construction survey results
1. Bases and process and the methods of the survey;
2. Survey data; analysis and assessment of survey results.
3. Conclusion on survey results and recommendations.
Article 76. Rights and obligations of project owners during construction survey
1. Project owners have the following rights:
a) Conduct construction survey when fully satisfying capability conditions;
b) Negotiate and sign construction survey contracts; supervise and request construction survey contractors to properly perform signed contracts;
c) Approve construction surveying tasks or technical plan for construction survey prepared by the design consultant or the construction survey contractor, and assign surveying tasks to the construction survey contractor;
d) Adjust construction surveying tasks at the reasonable request of the construction design consultant;
dd) Suspend the implementation of or terminate a construction survey contract in accordance with law;
e) Other rights prescribed by law.
2. Project owners have the following obligations:
a) Choose construction survey contractors and supervisors in case they cannot conduct or supervise construction survey themselves;
b) Provide information and documents related to the survey work to construction survey contractors;
c) Set construction survey requirements and enable construction survey contractors to perform their jobs;
d) Properly perform the signed construction survey contracts;
dd) Organize supervision of construction survey work; accept and approve survey results in accordance with law;
e) Pay compensations for damage caused by the provision of inappropriate information and documents and breaches of construction survey contracts;
g) Discharge other obligations as stated in the contracts and prescribed by relevant laws.
Article 77. Rights and obligations of construction survey contractors
1. Construction survey contractors have the following rights:
a) Request project owners and related parties to provide relevant data and information in accordance with contracts so as to construction surveys;
b) Refuse to implement requests beyond construction survey contracts;
c) Hire subcontractors to conduct construction surveys in accordance with construction survey contracts;
d) Exercise other rights as stated in the contracts and prescribed by relevant laws.
2. Construction survey contractors have the following obligations:
a) Strictly comply with construction survey requirements in accordance with this Law and construction survey contracts;
b) Propose and add construction surveying tasks when detecting factors directly affecting design solutions;
c) Take responsibility for results and quality of construction surveys they have conducted; take responsibility for managing the quality of surveys conducted by subcontractors (if any) and survey results of subcontractors. When participating in construction surveys, subcontractors shall take responsibility to head contractors and law;
d) Pay compensations for damage caused by improper performance of surveying tasks, use of inappropriate information, documents, standards and technical regulations on construction survey and breaches of construction survey contracts;
dd) Discharge other obligations as stated in the contracts and prescribed by relevant laws.
Section 2. CONSTRUCTION DESIGN
Article 78. General provisions on construction design
1. Construction designs include:
a) Preliminary design in the construction investment pre-feasibility study report;
b) Fundamental design in the construction investment feasibility study report or construction drawing design in the construction investment economic-technical report;
c) Designs created after the fundamental design, including Front - End Engineering Design (hereinafter referred to as “FEED design”), technical; design, construction drawing design and other designs (if any) according to international practices.
2. Construction design may involve one or more steps as follows:
a) One-step design being the construction drawing design;
b) Two-step design consisting of fundamental design and construction drawing design;
c) Three-step design consisting of fundamental design, technical design and construction drawing design;
d) Multiple-step design as prescribed by international practices.
3. The number of construction design steps shall be decided by investment decision-makers when approving projects or making construction investment decisions.
4. A dossier on the construction design following the fundamental design must comprise design explanations, design drawings, related construction survey documents, construction cost estimate and technical instructions (if any) as requested by the project owner.
5. A construction drawing design shall be created by either design consultancy organization or construction contractor for the entire construction works or for each work item or construction stage at the project owner’s request.
6. The Government shall elaborate construction design steps, and appraisal, approval and adjustment of construction designs.
Article 79. Requirements for construction design
1. A construction design must meet requirements of design tasks; conform with contents of approved construction investment projects, urban and rural planning, architectural landscapes, and natural or socio-cultural conditions in construction sites.
2. The content of the work construction design must satisfy the requirements of each design step.
3. The construction design must comply with the applicable standards, technical regulations and the law on use of building materials and satisfy the requirements concerning functions and applicable technology (if any); ensure load-bearing safety, safety during use, artistic appearance, environmental protection, response to climate change, fire fighting and prevention and explosion prevention and other safety conditions.
4. There is an appropriate design solution and reasonable construction costs; the construction design must ensure synchronism within each work and with related works; must be convenient, hygienic and healthy for users of the works; enable persons with disabilities, the elderly and children to use the works. The construction design must take advantages of natural conditions and minimize adverse impacts of natural conditions; gives priority to the use of local materials or eco-friendly materials.
5. Construction designs shall be appraised and approved in accordance with this Law, except the case prescribed in clause 7 of this Article.
6. Construction design contractors must satisfy all capability conditions suitable for types and grades of works and their jobs to be performed.
7. Construction designs of single dwellings must comply with the following provisions:
a) Construction designs of single dwellings must meet design requirements as prescribed in clause 3 of this Article;
b) A household may itself design create the design of a single dwelling with a total construction floor area of less than 250 m2 or fewer than 3 stories or a height of less than 12 meters in accordance with the approved planning under the law on urban and rural planning, and shall take responsibility before the law for the quality of the design and the environmental impacts of the construction work and the safety of adjacent works.
Article 80. Major contents of construction design following fundamental design
1. Architectural plan.
2. Technology plan (if any).
3. Functions.
4. Useful life and process of operation and maintenance of works.
5. Structural plan and types of primary materials.
6. Technical instructions.
7. Fire and explosion prevention and fighting plans.
8. Plan for economic and efficient use of energy.
9. Solutions for environmental protection and response to climate change.
10. Construction cost estimate appropriate to the construction design step.
Article 81. (repealed)
Article 80. Appraisal and approval of construction design following fundamental design
1. Project owners shall organize the appraisal of construction design steps following the fundamental design prescribed in clause 2 of this Article as the basis for approval, unless otherwise specified in construction investment decisions issued by investment decision makers. For other design steps, project owners shall decide the design control under contracts signed between project owners and contractors and in accordance with relevant laws.
2. Project owners shall appraise the contents prescribed in Article 83 hereof of the following design steps:
a) FEED design in case of Engineering - Procurement - Construction contract (hereinafter referred to as “EPC contract”);
b) Technical design in case of three-step design;
c) Construction drawing design in case of two-step design;
d) Other design steps following the fundamental design in case of multiple-step design as prescribed by international practices.
3. Construction designs of construction works prescribed in clause 1 Article 83a hereof must be also appraised by specialized construction agencies in terms of the contents prescribed in clause 2 Article 83a hereof. Appraising agencies may invite qualified and experienced organizations and/or individuals to participate in construction design appraisal.
4. Construction works with requirements on fire and explosion prevention and fighting, environmental protection, and national defense and security must be also commented or appraised by state competent agencies in accordance with relevant laws.
5. For construction works prescribed in clause 3 and clause 4 of this Article, project owners are entitled to send required documents to specialized construction agencies and state competent agencies at the same time. Appraisal results or opinions about the fulfillment of requirements on fire and explosion prevention and fighting, and environmental protection prescribed in clause 4 of this Article shall be sent to specialized construction agencies as the basis for appraisal conclusions.
6. Contents concerning the safety of construction works, and compliance with standards and technical regulations of construction designs of construction works significantly affecting the community safety and interests must be verified by organizations or individuals fully meeting the conditions concerning capability for construction activities as the basis for appraisal.
7. Project owners shall consolidate documents provided by specialized construction agencies and relevant agencies and organizations, respond to requests (if any), and approve construction designs as prescribed in clause 8 of this Article.
8. Project owners shall approve construction design steps following the fundamental design prescribed in clause 2 of this Article. Project owners may decide the approval of other design steps.
9. The Minister of National Defense and Minister of Public Security shall elaborate the power and procedures for appraisal and approval of construction designs of construction works serving national defense and security purposes in conformity with particular management requirements.
Article 83. Appraisal of construction design following fundamental design by project owners
1. For construction works using public investment capital and construction works using non-public investment state capital, project owners shall appraise the following contents:
a) The compliance of the construction design with design tasks, the provisions in the design contract and relevant laws;
b) The conformity of the construction design with technological line and equipment requirements (if any);
c) The formulation of construction cost estimates; the compatibility of estimated values of works with total investment; determination of estimated values of works.
2. For construction works of PPP projects, construction deigns shall be appraised according to the contents prescribed in clause 1 of this Article and those specified in PPP project contracts.
3. For construction works prescribed in clause 6 Article 82 hereof and other than those prescribed in clause 1 Article 83a hereof, project owners shall organize appraisal and approval of construction designs according to the contents prescribed in clause 1 of this Article and clause 2 Article 83a hereof.
4. For construction works other than those prescribed in clauses 1, 2 and 3 of this Article, project owners shall decide contents of appraisal which must ensure the conformity with design tasks, design contracts and relevant laws.
Article 83a. Appraisal of construction design following fundamental design by specialized construction agencies
1. Specialized construction agencies shall appraise construction design steps prescribed in clause 2 Article 82 hereof of the following construction works:
a) Construction works using public investment capital;
b) Construction works that use non-public investment state capital and are classified in group B or larger or significantly affect the community safety and interests;
c) Construction works of PPP projects;
d) Construction works significantly affecting the community safety and interests and using other funds in areas without urban construction planning, functional zone planning or detailed planning for construction areas defined under general rural district planning and general communal planning.
2. For construction works prescribed in point a and point b clause 1 of this Article and construction works of component PPP projects using public investment capital, specialized construction agencies shall appraise construction designs according to the following contents:
a) The compliance with law regulations on formulation and verification of the construction design; the fulfillment of conditions concerning capability for construction activities by organizations and individuals performing construction surveys, design and verification of construction designs;
b) The conformity of the construction design with the fundamental design appraised by the specialized construction agency;
c) The results of verification given by consultancy organizations of the fulfillment of requirements on safety of the construction works and compliance with standards and technical regulations in case where the construction design must be verified as prescribed in clause 6 Article 82 hereof;
d) The compliance with law regulations on estimation of construction costs;
dd) The fulfillment of requirements on fire and explosion prevention and fighting, and environmental protection;
e) The fulfillment of other requirements as prescribed by relevant laws.
3. For construction works prescribed in point d clause 1 of this Article and constructions works of PPP projects other than those prescribed in clause 2 of this Article, specialized construction agencies shall appraise the contents prescribed in points a, b, c, dd and e clause 2 of this Article.
Article 84. Adjustment of construction designs
1. An approved work construction design may be adjusted only in the following cases:
a) When adjustments to the construction investment project require adjustments to the construction design;
b) In the course of executing construction works, there emerge a requirement for adjustment of the construction design to ensure quality of the works and efficiency of the project.
2. When any adjustment to the construction design specified in clause 1 of this Article results in a change in the engineering geology, design load, structural solutions, materials of load-bearing structures or measures for organizing execution of construction works affecting the load-bearing safety of the work, such adjustment must be appraised and approved in accordance with Article 82 of this Law.
Article 85. Rights and obligations of project owners during construction design
1. Project owners have the following rights:
a) Conduct construction design and verification thereof themselves when they fully satisfy conditions concerning capability for construction activities or practicing capability suitable for types and grades of construction works;
b) Select contractors to make and/or verify construction designs if they cannot themselves make and/or verify construction designs;
c) Negotiate and sign construction design contracts and construction design verification contracts; supervise the performance of signed contracts and request design contractors to properly perform these contracts; suspend or terminate construction design contracts in accordance with the contracts and relevant laws;
d) Exercise other rights as stated in the contracts and prescribed by relevant laws.
2. Project owners have the following obligations:
a) Select contractors that have fully satisfied the conditions concerning capability for construction activities or capability for construction practice suitable for types and grades of construction works to make and/or verify construction designs;
b) Identify construction design tasks;
c) Provide adequate information and documents to contractors in charge of construction design and verification there;
d) Properly perform the signed contracts; pay compensations for damage caused by breach of the signed construction design contracts;
dd) Appraise and approve construction designs in accordance with regulations laid down herein;
e) Take responsibility before the law and investment decision makers for their own task performance results;
g) Keep construction design dossiers;
h) Discharge other obligations as stated in the contracts and prescribed by relevant laws.
Article 86. Rights and obligations of work construction design contractors
1. Construction design contractors have the following rights:
a) Request project owners and related parties to provide information and documents to serve the construction design work;
b) Refuse to implement requests outside design tasks and outside construction design contracts;
c) Hold copyright on their construction designs;
d) Hire subcontractors to create conduct construction designs in accordance with construction design contracts;
dd) Exercise other rights as stated in the construction design contracts and prescribed by relevant laws.
2. Construction design contractors have the following obligations:
a) Only accept construction design contracts suitable their capability to conduct construction design activities or to practice construction design;
b) Comply with standards and technical regulations applicable to works; prepare construction design dossiers according to requirements of design tasks, design steps, construction design contracts and relevant laws;
c) Take responsibility for the quality of design products they make, including contents prescribed in Articles 79 and 80 of this Law; take responsibility for the quality of designs made by subcontractors (if any). Subcontractors participating in construction design shall take responsibility for design results to principal contractors and the law;
d) Perform construction design author’s supervision in the course of execution of construction works;
dd) Not to designate manufacturers of building materials, supplies and equipment in construction designs of works using public investment capital, non-public investment state capital;
e) Pay compensations for damage caused by the setting of inappropriate surveying tasks, the use of inappropriate information, documents, construction standards and regulations, technical and technological solutions which affect the quality of works, and breaches of construction design contracts;
g) Discharge other obligations as stated in the construction design contracts and prescribed by relevant laws.
Article 87. Rights and responsibilities of specialized construction agencies in appraisal of construction designs
1. Specialized construction agencies have the following rights:
a) Request project owners, organizations and individuals formulating and verifying construction designs to provide, clarify or explain information necessary for construction design appraisal as prescribed;
b) Request project owners to select consultancy organizations to carry out verification or invite qualified and experienced organizations and individuals to participate in the construction design appraisal when necessary;
c) Reserve appraisal results and reject requests to falsify appraisal results or requests beyond their capacity or the scope of appraisal as prescribed.
2. Specialized construction agencies have the following responsibilities:
a) Appraise construction designs in accordance with regulations laid down herein;
b) Give written notices of appraisal opinions and results to project owners and local construction agencies for monitoring and management of construction activities;
c) Take responsibility before the law for their own task performance results.
Article 87a. Rights and obligations of organizations verifying construction designs
1. Verifying organizations have the following rights:
a) Request project owners, organizations and individuals formulating construction designs to provide, clarify or explain information for verification purposes;
b) Reserve verification results and reject requests to falsify verification results or requests beyond their capacity or the scope of verification.
2. Verifying organizations have the following obligations:
a) Verify construction designs within the scope requested by project owners;
b) Provide explanations or clarification of verification results as the basis for appraisal by project owners and specialized construction agencies;
c) Take responsibility before the law and project owners for their own verification results.
Article 88. Archiving construction work dossiers
1. Project owners shall archive dossiers on completion of construction works. Contractors participating in construction activities shall archive dossiers on the jobs they performed.
2. Dossiers serving the management and use of construction works shall be archived by managers or users of these works for a period at least equal to the useful life of these works as prescribed by law.
3. The compilation and archiving of dossiers on construction works must comply with the law on archives.
4. The Government shall elaborate archiving construction work dossiers.
Chapter V
CONSTRUCTION PERMITS
Article 89. General provisions on grant of construction permits
1. Construction works required to have construction permits granted by competent state agencies to project owners in accordance with regulations laid down herein, except the cases prescribed in clause 2 of this Article.
2. Cases in which a construction permit is exempted:
a) State secret works; works constructed under emergency orders;
b) Works of projects using public investment capital in which the construction investment is decided by the Prime Minister, heads of central agencies of political organizations, People’s Supreme Procuracy, People’s Supreme Court, State Audit Office of Vietnam, Office of the President, the Office of the National Assembly, Ministers, heads of ministerial agencies, Governmental agencies, central agencies of Vietnamese Fatherland Front and of socio-political organizations or chairpersons of People’s Committees at all levels;
c) Makeshift construction works as prescribed in Article 131 hereof;
d) Works undergoing repair or renovation of their interior parts or works undergoing repair or renovation of their external architecture not facing roads in urban centers subject to architectural management requirements of competent state agencies; such repair or renovation does not alter the functions and force-bearing structures of the works, and must be conformable with the planning under the law on urban and rural planning approved by competent state agencies and requirements for fire and explosion prevention and fighting, and environmental protection;
dd) Advertisement works not subject to construction permits as prescribed by the Law on advertisement; passive telecom infrastructure works as prescribed by the Government;
e) Construction works located in the territories of two or more provincial-level administrative units, works constructed in lines outside urban areas which conform to planning under the law on urban and rural planning or technically specialized planning approved by competent state agencies;
g) Construction works of which results of appraisal of the construction design following the fundamental design have been notified by specialized construction agencies to meet conditions for approval and which meet requirements for construction permit prescribed by this Law;
h) Single dwellings with under 07 stories of urban area construction investment projects or housing construction investment projects under detailed planning of 1:500 scale approved by competent state agencies;
i) Grade-IV construction works or single dwellings with under 07 stories in rural areas without urban planning, functional zone planning or detailed planning for construction areas defined under general rural district planning and general communal planning approved by competent state agencies; Grade-IV construction works or single dwellings in mountainous areas or islands without urban planning or functional zone construction planning; except works and single dwellings in protected areas or historical and cultural relics;
i1) Offshore installations of offshore wind power projects to which sea area is assigned by a competent authority for project execution;
k) Project owners constructing the works prescribed in points b, e, g, h, i and i1 of this clause, except single dwellings prescribed in point i of this clause, shall send notices of the time of construction commencement and construction design dossiers according to regulations to local construction agencies for management.
3. Construction permits include:
a) Permits for construction of new works;
b) Repair and renovation permits;
c) Work relocation permit;
d) Definite term construction permits.
4. Works shall be granted stage-based construction permits after having construction designs following the fundamental design for each stage appraised and approved in accordance with regulations laid down herein.
5. For a construction investment project consisting of multiple works, construction permits may be granted for one, several or all of these works when they need to be implemented concurrently provided conditions and time limit for granting construction permit and project synchronism are ensured.
Article 90. Major contents of a construction permit
1. Name of the work under the project.
2. Name and address of project owner.
3. Location and position of the construction work; route of the work for work along a route.
4. Type and grade of the work.
5. Work construction level.
6. Red-line boundary and construction boundaries.
7. Construction density (if any).
8. Land use coefficient (if any).
9. For civil works, industrial works and single dwellings, in addition to the contents specified in clauses 1 thru 8 of this Article, their construction permits must include the total construction area, construction area of the first (ground) floor, number of stories (including basement, top floor, mechanical floor and attic), and maximum elevation of the entire work.
10. The time limit for construction commencement, which must not exceed 12 months from the date of grant of the construction permit.
Article 91. Conditions for granting construction permits applicable to works in urban areas
1. Conform to the planning under the law on urban and rural planning already approved by competent state authorities. As for construction works in areas or on streets inside stable urban areas without detailed planning or urban designs, it such construction works must conform to regulations on management of architecture promulgated by competent state authorities.
2. The construction works are consistent with land use purposes as prescribed by the law on land.
3. The construction works ensure their safety or the safety of adjacent works and satisfy requirements for environmental protection, fire fighting and prevention and explosion prevention; ensure the safety of technical infrastructure and protection corridors of irrigation works, flood control systems, energy works, traffic works, cultural or historical heritage sites, cultural or historical relics; maintain a safe distance from inflammable, explosive or toxic works and important works relating to national defence and security.
4. Construction designs for the construction works have been appraised and approved under Article 82 of this Law.
5. Applications for issuance of a construction permit are appropriate to each type of permit prescribed in Articles 95, 96 and 97 of this Law.
Article 92. Conditions for granting construction permits for works that are not along routes outside urban areas
1. Be consistent with the planning under the law on urban and rural planning or positions and site layout plans of projects as approved in writing by competent state agencies.
2. Satisfy the conditions prescribed in clauses 3, 4 and 5 Article 91 of this Law.
Article 93. Conditions for granting construction permits applicable to single dwellings
1. General conditions for the grant of construction permits applicable to single dwellings in urban areas include:
a) Such dwellings are consistent with the land use purpose prescribed as by the law on land and regulations on management of architecture promulgated by competent state agencies;
b) Such single dwellings ensure their safety or the safety of adjacent works and satisfy requirements for environmental protection, fire fighting and prevention and explosion prevention; ensure the safety of technical infrastructure and protection corridors of irrigation works, flood control systems, energy works, traffic works, cultural or historical heritage sites, cultural or historical relics; maintain a safe distance from inflammable, explosive or toxic works and important works relating to national defence and security;
c) Construction designs of single dwellings are subject to the regulations set out under clause 7 Article 79 of this Law;
d) Applications for issuance of a construction permit are subject to the regulations set out under clause 1 Article 95, Article 96 and Article 97 of this Law.
2. Single dwellings in urban areas must meet the conditions prescribed in clause 1 of this Article and conform with the detailed planning under the law on urban and rural areas. Single dwellings located in stable areas or street routes in urban centers for which there is no detailed planning under the law on urban and rural areas or urban architecture or regulations on architecture management promulgated by competent state agencies.
3. Single dwellings in rural areas, when constructed, must conform with detailed planning under the law on urban and rural planning.
Article 94. Conditions for granting definite term construction permits
1. General conditions for granting definite-term construction permits:
a) The construction works are located in areas for which there is planning under the law on urban and rural planning approved and announced by competent state agencies but not yet implemented, and for which there are no land appropriation decisions of competent state agencies;
b) The construction works are suitable for the scale and duration of works prescribed by provincial People’s Committees for each area according to management and development requirements and relevant to the planning period;
c) The construction works are conformable with land use purposes defined in lawful documents on land of the applicant for the definite term construction permit;
d) Upon expiry of the existence duration stated in the definite term construction permit and issuance of land appropriation decision by a competent state agency, the project owner shall undertake to demolish the works; if the project owner fails to demolish the works, the demolition shall be coerced and the project owner shall bear all demolition costs. After this period, if the planning under the law on urban and rural planning is yet to be implemented, the project owner is allowed to use the construction work until a land appropriation decision is issued by competent state agency. The demolition shall be assisted in accordance with provisions of the law on land
2. Works to be granted definite term construction permits must meet the conditions prescribed in clause 1 of this Article and the conditions prescribed in clauses 3, 4 and 5 Article 91 of this Law.
3. Single dwellings to be granted definite term construction permits must meet the conditions prescribed in clause 1 of this Article and the conditions prescribed in points b, c and d clause 1 Article 93 of this Law.
4. For construction works and single dwellings granted definite term construction permits, if, upon expiry of the existence duration stated in the definite term construction permit, the implementation plan is extended under the adjusted construction planning, the agency that has granted the construction permit shall make notification of extension of existence duration of the works. If the project owner wishes to build a new work, repair or renovate a work, the definite term construction permit to be issued shall have the term according to development and management requirements and in line with the duration stated in the adjusted planning.
5. For construction works and single dwellings which are subject to the provision in point a clause 1 of this Article and for which district-level annual land use plans have been issued, no new definite term construction permits but only definite term construction permits for repair or renovation shall be granted.
03 years after the date of announcement of a district-level annual land use plan, if a competent state agency issues no land appropriation decision or gives no approval for change of land use purposes according to the published district-level annual land use plan but fails to adjust or abrogate the district-level annual land use plan, or fails to publish the adjustment or abrogation of the district-level annual land use plan, land users may apply for definite term construction permits according to the provisions in clause 2 and clause 3 of this Article.
Article 95. Applications for issuance of construction permits to new works
1. An application for issuance of construction permit for a new work with regard to a single dwelling must comprise:
a) An application form for issuance of a construction permit;
b) A copy of one of the papers proving land use rights as prescribed by the land law;
c) Construction design drawings;
d) A written commitment to ensure the safety of adjacent works, for construction works adjacent to other works.
2. An application for issuance of a construction permit with regard to construction works which are not along a route shall include:
a) An application form for issuance of a construction permit;
b) A copy of one of the papers proving land use rights as prescribed by the land law;
c) A copy of the project approval or investment decision;
d) Construction design drawings;
dd) Copies or reference numbers of practice certificates of organizations in charge of designing and verifying construction designs, and practice certificates of design and verification managers granted as prescribed.
3. An application for issuance of a construction permit with regard to construction works along a route shall include:
a) The documents prescribed in points a, c, d and dd clause 2 of this Article;
b) Written approval of a competent State agency regarding the consistency with the position and plan of the route;
c) Land appropriation decision of the competent state agency as prescribed by the land law.
4. An application for issuance of a construction permit with regard to a religious building shall include:
a) The documents prescribed in clause 2 of this Article;
b) The written opinions about the necessity of construction and the scale of the construction work, given by a specialized religion and belief agency affiliated to the provincial People's Committee.
5. An application for issuance of a construction permit to a monument or mural shall include:
a) The documents prescribed in clause 2 of this Article;
b) A copy of the permit or written approval of a state management agency in charge of culture of the necessity of construction and the scale of the work.
6. An application for a construction permit with regard to advertising works shall comply with the provisions of the law on advertisement.
7. An application for a construction permit with regard to works of diplomatic missions and international organizations shall comply with the Government’s regulations.
Article 96. Applications for issuance of construction permit in case of repair or renovation of works
1. An application form for issuance of a permit for repair or renovation of a work.
2. A copy of one of the papers proving the right to own, manage or use the work or house in accordance with law.
3. Drawings or photographs of the current condition of part or item of the work or single dwelling to be renovated.
4. A written approval of a state management agency in charge of culture of the necessity of construction and the scale of the work, for ranked historical and cultural relics and scenic works.
Article 97. Applications for construction permit in case of relocation of works
1. An application for issuance of a permit for relocation of a work.
2. Copies of papers proving the rights to use land to which the work is relocated and papers on lawful ownership of the work as prescribed by law.
3. As-built drawing of the work (if any) or design drawing describing the current condition of the work to be relocated, including the plan, foundation cross section, and drawings of the main load-bearing structure; drawings of the general plan of the site to which the work is relocated; drawings of the plan and cross section of the foundation of the site to which the work is relocated to.
4. A report on results of the survey assessing the current quality of the work conducted by a fully capable organization or individual.
5. The relocation plan prepared by a fully capable organization or individual, covering:
a) Description of the current condition of the work and the area to which the work is relocated; relocation solution, plan for arrangement and use of means, equipment and labor; solutions for ensuring safety of the work, people, machinery, equipment and adjacent works; assurance of environmental hygiene; relocation schedule; organization or individual relocating the work;
b) Drawings showing measures for relocating the work.
Article 98. Adjustment of construction permits
1. In the course of construction, if there is any adjustment to the design resulting in a change to one of the following contents, the project owner shall request adjustment of the construction permit:
a) Change to the form of the exterior architecture of the work, for works in urban areas or areas subject to architectural management requirements;
b) Change to one of the following factors: construction position and area; scale, height and number of stories of the work and other factors affecting its main load-bearing structure;
c) Upon adjustment of the interior design of the work resulting in a change of its functions which affects the safety, fire and explosion prevention and fighting or environmental protection.
2. An application for adjustment of a construction permit shall include:
a) An application for adjustment of a construction permit;
b) Original copy of the granted construction permit;
c) Design drawings related to the adjustment in comparison with the design to which the construction permit has been granted;
d) A report on appraisal results and written approval of the adjusted design (except for single dwellings) of the project owner, including contents relating to assurance of safety regarding load bearing, fire fighting and prevention, explosion prevention or environmental protection.
Article 99. Extension of construction permits
1. Before the expiration of the construction permit for construction commencement, if the construction of the work has not commenced yet, the project owner shall make a request for extension of the construction permit. A construction permit may be extended no more than twice, with each extension not exceeding 12 months.At the end of the extension period, if failing to commence construction, the project owner shall submit an application for a new construction permit.
2. An application for extension of a construction permit shall include:
a) An application form for extension of a construction permit;
b) Original copy of the granted construction permit.
3. For works or single dwellings for which a definite term construction permit is granted and the existence duration written in the permit expires but the planning has not been implemented yet, the owner of the work or the person who is assigned to use the work shall request the construction permit-issuing agency to consider extending the existence duration until the planning is implemented. The existence duration of the work shall be written in its granted definite term construction permit.
Article 100. Re-grant of construction permits
1. A construction permit may be re-granted when it is torn, ragged or lost.
2. An application for re-grant of a construction permit shall comprise:
a) An application form for re-grant of a construction permit;
b) Original copy of the granted construction permit in case the construction permit is torn or ragged.
Article 101. Revocation and cancellation of construction permits
1. A construction permit shall be revoked in the following cases:
a) The construction permit is not granted in accordance with law;
b) The project owner fails to remedy the construction carried out in violation of the construction permit within the time limit written in the document handling the violation at the request of a competent state agency.
2. After 10 days from the date of issuance of the construction permit revocation decision by a competent state agency in the case prescribed in clause 1 of this Article, if the project owner fails to return the construction permit to the granting agency, the latter or the competent agency shall decide to cancel the construction permit and notify it to the project owner and the People’s Committee of the commune where the construction work is located. The construction permit cancellation decision shall be posted on the website of the Department of Construction.
Article 102. Process of grant, re-grant, adjustment and extension of construction permits
1. The process of grant o adjustment of a construction permit is prescribed as follows:
a) The project owner shall submit 02 sets of the application for issuance or adjustment of a construction permit to the agency competent to grant construction permits;
b) The agency competent to grant construction permits shall receive the application; check the application; issue a receipt if the application satisfies regulations or instruct the project owner to complete the application if it fails to satisfy regulations;
c) Within 07 working days after receiving the application, the agency competent to grant construction permits shall organize appraisal of the application and conduct a field inspection. During appraisal, the competent agency shall determine which documents are still missing, contrary to regulations or untrue to the reality and inform them once in writing to the project owner so as for the latter to supplement or complete the application. If the supplemented application still fails to meet the notified requirements, the competent agency shall, within 05 working days, issue a written notice to the project owner to instruct the latter to further improve the application. The project owner shall supplement and complete the application according to the written notice. If the supplemented application still fails to satisfy the notified contents, the competent agency shall, within 03 working days, notify the project owner of the reason for refusal to grant a permit;
d) The agency competent to grant construction permits shall examine the conditions prescribed in this Law and send written requests for opinions of state management agencies in charge of fields related to the construction work in accordance with law;
dd) Within 12 days, for works or single dwellings, after receiving an application, consulted state management agencies shall provide a written response on the contents under their management. If such agencies fail to give no opinions within the abovementioned time limit, they are considered having agreed and shall take responsibility for the contents under their management; in pursuance of current regulations, the agency competent to grant construction permits shall decide to grant a construction permit;
e) From the date of receiving a valid application, the agency competent to grant construction permits shall examine the dossier for the grant of a permit within 20 days in the case of grant of construction permits, including also definite term construction permits, adjusted construction permits and relocation permits, and within 15 days, for single dwellings. At the end of the time limit for the grant of a construction permit, if the agency competent to grant construction permits needs more time for examination, it shall notify in writing the reason to the project owner and at the same time report it to the direct management agency for consideration and direction, but within 10 days after the expiration of the time limit prescribed in this clause. The time limit for grant of construction permits for advertisement works shall comply with the provisions of the law on advertisement.
2. The process of extension and re-grant of construction permits is prescribed as follows:
a) The project owner shall submit 02 sets of application for extension or re-grant of a construction permit to the agency competent to grant construction permits;
b) Within 05 working days after receiving a complete and valid dossier, the agency competent to grant construction permits shall consider the extension of the construction permit or re-grant the construction permit.
3. The receipt of results and payment of fees for the grant of construction permits is prescribed as follows:
a) The project owner shall receive the construction permits enclosed with the design dossier submitted for the application for issuance of a construction permit bearing the stamp of the agency competent to grant construction permits at the place of receipt of the application on the date written in the receipt;
b) The project owner shall pay a stipulated fee upon submission of the application for issuance of a construction permit.
4. Where an application is ineligible for issuance of a construction permit within the time limit specified in clause 2 of this Article, the agency competent to grant construction permits must issue a written notice clearly stating the reason therefor to the project owner. If, past the time limit written in the receipt, the competent agency fails to provide a written response, the project owner is entitled to construct the work according to the appraised and approved design dossier included in the application for issuance of a construction permit.
5. The Government shall elaborate the grant of construction permits.
6. The Minister of Construction shall elaborate on the form of application and design drawings in applications for issuance of construction permits.
Article 103. Power to grant, adjust, extend, re-grant and revoke construction permits
1. (repealed)
2. Provincial People’s Committees grant construction permits to construction works requiring construction permits in their provinces, except those prescribed in clause 3 of this Article. Provincial People’s Committees may decentralize powers to or authorize Departments of Construction, and management boards of industrial parks, export processing zones, hi-tech parks and economic zones and district People’s Committees to grant construction permits under the management or functions of these agencies.
3. District People’s Committees grant construction permits to grade-III and grade-IV works and single dwellings in the territories under their management.
4. Agencies competent to grant construction permits are also the agencies competent to adjust, extend, re-grant and revoke construction permits they have granted.
5. In case an agency competent to grant construction permits fails to revoke a construction permit it has granted against regulations, the provincial People’s Committee shall directly issue a decision to revoke such construction permit.
Article 104. Responsibilities of agencies competent to grant construction permits
1. Openly post, explain and provide guidelines on regulations of law on issuance of construction permits.
2. Monitor, return the result or notify project owners of applications ineligible for the grant of construction permits.
3. Grant construction permits according to the process and within the time limit prescribed in Article 102 of this Law.
4. Preside over and cooperate with related functional agencies in inspecting the construction according to construction permits; suspend the construction and revoke construction permits within their power when project owners commit serious violations.
5. Persons competent to grant construction permits shall take responsibility before the law and pay compensations in accordance with law for damage caused by their wrong or delayed grant of construction permits.
Article 105. Responsibilities of agencies and organizations related to the grant of construction permits
1. Fulfill the responsibilities prescribed in point dd clause 1 Article 102 of this Law.
2. Take necessary measures when receiving a notice from the agency competent to handle violations with regard to works constructed inconsistently with the planning, constructed without a permit or in violation of the granted construction permit.
Article 106. Rights and obligations of applicants for issuance of construction permits
1. Applicants for construction permits have the following rights:
a) Request the construction permit-issuing agency to explain, provide instructions and strictly comply with regulations on issuance of construction permits;
b) File complaints, lawsuits and denunciations regarding violations of law during grant of construction permits;
c) Start construction of works in accordance with this Law.
2. Applicants for construction permits have the following obligations:
a) Submit complete dossiers and fully pay fees for the grant of construction permits;
b) Bear responsibility for the accuracy and truthfulness of their applications for issuance of construction permits;
c) Notify the construction starting dates as prescribed in point e clause 1 Article 107 of this Law;
d) Properly implement regulations laid down in construction permits.
Chapter VI
CONSTRUCTION OF WORKS
Section 1. PREPARATION FOR CONSTRUCTION OF WORKS
Article 107. Conditions for commencement of construction of works
1. The commencement of construction of a work must satisfy the following conditions:
a) Land area for construction is available for entire or partial transfer in line with the construction schedule;
b) The construction permit has been granted regarding the work required to obtain the construction permit as prescribed in Article 89 of this Law;
c) There is approved drawing design for execution of the work item or the work to be constructed;
d) The project owner has signed a construction contract with the contractor performing construction activities related to the constructed work as prescribed by law;
dd) Measures have been developed to ensure safety and environmental protection in the course of construction;
e) The project owner has sent the written notification of the construction starting date to the local construction agency at least 03 working days before the commencement of construction.
2. The commencement of construction of single dwellings must meet only the condition prescribed in point b clause 1 of this Article.
Article 108. Construction site preparation
1. The appropriation, allocation and lease of land, compensation and land clearance for construction must comply with the land law. People’s Committees at all levels shall direct and organize the compensation and support for land clearance and resettlement for construction investment projects in accordance with law.
2. The period of construction land clearance must meet the requirements for the implementation schedule of the project approved or decided by the competent person.
3. The transfer of land area for construction in whole or in part for construction must be shall be subject to the agreement between the project owner and the contractor for execution of construction works.
4. Funding for compensation and support for land clearance and resettlement (if any) shall be adequately provided.
Article 109. Requirements applicable to construction sites
1. Project owners shall install signboards at construction sites, except for single dwellings with less than 07 stories. A signboard shall include:
a) Name and scale of the work;
b) Dates of commencement and completion;
c) Names, addresses and telephone numbers of the project owner, contractor for construction of works, organization creating construction design and organization or individual supervising execution of the work;
d) Perspective drawing of the work.
2. Contractors for execution of construction works shall manage the entire construction sites in accordance with law, except the case in which the project owner organizes the management. Contents of management of a construction work include:
a) There must be fences, guard posts and conspicuous signboards to ensure separation between the construction site from the outside;
b) The layout of the construction site within the scope of execution of the work must match the approved design drawing of the total land area for execution of the work and the specific conditions of the construction location;
c) Supplies, materials and equipment pending installation must be neatly arranged according to the design drawing of the total land area for execution of the work;
d) Within the construction site, there must be signboards of the total land area of the work, safety, fire and explosion prevention and fighting and other necessary signboards.
3. Contractors for execution of construction works shall take measures to ensure safety of people and vehicles entering and leaving the construction sites, gather and treat construction waste in a proper manner without adversely affecting the environment around the construction sites.
Article 110. Building materials
1. Development, production and use of building materials must ensure the safety, efficiency, environmental friendliness and reasonable use of natural resources.
2. Materials and structures used in a construction work must comply with the approved construction designs and technical instructions (if any), and ensure quality in accordance with the law on standards and technical regulations, and the law on quality of products and goods.
3. Building materials used for manufacture and processing of semi-finished products must comply with clauses 1 and 2 of this Article.
4. Priority shall be given to using local materials, domestically manufactured and processed building materials and construction products, and products with high domestic contents.
5. The Government shall elaborate this Article.
Section 2. EXECUTION OF CONSTRUCTION WORKS
Article 111. Requirements applicable to execution of construction works
1. Comply with approved construction designs, standards and technical regulations applicable to works, laws and regulations on use of building materials; ensure load-bearing safety, safety in use, artistic appearance, environmental protection, fire and explosion prevention and fighting, and other safety conditions prescribed by law.
2. Ensure safety of construction works, people and construction equipment, underground facilities and adjacent works; take measures to restrict human and property losses when unsafe incidents occur in the course of construction.
3. Take separate safety engineering measures for items of works and jobs subject to strict requirements for occupational safety and fire and explosion prevention and fighting.
4. Use correct types, specifications and quantity of supplies and materials according to requirements of construction designs, ensuring thriftiness in the course of construction.
5. Conduct examination, supervision and acceptance of construction jobs and important transitional stages of execution of construction works when necessary and acceptance of completed items and works before they are put into operation and use.
6. Contractors for execution of construction works must meet all capability conditions applicable to different types and grades of works and construction jobs.
Article 112. Rights and obligations of project owners during execution of construction works
1. Project owners have the following rights:
a) Execute construction works themselves when they satisfy all conditions concerning capability suitable for execution of construction works or select contractors for execution of construction works;
b) Negotiate and sign a contract for execution of construction works; supervise and request contractors for execution of construction works to strictly perform the signed contracts; consider and approve measures for execution of construction works and measures to ensure safety and environmental sanitation submitted by contractors;
c) Suspend the performance of or terminate contracts with contractors for execution of construction works in accordance with law and construction contracts;
d) Stop execution of construction works and request contractors for execution of construction works to remedy consequences caused by violations of regulations on work quality, safety and environmental protection;
dd) Request related organizations and individuals to cooperate in performing jobs in the course of construction;
e) Other rights prescribed by law.
2. Project owners have the following obligations:
a) Select contractors that satisfy all conditions concerning capability to execute construction works suitable for different types and grades of works and execution jobs;
b) Cooperate with and join People’s Committees at all levels in paying compensations for damage and clearing land for construction for transfer thereof to contractors for execution of construction works;
c) Organize quality supervision and management during execution of construction works suitable for the forms of project management and construction contracts;
d) Examine construction measures and measures to ensure safety and environmental sanitation;
dd) Organize acceptance, payment and finalization of construction of works;
e) Hire consultancy organizations which satisfies all conditions concerning capability for construction activities to inspect the quality of works when necessary;
g) Examine and decide contractors’ proposals related to designs in the course of executing construction works;
h) Archive dossiers on construction of works;
i) Take responsibility for the quality and origin of supplies, raw materials, materials, equipment and construction products supplied by them for use for works;
k) Pay compensations for damage caused by their breaches of contracts and other breaches;
l) Discharge other obligations prescribed by law.
Article 113. Rights and obligations of contractors for execution of construction works
1. Contractors for execution of construction works have the following rights:
a) Reject unlawful requests;
b) Propose modifications to construction designs to make them suit construction reality so as to ensure quality and efficiency;
c) Request payment for the value of completed construction volumes according to the contracts;
d) Stop execution of a construction work when there is any threat to safety of people and works or the party awarding the contract fails to strictly perform contractual commitments;
dd) Request compensations for damage caused by the party awarding the contract;
e) Exercise other rights under the contracts and relevant laws.
2. Contractors for execution of construction works have the following obligations:
a) Accept contracts for execution of construction works or works appropriate to their capability for construction activities and properly perform the signed contracts;
b) Make and submit to project owners for approval of measures for execution of construction works specifying measures to ensure safety and environmental sanitation;
c) Execute construction works strictly according to the designs and applicable standards and technical regulations, ensuring quality, schedule, safety and environmental protection;
d) Apply an appropriate quality management system and establish quality management dossiers of works;
dd) Comply with requirements applicable to construction sites;
e) Take responsibility for the quality and origin of supplies, raw materials, materials, equipment and construction products supplied by them for use for works;
g) Manage workers on construction sites, ensuring security, order and environmental protection;
h) Make as-built drawings and participate in the acceptance of works;
i) Provide work warranty;
k) Pay compensations for damage caused by their breaches of contracts, use of incorrect types of materials, failure to satisfy requirements according to the approved design, executing construction work which fails to ensure quality or which causes environmental pollution and any other breach through their fault;
l) Bear responsibility for the quality of the construction works according to the designs, including jobs performed by subcontractors (if any); subcontractors shall bear responsibility to the head contractor and the law for the quality of jobs they perform;
m) Discharge other obligations under the contracts and relevant laws.
Article 114. Rights and obligations of design contractors during execution of construction works
1. Design contractors have the following rights:
a) The rights prescribed in clause 1 Article 86 of this Law;
b) Request project owners and contractors for execution of construction works to properly implement the designs;
c) Reject project owners’ unreasonable requests for design changes;
d) Refuse to accept works or work items if they are constructed not according to the designs;
dd) Exercise other rights as stated in the contracts and prescribed by relevant laws.
2. Design contractors have the following obligations:
a) The obligations prescribed in clause 2 Article 86 of this Law;
b) Appoint fully capable persons to conduct design author’s supervision according to the contracts; persons performing this task shall take responsibility before the law for their violations and shall compensate for damage caused by their faults;
c) Participate in accepting works according to construction design contracts with project owners;
d) Consider and deal with unreasonable issues in the construction design at the project owners’ requests;
dd) Promptly notify project owners when discovering that the any construction work is executed against the approved design and propose handling measures;
e) Discharge other obligations under the contracts and relevant laws.
Article 115. Safety during execution of construction works
1. Contractors for execution of construction works shall ensure the safety of people, construction works, property, equipment and vehicles in the course of executing construction works, fire and explosion prevention and fighting, and environmental protection.
2. Project owners shall organize the supervision of compliance with safety regulations by contractors for execution of construction works; suspend or terminate execution of construction works when detecting signs of violation of safety regulations, incidents causing unsafety to works; cooperate with contractors in handling any incidents or occupational accidents; promptly notify fatal incident or occupational accidents to competent state agencies.
3. Contractors for execution of construction works shall determine danger zones in construction; organize development and submission of measures to ensure safety for people, construction works, property, equipment and vehicles in danger zones in construction to project owners; review measures to ensure safety in a periodical or ad hoc manner and adjust them to suit construction reality on construction sites.
4. If any danger zones in construction cause significant effects on the community safety, project owners shall report approved measures to ensure safety to specialized construction agencies for inspection in the course of executing construction works.
5. Machinery, equipment and supplies serving execution of construction works subject to strict occupational safety requirements shall be inspected before they are used.
6. The Government shall elaborate this Article.
Article 116. Environmental protection during execution of construction works
In the course of construction, contractors for execution of construction works shall:
1. Work out and implement measures to protect the environment in the course of execution of construction works, including air environment and water environment, solid waste, noise and other requirements prescribed by the law on environmental protection.
2. Pay compensations for damage caused by their violations related to environmental protection.
Article 117. Relocation of construction works
1. The relocation of works must comply with approved planning under the law on urban and rural planning, ensure their quality and safety, not affect adjacent works, and ensure that the architecture of the works subject to conservation requirements remain unchanged.
2. Before relocating construction works, project owners or work owners shall apply for relocation permits.
3. Contractors that conduct the relocation of works shall apply measures to ensure occupational safety and safety of relocated works and adjacent works and environmental protection.
Article 117. Demolition of construction works
1. Construction works shall be demolished in the following cases:
a) The demolition is carried out for clearance of sites for construction of new or makeshift works;
b) Works are in danger of imminent collapse, thus affecting the community and adjacent works; works are subject to emergency demolition to promptly meet requirements of prevention, control and recovery from disaster, enemy sabotage, epidemic or other urgent duties to ensure national defense and security, and external affairs according to decisions issued by competent state agencies;
c) Works are constructed in no-construction zones prescribed in clause 3 Article 12 hereof;
d) Works are constructed against the planning under the law on urban and rural planning or without construction permits as required, or works are constructed against the issued construction permits;
dd) Works are constructed on public land, or land under lawful use rights of other organizations or individuals; or works are exempted from construction permits but constructed against the approved construction designs;
e) Single dwelling are demolished to build new ones.
2. The demolition of construction works must ensure safety and environmental protection and be carried out according to the following procedures:
a) Develop a demolition plan or solutions. If the work is subject to a demolition decision or coerced demolition, such demolition decision or coerced demolition decision is required when carrying out the demolition;
b) Verify and approve the demolition plan or solutions in case of demolition of the construction work significantly affecting the community safety and interests;
c) Organize the demolition of the construction work;
d) Organize supervision and acceptance test of the demolition results.
3. Responsibilities of parties involved in the demolition of construction works are prescribed as follows:
a) Project owners, owners, manager or users of the works or persons that are assigned to take charge of the demolition shall organize the demolition according to the procedures set out in clause 2 of this Article; themselves carry out the demolition if fully meeting capability requirements, or hire experienced and qualified consultancy organizations to develop and verify demolition plan or solutions, and carry out the demolition; take responsibility before the law and pay compensations for damage caused by their faults;
b) Contractors assigned to carry out the demolition shall work out demolition measures in conformity with the approved demolition plan or solutions; carry out the demolition according to the demolition measures and demolition decision or coerced demolition decision (if any); carry out control and monitoring of works; ensure safety for people, property, demolished works and adjacent works; take responsibility before law and pay compensation for damage caused by their faults;
c) Persons competent to decide the demolition of construction works shall take responsibility before the law for consequences of their failure to issue decisions, or issuance of untimely decisions or illegal decisions;
d) Owners or users of works subject to the demolition shall be required to comply with demolition decisions issued by competent state agencies; those failing to comply with such decisions shall be subject to coerced demolition of their works and incur all demolition costs.
4. The Government shall elaborate the demolition of construction works and emergency demolition of construction works.
Article 119. Construction works incidents
1. In the course of executing a construction work or in the course of operation, exploitation or use of a work, if detecting any threat to safety or occurrence of a construction works incident that may affect human lives, adjacent works and communities, the project owner, contractor for execution of construction works, the owner or the person managing use of the work and the competent state agency shall:
a) Promptly require to stop the execution of the construction work, operation, exploitation or use of the work, and apply measures to ensure safety of people and property;
b) Apply necessary measures to limit and prevent further possible dangers to works; promptly notify such to related competent organizations and persons;
c) Protect the scene, except cases in which emergency remedial measures must be implemented to prevent damage.
2. Upon discovery or receipt of notification of a construction works incident, the competent state agency or relevant organizations and individuals shall, within the bounds of their tasks and powers:
a) Promptly apply emergency measures to remedy the incident;
b) The competent state agency shall organize an examination in order to identify the causes of the incident and clarify responsibilities of the organization and individual at fault.
3. The work in which the incident occurs may be further constructed, operated, exploited or used only when the state agency competent to handle incidents grants a permission.
4. Any organization or individual that causes an incident to a work shall pay compensations for damage and bear related costs or may incur an administrative penalty; the individual may be liable to criminal prosecution in accordance with law.
Section 3. SUPERVISION OF EXECUTION OF CONSTRUCTION WORKS, ACCEPTANCE AND TRANSFER OF CONSTRUCTION WORKS
Article 120. Supervision of execution of construction works
1. Construction works shall be supervised in terms of quality, volume, schedule, occupational safety and environmental protection in the course of executing construction works.
The State encourages supervision of execution of single dwellings.
2. Supervision of execution of construction works must satisfy the following requirements:
a) Supervision is carried out throughout execution of construction works from the date of commencement of construction, during the period of execution and to the completion and acceptance of the work or construction works;
b) Supervision is aimed at ensuring the execution of construction works is done in accordance with the approved construction design, the applicable standards and technical regulations, the regulations on management and use of building materials, technical instructions and the construction contract;
c) Supervision is carried out in an honest and objective manner and without personal gain.
3. Selected contractors contractor for supervision of execution of construction works shall propose supervision solutions and the process of controlling the quality, volume, schedule, occupational safety and environmental protection and the process of acceptance, measures to manage records and documents in the process of supervision and other necessary contents.
Article 121. Rights and obligations of project owners during supervision of execution of construction works
1. Project owners have the following rights:
a) Conduct supervision themselves when they satisfy all conditions concerning capability to supervise execution of construction works and take responsibility for their supervision;
b) Negotiate and sign a contract for supervision of execution of construction works; monitor, supervise and require the contractor for supervision of execution of construction works to strictly perform the signed contract;
c) Change or request the consultant to change the supervisor in the case where such supervisor fails to strictly comply with regulations;
d) Suspend or terminate a contract for supervision of execution of construction works in accordance with law;
dd) Exercise other rights as stated in the contracts and prescribed by relevant laws.
2. Project owners have the following obligations:
a) Select a supervision consultant that satisfies all conditions on capability suitable for the types and grades of construction works to sign a contract for supervision of execution of construction works in case the project owner does not itself supervise execution of construction works;
b) Notify related parties of the rights and obligations of supervision consultants;
c) Promptly respond to proposals of supervisors;
d) Fully discharge the obligations agreed upon in the contract for supervision of execution of construction works;
dd) Archive results of supervision of execution of construction works;
e) Pay compensations for damage caused by the selection of a supervision consultant that fails to satisfy all conditions concerning capability for supervision of execution of construction works, accepts an incorrect volume or works constructed against the design and by other violations through their fault;
g) Discharge other obligations under the contracts and relevant laws.
Article 122. Rights and obligations of contractors for supervision of execution of construction works
1. Contractors for supervision of execution of construction works have the following rights:
a) Participate in accepting and certifying works the execution of which has been completed;
b) Request the contractor for execution of construction works to comply with the approved design and the signed contract for execution of construction works;
c) Reserve their opinions on the supervisory work that they have performed;
d) Temporarily suspend the execution of construction works when detecting that works are at risk of unsafety or that a contractor carries out construction against the design and promptly notify such to the project owner for handling;
dd) Reject unreasonable requests of related parties;
e) Exercise other rights under the contracts and relevant laws.
2. Contractors for supervision of execution of construction works have the following obligations:
a) Conduct supervision strictly according to contracts;
b) Do not accept any volume which fails to ensure quality; or which fails to conform to the applicable standards and technical regulations and the requirements laid down by the designer of the works;
c) Refuse to accept works which fail to satisfy quality requirements;
d) Recommend the project owner unreasonable issues in the construction design;
dd) Supervise the implementation of the regulations on safety and environmental protection;
e) Pay compensations for damage caused by the falsification of results of supervision of a volume constructed against the design or the applicable standards and technical regulations and the supervisor fails to notify the project owner or competent person for handling and by any other violation through their fault;
g) Discharge other obligations under the contracts and relevant laws.
Article 123. Acceptance of construction works
1. The acceptance of a construction works shall cover:
a) Acceptance of construction tasks during execution and acceptance of transitional construction stages when necessary;
b) Acceptance of completed work items or construction work before being put into operation or use.
2. Completed work items or construction works may only be put into operation or use after their acceptance results show that they meet requirements of construction designs, applicable standards and technical regulations and regulations on the management and use of building materials and after they are accepted in accordance with this Law.
3. Project owners shall organize the acceptance of construction works. Organizations and individuals participating in acceptance of construction works shall take responsibility for products they have certified upon acceptance of construction works.
4. The acceptance of construction works of national importance, large-scale works with complicated technical requirements; works significantly affecting the community safety and interests; works using public investment capital must be examined during execution of construction works and after completion of the execution of construction works. The responsibility to organize examination of the acceptance of works is prescribed as follows:
a) The council established by the Prime Minister shall organize acceptance of construction works of projects of national importance, large-scale works and large-scale works with complicated technical requirements;
b) Specialized construction agencies shall examine the acceptance by project owners with regard to construction works other than those specified in point a of this clause.
5. The Government shall elaborate the quality management, acceptance and settlement of incidents of construction works, large-scale works with complicated technical requirements.
Article 124. Transfer of construction works
1. The transfer of construction works must comply with the following provisions:
a) Construction works have been accepted in accordance with the construction law;
b) Safety is ensured during the operation and exploitation when the works are put into use;
c) For urban area construction investment projects, all or some works of the project may be transferred to be put into use provided that the construction investment is completed before the transfer to ensure the synchronization of technical and social infrastructure systems according to the investment phasing and approved construction designs, and their connection to the regional technical infrastructure and conformity with the approved project contents and planning.
2. Project owners shall receive works according to contracts signed with contractors. Any person participating in transfer of works shall be responsible for the product certified by him or her during the transfer of construction works. In case a project owner is not the person managing use of works, the project owner shall transfer the construction works to the person managing use of the works after organizing acceptance of the construction works. The transfer of construction works must be made into a record.
3. Upon transfer of a constructed work, the contractor for execution of construction works hand over documents including as-built drawings, manuals on operation or maintenance of the work, list of reserve equipment, spare parts, replacement supplies and other related and necessary documents to the project owner.
4. Pending the transfer of construction works to the person managing use of works, the project owner shall temporarily manage and operate the construction works.
5. For urban area construction investment projects, apart from the provisions in clauses 1, 2, 3 and 4 of this Article, project owners shall transfer technical and social infrastructure works, and other works as prescribed by the Government.
Section 4. WARRANTY AND MAINTENANCE OF CONSTRUCTION WORKS
Article 125. Warranty for construction works
1. Contractors for execution of construction works shall be provide a warranty for these works. Contractors for supply of work equipment and technological equipment shall provide a warranty for such equipment.
2. Contents of a warranty for a work include remedying, repair and replacement of equipment which is damaged or defective through contractors’ faults.
3. The warranty period for works, work equipment and technological equipment shall be determined according to types and grades of construction works and regulations of manufacturers or equipment supply contracts.
4. The Government shall elaborate on warranty for construction works.
Article 126. Maintenance of construction works
1. Maintenance of construction works must meet the following requirements:
a) Once put into use, construction works and their items shall be maintained;
b) The maintenance process shall be established and approved by project owners before putting construction works and their items into use; must be appropriate to intended uses, types and grades of construction works and their items and equipment constructed and installed into works;
c) The maintenance of works must ensure safety of people, property and works.
2. Owners or use managers of works shall maintain works and their machines and equipment.
3. The maintenance of construction works and their equipment must comply with the approved maintenance plans and process.
4. The safety of large-sized works with complicated technical requirements and works significantly affecting the community safety and interests must be periodically assessed in the course of operation and use.
5. The Government shall elaborate the maintenance and periodical assessment of safety of construction works during their use and responsibility to announce expired construction works.
Article 127. Termination of exploitation or use of construction works
1. Project owners, persons managing use of works or competent state agencies shall decide to terminate the exploitation or use of construction works when the useful life of these works expires or when there is a threat to the safety or a potential work incident affecting the safety of users or the safety of adjacent works, the environment and the community.
2. When deciding to terminate the operation or use of works for common use, project owners or persons managing use of works or competent state agencies shall issue written notices of their decision to organizations, individuals and households using the works.
3. The exploitation or use of construction works shall only be resumed when the incident is remedied or safety threats are eliminated. For works whose useful life expires, if there is a request for continuing their use, the owner or user must inspect their quality, reinforce, renovate or repair damage (if any) to ensure the safety and functions of works.
Section 5. CONSTRUCTION OF SPECIAL WORKS
Article 128. Special construction works
1. Special construction works include:
a) State secret works;
b) Works constructed under emergency orders;
c) Makeshift works.
2. The Government shall elaborate this Article.
Article 129. Construction of state secret works
1. State secret works constructed according to requirements must ensure secrecy during construction investment activities in the fields of national defense, security, foreign relations, economics, science and technology and other fields.
2. Agencies, organizations and persons that are assigned to manage and construct state secret works have the power to decide and shall take responsibility to construct and organize the construction of works from the stages of project formulation, survey, design, execution and supervision of execution of construction works to the stage of acceptance and putting of works into use.
3. The Government shall decide the construction of state secret works.
Article 129. Construction of urgent works
1. Urgent works include:
a) New construction, repair or renovation works which are constructed to promptly meet the requirements of prevention, control and recovery from disaster, enemy sabotage, epidemic or other urgent duties to ensure national defense and security, and external affairs according to decisions issued by competent agencies;
b) New construction, repair or renovation works which are constructed to promptly perform urgent tasks for ensuring energy security, water sources, response to environmental emergencies, or developing technical infrastructure systems under the Prime Minister’s decisions.
2. Heads of Ministries, heads of central agencies, chairpersons of People’s Committees at all levels are competent to decide the construction of works prescribed in point a clause 1 of this Article within scope of their management. Persons that are assigned to manage or take charge the construction of works may decide all matters concerning the construction investment in order to organize the construction of such works in a manner that meets schedule and quality requirements, and shall take responsibility for their decisions. For urgent works using public investment funds, the order and procedures for making investment decisions shall comply with provisions of the law on public investment.
3. The Prime Minister shall decide specific mechanisms for each of the construction works prescribed in point b clause 1 of this Article, including survey and construction designs, forms of selection of contractors and other mechanisms within his/her competence to hasten the construction investment progress. Persons that are assigned to manage or take charge the construction of works shall organize the implementation of specific mechanisms decide by the Prime Minister and other works relating to the construction investment process as prescribed by relevant laws.
4. Upon completion of construction of urgent works, persons assigned to take charge of the construction of such urgent works shall:
a) Inspect and re-assess the quality of the constructed works and carry out maintenance tasks;
b) Complete and archive completion dossiers of construction works and relevant documents as prescribed by the Law on construction;
c) Carry out settlement for works in accordance with regulations of law.
5. Persons that are assigned to manage and use the works shall work out plans for management and use of construction works or demolition of construction works for returning construction grounds in case such urgent works have been constructed against the planning under the law on urban and rural planning prescribed in this Law.
Article 128. Construction of makeshift works
1. Makeshift works are those constructed to serve, for definite terms, the following purposes:
a) The construction of main works;
b) The organization of events or other activities within the periods prescribed in Clause 2 of this Article.
2. The works prescribed in point b clause 1 of this Article must be given approval by provincial- or district-level People’s Committees of their location, scale and existence period.
3. Project owners and construction contractors shall themselves organize the appraisal and approval of construction designs and cost estimates, and the construction of makeshift works. Construction designs of the works significantly affecting the community safety and interests must be verified in terms of conditions to ensure safety, and sent to local specialized construction agencies for monitoring and inspection as prescribed.
4. Makeshift works must be demolished when the main works of construction investment projects are put into operation and use or upon expiry of their existence period. Project owners are allowed to request provincial or district People’s Committees to give approval for extended operation and use of the makeshift works prescribed in point a clause 1 of this Article if they are conformable with the planning, meet requirements on load-bearing safety, fire and explosion prevention and fighting, and environmental protection, and comply with relevant laws.
Chapter VII
CONSTRUCTION INVESTMENT COSTS AND CONSTRUCTION CONTRACTS
Section 1. MANAGEMENT OF CONSTRUCTION INVESTMENT COSTS
Article 132. Principles of management of construction investment costs
1. Management of construction investment costs must ensure investment objectives and effectiveness of projects, follow the sequence of construction investment and suit funding sources. Construction investment costs shall be calculated accurately and fully for each project, work or construction bidding package and must be suitable for design requirements, construction conditions and market price levels.
2. The State shall manage construction investment costs through promulgating, guiding and examining the implementation of regulations of laws, and stipulating the application of necessary tools to the management of construction investment costs.
3. Project owners shall manage construction investment costs from the stage of project preparation to the completion of construction and putting of projects into operation and use within the approved total investment of projects. Project owners may hire a cost management consultant that fully satisfies capability conditions to estimate, appraise and control construction investment costs.
4. The inspection, examination and audit of construction investment costs shall be conducted based on the conditions for and methods of determining construction investment costs already approved by investment decision makers and project owners in accordance with regulations and guidelines on the estimation and management of construction investment costs and the sequence of construction investment.
5. Construction investment costs of projects using public investment capital and non-public investment state capital shall be determined according to regulations on the estimation and management of construction investment costs.
Article 133. Contents of management of construction investment costs
1. Contents of management of construction investment costs include total investment, construction cost estimates, prices of construction bidding packages, prices of construction contracts, construction norms and prices, expenses for project management and construction investment consultancy; payment and settlement of construction investment funds; and rights and obligations of investment decision makers, project owners and construction contractors in the management of construction investment costs.
2. The Government shall elaborate the management of construction investment costs.
Article 134. Total construction investment
1. Total construction investment means all construction investment costs of a project determined according to the fundamental design and contents of the construction investment feasibility study report. In case a construction investment pre-feasibility study report is to be made, the total investment determined according to the preliminary design shall serve as a basis for estimating construction investment costs.
2. Items of the total construction investment shall include costs of construction, equipment, compensation, support and resettlement, project management, construction investment consultancy, other costs and contingency costs for additional volumes and for inflation. For projects which only require a construction investment economic-technical reports, the total construction investment shall include the costs in the work construction cost estimate prescribed in Article 135 of this Law, compensation, support and resettlement costs and other costs.
3. The total construction investment shall be determined based on the construction volumes calculated according to the fundamental design and other necessary requirements of a project or determined based on the construction investment capital ratio or data on costs of previously constructed similar works.
4. The total construction investment shall be appraised and approved and serve as the basis for managing project costs. With respect to projects funded by public investment capital, non-public investment capital, the approved total construction investment shall be the maximum level which the project owner may use for implementation of a project.
5. The approved total construction investment of a project using public investment capital and non-public investment capital may be adjusted only when the project is adjusted under clause 1 Article 61 of this Law. For projects using other capital, investment decision makers shall decide on the adjustment of their total construction investment.
Article 135. Construction cost estimates
1. Construction cost estimate means the costs necessary for constructing a work, performing a bidding package or construction job, which shall be determined based on the volumes calculated according to the technical design, drawing design for execution of construction works, requirements of the job to be done and construction norms and prices.
2. Contents of a construction cost estimate include costs of construction, equipment, project management, construction investment consultancy, other costs and contingency costs.
3. A construction cost estimate using public investment capital, non-public investment state capital shall be approved under clauses 1 and 2 Article 82 of this Law and serve as a basis for determining the price of the bidding package and for negotiating and signing the construction contract.
4. The approved construction cost estimate of a project using public investment capital, non-public investment state capital may be adjusted only in the following cases:
a) The total construction investment is adjusted under clause 1 Article 61 of this Law;
b) Changes or supplements to the design are permitted provided they are not contrary to the fundamental design or the changes to the estimated construction cost structure are permitted but must not exceed the approved total construction investment;
c) The adjustment of the construction cost estimate must be appraised and approved in accordance with the construction law.
5. For projects using other capital, investment decision makers or project owners shall decide the adjustment of their construction cost estimates.
Article 136. Construction norms, prices and price index
1. The system of construction norms includes economic-technical norms and cost norms. The construction price of a work includes detailed construction unit prices and general construction prices for different groups and types of construction jobs, structural units, parts of the work or the whole work.
2. Construction unit prices of a work shall be determined based on market prices or construction norms and prices of materials, labor, construction machines and other necessary cost elements compatible with market price levels in construction areas.
3. The application or reference to the system of construction norms prescribed in clause 1 of this Article adopted by ministers of specialized construction work-managing ministries or chairpersons of provincial people’s committees is provided for as follows:
a) For projects using public investment capital, project owners shall determine and manage construction investment costs according to regulations on cost management and by applying the promulgated construction norms;
b) For projects using non-public investment state capital and PPP projects, project owners shall determine and manage construction investment costs according to regulations on cost management and by referring to promulgated construction norms;
c) For projects using other capital, project owners shall determine and manage construction investment costs by referring to the promulgated construction norms.
4. Construction price index is an indicator reflecting the level of time-based fluctuation of construction prices and serving as a basis for determining and adjusting total investment, cost estimates and prices of construction contracts, and for managing construction investment costs.
The Ministry of Construction shall publicize national construction price indexes; provincial-level People’s Committees shall publicize local construction prices of works and local construction price indexes.
5. The Government shall periodically review, update and adjust the system of promulgated construction norms.
6. The Minister of Construction shall stipulate the determination of new construction norms, adjust the construction norms which no longer suit specific requirements of works, and the determination of construction price indexes of works located in the territories of two or more provincial-level administrative units.
Article 137. Payment and finalization of construction investment projects
1. The payment and finalization of construction investment projects must comply with the law on management of investment capital. The payment and finalization of projects using public investment funds shall comply with regulations laid down herein and the law on public investment. Project owners shall take responsibility before the law for the accuracy and lawfulness of unit prices, volumes and values requested for payment or finalization in payment or finalization dossiers.
2. After construction works are accepted and put into use, the construction investment project shall be finalized. With respect to projects funded by public investment capital, non-public investment capital, investment decision makers shall approve the finalization of construction investment projects within the approved total investment. The Government shall specify the time limit for finalization of construction investment projects.
3. The payment and finalization of construction contracts must comply with Articles 144 and 147 of this Law.
Section 2. CONSTRUCTION CONTRACTS
Article 138. General provisions on construction contracts
1. The construction contract means a civil contract which is agreed in writing between the party awarding the contract and a contractor in order to perform of the work in part or in full during construction investment activities.
2. A construction contract shall be signed adhering to the following principles:
a) It is voluntary, equal and co-operative, and is not contrary to law and social morals;
b) Funding is adequately provided for payment as agreed in the contract;
c) The selection of a contractor has completed and the process of contract negotiation has finished;
d) If the contractor is a partnership of contractors, there must be a partnership agreement. The partnership members shall sign and append their seals (if any) to the construction contract, unless otherwise agreed by the parties.
3. A construction contract shall be performed adhering to the following principles:
a) Contracting parties must properly implement their contractual commitments regarding the scope of work, requirements for quality, quantity, category, period, methods and other agreements;
b) It is truthful, co-operative and lawful in;
c) It does not infringe the interests of the State or of the community and the legitimate interests of other organizations and individuals.
4. The language used in construction contracts is Vietnamese. In case a construction contract involves the participation of a foreign party, the language used therein is Vietnamese and other language as agreed upon by the contracting parties.
5. Construction contracts must be signed and performed in accordance with this Law and relevant laws.
Article 139. Effect of construction contracts
1. A construction contract becomes effective when fully meeting the following conditions:
a) The contract signees must have full capability for civil acts and act within to their competence in accordance with law;
b) The principles of signing of construction contracts prescribed in point a clause 2 Article 138 of this Law are adhered to;
c) The contractor must satisfy all conditions on capability for construction activities and for and construction practice in accordance with this Law.
2. The effective date of a construction contract shall be the date of its signing or another specific date agreed upon by the contracting parties.
Article 140. Types of construction contracts
1. Construction contracts shall be categorized according to the nature and contents of the work to be performed and applicable contract price.
2. According to the nature and contents of work to be performed, construction contracts include:
a) Construction consultancy contract;
b) Contracts for execution of construction works;
c) Contracts for supply of equipment for installation in construction works;
d) Engineering, procurement and construction contracts, turnkey contracts;
dd) Other construction contracts.
3. According to the form of applicable contract price, construction contracts include:
a) Lump sum contracts;
b) Fixed unit price-based contracts;
c) Adjustable unit price-based contracts;
d) Time-based contracts;
dd) Costs plus charge-based contracts;
e) Combined price-based contracts;
g) Other construction contracts;
h) (repealed)
Article 141. Contents of construction contracts
1. A construction contract includes the following contents:
a) Applicable legal bases;
b) Language to be used;
c) Contents and volume of the work;
d) Quality, technical requirements of the work, acceptance and transfer;
dd) Duration and schedule for performance of the contract;
e) Contract price, advances, currency used for payment, and payment for the construction contract;
g) Contract performance security, contract advance guarantee;
h) Adjustment of the construction contract;
i) Rights and obligations of the parties to the construction contract;
k) Liability for contractual breach, bonuses and penalty for contractual breach;
l) Suspension and termination of the contract;
m) Settlement of disputes over the construction contract;
n) Risks and force majeure events;
o) Finalization and liquidation of the construction contract;
p) Other contents.
2. For general construction contracts, in addition to the contents prescribed in clause 1 of this Article, the contents of and responsibilities for management of the general construction contractor shall be added.
3. The Government shall elaborate construction contracts.
Article 142. Dossiers on construction contracts
1. A dossier on construction contract shall comprise a contract with the contents prescribed in Article 141 of this Law and documents enclosed with the contract.
2. A construction contract may be enclosed with some or all of the following documents:
a) Written notice of successful bidder or direct contracting;
b) Specific terms of the contract or terms of reference regarding construction consultancy contracts;
c) General terms of the contract;
d) Bidding documents or request for proposals of the party awarding the contract;
dd) Design drawings and technical instructions;
e) Bid or proposals of the contractor;
g) Minutes of contract negotiation, documents modifying and supplementing the contract;
h) Appendices to the contract;
i) Other relevant documents.
3. The order of application of documents enclosed with a construction contract shall be agreed upon by the parties to the contract. In case the parties to the contract fail to reach agreement thereon, the order prescribed in clause 2 of this Article shall apply.
Article 143. Adjustment of construction contracts
1. Adjustment of a construction contract includes adjustment of volume, schedule, contract unit prices and other contents agreed upon by the parties in the contract. Adjustment of the construction contract shall only apply during the period of contract performance.
2. A construction contract may be adjusted in the following cases:
a) The case(s) agreed upon by the parties in the contract in accordance with this Law and relevant laws;
b) When the State changes its policies directly affecting the contract performance, unless otherwise agreed upon by the contracting parties;
c) When the project is adjusted affecting the contract, unless otherwise agreed upon by the contracting parties;
d) Force majeure circumstances as prescribed by law.
3. In addition to the provisions of clauses 1 and 2 of this Article, the adjustment of prices of construction contracts under projects using public investment capital, non-public investment state capital must also comply with the following provisions:
a) The adjustment of unit prices for contract performance is applicable only to adjustable unit price-based and time-based contracts;
b) Unit prices in contracts may be adjusted according to the contents, scope, methods and bases for contract adjustment agreed upon by the parties in the contracts in accordance with law;
c) Permission of investment decision makers shall be sought for contract adjustments that change the investment objectives and contract performance time or exceed the approved construction bidding package cost estimate.
Article 144. Payment for construction contracts
1. Payment for a construction contract must suit the type of contract, contract price and conditions stated in the contract already signed by the parties.
2. The contracting parties shall reach agreement on payment methods, time, dossier and conditions.
3. The party awarding the contract shall fully pay the value for each payment to the contractor after deducting any advance or money for warranty for the works as agreed upon in the contract, unless otherwise agreed upon by the parties.
4. For lump-sum contracts, payment shall be made according to a percentage of the contract price or the price of the work, work items or volume of work corresponding to the payment period agreed upon by the parties in the contract.
5. For fixed unit price-based and adjustable unit price-based contracts, payment shall be made based on the actually competed volumes accepted and unit prices of the contracts or adjusted unit prices as agreed upon in the contracts.
6. For time-based contracts, payment for expenses for hiring consultants shall be determined by multiplying the consultants’ salary levels and expenses related to their activities by their actual working time which has been accepted (on a monthly, weekly, daily or hourly basis).
7. For costs plus charge-based contracts, payment shall be made based on actual costs for their performance of contractual work and management expenses and profits of the contractor as agreed upon.
8. Payment for additional volumes for which there is no unit price in construction contract shall be made as agreed upon in the contract.
9. The currency used for payment for construction contracts shall be Vietnamese Dong; foreign currency may be used for payment as agreed upon by the contracting parties in accordance with the law on foreign exchange management.
Article 145. Suspension and termination of construction contracts
1. The contracting parties has the right to suspend their construction contract in the following cases:
a) The party awarding the contract has the right to suspend the construction contract when the contractor fails to satisfy the requirements for quality, occupational safety and schedule stated in the signed contract;
b) The contractor has the right to suspend the construction contract when the party awarding the contract violates the payment agreement.
2. The party awarding the contract has the right to terminate the contract in the following cases:
a) The contractor is bankrupt or dissolved;
b) The contractor refuses or continuously fails to perform work under the contract resulting in a violation of the performance schedule agreed upon in the contract.
3. The contractor has the right to terminate the contract in the following cases:
a) The party awarding the contract is bankrupt or dissolved;
b) The work is suspended repeatedly in excess of the period agreed by the parties due to the fault of the party awarding the contract, unless otherwise agreed upon by the parties;
c) The party awarding the contract fails to make payment to the contractor after the time limit agreed upon by the parties from the date on which the principal receives a complete and valid payment dossier, unless otherwise agreed upon by the parties.
4. Before a party suspends or terminates the performance of the construction contract under clauses 1, 2 and 3 of this Article, it shall notify in writing the other party of the reason for suspension or termination; if it fails to notify the other party, thus causing damage to the latter, it shall pay compensations for such damage.
Article 146. Rewards and penalties in construction contracts, compensations for damage caused by breaches and settlement of disputes over construction contracts
1. Bonuses and penalties related to a construction contract shall be agreed upon and stated by the parties in the contract.
2. For works using public investment capital, non-public investment state capital, the fine must not exceed 12% of the value of the contract which is breached. In addition to the fine as agreed upon, the party in breach of the contract shall compensate for damage caused to the other party and a third party (if any) in accordance with this Law and relevant laws.
3. The contractor shall compensate for damage caused to the party awarding the contract in the following cases:
a) Quality of the work fails to be ensured as agreed in the contract or the duration of completion of the work has been prolonged due to the fault of the contractor;
b) Human and property losses are caused due to the fault of the contractor during the warranty period.
4. The party awarding the contract shall pay compensations to the contractor in the following cases:
a) Due to the fault of the party awarding the contract, the contractual work is discontinued or behind the schedule or the contractor faces risks or machines, equipment, supplies and structural components of the contractor are left unused;
b) The party awarding the contract provides documents and conditions necessary for the jobs contrary to the contractual agreements, making the contractor re-execute, suspend or change the jobs;
c) The party awarding the contract incorrectly supplies raw materials, materials and equipment and meets other requirements in terms of the time and requirements stated in the construction contract;
d) The party awarding the contract is late in making payment as agreed in the contract.
5. In case a party fails to discharge the contractual obligations or improperly discharges the contractual obligations, after discharging such obligations or applying remedies, it shall also pay compensations for other damage, if any, caused to the other party and the compensations must be equivalent to the damage caused to the other party.
6. If a party breaches the contract due to the fault of a third party, the party in breach shall take responsibility for the breach to the other party. The dispute between the party in breach and the third party shall be settled in accordance with law.
7. If the contract breach by a party causes bodily harm to or infringes upon the interests or property of the other party, the inflicted party is entitled to request the other party to bear the responsibility for the contract breach as agreed upon in the contract and prescribed by relevant laws.
8. Principles and sequence of settlement of disputes over construction contracts are provided for as follows:
a) The contracting parties respect contractual agreements and commitments in the course of contract performance, and ensure equality and cooperation;
b) The contracting parties shall themselves negotiate the settlement of disputes. In case they fail to do so, their disputes shall be settled through conciliation, by commercial arbitration or by a court as prescribed by law.
Article 147. Finalization and liquidation of construction contracts
1. The contractor shall finalize the construction contract with the party awarding the contract in accordance with the type of contract and applicable form of the contract price. The contents of finalization of the construction contract must conform with the agreements stated therein.
2. The time limit for finalization of the construction contract shall be agreed upon by the parties. For construction contracts using public investment capital, non-public investment state capital, the time limit for finalization is 60 days from the date of acceptance of the entire work under the contract, including the additional work (if any). With regard to construction contracts for large-scale works, the time limit for finalization may be extended but must not exceed 120 days.
3. A construction contract may be liquidated in the following cases:
a) The parties have fulfilled their contractual obligations;
b) The construction contract is terminated or nullified in accordance with law.
4. The time limit for liquidation of a construction contract shall be agreed upon by the contracting parties. For construction contracts using public investment capital, non-public investment state capital, the time limit for liquidation of a contract is 45 days from the date on which the contracting parties fulfill their contractual obligations or the contract is terminated under clause 2 Article 145 of this Law. With regard to construction contracts for large-scale works, the time limit for liquidation may be extended but must not exceed 90 days.
Chapter VIII
CONDITIONS CONCERNING CAPABILITY FOR CONSTRUCTION ACTIVITIES
Article 148. General provisions on conditions concerning capability of organizations and individuals for construction activities
1. Any individual participating in construction activities must have a diploma or training certificate suitable for the jobs to be performed granted by a lawful training institution.
2. Contractors being foreign organizations or individuals and conducting construction activities in Vietnam must comply with the law on bidding and must possess an operation permit granted by the construction agency.
3. Holders of titles and individuals practicing construction activities who are required to possess practice certificates as prescribed in this Law include construction investment project managers; presidents, chairpersons in charge of formulation of urban and rural planning; chairpersons in charge of construction survey; presidents, chairpersons in charge of construction design or construction design verification; construction supervision consultants; chairpersons in charge of estimation, verification and management of construction investment costs. Practicing certificates shall be classified into class I, class II and class III.
4. Organizations conducting construction activities that are required to have capability certificates as prescribed in this Law include construction investment project management consultancy organizations; construction survey organizations; urban and rural planning formulating organizations; construction designing and design-verifying organizations; execution of construction works; construction supervision consultancy organizations. Capability certificates shall be classified into class I, class II and class III. The specialized construction agency affiliated to the Ministry of Construction shall grant class-I capability certificates; Departments of Construction and socio-professional organizations that fully meet conditions laid down by the Government shall grant capability certificates of other classes.
4a. Architecture practicing organizations and individuals shall comply with law on architecture.
5. The Government shall elaborate capability conditions to be satisfied by organizations and individuals conducting construction activities; programs, contents and forms of holding tests to grant practice certificates; grant, re-grant, conversion and revocation of practice certificates; conditions, competence, order and procedures for grant and revocation of operation permits of contractors being foreign organizations or foreigners.
Article 149. Construction practicing certificates
1. Construction practicing certificate means a document certifying the practicing capability which is issued by the competent agency to an individual prescribed in clause 3 Article 148 of this Law who has adequate professional qualifications and professional experience in the field of practice.
2. To be granted a construction practicing certificate, an individual must meet the following conditions:
a) He/She has the professional qualification relevant to the content of application for a practicing certificate;
b) He/She has participated in the work for a period and has experience therein relevant to the content of application for a practicing certificate;
c) He/She has passed a test on professional experience and legal knowledge relating to the field of practice.
3. The authority to hold tests and grant construction practicing certificates is prescribed as follows:
a) Specialized agencies affiliated to the Ministry of Construction have authority to hold tests and grant class-I construction practicing certificates;
b) Departments of Construction and socio-professional organizations that have all the conditions prescribed by the Government have authority to hold tests and grant construction practicing certificates of other classes.
4. Architecture practicing certificates shall be subject to provisions of law on architecture.
Article 150. (repealed)
Article 151. (repealed)
Article 152. Conditions applicable to construction investment project management consultancy organizations and construction investment project management boards
1. Construction investment project management consultancy organizations must meet the following conditions:
a) They satisfy all conditions concerning capability for construction activities suitable for the project management work according to the scale and types of projects;
b) Any individual holding the title of construction investment project manager or any individual in charge of professional fields in project management must have relevant qualifications, training certificates, working experiences and practicing certificates relevant to the scale and types of projects.
2. Construction investment project management boards must meet the following conditions:
a) There is an establishment decision issued by a competent agency or organization for specialized construction investment project management boards or regional construction investment project management boards or of project owners for project management boards they have established;
b) They satisfy all conditions concerning capability for construction activities suitable for the project management work according to the scale and types of projects;
c) They have an organizational structure suitable for the requirements for the task of project management; a fixed headquarters or working office;
d) Any individual holding the title of construction investment project manager or any individual in charge of professional fields in project management must have relevant qualifications, training certificates, working experiences and practicing certificates relevant to the scale and types of projects.
Article 153. Conditions applicable to construction survey organizations
1. They have full capability for construction survey.
2. For every construction survey task, there must be a chairperson in charge of construction survey appointed by the construction survey contractor. The chairperson in charge of construction survey must have full capability for construction survey practice and an appropriate practicing certificate. Individuals participating in each construction survey job must have qualifications relevant to the assigned job.
3. Machinery and equipment serving construction survey must satisfy quality requirements, and ensure the safety of the surveying work and environmental protection.
4. Laboratories serving construction survey must satisfy prescribed standards and shall be accredited by construction agencies.
Article 154. Conditions applicable to construction designing and design-verifying organizations
1. They satisfy all conditions concerning capability for work construction design or verification thereof.
2. Individuals holding the title of president, chairperson in charge of construction design or design verification must have construction designing practice capabilities and practicing certificates relevant to requirements of each type and grade of work.
Article 155. Conditions applicable to consultancy organizations supervising execution of construction works or carrying out construction inspection
1. They satisfy all conditions on capability appropriate to the work of supervision of execution of construction works or construction inspection.
2. Any individual supervising execution of construction works or carrying out construction inspection must have a practicing certificate appropriate for the job to be performed.
Article 156. Conditions applicable to construction investment cost management organizations
1. They satisfy all conditions concerning capability for construction investment cost management.
2. Any individual in charge of estimation, verification and management of construction investment costs must have a construction valuation practicing certificate.
Article 157. Conditions applicable to organizations executing construction works
1. They have full capability for execution of construction works corresponding to types and grades of construction works.
2. Site managers must have relevant qualifications and capability to practice execution of construction works.
3. They have equipment for execution of construction works which satisfies requirements for safety and quality of work construction.
Article 158. Conditions applicable to independent practitioners
Individuals independently practicing formulation of urban and rural planning, construction survey, work construction designing, construction investment project management consultancy, construction supervision consultancy, estimation, verification and management of construction investment costs must meet the following conditions:
1. They have registered operations in the fields suitable for the practicing content;
2. They have a practicing certificate and capability appropriate to the job to be performed.
Article 159. Management of capability for construction activities
1. Information on capability for construction activities of organizations and individuals granted certificates must be published on the websites of managed by agencies competent to grant certificates and integrated into the web portal of the Ministry of Construction.
2. Agencies competent to grant certificates shall publish information on construction capabilities of organizations and individuals on their websites, and send it to the specialized construction agency affiliated to the Ministry of Construction for integrating it into the portal of the Ministry of Construction. Such information must be published within 05 working days from the date on which a certificate is granted. The integration of information into the website of the Ministry of Construction must be made within 03 working days from the receipt of information from the agency competent to grant certificates.
3. The Ministry of Construction and Departments of Construction shall inspect and handle violations against regulations on capability conditions committed by project owners, organizations and individuals conducting construction activities.
Chapter IX
RESPONSIBILITIES OF STATE AGENCIES FOR MANAGEMENT OF CONSTRUCTION INVESTMENT ACTIVITIES
Article 160. Contents of state management of construction investment activities
1. Formulating, and directing the implementation of strategies, schemes, planning and plans for development of the construction market and capacity of the construction industry.
2. Promulgating and organizing the implementation of legislative documents on construction.
3. Formulating and promulgating construction standards and technical regulations.
4. Organizing and performing uniform management of project management and appraisal and construction designing; promulgating and announcing construction norms and prices.
5. Providing guidance on, examining and assessing the quality management of construction works; managing construction investment costs and construction contracts; managing capability for construction activities, managing bidding work in construction activities; managing occupational safety and hygiene and environmental protection during execution of construction works.
6. Managing the grant, re-grant, modification, conversion and revocation of licenses, certificates, certifications and settlement of other administrative procedures in construction investment activities.
7. Examining, inspecting and settling complaints and denunciations and handling violations in relation to construction investment activities.
8. Organizing scientific and technological research and application in construction and dissemination of knowledge and laws on construction.
9. Training human resources for construction investment activities.
10. Managing and providing information to serve construction investment activities.
11. Managing and archiving dossiers on construction works.
12. International cooperation in the area of construction investment activities.
Article 161. Responsibilities of the Government
1. Perform uniform state management of construction investment activities nationwide; assign and decentralize powers over the state management to ministries, central agencies, local governments and specialized construction work-managing ministries; direct ministries, central agencies and local governments to implement the law on construction; direct the settlement of important issues, complicated problems and difficulties in the course of management of construction investment activities.
2. Promulgate or request competent authorities to promulgate legislative documents on construction; promulgate or direct the construction and implementation of policies, strategies and plans for ensuring efficient construction investment, improvement of labor productivity, thrift use of energy and natural resources and sustainable development; stipulate the implementation of overseas construction investment projects invested by domestic agencies, organizations and individuals, and development and management of the information system and national database on construction activities.
Article 162. Responsibilities of the Ministry of Construction
The Ministry of Construction shall take responsibility to the Government for performing the uniform state management of construction investment activities and has the following responsibilities:
1. Preside over formulating and submitting to the Government and the Prime Minister legislative documents, strategies, schemes, planning and plans for development of the construction market and capacity of the construction industry.
2. Promulgate and organize the implementation of legislative documents on construction within its competence; promulgate national technical regulations on construction and documents providing guidance on construction techniques within its competence, and criteria for construction works with thrift and efficient use of energy and natural resources, eco-cities and smart cities.
3. Organize and manage construction planning, construction investment project management activities, appraisal of projects and construction designs; stipulate the determination and management of construction investment costs, construction contracts, construction norms and prices.
4. Direct, provide guidance on, examine and assess the quality management of construction works; monitor, examine and propose the handling of quality and safety of works of national importance, large scale works and technically complicated works in the process of investment in construction, exploitation and use; manage construction investment costs and construction contracts; manage capability for construction activities; to manage bidding work in construction activities; organize, consider and approve awards for quality of construction works.
5. Manage the grant, re-grant, modification, conversion and revocation of licenses, certificates, certifications and settlement of other administrative procedures in construction investment activities within its competence.
6. Examine, inspect and settle complaints and denunciations and handle violations in relation to construction investment activities.
7. Organize scientific and technological research and application in construction and dissemination of knowledge and laws on construction.
8. Organize professional training and retraining in construction activities for cadres and officials of construction agencies.
9. Provide guidance on and examine the management of safety, labor sanitation and environment in the construction of works; take charge of managing occupational safety and hygiene and environment in the construction of works in its management sectors.
10. Cooperate with related ministries, central authorities and localities in examining and evaluating the implementation of projects.
11. Develop and manage the information system and national database on construction activities; manage and provide information to serve construction investment activities.
12. Manage and archive dossiers on construction works.
13. Carry out international cooperation in the area of construction investment activities.
14. Perform other tasks related to construction investment activities assigned by the Government.
Article 163. Responsibilities of ministries and ministerial agencies
1. Within their powers, specialized construction work-managing agencies shall:
a) Cooperate with the Ministry of Construction in performing the state management of construction investment activities and take responsibility for managing the quality of construction works and managing the occupational safety and hygiene and environment in the construction of works in their management sectors in accordance with this Law;
b) Study, promulgate, provide guidance on and examine the implementation of standards, technical regulations and economic-technical norms for specialized construction works according to the Ministry of Construction’s guidelines and Minister of Construction’s regulations; organize professional training and retraining in construction investment for cadres and officials of their affiliated agencies and units;
c) Monitor, examine and summarize the supervision and assessment of the construction investment in specialized works under their management in accordance with law;
d) Cooperate with and support ministries, agencies, related organizations and People’s Committees at all levels in the process of implementation of specialized construction investment projects in relation to issues under their management.
2. Ministries and ministerial agencies shall:
a) Perform the state management functions according to their assigned tasks and powers; promulgate documents according to their competence; direct the implementation and inspect the implementation of construction investment plans under their assigned management;
b) Cooperate with the Ministry of Construction and other agencies and organizations and People’s Committees of all levels in the process of implementing construction investment activities in relation to issues under their assigned management;
c) Review, implement, supervise and assess construction investment activities; take responsibility for managing the quality of construction works and managing the occupational safety and hygiene and environment in the construction of works under their assigned management;
d) Send periodical and annual reports on the management of their construction investment activities to the Ministry of Construction for summarization and monitoring;
dd) Perform other tasks prescribed by law.
Article 164. Responsibilities of People’s Committees at all levels
1. Provincial People’s Committees shall:
a) Perform the state management of construction investment activities as decentralized by the Government; manage construction order in localities according to construction planning, construction designs and construction permits according to the Government’s regulations; promulgate documents within their competence; direct the implementation of planning under the law on urban and rural planning and construction investment plans; organize the provision of guidance, examination and handling of complaints, denunciations and violations of law in relation to construction investment activities;
b) Cooperate with and support ministries and other ministerial agencies in implementing, monitoring, inspecting and supervising construction investment projects in localities under their management. Take responsibility for managing the quality of construction works issues under their assigned management;
c) Study for promulgation, provision of guidance and inspection of the implementation of standards, technical regulations and economic-technical norms for local specialized construction works according to the Ministry of Construction’s guidelines and Minister of Construction’s regulations; send periodical and annual reports on the management of their construction investment activities to the Ministry of Construction for consolidation and monitoring;
d) Organize professional training and retraining in construction investment for cadres and officials of affiliated agencies and units;
dd) Direct specialized agencies to notify information about construction norms, prices and price indexes on a monthly, quarterly or annual basis to promptly meet price fluctuations on the market.
2. District communal People’s Committees shall:
a) Perform the state management of construction investment activities in their localities as decentralized; organize professional training and retraining in construction investment for cadres and officials of affiliated agencies and units;
b) Cooperate with and support superior People’s Committees in implementing, monitoring, inspecting and supervising construction investment projects in localities under their management. Take responsibility for managing the quality of construction works issues under their assigned management;
c) Send periodical and annual reports on the management of construction investment activities in localities to superior People’s Committees for consolidation and monitoring;
d) Perform other tasks prescribed by law.
Article 165. Construction inspectorate
1. The construction inspectorate under the Ministry of Construction and Departments of Construction shall perform the functions of the administrative inspectorate and specialized inspectorate of construction with regard to organizations and individuals participating in construction investment activities.
2. The Ministry of Construction shall direct and organize specialized inspection of construction investment activities nationwide. Departments of Construction shall organize specialized inspection of construction investment activities in their respective localities.
3. Specialized inspection of construction investment activities covers:
a) Inspection of the observance of law by agencies, organizations and individuals in construction investment activities;
b) Detection, prevention and handling of violations within their competence or propose competent state agencies to handle violations of the construction law.
4. The Government shall elaborate construction inspectorate.
Chapter X
IMPLEMENTATION CLAUSE
Article 166. Grandfather clause
1. Construction investment projects which are approved before the effective date of this Law are not required to be re-approved and subsequent activities which are yet to be implemented shall be implemented in compliance with this Law.
2. Any construction investment project management board of a single project using public investment capital, non-public investment state capital which is established before the effective date of this Law is not required to change its form of management organization under clauses 1 and 2 Article 62 of this Law.
3. Works that are constructed before the effective date of this Law and still exist in conformity with construction planning but become architecturally inappropriate after land clearance shall be permitted to exist in their original conditions; their renovation, repair and upgradation must comply with this Law.
4. The Government shall elaborate clause 1 of this Article.
Article 167. Effect
1. This Law comes into force as of January 01, 2015.
2. The Law on Construction No. 16/2003/QH11 and Article 1 of the Law Amending and Supplementing a Number of Articles of Laws Concerning Capital Construction Investment No. 38/2009/QH12 shall cease to have effect from the effective date of this Law.
Article 168. Elaborating regulations
The Government and competent agencies shall elaborate articles and clauses in the Law as assigned./.
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