Management of implementation of construction investment projects in Vietnam
Vietnam law has regulations on management of implementation of construction investment projects. Let’s find out this issue with Lawyer X through the following situation: “Dear Lawyer! I want to ask what are regulations on organizational forms of construction investment project management in Vietnam? What are regulations on single-project construction investment project management units? Thanks for answering me!”
Legal grounds
2014 Vietnam Construction Law
Organizational forms of construction investment project management
Based on the sizes, characteristics, funding sources and implementation conditions of projects, investment deciders shall decide to apply one of the following organizational forms of project management:
– Specialized construction investment project management unit or regional construction investment project management unit, for projects using state budget funds and specialized projects using non-budget state funds of state economic groups or corporations.
– Single-project construction investment project management unit, for group-A projects using state funds involving special-grade works; hi-tech application certified in writing by the Minister of Science and Technology; national defense or security projects with state secret requirements.
– Hired project management consultant, for projects using non-budget state funds or other funds and projects with particular or unique characteristics.
– Project owners may use their attached fully capable professional apparatuses to manage the implementation of small renovation or repair projects and projects with the involvement of communities.
– Project management units and project management consultants prescribed in Clause 1, 2 or 3 of this Article must fully satisfy the capacity conditions prescribed in Article 152 of 2014 Vietnam Construction Law.
– The Government shall detail the models, organization and operation of construction investment project management units.
Specialized construction investment project management units, regional construction investment project management units
– Ministers, heads of ministerial-level agencies, chairpersons of provincial- level People’s Committees, chairpersons of district-level People’s Committees or competent representatives of state enterprises shall decide on the establishment of specialized construction investment project management units or regional construction investment project management units to manage a number of projects of the same sector or in the same line or the same area.
– Specialized construction investment project management units or regional construction investment project management units shall be assigned to act as project owners of a number of projects and perform the project management functions and tasks, and participate in project management consultancy when necessary.
– Specialized construction investment project management units or regional construction investment project management units have the responsibility:
+ To exercise the rights and perform the obligations of project owners as prescribed in Article 68 of 2014 Vietnam Construction Law, directly manage projects assigned by investment deciders, and the rights and obligations prescribed in Article 69 of 2014 Vietnam Construction Law.
+ To hand over works to agencies or units managing their operation, exploitation and use; or to directly manage their operation, exploitation and use, when so assigned by investment deciders in case of necessity.
– Specialized construction investment project management units or regional construction investment project management units may perform project management consultancy for other projects when so requested and exercise the rights and perform the obligations prescribed in Article 70 of 2014 Vietnam Construction Law.
Single-project construction investment project management units
– Project owners shall set up single-project construction investment project management units to directly manage the implementation of a project, for projects prescribed in Clause 2, Article 62 of 2014 Vietnam Construction Law.
– A single-project construction investment project management unit may have its own seal and accounts, shall exercise the powers and perform the tasks under the project owner’s authorization. A project management unit shall organizationally comprise the director, deputy directors) and specialized staff members, depending on the requirements and characteristics of each project. The project management unit members shall work on a full-time or part-time basis under the project owner’s decision.
Hiring of consultants for construction investment project management
– Project owners shall sign project management consultancy contracts with organizations or individuals fully meeting the construction capacity conditions prescribed in 2014 Vietnam Construction Law to perform one, some or all of the project management tasks.
– Project owners shall supervise project management consultancy and may authorize consultants to perform the tasks of project management under the project management contracts.
Contents of construction investment project management
– Construction investment project management contents include management of the scope and plan of tasks; work volume; construction quality; implementation schedule; construction investment costs; safety in construction; environmental protection in construction; selection of contractors and construction contracts; risk management; management of the work information system and other necessary contents in accordance with 2014 Vietnam Construction Law and relevant laws.
– Project owners shall perform or assign the project management units, project management consultants or general contractors (if any) to perform some or all of the project management contents prescribed in Clause 1 of this Article.
Management of implementation schedules of construction investment projects
– Investment deciders shall decide on the implementation time and schedules when approving the projects. For works under projects using state budget funds, the construction schedule must not exceed the work construction period already approved by investment deciders.
– Project owners and construction contractors shall draw up plans on construction schedules and measures, and manage the project implementation according to the approved construction schedules.
– Project owners shall make advance payments and payments for volumes completed according to the performance schedules of construction contracts.
– Project owners and construction contractors are encouraged to propose and apply reasonable technical, technological and organizational solutions to shorten the construction time.
Rights and obligations of project owners in the formulation and management of implementation of construction investment projects
– Project owners have the following rights:
+ To formulate and manage projects when fully meeting the capacity conditions prescribed in 2014 Vietnam Construction Law.
+ To request related agencies and organizations to provide information and documents on project formulation and management;
+ To select, and sign contracts with, consultancy contractors for project formulation and management;
+ To organize the project formulation and management; to decide on the establishment and dissolution of construction investment project management units for single projects according to their competence;
+ Other rights prescribed by law.
– Project owners have the following obligations:
+ To identify project formulation task requirements and contents; to provide necessary information and documents in case of hiring consultants for project formulation; to organize the pre- acceptance tests of project formulation results and archive construction investment project dossiers;
+ To select project formulation consultancy organizations fully meeting the capacity conditions prescribed by 2014 Vietnam Construction Law;
+ To take responsibility for the legal bases and accuracy of the information and documents provided to consultants for project formulation; to submit projects to competent approving agencies in accordance with law;
+ To select qualified and experienced consultancy organizations or individuals to verify projects at the request of the project-appraising agencies or organizations and investment deciders;
+ To organize the management of project implementation as prescribed in Article 66 of 2014 Vietnam Construction Law;
+ To examine and supervise the project implementation; to periodically report on the project implementation to investment deciders and competent state management agencies;
+ To recover capital and pay loans, with regard to projects with capital recovery and loan repayment requirements;
+ Other obligations prescribed by law.
Rights and obligations of construction investment project management units
– Construction investment project management units have the following rights:
+ To exercise the rights to manage projects as authorized by project owners;
+ To propose plans and solutions to organizing project management, propose to project owners for settlement matters falling beyond their competence;
+ To hire consultancy organizations to participate in project management in case of necessity after it is approved by investment deciders or project owners.
– Construction investment project management units have the following obligations:
+ To fulfill the project owners’ project management obligations within the scope of authorization;
+ To organize the management of construction investment projects, ensuring the schedule, quality, safety and environmental protection in construction;
+ To report their activities to project owners in the course of project management;
+ To be answerable for violations of law in project implementation management;
+ Other obligations prescribed by law.
Rights and obligations of construction investment project formulation consultancy and management contractors
– Construction investment project formulation consultancy and management contractors have the following rights:
+ To request project owners to provide information and documents related to the assigned consultancy tasks;
+ To have their intellectual property rights over their consultancy products protected in accordance with law;
+ To reject unlawful requests of project owners;
+ Other rights stated in the contracts and prescribed by relevant laws.
– Construction investment project formulation consultancy and management contractors have the following obligations:
+ To fulfill the obligations under the signed contracts in conformity with their construction capacity conditions prescribed by law;
+ To be answerable to the work quality under the signed contracts;
+ To pay compensations for damage caused to project owners when using improper information, documents, standards, technical regulations, technical solutions or improper organization of management in contravention of their contracts;
+ Other obligations stated in the contracts and prescribed by relevant laws.
Rights and responsibilities of construction investment project-appraising agencies and organizations
– Construction investment project-appraising agencies and organizations have the following rights:
+ To request project owners and related agencies and individuals to provide information for project appraisal and explanation in case of necessity;
+ To collect project appraisal charges in accordance with the law on charges and fees;
+ To request project owners to hire or invite qualified and experienced consultancy organizations or consultants to participate in the project appraisal when necessary;
+ To reserve their appraisal opinions and reject requests to falsify project appraisal results.
– Construction investment project-appraising agencies and organizations have the following responsibilities:
+ To appraise construction investment project contents in accordance with 2014 Vietnam Construction Law;
+ To send written notices of appraisal opinions and results to agencies or organizations in charge of appraisal for summarization and reporting to investment deciders;
+ To be accountable before law and investment deciders for their own project appraisal opinions and results.
Rights and responsibilities of construction investment deciders
– Construction investment deciders have the following rights:
+ To approve or authorize the approval of, construction projects, designs and cost estimates and settle construction investment funds;
+ To disapprove the projects when the investment objectives and project efficiency cannot be achieved;
+ To suspend the implementation of construction investment projects which have been approved or are underway when deeming it necessary and lawful;
+ To alter or adjust construction investment projects when deeming it necessary and conformable with Article 61 of 2014 Vietnam Construction Law.
+ Other rights prescribed by law.
– Construction investment deciders have the following responsibilities:
+ To organize project appraisal and decide on construction investment;
+ To ensure funding sources for implementation of construction investment projects;
+ To examine the implementation of construction investment projects by project owners; to organize monitoring and evaluation of construction investment projects as prescribed in Article 8 of 2014 Vietnam Construction Law;
+ To approve the settlement of investment capital for completed construction;
+ To take responsibility before law for their own decisions;
+ Other obligations prescribed by law.
Please see more:
- Instructions for exclusive registration of company logos in Vietnam
- Service of changing the legal representative of Vietnamese enterprises
Services of Lawyer X
Prestigious professional services: Firstly, the team of consultants and consultants for many years in the field of civil status, and customer support.
On-time: Certainly, with the motto “Get your lawyer right at your fingertips”, we ensure the service always performs on time. The rights and interests of customers always come first.
Cost: Besides, Lawyer X’s service costs are highly competitive; depending on the nature of the particular case. So, we want our guests to have the best possible service experience. Therefore, costs which guaranteed to be the most suitable and economical for customers.
Confidentiality of client information: Finally, all personal information of clients Lawyer X will be 100% confidential.
If you need any further information, please contact LSX Law firm: at +84846175333 or Email: [email protected]
Frequently asked questions
Ministers, heads of ministerial-level agencies, chairpersons of provincial- level People’s Committees, chairpersons of district-level People’s Committees or competent representatives of state enterprises shall decide on the establishment of specialized construction investment project management units or regional construction investment project management units to manage a number of projects of the same sector or in the same line or the same area.
Specialized construction investment project management units or regional construction investment project management units shall be assigned to act as project owners of a number of projects and perform the project management functions and tasks, and participate in project management consultancy when necessary.
Project owners shall set up single-project construction investment project management units to directly manage the implementation of a project, for projects prescribed in Clause 2, Article 62 of 2014 Vietnam Construction Law.
Conclusion: So the above is Management of implementation of construction investment projects in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
