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blue-check New regulations on appraisal of large-scale construction projects

Official letter No. 1122/BXD-HDXD dated April 6th, 2021 of the Ministry of Construction regarding guidelines for implementation of some contents of the Law amending, supplementing a number of articles of the Law on Construction dated June 17th, 2020 in Ha Noi city
VietlawOnline

Relating to the appraisal of large-scale construction projects, projects with great impact on community safety and benefits according to the new regulations at Law No. 62/2020/QH14, now it is regulated in details at Decree No. 15/2021/ND-CP . Read more

In which:

- Large-scale construction projects using other funds requiring appraisal of feasibility study reports at construction authorities are regulated at Clause 8 Article 3;

- Competence to appraise feasibility study reports on construction investment of construction authorities is regulated at Article 13;

- Competence to appraise designs following basic design of construction authorities is regulated at Article 36.

- The delegation of appraisal among construction authorities affiliated to provincial People's Committees is regulated at Clause 4, Clause 5 Article 109;

- The List of works with great impact on community safety and benefits is regulated at Appendix X;

- The transitional settlement is regulated at Article 110.

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blue-check Projects using private funds may hire consultant to manage the projects

Official letter No. 898/BXD-HDXD dated March 17th, 2021 of the Ministry of Construction regarding selection of form of construction investment project management board
VietlawOnline

According to Clause 1 Article 62 of the Law on Construction amended, supplemented at Law No. 62/2020/QH14, with regard to a project using private funds, the project owner may decide to apply any of the following project management forms: Read more

- Specialized/ regional construction investment project management board;

- Single-project construction investment project management board;

- The project owner himself manages the project by affiliated professional apparatuses;

- Hiring a project management consultant.

Accordingly, in case a project using private funds, the project owner has the right to decide project management form, in which he may hire a consultant to manage the project.

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blue-check New regulations on management of construction investment cost

Decree No. 10/2021/ND-CP dated February 9th, 2021 of the Government on management of construction investment cost
VietlawOnline

This Decree provides for new regulations on construction estimates; construction contract package values; construction norms; project management cost; payment for and finalization of construction contracts; rights, obligations and responsibilities of investors, building contractors. Read more

Accordingly, for projects with multiple constructions, project developers shall determine total estimates to manage construction investment when necessary. Total estimates include construction estimates, consultancy costs, other costs, and backup costs for the whole projects.

The appraisal of construction estimates shall be implemented together with appraisal of construction design implemented after fundamental design.

Project developers shall appraise estimates for preparation affairs to prepare construction design after fundamental design and general costs for the whole projects. In case estimates of these costs have been approved in total construction investment, project developers shall consider recalibration when necessary.

Project management costs shall only be revised when changes to project management scope, project execution progress, or project revision occur.

This Decree takes effect from the date of its signing and replaces Decree No. 68/2019/ND-CPstatus1

Projects in the transitional period shall be carried out as follows (Article 44):

- For construction investment presented for appraisal before January 1st, 2021 without receiving appraisal results, appraisal affairs shall continue according to Law on Construction 2014; subsequent management of construction investment cost shall conform to this Decree.

- Construction investment projects with appraisal results of total construction investment that have not been approved before the effective date of this Decree shall not require another instance of appraisal; subsequent management of construction investment shall conform to this Decree.

- For construction investment projects approved before the effective date of this Decree where none of the tasks in execution phase have been implemented (for cases in which contractors who have not issued bidding documents, requesting documents are required), subsequent management of construction investment shall conform to this Decree.

- For construction investment projects approved before the effective date hereof where one or several tasks in execution phase are being or have been implemented, the management of construction investment cost of tasks that have not been implemented shall be carried out according to the old regulations, except for details for appraisal and entitlement for appraisal and approval of construction investment shall conform to this Decree.

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blue-check Investor may himself settle a contract if there is no contractor’s coordination

Official letter No. 6087/BXD-KTXD dated December 21st, 2020 of the Ministry of Construction regarding guidelines for settlement of completed projects
VietlawOnline

The contractor's responsibility to settle construction contract, time limit for settlement and time limit for liquidation are regulated in details at Article 147 the Construction Law No. 50/2014/QH13status2 . Read more

Accordingly, the contractor shall make settlement for the construction contract with the principal in accordance with the type of contract and applied contract price. The contents of settlement for a construction contract must conform with the agreements stated therein.

However, in case the contractor does not coordinate in completing the dossier of contract settlement, the principal shall, based on the signed contract, dossiers in the actual construction process, directly make settlement, liquidation of the contract or hire a qualified independent consulting unit to make the contract settlement.

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blue-check Projects funded by private capital shall be managed by inventors themselves

Official letter No. 1020/HDXD-TK dated November 13th, 2020 of the Construction Management Department (the Ministry of Construction) regarding regulations on management of construction projects.
VietlawOnline

According to Clause 4 Article 16 of the Government's Decree No. 59/2015/ND-CPstatus1 and Clause 4 Article 4 of Circular No. 16/2016/TT-BXD, with regard to projects funded by other capital sources, the investment decision maker shall decide project management form in conformity with management requirements and actual conditions. Read more

Accordingly, investors are entitled to directly manage their own construction projects if they have professional units qualified to manage or may hire any qualified organization or individual to perform the management on their behalf.

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blue-check It is not required to appoint “Project manager” for each project

Official letter No. 3723/BXD-HĐXD dated August 3rd, 2020 of the Ministry of Construction regarding guidelines on construction practicing certificates
VietlawOnline

The title “Project manager” is now regulated at Clause 1 Article 1 of Decree No. 100/2018/ND-CPstatus2 . Read more

Accordingly, a “project manager” may be appointed by Director of field-based or area-based project management board or the legal representative of the project-management consultancy organization or the legal representative the investor. However, it is not required to appoint Project manager for each project.

With regard to the “construction supervision practicing certificate”, an individual to be issued with this certificate must have the scope of operation in line with the regulations at Clause 9 Article 1 of Decree No. 100/2018/ND-CPstatus2 .

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blue-check Amendments to regulations related to construction cost management

Circular No. 02/2020/TT-BXD dated July 20th, 2020 of the Ministry of Construction on amendments to 04 circulars related to construction cost management
VietlawOnline

The Circulars of which regulations are amended include: Read more

1. Circular No. 09/2019/TT-BXDstatus2 dated December 12th, 2019 on instructions about determination and management of construction investment costs;

2. Circular No. 10/2019/TT-BXDstatus2 dated December 26th, 2019 promulgating construction norms;

3. Circular No. 11/2019/TT-BXDstatus2 dated December 26th, 2019 on determination of cost per shift of construction machinery and equipment;

4. Circular No. 15/2019/TT-BXDstatus2 dated December 26th, 2019 on calculation of unit labor costs in the building and construction sector.

This Circular takes effect from September 25th, 2020 and replaces Circular No. 01/2017/TT-BXDstatus1 dated February 6th, 2017.

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blue-check Regarding settlement of issues in management of construction investment expenditure

Resolution No. 108/NQ-CP dated July 17th, 2020 of the Government on tasks and solutions for difficulties in implementation of Decree No. 68/2019/ND-CPstatus1 on management of construction investment expenditure
VietlawOnline

This Resolution is to settle issues in the course of determination and management of construction investment expenditure according to new regulations at Decree No. 68/2019/ND-CPstatus1 and provide transitional solutions for dealing with difficulties with regard to projects formulated before the day on which Decree No. 68/2019/ND-CPstatus1 takes effect.

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blue-check Regarding entrustment of construction investment project management

Official letter No. 3301/BXD-HDXD dated July 8th, 2020 of the Ministry of Construction regarding entrustment of project management and supervision of works construction
VietlawOnline

Relating to the entrustment and taking the entrustment of project management, the Ministry of construction request to apply Article 12 of Circular No. 16/2016/TT-BXD to carry out. Read more

Accordingly, field-based project management board shall take the entrustment of management of project which the investor is not eligible to manage, execute on the basis of the contract.

Contents of construction investment project management are regulated at Article 66 of 2014 Law on construction, including:

- 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.

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blue-check Regarding construction investment costs of PPP projects in Ho Chi Minh city

Official letter No. 6828/SXD-KTXD dated June 19th, 2020 of the Department of Construction of Ho Chi Minh city regarding application of cost per shift of construction machinery and equipment; unit labor costs for Quarters I and II/2020 in Ho Chi Minh city
VietlawOnline

The Department of Construction of Ho Chi Minh city requests that construction investment projects in the form of public-private partnership (PPP) in the City in Quarters I and II/2020 must apply cost per shift of construction machinery and equipment, unit labor costs as announced at Decision No. 2207/QD-UBND dated June 18th, 2020 in order to manage construction costs.

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