THE CONSTRUCTION LAW

The Construction Law No. 50/2014/QH13 dated June 18, 2014 of the National Assembly, coming into force as of January 1, 2015, amended by: 1. The Law No. 03/2016/QH14 dated November 22, 2016 of National Assembly on amendments to Article 6 and Annex 4 on the list of conditional business lines stipulated in the Law on Investment, coming into force as of January 1, 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, coming into force as of January 1, 2019;

3. The Architecture Law No. 40/2019/QH14 dated June 13, 2019 of the National Assembly, coming into force as of July 1, 2020;

4. The Law No. 62/2020/QH14 dated June 17, 2020 of the National Assembly on amendments to the Construction Law, coming into force as of January 1, 2021.

Pursuant to the Constitution of the Socialist Republic of Vietnam;

The National Assembly promulgates the Construction Law^[1].

Chapter I

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Article 1. Scope

This Law prescribes the rights, obligations and responsibilities of agencies, organizations and individuals and the state management in 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 contracting party contains provisions different from those of this Law, the provisions of that treaty will prevail.

Article 3. Interpretation of terms

For the purpose of this Law, the terms below shall be construed as follows:

1. [2]“construction investment pre-feasibility study report” means a document presenting a preliminary study’s contents, including 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 the contents of study on the necessity for, feasibility and effectiveness of, construction investment in accordance with the selected basic design plan, which serves as a basis for consideration of, and decision on, construction investment.

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4. [3] “specialized construction work-managing ministry” means a ministry tasked to manage the investment and construction of works in the construction sector under its management in accordance with regulations laid down herein.

5. “red-line boundary” means a boundary line drawn on the planning map and on the field for the purpose of demarcating land plots permitted for construction of works and land plots reserved for roads or technical infrastructure facilities and other public spaces.

6. “construction boundary” means a limit line of a land parcel within which the main work is permitted to be constructed.

7. “construction-planned land use norms” means the norms used for management of spatial and architectural development specifically identified for an area or a land lot, including the construction density, land use coefficient and maximum and minimum construction elevations of works.

8. “economic-technical norms of a construction plan” means the norms forecasted, determined and selected for use as a basis for proposing options and solutions for construction planning, including population size, land, technical and social infrastructure and environmental norms.

9. “construction project owner” (below referred to as project owner) means an agency, organization or individual that owns funds, borrows loans, or is assigned to directly manage and use funds, for construction investment activities.

10. [4] “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 elevation selected in conformity with the master plan on the foundation and rainwater drainage height.

12. “construction authorities” include the Ministry of Construction, People’s Committees of provinces or centrally run cities (below collectively rcĩcưed to as provincial- level People’s Committees) and People’s Committees of rural districts, urban districts, towns or provincial cities (below collectively referred to as district-level People’s Committees).

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14. “specialized agency affiliated to an investment decision-maker” means an agency or organization with expertise relevant to the characteristics and contents of projects, which are tasked by the investment decision-maker to conduct appraisal.

15. “construction investment project” means a collection of proposals concerning use of funds for construction, repair or renovation of a construction work with a view to developing, maintaining and raising the quality of the work or product or service within a given duration at specified costs. At the stage of investment construction project preparation, the project shall be demonstrated through the construction investment pre-feasibility study report, the construction investment feasibility study report or construction investment economic-technical report.

15a.[6] “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 construction planning which has been approved by a competent authority for construction, repair or renovation of an urban area.

16. “rural residential area” means an area where many households are bound together in their production, daily life and other social activities within a specific zone formed on the basis of natural conditions, socio-economic conditions, culture and other factors.

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. “construction permit with a definite period” means a construction permit granted for construction of a work or separate house within a given duration under the plan for implementation of the construction master plan.

19. “phased construction permit” means a construction permit granted for every part of a work or every work of a project when the construction design of the work or project is not yet completely implemented.

20. “construction investment activities” means a process of conducting construction activities including construction, repair and renovation of a construction work.

21. “construction activities” cover construction planning, formulation of a investment project to construct a work, construction survey, construction design, construction, construction supervision, project management, selection of contractors, taking-over inspection, taking-over of the work for operation, its warranty and maintenance and other activities related to its construction.

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23. “social infrastructure system” includes health care, cultural, educational, sports, commercial and public service works, trees, parks and other works.

24. “construction investment consultancy activities” cover construction planning, formulation of an investment project to construct a work, construction survey, design, verification, inspection, experimentation, project management, construction supervision and other counseling jobs related to construction investment activities.

25. ^[7] “functional zones” include economic zones, industrial parks, export-processing zones, hi-tech zones, tourism areas, research and training centers and sports zone.

26. “formulation of a construction investment project” covers formulation of a construction investment pre-feasibility study report (if any), construction investment feasibility study report or construction investment economic-technical report and the performance of necessary jobs to prepare the construction investment.

27. “investment decision-maker” means a person or at-law representative of an agency, organization or enterprise who is competent to approve the project and decide on construction investment.

28. “contractor in construction investment activities” (below referred to as contractor) means an organization or individual that has full construction capacity or practice capacity when participating in contractual relations in construction investment activities.

29. [8] (annulled)

30. “construction planning” means the organization of spaces of urban and rural areas and functional zones^[9]; the organization of technical and social infrastructure systems; the establishment of an environment suitable to people residing in territorial areas, ensuring the harmony between national interests and community interests, attaining the socio-economic development, national defense, security, environmental protection and climate change response objectives. Construction planning is demonstrated through a construction plan consisting of diagrams, drawings, mock-ups and explanations.

31. ^[10] “inter-district construction planning and district construction planning” means the organization of the system of urban areas, rural areas, functional zones and technical and social infrastructure within multiple districts or a district of a province, satisfying requirements for socio - economic development in each period.

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33. “rural planning”^[12] means the organization of space, land use, systems of technical infrastructure and social infrastructure works of a rural area. The rural planning^[13] covers commune general construction planning and Rural residential area construction detailed planning.

34. “construction work incident” means a breakdown beyond the allowable safety limit which puts the construction work or its construction supporting structures in danger of collapse or has caused the collapse of part or whole of the work in the course of construction or operation of the work.

35. “construction general contractor” means a contractor signing a contract directly with a project owner to undertake one job, some jobs or all jobs of a construction investment project.

36. [14] “appraisal” means the inspection and assessment, by the investment decision-maker, investor or specialized construction agency, of necessary contents in the course of preparing and implementing a construction investment 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 with full construction and practice capacity of necessary contents in the course of preparing and implementing a construction investment project, which serve as a basis for appraisal work.

38. “construction of a work” means the construction of, and installation of equipment for, 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, which serves as a basis for determining the construction investment policy.

41. “basic design” means a design made in the construction investment feasibility study report, based on the selected design plan, demonstrating the principal technical parameters suitable to applied standards and technical regulations, which serves as a basis for proceeding with subsequent designing steps.

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43. “construction drawing design” means a design fully demonstrating the technical parameters, to be-used materials and structural details conforming with the applied standards and technical regulations, fully meeting the conditions for construction of a work.

44. “construction planning time limit” means a duration identified to be the basis for forecast and calculation of economic-technical norms for formulation of a construction plan.

45. ^[15] (annulled)

46. [16] “danger zones in construction” mean areas within or around the construction site where potential hazards may occur and cause harm or damage to human, construction structures, property, equipment and/or facilities during the construction process, which is determined according to standards, technical regulations and measures for implementation of construction works.

Article 4. Basic principles of construction investment activities

1. [17] Ensure the compliance of work construction investment with master plans and designs, landscape and environmental protection, the suitability to 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 preparedness and management, and response to climate change.

2. Rationally using resources and natural resources in project areas, ensuring proper purposes, proper subjects and process of construction investment.

3. Complying with standards and technical regulations, regulations on the use of building materials; ensuring convenient and safe access for people with disabilities, the elderly and children to public facilities and high-rises; ensuring scientific and technological application and information system application to construction investment activities.

4. Ensuring the quality, schedule and safety of works, human lives and health and property; fire and explosion prevention and fighting; and environmental protection.

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6. [18] Organizations and individuals involved in construction activities must satisfy capacity requirements and assume responsibility for quality of works performed as prescribed by this Law.

7. Ensuring the publicity, transparency, thrift and efficiency; preventing and combating corruption, waste, loss and other negative practices in construction investment activities.

8. [19] 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 used funding sources.

9.[20] When formulating and implementing construction planning, performing construction investment activities, managing and operating construction works, and developing building materials, technical and management 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[21]

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.

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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 principle of voluntariness, excluding standards referred in technical regulations or other relevant legal 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) Meeting the requirements of national technical regulations and relevant laws;

b) Ensuring synchronism and feasibility of the applied standard system.

5. The application of technical solutions, technologies and new materials in construction investment activities must satisfy national technical regulations and relevant laws.

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Article 7. Project owners[22]

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 funding sources used for a project, the project owner shall be specifically determined as follows:

a) For a project using public investment funds, 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 funds as prescribed by relevant laws (hereinafter referred to as “project using non-public investment state funds”), the project owner is the agency or organization assigned by the investment decision-maker to manage and use the funds 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 investment sources 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 funds”) and must be implemented by an investor 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 funds.

3. Based on the specific conditions of projects using public investment funds, 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.

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Article 8. Monitoring and evaluation of construction investment projects

1. Construction investment projects shall be monitored and evaluated as suitable to each type of funding source as follows:

a) For projects using public investment funds[23], 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 funding 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 funds[24] or community- contributed funds and financial assistance of domestic organizations and individuals are subject to community supervision.

Within the ambit of their tasks and powers, the Vietnam Fatherland Front Committees in construction areas 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 covers:

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b) Construction investment consultancy professional liability insurance;

c) Insurance for construction supplies, materials, means, equipment and laborers;

d) Civil liability insurance for third party;

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 for works affecting the community safety, environment, works with particular technical requirements and complicated construction conditions;

b) Consultancy contractors shall buy construction investment consultancy professional liability insurance for construction survey and construction design of construction works of grade II or higher grade;

c)[25] Construction contractors shall buy insurance for construction workers working on the construction sites and civil liability insurance for third party.

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.

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Article 10. Incentive policies in construction investment activities

1. [26] Encourage construction investment activities performed to conserve, embellish and promote the value of historical relics, cultural heritages, beliefs and religion and those performed under planning in mountainous areas, islands, areas facing exceptionally difficult socio-economic conditions and areas prone to climate change.

2. Stakeholders of all economic sectors in construction investment activities shall be treated equal before law, encouraged and given favorable conditions in construction investment activities; contractors with works conferred by the State with the construction work quality awards 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. [27] The Government adopts incentive policies for research and application of advanced science and technology, application of information technology to construction investment activities; investment activities and construction works certified to economically and efficiently use energy and natural resources, and meet 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 shall be 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; create conditions to support and work out measures to promote the conclusion and implementation of treaties and international agreements in construction investment activities between domestic organizations and individuals and foreign organizations and individuals on the basis of ensuring the fundamental principles in construction investment activities prescribed in Article 4 of this Law.

Article 12. Prohibited acts

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2. Starting construction when the conditions therefor prescribed in this Law are not fully met.

3. Constructing works in non-construction zones ; constructing works in encroachment upon the protection corridors of national defense, security, traffic or irrigation works, dykes, energy facilities, historical-cultural relic areas and protection zones of other works prescribed by law; constructing works in areas prone to landslide, sweeping flood or flash flood, except works built to overcome these phenomena.

4. Constructing works at variance with construction master plan, except cases with construction permits with a definite term; in encroachment 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 funds, non-public investment state funds[28] in contravention of this Law.

6. Contractors participating in construction activities when failing to fully satisfy the capacity conditions for carrying out construction activities.

7. Project owners selecting contractors that fail to fully meet the capacity conditions for conducting construction activities.

8. Constructing works not in compliance with the selected standards and technical regulations to be applied to works.

9. Manufacturing and using building materials which cause harms to community health and environment.

10. Violating regulations on labor safety and assets, fire and explosion prevention and fighting, security, order and environmental protection in construction.

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12. Giving and taking bribe in construction investment activities; abusing other legal persons to participate in construction activities; committing manipulation and collusion to falsify the results of project formulation, surveys, designs or supervision of construction.

13. Abusing positions and powers to violate the law on construction; covering up and handling late acts in violation the law on construction.

14. Obstructing lawful construction investment activities.

Chapter II

CONSTRUCTION PLANNING

Section 1. GENERAL PROVISIONS

Article 13. Construction planning^[29]

1. Inter-district construction planning, district construction planning and functional zone construction planning is the detailed planning.

2. Urban planning is the planning mentioned in the national planning and includes the one specified by the Law on Urban Planning.

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3. Rural planning is the planning mentioned in the national planning and includes the one specified in Clause 2 Article 29 of this Law.

4. Bases for formulating construction planning include:

a) Socio - economic development, national defense and security strategies and plans; industry distribution and development strategies during the same period;

b) National planning, regional planning and provincial planning;

c) Planning in the previous planning;

d) Technical standards for urban planning and other relevant standards;

dd) Maps, documents and data on local current socio - economic conditions and natural conditions.

Article 14. Requirements and compliance principles on construction planning

1. Requirements on construction planning include:

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b) Organizing and arranging territorial space on the basis of rationally exploiting and using natural resources, land, historical relics, cultural heritages and other resources in compatibility with natural and socio-economic conditions, historical and cultural characteristics and scientific and technological advances in each development period;

c) Meeting the demand for use of the technical infrastructure system; ensuring connection and uniformity of regional, national and international technical infrastructure facilities;

d) Protecting the environment, preventing and fighting natural disasters and responding to climate change, minimizing the adverse impacts on community, conservation, embellishment and development of the value of historical relics, cultural heritages, beliefs and religions; ensuring synchronism in architectural space, social and technical infrastructure facilities;

dd) Establishing bases for planning, investment management and construction investment attraction, and managing, exploiting and using regional construction works, functional zones^[31] and rural areas.

2. Compliance principles for construction planning include:

a)^[32] The construction, and management of space, architecture and landscape and execution of programs therefor shall comply with the planning mentioned in the national planning prescribed by the law on planning and approved construction planning, and conform to available resources;

b) Construction planning must ensure the uniformity and conformity with planning at higher degrees.

Article 15. Review of construction planning

1. ^[33] Construction planning shall be periodically considered and reviewed, and the implementation thereof shall be assessed in order to make prompt adjustments relevant to the socio - economic development in each period. Inter-district construction planning and district construction planning, general planning and zoning planning, and detailed planning shall be reviewed every 10 years, 05 years and 03 years respectively from the date on which the construction planning is approved.

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3. Results of construction planning review shall be reported in writing to the state agencies competent to approve construction planning for consideration and decision.

Article 16. Responsibility to collect comments on construction planning

1. Agencies or project owners organizing construction planning shall collect comments of related agencies, organizations, individuals and communities on construction planning tasks and plans.

Related People’s Committees shall coordinate with construction planning agencies and construction investment project owners in collecting comments.

2. For the construction planning tasks and plans to be approved by the Prime Minister, the Ministry of Construction shall collect comments of other related ministries, central agencies and organizations; provincial-level. People’s Committees shall collect comments of related agencies, organizations, individuals and communities in their localities.

3. The feedbacks shall be fully summarized, explained, assimilated and reported to competent state agencies for consideration and decision.

Article 17. Forms and time of collecting comments on construction planning

1. The collection of comments of related agencies, organizations and individuals on construction planning tasks and plans shall be carried out in form of sending dossiers and documents or organizing conferences or seminars. Agencies, organizations and individuals from whom the consultation is sought shall reply in writing or give comments in person.

2. The collection of comments of communities on construction planning tasks and plans shall be carried out via collection of comments of community representatives in form of questionnaires and interviews. Community representatives shall summarize comments of their communities in accordance with the law on grassroots democracy.

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4. The duration for collecting comments on construction planning must be at least 20 days for agencies and 40 days for organizations, individuals and communities.

5. Construction planning agencies or organizations shall receive comments of agencies, organizations and communities to complete the construction planning tasks and plans; in case of refusal, they shall reply in writing and clearly state the reasons before the master plans are approved.

6. The Government shall elaborate the collection of comments on construction planning tasks and plans from related agencies, organizations, individuals and communities.

Article 18. Selection of construction planning consultancy organizations

1. Agencies organizing construction planning shall decide on forms of selecting consultancy organizations to participate in construction planning in accordance with law.

2. When selecting construction planning consultancy organizations, construction planning agencies or project owners shall base themselves on the capacity conditions on construction planning consultancy organizations prescribed in this Law, and take responsibility before law for the damage caused by the selection of consultancy organizations that fail to fully meet the capacity conditions.

3. To encourage the selection of construction planning consultancy organizations in form of contest for general master plans on construction of large functional zones^[34] of special significance and construction zone master plans and detailed master plans on construction of areas of important significance in the functional zones^[35].

Article 19. Funds for construction planning

1. The State shall ensure funds as prescribed by law for construction planning work.

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Article 20. Order of construction planning and approving construction planning

Construction planning shall be demonstrated through construction plans and must comply with the following order:

1. Devise and approve construction planning tasks;

2. ^[36] Conduct field investigations and surveys; collect maps, documents and data on natural conditions, current socio-economic conditions, national planning, regional planning and provincial planning concern to set up a construction planning project;

3. Formulate construction plans;

4. Appraise and approve construction plans.

Article 21. Archive of construction plan dossiers

1. Construction planning agencies, organizations and project owners shall archive dossiers of approved construction plans in accordance with the law on archive.

2. Construction planning authorities and land authorities at different levels shall archive construction plan dossiers and provide them to individuals, organizations and competent state agencies in accordance with law.

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Article 22. Responsibility for organizing formulation of inter-district construction planning and district construction planning

1. People’s Committees of provinces shall organize the formulation of construction planning tasks and projects for districts under their management.

2. People’s Committees of districts shall organize the formulation of district construction planning tasks and projects.

Article 23. Tasks of inter-district construction planning and district construction planning and contents of inter-district construction planning and district construction planning projects

1. Tasks of inter-district construction planning and district construction planning cover:

a) Determining arguments and foundations for inter-district planning boundaries;

b) Determination of development objective;

c) Forecast of population size, demand for technical and social infrastructure in each development period;

d) Determination of requirements for spatial organization of the system of urban areas, rural areas and main functional zones, and system of technical and social infrastructure within the scope of planning in each period.

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3. The Government shall elaborate inter-district construction planning and district construction planning tasks and projects.

Section 3. FUNCTIONAL ZONES CONSTRUCTION PLANNING^[38]

Article 24. Responsibility for formulating functional zone construction planning^[39]

1. The Ministry of Construction shall organize the formulation of functional zone construction planning tasks and projects at the request of the Prime Minister according to the principle: the planning is tailored for a functional zone only. Regarding national tourism areas, the Prime Minister shall decide on formulation of planning.

2. People's Committees of provinces shall organize the formulation of functional zone construction planning tasks and projects and functional zone zoning planning tasks and projects, except the planning specified in Clause 1 of this Article.

3. People’s Committees of districts shall organize the formulation of tasks and projects on detailed planning for construction of areas under their management. Construction project owners shall organize the formulation of detailed planning for the area in which they are assigned to invest.

Article 25. Levels of functional zone construction planning^[40]

1. Construction general planning shall be carried out for functional zones^[41] of a size of 500 hectares or over, which serve as a basis for sub-zoning planning and construction detailed planning.

2. Construction sub-zone planning shall be carried out for functional zones^[42] of a size of under 500 hectares, which serve as a basis for construction detailed planning.

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Article 26. General planning for construction of functional zones^[44]

1. The tasks of general planning for construction of functional zones^[45] include:

a) Justifications and bases for formation and determination of boundaries of functional zones^[46];

b) Determination of characteristics, forecast of population size of functional zones^[47], requirements on orientations for development of space and technical and social infrastructure facilities for each planning period;

c) For general planning for construction or renovation of functional zones^[48], in addition to the contents prescribed at Point a, Clause 1 of this Article, the requirements on areas to be cleared for construction, areas to be retained for embellishment, areas to be protected, and other specific requirements shall be identified according to characteristics of each functional zone^[49].

2. A general plan on construction of a functional zone^[50] must cover:

a) A general plan on construction of a functional zone^[51], which covers the identification of development objectives and driving forces, population size, land, technical and social infrastructure norms; development model, orientations for spatial development of functional zones, administrative, service, commercial, cultural, educational and training, and healthcare centers, parks, physical training and sports centers; systems of overhead, land, water and underground frame technical infrastructure systems; strategic environmental assessment; investment priority plan and resources for implementation.

b) Drawings of a general plan on construction of a functional zone^[52], which are demonstrated on a 1:5,000 or 1:10,000 scale;

c) The planning period of between 20 and 25 years;

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3. A general plan on construction of an exclusive functional zone^[55] must cover the determination of population size, land, technical and social infrastructure norms; orientations for spatial development of functional sub-zones; planning for framework technical infrastructure system; strategic environmental assessment; investment priority plan and resources for implementation.

Article 27. Sub-zone planning for construction of functional zones^[56]

1. The tasks of sub-zone planning for construction of a functional zone^[57] include:

a) Requirements on land use areas, scale and scope of sub-zone planning, systems of technical and social infrastructure facilities in the planning area;

b) List of proposed measures for renovation of to be-retained facilities in the renovation planning area;

c) Other requirements for each planning area.

2. A plan on sub-zones for construction of a functional zone^[58] must cover:

a) Contents of the plan on sub-zones for construction of a functional zone^[59], which include the determination of utility for every land plot; principles of spatial and architectural landscape organization for the entire planning area; norms of population, land use and system of technical infrastructure facilities for every land plot; arrangement of social infrastructure system to meet use demands; arrangement of technical infrastructure networks to street axes suitable to the development stages of the entire functional zone^[60]; strategic environmental assessment;

b) Drawings of the plan on sub-zones for construction of the functional zone^[61], which shall be demonstrated on a 1:2,000 scale;

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d) The approved plan on sub-zones for construction of the functional zone^[64] serves as a basis for determination of construction investment projects in the functional zone^[65] and for construction detailed planning.

Article 28. Detailed planning for construction in functional zones^[66]

1. Tasks of detailed planning for construction in a functional zone^[67] include:

a) Requirements on land use area, scale and scope of detailed planning, urban designing, technical and social infrastructure systems in the planning area;

b) List of proposed measures for renovation of to-be-retained facilities in the renovation planning area;

c) Other requirements for each planning area.

2. A detailed plan on construction in a functional zone^[68] must cover:

a) Contents of the detailed plan, which include the determination of norms of population and land use, technical and social infrastructure and requirements on spatial and architectural organization for the entire planning areas; arrangement of social infrastructure facilities to meet use demands; requirements on architecture of works for every land plot and urban design; arrangement of the system of technical infrastructure facilities to the land plot boundaries; strategies environmental assessment;

b) Drawings of the detailed plan, which shall be demonstrated on a 1:500 scale;

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d) The approved construction detailed plan serves as a basis for grant of construction permits and formulation of construction investment projects.

Section 4. RURAL PLANNING^[69]

Article 29. Objects and levels of, and responsibility to organize, rural planning^[70]

1. Rural planning^[71] shall be carried out for communes and rural residential areas.

2. Rural planning^[72] shall be classified into the following types of planning^[73]:

a) Construction general planning, which shall be carried out for the entire administrative boundaries of communes;

b) Construction detailed planning, which shall be carried out for rural residential areas.

3. Commune-level People’s Committees shall assume the prime responsibility for organizing the formulation of tasks of and rural planning^[74].

Article 30. Commune construction general planning

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2. A commune construction general plan must cover:

a) Contents of the plan, which cover the determination of development potentials and driving forces, population size and labor, land size, network of rural residential areas; orientations for organization of commune overall space; orientations for development of functional zones of agricultural, industrial, cottage-industrial and handicraft production, craft villages, houses, services and system of technical infrastructure facilities;

b) Drawings of the commune construction general plan, which are demonstrated on a 1:5,000, 1:10,000 or 1:25,000 scale;

c) The planning period of between 10 and 20 years;

d) The approved commune construction general plan serves as a basis for carrying out detailed planning for construction of rural residential areas including commune centers, residential quarters and other functional zones in the commune.

Article 31. Detailed planning for construction of rural residential areas

1. Tasks of detailed planning for construction of rural residential areas must cover the forecasts of population size and labor; land size; requirements on land use for arrangement of construction, conservation or renovation works; technical and social infrastructures in rural residential areas.

2. A detailed plan on construction of rural residential areas must cover:

a) Contents of the detailed plan, which include identification of construction positions and areas of works: working offices of administrative units of the commune, educational, health care, cultural, physical training and sports, commercial and service works and houses; planning for technical and production infrastructures;

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c) The planning period based on investment plans and resources for implementation;

d) The approved detailed plan on construction of rural residential areas serves as a basis for formulation of construction investment projects and grant of construction permits.

Section 5. APPRAISAL AND APPROVAL OF CONSTRUCTION PLANNING

Article 32. Competence to appraise construction planning tasks and plans

1. The Ministry of Construction shall appraise construction planning tasks and plans falling within the approving competence of the Prime Minister.

2. Construction planning-managing agencies of provincial-level People’s Committees shall appraise construction planning tasks and plans falling within the approving competence of the People’s Committees of the same level.

3. Construction planning-managing agencies of district-level People’s Committees shall appraise construction planning tasks and plans falling within the approving competence of the People’s Committees of the same level.

Article 33. Appraisal councils and contents of appraisal of construction planning tasks and plans

1. The Ministry of Construction shall decide on the establishment of the council for appraisal of construction planning tasks and plans falling within the approving competence of the Prime Minister and construction plans formulated by the Ministry of Construction. The Ministry of Construction shall act as the standing body of the appraisal council.

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3. An appraisal council shall be composed of representatives of state management agencies, socio-professional organizations and experts in the relevant fields.

4. Contents of appraisal of construction planning tasks cover:

a)^[75] Conformity of the construction planning tasks with socio - economic development, national defense and security, environmental protection and climate change response strategies, national planning, regional planning and provincial planning and with land use plan;

b) Requirements on contents of each type of construction planning task are prescribed in Articles 23, 26, 27, 28, 30 and 31 of this Law.

5. Contents of appraisal of a construction plan cover:

a) The satisfaction of the conditions by construction planning-designing organizations prescribed in Article 150 of this Law;

b) Grounds for formulation of construction plans prescribed in Clause 2, Article 13 of this Law;

c) The conformity of the construction plan with the tasks and content requirements of each type of construction planning prescribed in Sections 2, 3 and 4 of this Chapter.

Article 34. The power to approve construction planning tasks and projects^[76]

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a) General economic zone construction planning, general hi-tech zone construction planning;

b) General tourism area construction planning, research and training centers, national sports centers.

2. People’s Committees of provinces shall approve tasks and projects on the following construction planning:

a) Inter-district construction planning and district construction planning;

b) General functional zone construction planning, except the planning prescribed in Clause 1 of this Article.

c)[77] Sub-zone planning for construction of functional zones.

3. [78] District-level People’s Committees shall approve the detailed construction planning and planning for rural construction within the administrative boundaries under their respective management after obtaining written consent of construction planning-managing agencies of provincial-level People’s Committees.

4. People’s Committees at all levels shall organize formulation of construction planning and submit it to People's Councils at the same level before a competent authority considers and approves it.

5. Construction planning tasks and projects shall be approved as follows:

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b) The written approval for construction planning shall contain main contents of the construction planning projects specified in Articles 23, 26, 27, 28, 30 and 31 of this Law and enclose an approved list of drawings.

Section 6. ADJUSTMENT OF CONSTRUCTION PLANNING

Article 35. Bases for adjusting construction planning^[79]

1. Inter-district construction planning and district construction planning shall be adjusted in one of the following cases:

a) Adjustments to the objectives of the socio - economic development strategy and industry distribution and development strategy change contents of the planning;

b) Adjustments to the planning at a higher level change contents of the planning or there is inconsistency with the planning at the same level;

c) Changes or adjustments to an administrative division affect the nature and scale of space of the planning;

d) Natural disasters, climate change and war change the objectives, orientations and spatial organization of the planning;

dd) Random fluctuations of the socio-economic situation limit the resources for the implementation of the planning;

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g) Assurance of nation defense and security is required.

2. Functional zone construction planning shall be adjusted in one of the following cases:

a) Adjustments to the planning at a higher level change contents of the planning or there is inconsistency with the planning at the same level;

b) Setting up a key project of national significance greatly affects land use, environment and spatial composition of the functional zone;

c) Construction planning fails to be implemented or the implementation thereof exert adverse effects on socio - economic development, national defense, security, social security, historical - cultural sites/monuments or environmental ecology, which is determined through the review and assessment of implementation of construction planning and the community’s opinion;

d) Natural disasters, climate change and war change the objectives, orientations and spatial organization of the planning;

dd) The planning serves national interests and community interests.

3. Rural planning shall be adjusted in one of the following cases:

a) Adjustments to the planning at a higher level change are made;

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c) Changes to an administrative division are made.

Article 36. Principles of construction planning adjustment

1. The adjustment of construction planning shall be based on the analysis and evaluation of current situation and results of implementation of existing master plans, clear determination of requirements of regional renovation embellishment to propose adjustment of land use norms, solutions to the arrangement of space and landscape for each area; solutions to the improvement of technical and social infrastructure systems to meet the development requirements.

2. Contents of adjusted construction planning shall be appraised and approved in accordance with this Law; non-adjusted contents of the approved construction plans may still be implemented.

Article 37. Types of adjustment of construction planning

1. The overall adjustment of construction planning is prescribed as follows:

a) The overall adjustment of construction planning shall be made when the characteristics, functions, sizes of planning regions or areas change or the contents of proposed adjustment would alter the structure and orientations for general development of planning regions or areas;

b) The overall adjustment of construction planning must satisfy practical requirements and be in line with the socio-economic development trends and orientations for future development of regions or areas, improve the quality of the living environment, infrastructure and landscape, ensuring the inheritance and without exerting impacts on ongoing construction investment projects.

2. ^[80] Partial adjustments to functional zone construction planning shall be made when the expected adjustments do not change the nature, functions, scale and main planning solutions of the area mentioned in the planning and do not overburden technical and social infrastructure of the area expected to be mentioned in the adjusted planning.

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1. Based on the socio-economic development situation and factors affecting the development of regions, functional zones^[81], rural areas; the adjustment conditions and after reviewing the construction planning, the construction planning agencies shall report the overall adjustment of the construction planning to agencies competent to approve construction planning for consideration and decision.

2. Agencies or persons competent to approve construction planning shall give in-principle approval of the overall adjustment of construction planning.

3. The formulation of, consultation on, appraisal and approval of the tasks and plans on overall adjustment of construction planning and the announcement of adjusted construction planning must comply with Articles 16 and 17 and Sections 2, 3, 4 and 5 of this Chapter.

Article 39. Bases for partially adjusting construction planning^[82]

1. The authority in charge of organizing formulation of construction planning shall:

a) prepare a report on contents and plan for partial adjustment to the construction planning;

b) seek opinions of the residential community in the area expected to be mentioned in the adjusted planning and surrounding areas under the direct influence of the contents and plan for partial adjustment to the construction planning as prescribed in Articles 16 and 17 of this Law.

2. The authority in charge of planning management specified in Article 32 of this Law shall appraise bases, conditions and contents related to partial adjustment to the planning.

3. The authority in charge of approving the construction planning shall consider deciding on partial adjustment to the construction planning in the opinion of the authority in charge of appraising the construction planning.

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4. The authority in charge of organizing formulation of the construction planning shall update and specify adjustments in the planning documentation. <0} Partial adjustments to the construction planning shall be published as prescribed in Articles 40, 41 and 42 of this Law.

Section 7. ORGANIZATION OF IMPLEMENTATION OF CONSTRUCTION PLANNING

Article 40. Publicization of construction planning

1. ^[83] Within 15 days from the date on which the planning is approved by a competent authority, the construction planning project shall be published.

2.^[84] It is required to publish all contents of the construction planning project and regulatory regulations laid down according to the promulgated construction planning project, except contents related to national defense, security and state secrets.

3. The construction planning-managing agencies shall fully update the situation of implementation of the approved construction plans so that the competent agencies shall promptly publicize them to organizations and individuals for knowledge and supervision in the process of implementation.

Article 41. Responsibility to publicize construction planning

1. ^[85] Regarding inter-district construction planning and district construction planning:

a) People’s Committees of districts shall publish inter-district construction planning;

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2. For general planning for construction of functional zones^[86]:

a) The Ministry of Construction shall assume the prime responsibility for, and coordinate with the related provincial-level People’s Committees in, publicizing the inter-provincial plans on construction of functional zones^[87], which fall within the approving competence of the Prime Minister.

b) The People’s Committees at different levels shall publicize general plans on construction of functional zones^[88] within their respective administrative boundaries.

3. The People’s Committees at different levels shall publicize the approved sub-zone construction plans and detailed planning for construction of functional zones^[89] within the administrative boundaries under their management to people for implementation and supervision of the implementation.

4. Commune People’s Committees shall publicize the commune and rural residential area construction planning.

5.^[90] (annulled)

6. If persons responsible to publicize the construction planning do not publicize, delay the publicization or falsely publicize the contents of approved construction planning, they shall be disciplined or examined for penal liability, depending on the nature and severity of their violations; if causing damage, they shall compensate therefor in accordance with law.

Article 42. Forms of publicizing construction planning

1. ^[91] The approved construction planning project shall be regularly posted and updated on websites of the authority in charge of organizing formulation of the planning, authority in charge of formulating planning and construction planning authority and on mass media.

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a) Organizing conferences to publicize the construction planning, with the participation of representatives of related organizations and agencies, Vietnam Fatherland Front Committee, representatives of people in the planning region and of the press agencies;

b) Public, regular and continuous display of panels, drawings and mock-ups at public places and offices of construction planning management agencies at all levels and at offices of commune-level People’s Committees, for detailed construction planning;

c) Printing and widely distributing construction planning maps and regulations on management of approved construction planning.

Article 43. Provision of information about construction planning^[92]

1. Information about construction planning shall be provided:

a) by publishing construction planning project documentation on websites and mass media;

b) by providing direct explanations at the request of an organization or individual;

c) through physical or electronic documents at the request of an organization or individual;

d) by releasing publications about the planning.

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In the cases where information is provided in writing, within 15 days from the date of receiving request, the authority in charge of planning management shall provide information to the applicant.

3. The information provider shall be responsible to law for the time of information provision and the accuracy of the provided documents and data.

Article 44. Planting of construction boundary markers on the field

1. The planting of construction boundary markers on the field shall be carried out for construction general plans, construction sub-zone plans and construction detailed plans.

2. The planting of boundary markers under approved construction planning covers the planting of red-line markers, construction boundary markers, construction level markers and no-construction zone boundary markers under the approved boundary marker dossiers.

3. After the construction plans are approved by competent state agencies, the People’s Committees at different levels have the following responsibilities:

a) To organize the compilation and approval of dossiers on boundary marker planting under the approved construction planning. The time limit for compilation and approval of boundary marker dossiers is 30 days after the construction plans are approved. The planting of boundary markers on the field shall be completed within 45 days after the boundary marker dossiers are approved;

b) To organize the planting of boundary markers on the field for construction detailed plans after the investors are selected.

4. Responsibility to organize and conduct the boundary marker planting is prescribed as follows:

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b) District-level People’s Committees shall organize the planting of construction boundary markers for construction plans within their respective administrative boundaries;

c) Commune-level People’s Committees shall plant construction boundary markers for construction plans within their respective administrative boundaries.

5. Boundary marker planting dossiers shall be made by professional units.

6. Boundary markers must be durable, of standard sizes and inscribed with information as prescribed, conspicuous, safe for humans and means of transport passing by and suitable to the terrain of their planting areas.

7. Commune-level People’s Committees shall protect the on-field boundary markers.

8. The construction planning-managing agencies shall keep the approved boundary marker planting dossiers and provide documents related to boundary markers to organizations and individuals upon request.

9. When construction planning is adjusted, the boundary markers shall be adjusted according to the adjusted planning.

10. Those who commit acts of planting boundary markers or construction level markers at wrong locations, removing or destroying boundary markers or construction level markers shall be disciplined, administratively sanctioned or examined for penal liability, depending on the nature and severity of their violations; if causing damage, they shall pay compensations therefor in accordance with law.

Section 8. MANAGEMENT OF CONSTRUCTION UNDER CONSTRUCTION PLANNING

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1. The management of construction investment must be based on the construction planning approved by competent agencies.

2. The construction, repair or renovation of architectural works, technical and social infrastructure facilities and houses must conform with the approved construction detailed planning and comply with the law on construction.

Article 46. Introduction of construction locations

1. The construction planning-managing agencies shall introduce construction investment locations to project owners when so requested.

2. Locations introduced for construction investment must conform with construction planning, sizes, investment characteristics, save construction land; not affect the socio-economic development and environment of the regions, functional zones^[93] and rural areas.

Article 47. ^[94] (annulled)

Article 48. Management of the implementation of construction planning

1. Provincial-level People’s Committees shall direct the formulation of programs and plans for implementation of construction planning for development of urban and rural areas and functional zones^[95] in areas under their respective management in accordance with the approved construction planning.

2. [96] (annulled)

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Chapter III

CONSTRUCTION INVESTMENT PROJECTS

Section 1. GENERAL PROVISIONS

Article 49. Classification of construction investment projects[97]

1. Construction investment projects shall be classified by the size, importance, functions and characteristics of construction works, management purposes, funding sources and investment forms.

2. Based on their sizes and importance, construction investment projects are classified as national important projects, 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;

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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.

4. Based on funding sources and investment forms, construction investment projects are classified as follows:

a) Projects using public investment funds;

b) Projects using non-public investment state funds;

c) PPP projects;

d) Projects using other funds.

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6. The Government shall elaborate this Article.

Article 50. Order of construction investment

1. The order of construction investment involves three stages, including project preparation, project implementation and construction completion to put the project’s work into operation, except the construction of separate houses.

2. [98] The division of a construction investment project into component projects and investment phasing shall comply with the following provisions:

a) A construction investment project may be divided into component projects if each of the component projects can operate independently. Such component projects shall be managed as independent projects. The division of a project using public investment funds into component projects shall comply with provisions of the Law on public investment. The division of other projects into component 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 on 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 on construction investment projects

A construction investment project, respective of its funding sources, must satisfy the following requirements:

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2. Having appropriate technological and construction designing plans.

3. Ensuring quality and safety in construction, operation, operation of its works, fire and explosion prevention and fighting and environmental protection and response to climate change.

4. Ensuring the adequate allocation of funds strictly according to its schedule, ensuring its financial efficiency and socio-economic efficiency.

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[100]

1. Upon construction investment, project owners or agencies or organizations assigned to take charge of project preparation shall make construction investment feasibility study reports, except the cases prescribed in Clauses 3 and 4 of this Article. Contents of construction investment feasibility study reports must conform to the requirements of each type of projects. The formulation of construction investment feasibility study reports 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 national important projects and group-A projects using public investment funds, PPP projects as prescribed in the Law on investment in the public-private partnership form, and projects of which investment policies are approved by the National Assembly or the Prime Minister as prescribed by the Law on investment, the formulation of construction investment pre-feasibility study reports is compulsory;

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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. Only construction investment economic-technical reports shall be required for construction investment projects in the following cases:

a) Construction works used for religious purposes;

b) Small construction works and other works prescribed by the Government.

4. For construction of detached houses of households or individuals, 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 and conditions for construction investment.

2. The projected objective, scale, location and form of construction investment.

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4. The preliminary design on construction, explanation, technology, techniques and appropriate equipment.

5. Projected time for project implementation.

6. The preliminary total investment amount, capital raising plan; recoverability of invested funds, capability to pay loans (if any); preliminary determination of socio-economic efficiency and evaluation of the project’s impacts.

7. [101] The 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 basic 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 basic design must comprise explanations and drawings expressing the following contents:

a) The construction location, direction of the line of works, list, sizes, types and grades of works on the whole construction ground;

b) Selected technological, technical and equipment plans (if any);

c) Architectural solutions, ground plan, cross-sections and elevations of construction works and their sizes and main structures;

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dd) Plan on connection of technical infrastructures inside and outside the works, fire and explosion prevention and fighting solutions;

e) Applied standards and technical regulations and construction survey results for making the basic design.

2. Other contents of a construction investment feasibility study report include:

a) The necessity for investment, investment policy, construction investment objectives, construction locations and to be-used land area, capacity and form of construction investment;

b) The capability to ensure factors for project implementation such as use of resources, selection of equipment and technology, use of labor, technical infrastructure, product consumption, operation requirements, implementation duration, plan on construction ground clearance and resettlement (if any), solutions to organizing management of project implementation, work operation and use, and environmental protection;

c) Assessment of the project’s impacts related to land recovery, ground clearance and resettlement; protection of landscape and ecological environment and safety in construction, fire and explosion prevention and fighting, and other necessary contents;

d) Total investment amount and capital raising, financial analysis, risks, expenses for operation of the work, evaluation of socio-economic efficiency of the project; recommendations on coordination mechanism, policies on incentives and support for project implementation;

d1)[102] 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 description about measures for synchronous construction of technical and social infrastructure facilities within the project, connection of these facilities with those outside the project, and handover of the construction work. The Government shall elaborate this point;

dd) Other relevant contents.

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1. Construction drawing designs, technical designs (if any) and construction cost estimates.

2. Other contents of a construction investment economic-technical report include explanations about the necessity for investment, construction objectives, construction locations, to be-used land area, sizes, capacity and grades of works, construction solutions, construction safety, plans on construction ground clearance and environmental protection, allocation of funds for implementation, construction duration, construction investment efficiency of works.

Article 56. Appraisal of construction investment feasibility study reports and construction investment economic-technical reports[103]

1. For national important projects using public investment funds, 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 characteristics 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, appraisal or approval of competent authorities are required in accordance with relevant laws;

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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 competent authorities 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 accounted into 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[104]

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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 funds 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 funds and projects using non-public investment state funds 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;

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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 funds, 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[105]

1. Specialized construction agencies shall carry out the appraisal of construction investment feasibility study reports of the following projects:

a) Projects using public investment funds;

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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 funds;

d) Construction investment projects that are of large scale, or have construction works significantly affecting the community safety and interests, and use other funds.

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 construction operation capability conditions by organizations and individuals performing construction activities;

b) The conformity of the fundamental design with construction planning and other detailed planning as prescribed by the Law on planning or the plan on the line of works and the construction location approved by competent authorities;

c) The conformity of the project with the investment policy decided or approved by competent authorities, implementation program or plan, and other project 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;

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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[106]

1. The time limit for appraisal of a construction investment feasibility study report shall be counted from the date 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 funds are as follows:

a) For national important projects, 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.

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Article 60. Power to make construction investment decision[107]

1. For projects using public investment funds, 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 funds, 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 funds[108] include:

a) Being affected by natural disasters, environmental incidents, enemy sabotage, fires or other force majeure factors;

b) Appearance of factors likely to bring about higher efficiency for the project when the project owner has proved the financial and socio-economic efficiency brought about by the project adjustment;

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d) When the construction price index promulgated by the Ministry of Construction or the provincial-level People’s Committee during the project implementation is higher than the construction price index used for calculation of inflation in the approved total investment amount of the project.

dd)[109] The adjustment of investment policy results in adjustment of project.

2. The adjustment of projects using public investment funds[110] shall be decided by investment decision-makers.

3. The adjustment of projects using other funds shall be decided by investment decision-makers on the basis of ensuring the requirements on planning, safety, environmental protection, fire and explosion prevention and fighting, and national defense and security, which have been approved by competent state agencies.

4. If the project adjustment alters the construction objectives, scales and locations, it shall be approved by a competent state agency.

5. The adjustment of construction investment projects shall be appraised and approved.

6. The Government shall elaborate the formulation, appraisal, approval and adjustment of construction investment projects.

Section 3. MANAGEMENT OF IMPLEMENTATION OF CONSTRUCTION INVESTMENT PROJECTS

Article 62. Organizational forms of construction investment project management[111]

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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 funds of the same sector or the same region.

3. Project management boards and project management consultants 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 units, regional construction investment project management units

1.[112] (annulled)

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3. Specialized construction investment project management units or regional construction investment project management units have the responsibility:

a) To exercise the rights and perform the obligations of project owners as prescribed in Article 68 of this Law, directly manage projects assigned by investment decision-makers, and the rights and obligations prescribed in Article 69 of this Law;

b) To hand over works to agencies or units managing their operation, operation; or to directly manage their operation, operation, when so assigned by investment decision-makers in case of necessity.

4. 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 this Law.

Article 64. Single-project construction investment project management units

1.[113] Project owners shall establish single-project construction investment project management boards to directly manage their projects.

2. 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.

Article 65. Hiring of consultants for construction investment project management

1. Project owners shall sign project management consultancy contracts with organizations or individuals fully meeting the construction capacity conditions prescribed in this Law to perform one, some or all of the project management tasks.

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Article 66. Contents of construction investment project management

1. 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 this Law and relevant laws.

2. 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.

Article 67. Management of implementation schedules of construction investment projects

1. Investment decision-makers shall decide on the implementation time and schedules when approving the projects. For works under projects using public investment funds[114], the construction schedule must not exceed the work construction period already approved by investment decision-makers.

2. 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.

3. Project owners shall make advance payments and payments for volumes completed according to the performance schedules of construction contracts.

4. Project owners and construction contractors are encouraged to propose and apply reasonable technical, technological and organizational solutions to shorten the construction time.

Section 4. RIGHTS AND OBLIGATIONS OF PROJECT OWNERS, CONSTRUCTION INVESTMENT PROJECT MANAGEMENT UNITS, CONSULTANCY CONTRACTORS AND INVESTMENT DECISION-MAKERS

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1. Project owners have the following rights:

a) To formulate and manage projects when fully meeting the capacity conditions prescribed in this Law;

b) To request related agencies and organizations to provide information and documents on project formulation and management;

c) To select, and sign contracts with, consultancy contractors for project formulation and management;

d) 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;

dd) Other rights prescribed by law.

2. Project owners have the following obligations:

a) 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;

b) To select project formulation consultancy organizations fully meeting the capacity conditions prescribed by this Law;

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d) To select qualified and experienced consultancy organizations or individuals to verify projects at the request of the project-appraising agencies or organizations and investment decision-makers;

dd) To organize the management of project implementation as prescribed in Article 66 of this Law;

e) To examine and supervise the project implementation; to periodically report on the project implementation to investment decision-makers and competent state management agencies;

g) To recover capital and pay loans, with regard to projects with capital recovery and loan repayment requirements;

h) Other obligations prescribed by law.

Article 69. Rights and obligations of construction investment project management units

1. Construction investment project management units have the following rights:

a) To exercise the rights to manage projects as authorized by project owners;

b) To propose plans and solutions to organizing project management, propose to project owners for settlement matters falling beyond their competence;

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2. Construction investment project management units have the following obligations:

a) To fulfill the project owners’ project management obligations within the scope of authorization;

b) To organize the management of construction investment projects, ensuring the schedule, quality, safety and environmental protection in construction;

c) To report their activities to project owners in the course of project management;

d) To be answerable for violations of law in 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) To request project owners to provide information and documents related to the assigned consultancy tasks;

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c) To 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) To fulfill the obligations under the signed contracts in conformity with their construction capacity conditions prescribed by law;

b) To be answerable to the work quality under the signed contracts;

c) 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;

d) Other obligations 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[115]

1. Appraising agencies have the following rights:

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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;

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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 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;

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c) Take responsibility before 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)[116] Approve or authorize the approval of projects and final statements of construction investment funds. For projects using public investment funds 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) To disapprove the projects when the investment objectives and project efficiency cannot be achieved;

c) To suspend the implementation of construction investment projects which have been approved or are underway when deeming it necessary and lawful;

d) To 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:

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b) To ensure funding sources for implementation of construction investment projects;

c) 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 this Law;

d)[117] (annulled)

dd) To take responsibility before 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

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2. Engineering geological survey.

3. Hydrogeological survey.

4. Survey of the actual state of works.

5. Other surveys to serve construction investment activities as decided by investment decision-makers.

Article 74. Requirements on construction survey

1. Construction survey tasks and survey technique plans must suit types and grades of construction works, types of survey, designing steps and requirements of construction designing.

2. Construction survey technique plans must meet requirements of construction survey tasks and comply with applied construction survey standards and technical regulations.

3. Construction survey work must comply with construction survey technique plans, ensure safety and environmental protection, meet requirements of approved construction survey tasks, and shall be examined, supervised and tested for acceptance under regulations.

4. Construction survey results shall be presented in a report, must ensure truthfulness and objectivity and accurately reflect reality, and shall be approved.

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Article 75. Major contents of a report on construction survey results

1. Survey bases, process and methods.

2. Survey data; analysis and assessment of survey results.

3. Conclusions on survey results, proposals.

Article 76. Rights and obligations of project owners in construction survey

1. Project owners have the following rights:

a) To conduct construction survey when having sufficient capability conditions;

b) To negotiate and sign construction survey contracts; to supervise and request construction survey contractors to properly perform signed contracts;

c) To approve construction survey tasks and survey technique plans prepared by design consultants or survey contractors, and assign survey tasks to construction survey contractors;

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dd) To suspend the performance of, or terminate contracts in accordance with law;

e) Other rights prescribed by law.

2. Project owners have the following obligations:

a) To choose construction survey contractors and supervisors in case they cannot conduct or supervise construction survey by themselves;

b) To provide information and documents related to survey work to construction survey contractors;

c) To set construction survey requirements and ensure conditions for construction survey contractors to perform their jobs;

d) To properly perform the signed construction survey contracts;

dd) To organize supervision of construction survey work; undertake taking-over inspection and approve survey results in accordance with law;

e) To pay compensations for damage caused by the provision of inappropriate information and documents and violations of construction survey contracts;

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Article 77. Rights and obligations of construction survey contractors

1. Construction survey contractors have the following rights:

a) To request project owners and related parties to provide relevant data and information in accordance with contracts for conducting construction surveys;

b) To refuse to implement requests beyond construction survey contracts;

c) To hire subcontractors to conduct construction surveys in accordance with construction survey contracts;

d) Other rights stated in the contracts and prescribed by relevant laws.

2. Construction survey contractors have the following obligations:

a) To strictly comply with construction survey requirements in accordance with this Law and construction survey contracts;

b) To propose and add construction survey tasks when detecting factors directly affecting design solutions;

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d) To pay compensations for damage caused by improper performance of survey tasks, improper use of information, documents, standards and technical regulations on construction survey and violations of construction survey contracts;

dd) Other obligations stated in the contracts and prescribed by relevant laws.

Section 2. CONSTRUCTION DESIGN

Article 78. General provisions on construction design[118]

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:

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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 construction design dossier 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 on construction design

1. Meeting requirements of design tasks; being suitable to contents of approved construction investment projects, construction planning, architectural landscapes, and natural, cultural and social conditions in construction sites.

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3. Complying with applied standards, technical regulations, legal provisions on use of building materials, meeting requirements on utilities and applied technologies (if any); ensuring force-bearing safety, safety in use, artistic appearance, environmental protection, response to climate change, fire and explosion prevention and fighting, and other safety conditions.

4. Having appropriate design solutions and reasonable construction costs; ensuring synchronism within the work and with related works; ensuring conditions on comforts, hygiene and health for users; creating conditions for people with disabilities, the elderly and children to use works. Taking advantages and limiting unfavorable impacts of natural conditions; prioritizing the use of local and environment-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 have sufficient capabilities suitable to types and grades of works and jobs to be performed.

7. Construction designs of separate houses must comply with the following provisions:

a) Construction designs of separate houses must meet design requirements prescribed in Clause 3 of this Article;

b) Households may design by themselves separate houses with a total construction floor area of under 250 m2 or with fewer than three stories or a height of under 12 meters in accordance with approved construction master plans, and shall take responsibility before law for design quality, environmental impacts of construction works and safety of adjacent works.

Article 80. Major contents of construction designs implemented after basic designs

1. Architectural plan.

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3. Utility.

4. Lifetime of the work and its operation process and maintenance.

5. Structural plan and major types of materials.

6. Technical instructions.

7. Fire and explosion prevention and fighting plans.

8. Plan on efficient energy use.

9. Environmental protection and climate change response solutions.

10. Cost estimate suitable to the construction designing step.

Article 81. [119] (annulled)

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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 and approved by competent authorities 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 competent authorities 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.

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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 designs following fundamental design by project owners[121]

1. For construction works using public investment funds and construction works using non-public investment state funds, 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.

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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 designs following fundamental design by specialized construction agencies[122]

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 funds;

b) Construction works that use non-public investment state funds 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, function zone construction planning or detailed construction planning on rural residential points.

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 funds, 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 construction operation capability conditions by organizations and individuals performing construction surveys, design and verification of construction designs;

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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 construction, there emerge requirements to adjust the construction design to ensure quality of the work and efficiency of the project.

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Article 85. Rights and obligations of project owners in construction designing[123]    

1. Project owners have the following rights:

a) Conduct construction design and verification thereof by themselves if they have fully satisfied the construction operation and practice capability conditions suitable to 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) Other rights stated in the contracts and prescribed by relevant laws.

2. Project owners have the following obligations:

a) Select contractors that have fully satisfied the construction operation and practice capability conditions suitable to types and grades of construction works to make and/or verify construction designs;

b) Identify construction design tasks;

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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 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 construction design contractors

1. Construction design contractors have the following rights:

a) To request project owners and related parties to provide information and documents to serve construction design;

b) To reject requests beyond the designing tasks and construction designing contracts;

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d) To hire subcontractors to conduct construction design in accordance with construction design contracts;

dd) Other rights stated in the construction design contracts and prescribed by relevant laws.

2. Construction design contractors have the following obligations:

a) To accept only construction design contracts suitable to their construction design operation and practice capabilities;

b) To comply with standards and technical regulations applicable to works; to compile construction design dossiers according to requirements of design tasks and steps, and to the terms of construction design contracts and relevant legal provisions;

c) To take responsibility for the quality of design products they make, including contents prescribed in Articles 79 and 80 of this Law; to 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 before law;

d) To perform construction design author’s supervision in the course of construction;

dd) Not to designate manufacturers of building materials, supplies and equipment in construction designs of works using state funds[124];

e) To pay compensations for damage caused by the elaboration of inappropriate surveying tasks, or the use of inappropriate information, documents, construction standards and regulations, technical and technological solutions which affect the quality of works, and violations of construction design contracts;

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Article 87. Rights and responsibilities of specialized construction agencies in appraisal of construction designs[125]

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 management agencies for monitoring and management of construction activities;

c) Take responsibility before law for their own task performance results.

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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 law and project owners for their own verification results.

Article 88. Archive of construction work dossiers

1. Project owners shall archive completion dossiers of construction works. Contractors participating in construction activities shall archive dossiers of jobs they have performed.

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3. The compilation and archive of dossiers of construction works must comply with the law on archives.

4. The Government shall elaborate the archive of construction work dossiers.

Chapter V

CONSTRUCTION PERMITS

Article 89. General provisions on grant of construction permits[127]

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 construction permit is exempted:

a) Works involving state secrets; works constructed under emergency orders;

b) Works of projects using public investment funds in which the construction investment is decided by the Prime Minister, heads of central-level 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-level agencies, Governmental agencies, central-level agencies of Vietnamese Fatherland Front and of socio-political organizations or chairpersons of People’s Committees at different levels;

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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 construction planning approved by competent state agencies and requirements on 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 construction planning or detailed 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) Detached houses 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 detached houses with under 07 stories in rural areas without urban planning, function zone construction planning or detailed construction planning on rural residential points approved by competent state agencies; Grade-IV construction works or detached houses in mountainous areas or islands without urban planning or function zone construction planning, except detached houses built in conservation zones or historical and cultural relic zones;

k) Project owners of construction works prescribed in Points b, e, g, h and i of this Clause, except detached houses prescribed in Point i of this Clause, shall send written notices of the time of construction commencement and construction design dossiers to local construction management agencies.

3. Construction permits include:

a) New construction permit;

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c) Relocation permit;

d) Definite-term construction permit.

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 must be 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 for the work construction; the work construction line, for works built in lines.

4. Type and grade of the work.

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6. Red-line and construction boundaries.

7. Construction density (if any).

8. Land use coefficient (if any).

9. For civil works, industrial works and separate houses, in addition to the contents specified in Clauses 1 thru 8 of this Article, their construction permits must contain contents on total construction area, construction area of the first (ground) floor, number of stories (including basement, attic, technical story and staircase roof), and maximum elevation of the entire work.

10. The deadline for construction commencement, which must be within 12 months from the date of grant of the construction permit.

Article 91. Conditions for granting construction permits for works in urban areas

1.[128] Conform to the detailed construction planning scheme already approved by competent state authorities. As for construction works in areas or on streets inside established urban areas without detailed construction planning or urban designs, it is obligatory to conform to regulations on management of architecture promulgated by competent state authorities.

2.[129] The construction work is conformable with land use purposes as prescribed by the Law on land.

3. Ensuring safety for the works and adjacent works and meeting requirements on environmental protection and fire and explosion prevention and fighting; ensuring safety for technical infrastructure and protection corridors of irrigation works, dikes, energy works, traffic works, cultural heritage zones, historical-cultural relics; ensuring safety distance to fire- or explosion-prone and hazardous facilities, and important works related to national defense and security.

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5. Having dossiers of application for construction permits suitable to each type of construction permit prescribed in Articles 95, 96 and 97 of this Law.

Article 92. Conditions for granting construction permits for works not built in lines outside urban areas

1. Being conformable with positions and total ground areas of projects already approved in writing by competent state agencies.

2. Meeting the conditions prescribed in Clauses 3, 4 and 5, Article 91 of this Law.

Article 93. Conditions for granting construction permits for separate houses

1. General conditions for the grant of construction permits for separate houses in urban areas include:

a)[130] The detached house is conformable with land use purposes as prescribed by the Law on land and architectural management regulations adopted by competent state agencies;

b) Ensuring safety for the works and adjacent works and meeting requirements on environmental protection and fire and explosion prevention and fighting; ensuring safety for technical infrastructure and protection corridors of irrigation works, dikes, energy works, traffic works, cultural heritage zones, historical-cultural relics; ensuring safety distance to fire- or explosion-prone and hazardous facilities, and important works related to national defense and security;

c) Having their construction designs made under Clause 7, Article 79 of this Law;

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2. Separate houses in urban areas must meet the conditions prescribed in Clause 1 of this Article and conform with detailed construction plans. Separate houses located in stable areas or street routes in urban centers which have no detailed construction master plans, must comply with regulations on management of planning, urban architecture[131] and urban designs promulgated by competent state agencies.

3. Separate houses in rural areas, when constructed, must conform with detailed construction master plans for rural residential points.

Article 94. Conditions for granting definite-term construction permits[132]

1. General conditions for granting definite-term construction permits:

a) The construction works are located in areas with construction zone planning, sub-zone planning for construction of function zones or detailed planning or detailed planning for construction of function zones approved and announced by competent state agencies but not yet implemented, for which there are no land appropriation decisions of competent state agencies;

b) The construction works are suitable to the size of works prescribed by provincial-level People’s Committees for each area and the existence duration of works according to plans for implementation of construction zone planning, sub-zone planning for construction of function zones or detailed planning or detailed planning for construction of function zones approved by competent state agencies;

c) The construction work is conformable with land use purposes defined in lawful documents on land of the applicant for 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 construction planning is still not yet 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.

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4. For construction works and detached houses 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 wants to build a new construction, repair or renovation works, the definite-term construction permit to be issued shall have the term in line with the duration stated in the adjusted construction planning.

5. For construction works and detached houses 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.

After 03 years from 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. Dossiers of application for new construction permits

1. A dossier of application for a new construction permit for a separate house must comprise:

a) An application for a construction permit;

b) A copy of one of the papers proving land use rights as prescribed by the land law;

c) Construction designing drawings;

d) A written commitment to ensure safety for adjacent works, for construction works adjacent to other works.

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a) An application for 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 designing drawings;

dd)[133] 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 as prescribed.

3. A dossier of application for a construction permit for a work to be built in line must comprise:

a) Documents prescribed at Points a, c, d and dd, Clause 2 of this Article;

b) Written approval of a competent State agency of the location and plan of the line;

c) The land recovery decision of a competent state agency as prescribed by the land law.

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a) Documents prescribed in Clause 2 of this Article;

b)[134] The written opinions about the necessity of construction and the size of the construction work, given by a specialized religion agency affiliated to the provincial-level People's Committee.

5. A dossier of application for a construction permit for a monument or mural must comprise:

a) 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 size of the work.

6. [135] Dossiers of application for construction permits for advertisement works shall comply with the provisions of the Law on advertisement.

7. Dossiers of application for construction permits for works of diplomatic missions and international organizations must comply with the Government’s regulations.

Article 96. Dossiers of application for construction permits for repair and renovation of works

1. An application for a permit for repair and renovation of a work.

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3. Drawings or photos of the part or item of the work or house to be renovated.

4.[136] A written approval of a state management agency in charge of culture of the necessity of construction and the size of the work, for ranked historical and cultural relics and scenic works.

Article 97. Dossiers of application for construction permits for relocation of works

1. An application for 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. Work completion drawings (if any) or design drawings describing the actual state of the work to be relocated, showing the ground, cross section of the foundation, and drawings of the main force-bearing structure; drawings of the total ground of the location to which the work is relocated; drawings of the ground and cross section of the foundation of the location 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 state of the work and the area to which the work is relocated; relocation solution, plan on arrangement and use of means, equipment and labor; solutions to ensuring safety for the work, people, machinery, equipment and adjacent works; assurance of environmental sanitation; relocation schedule; organizations and individuals to relocate the work;

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Article 98. Adjustment of construction permits

1. In the course of construction, if there are adjustments to the design resulting in changes in one of the following contents, project owners shall request adjustment of construction permits:

a) Change of the external architecture of the work, for works in urban centers or areas subject to architecture management requirements;

b) Change of one of the following factors: construction location and area; size, height and number of stories of the work and other factors affecting its main force-bearing structure;

c) Adjustment of the interior design of the work resulting in a change of its utility and affecting safety, fire and explosion prevention and fighting or environmental protection.

2. A dossier of request for adjustment of a construction permit must comprise:

a) A written request for adjustment of a construction permit;

b) The granted original construction permit;

c) Design drawings related to the adjustment to the design permitted in the granted construction permit;

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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 a new dossier of application for a construction permit.

2. A dossier of request for extension of a construction permit must comprise:

a) A written request for extension of a construction permit;

b) The granted original construction permit.

3. For works or separate houses for which construction permits with definite terms have been granted, at the end of the existence duration written in the permits, if the plan has not been implemented yet, owners or assigned users of the works may request the construction licensing agency to consider extending the existence duration until the plan is implemented. The existence duration of a work shall be written in its granted construction permit with a definite term.

Article 100. Re-grant of construction permits

1. A construction permit may be re-granted when it is tom, ragged or lost.

2. A dossier of request for re-grant of a construction permit must comprise:

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b) The granted original construction permit, which is tom or ragged.

Article 101. Withdrawal or cancellation of construction permits

1. A construction permit shall be withdrawn in the following cases:

a) The construction permit is granted not in accordance with law;

b) The project owner fails to remedy the construction in violation of the construction permit within the time limit written the violation handling document at the request of a competent state agency.

2. After 10 days from the date of issuance of the construction permit withdrawal 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 a competent agency shall decide to cancel the construction permit and notify it to the project owner and the commune-level People’s Committee of the locality where the construction work is located. The construction permit cancellation decision shall be posted on the website of the provincial- level Construction Department.

Article 102. Process of grant, re-grant, adjustment and extension of construction permits

1. The process of grant and adjustment of a construction permit is prescribed as follows:

a) The project owner shall submit 2 sets of dossier of application for a construction permit or request for adjustment of construction permit to the agency competent to grant construction permits;

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c) Within 7 working days after receiving a dossier, the agency competent to grant construction permits shall organize appraisal of the dossier and conduct field inspection. During appraisal, the competent agency shall determine which documents are still missing, improper or untrue to reality and inform them once in writing to the project owner for supplementation and completion of the dossier. If the supplemented dossier still fails to meet the notified requirements, within 5 working days the competent agency shall issue a written notice to the project owner guiding the latter to further improve the dossier. The project owner shall supplement and complete the dossier according to the written notice. If the supplemented dossier still fails to satisfy the notified contents, within 3 working days, the competent agency shall notify the project owner of the reason for refusal to grant a permit;

d)[137] 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 separate houses, after receiving a dossier, consulted state management agencies shall issue written replies on the contents under their respective management functions. After the above time limit, if they give no opinions, they shall be considered having agreed and shall take responsibility for the contents under their respective management functions; in pursuance to current regulations, the agency competent to grant construction permits shall decide to grant construction permits;

e)[138] From the date of receiving a valid dossier, 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 detached houses. 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 2 sets of dossier of request for extension or re-grant of construction permit to the agency competent to grant construction permits;

b) Within 5 working days after receiving a complete and valid dossier, the agency competent to grant construction permits shall consider and allow the extension of the construction permit or re-grant the construction permit.

3. The receipt of replies and payment of fees for the grant of construction permits are prescribed as follows:

a) Project owners shall receive construction permits enclosed with design dossiers submitted for the application of construction permits bearing the stamp of the agency competent to grant construction permits at the place of receipt of the dossiers according to the time of appointment written in the receipts;

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4. For cases ineligible for the grant of a construction permit, within the time limit prescribed in Clause 2 of this Article, the agency competent to grant construction permits shall issue a written notice clearly stating the reason to the project owner. Past the time limit written in the receipt, if the competent agency fails to reply, the project owner is entitled to construct the work according to the appraised and approved design dossier included in the dossier of application for a construction permit.

5. [139] The Government shall elaborate the grant of construction permits.

6. The Minister of Construction shall issue detailed regulations on the form of application and design drawings in dossiers of application for construction permits.

Article 103. Competence to grant, adjust, extend, re-grant and withdraw construction permits

1. [140] (annulled)

2. [141] Provincial-level People’s Committees grant construction permits for construction works requiring construction permits in their provinces, except those prescribed in Clause 3 of this Article. Provincial-level People’s Committees may decentralize powers to provincial-level Construction Departments, and management boards of industrial parks, export processing zones, hi-tech parks and economic zones and district-level People’s Committees to grant construction permits under the scope of management and functions of these agencies.

3. [142] District-level People’s Committees grant construction permits for grade-III and grade-IV works and detached houses in the territories under their management.

4. Agencies competent to grant construction permits are competent to adjust, extend, re-grant and withdraw construction permits they have granted.

5. In case an agency competent to grant construction permits fails to withdraw a construction permit it has granted ultra vires, the provincial-level People’s Committee shall directly issue a decision to withdraw such construction permit.

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1. To publicly post up and explain and guide regulations on grant of construction permits.

2. To monitor, issue replies to or notify project owners of dossiers ineligible for the grant of construction permits.

3. To grant construction permits according to the process and within the time limit prescribed in Article 102 of this Law.

4. To assume the prime responsibility for, and coordinate with related functional agencies in inspecting the construction according to construction permits; to suspend the construction and withdraw construction permits according to their competence when project owners commit serious violations.

5. Persons competent to grant construction permits shall take responsibility before 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. To perform the responsibilities prescribed at Point dd, Clause 1, Article 102 of this Law.

2. To take necessary measures when receiving notices of agencies competent to handle violations with regard to works constructed not according to planning, constructed without permits or in violation of granted construction permits.

Article 106. Rights and obligations of construction permit applicants

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a) To request construction licensing agencies to explain, guide and comply with regulations on construction licensing;

b) To file complaints about, lawsuits and denunciations against illegal acts in the grant of construction permits;

c) To start construction of works in accordance with this Law.

2. Construction permit applicants have the following obligations:

a) To submit complete dossiers and fully pay fees for the grant of construction permits;

b) To bear responsibility for the accuracy and truthfulness of construction permit application dossiers;

c)[143] Notify the construction starting dates as prescribed in Point e Clause 1 Article 107 of this Law;

d) To observe strictly the contents of the construction permits.

Article 107. Conditions for commencement of construction of works

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a) The construction grounds are available for entire or partial handover according to the construction schedule;

b) The construction permit has been granted for the work subject to the provisions of Article 89 of this Law;

c) The construction drawing design of the work item or the work to be constructed has been approved;

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 management agency at least 03 working days before the commencement of construction.

2. The commencement of construction of separate houses must meet only the condition prescribed at Point b, Clause 1 of this Article.

Article 108. Preparation of construction ground

1. The recovery, allocation and lease of land and compensation and ground clearance for construction must comply with the land law. People’s Committees at all levels shall direct and organize the compensation and support for ground clearance and resettlement for construction investment projects in accordance with law.

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3. The handover of construction grounds in whole or in part for construction must be as agreed between the project owner and construction contractor.

4. Funds for compensation and support for ground clearance and resettlement (if any) shall be ensured.

Article 109. Requirements on construction sites

1. Project owners shall install signboards at construction sites, except for separate houses with under 7 stories. The contents of a signboard include:

a) Title and size of the work;

b) Dates of commencement and completion;

c) Names, addresses and telephone numbers of the project owner, construction contractor, construction designing organization and construction supervision organization or individual;

d) Perspective drawings of the work.

2. Construction contractors 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:

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b) The layout of the construction site within the construction boundary of the work must be in line with the approved general construction ground design drawing and the specific conditions of the construction site;

c) Supplies, materials and equipment pending installation must be neatly arranged according to the general construction ground design;

d) Within the construction site there must be signboards of the general ground plan, safety, fire and explosion prevention and fighting and other necessary signboards.

3. Construction contractors shall take measures to ensure safety for people and vehicles entering and leaving the construction sites, collect and treat construction wastes in a proper manner without badly affecting the environment around the construction sites.

Article 110. Building materials[145]

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.

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Section 2. CONSTRUCTION OF WORKS

Article 111. Requirements on construction of works

1. Complying with approved construction designs, standards and technical regulations applicable to works, laws and regulations on use of building materials; ensuring force-bearing safety, safety in use, artistic appearance, environmental protection, fire and explosion prevention and fighting, and other safety conditions prescribed by law.

2. Ensuring safety for construction works, people and construction equipment, underground facilities and adjacent works; taking measures to restrict human and property losses when unsafe incidents occur in the course of construction.

3. Taking separate safety technical measures for construction items and jobs subject to strict requirements on labor safety and fire and explosion prevention and fighting.

4. Using supplies and materials of proper types and specifications and quantities according to requirements of construction designs, ensuring thriftiness in the course of construction.

5. Conducting examination, supervision and taking-over inspection of construction jobs and important transitional construction stages when necessary and taking-over inspection of completed items and works before they are put into operation and use.

6. Construction contractors must meet all capability conditions applicable to different types and grades of works and construction jobs.

Article 112. Rights and obligations of project owners in the construction of works

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a) To carry out construction themselves if they have full and appropriate construction capabilities or select construction contractors;

b)[146] Negotiate and sign construction contracts; supervise and request construction contractors to strictly perform the signed contracts; consider and approve construction measures and measures to ensure safety and environmental sanitation submitted by contractors;

c) To suspend the performance of, or terminate, contracts with construction contractors in accordance with law and construction contracts;

d) To stop the construction and request construction contractors to remedy consequences caused by violations of regulations on work quality, safety and environmental protection;

dd) To request related organizations and individuals to coordinate in performing jobs in the course of construction;

e) Other rights prescribed by law.

2. Project owners have the following obligations:

a) To select contractors having full and appropriate construction capabilities suitable to different types and grades of works and construction jobs;

b) To join People’s Committees at all levels in paying compensations for damage and clearing sites for construction for handover to construction contractors;

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d) To examine construction measures and measures to ensure safety and environmental sanitation;

dd) To organize taking-over inspection, payment and settlement for works;

e) To hire consultancy organizations having full construction capabilities to test the quality of works when necessary;

g) To examine and decide on contractors’ proposals related to designs in the course of construction;

h) To archive construction dossiers of works;

i) To take responsibility for the quality and origin of supplies, raw materials, materials, equipment and construction products they supply for use in the works;

k) To pay compensations for damage caused by their violations of contracts and other violations;

l) Other obligations prescribed by law.

Article 113. Rights and obligations of construction contractors

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a) To reject illegal requests;

b) To propose construction design modifications to suit construction reality, ensuring quality and efficiency;

c) To request payment for the value of completed construction volumes according to the contracts;

d) To stop construction when there are threats of unsafety to people and works or the principals fail to strictly perform their contractual commitments;

dd) To request compensations for damage caused due to faults of the principal;

e) Other rights stated in the contracts and prescribed by relevant laws.

2. Construction contractors have the following obligations:

a) To only undertake construction contracts and jobs suitable to their construction capabilities and properly perform the signed contracts;

b)[147] Make and submit to project owners for approval of construction measures specifying measures to ensure safety and environmental sanitation;

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d) To apply an appropriate quality control system and establish quality management dossiers of works;

dd) To comply with requirements on construction sites;

e) To take responsibility for the quality and origin of supplies, raw materials, materials, equipment and construction products they supply for the works;

g) To manage workers at construction sites, ensuring security, order and environmental protection;

h) To make construction completion drawings and take part in the taking-over inspection of works;

i) To provide work warranty;

k) To pay compensations for damage caused by their violations of contracts, use of materials of improper categories or failure to ensure requirements of approved designs, construction activities which fail to ensure quality or cause environmental pollution, and other violations;

l) To bear responsibility for the quality of construction activities according to the designs, including jobs performed by subcontractors (if any); subcontractors shall bear responsibility for the quality of jobs they perform before principal contracts and law;

m) Other obligations stated in the contracts and prescribed by relevant laws.

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1. Designing contractors have the following rights:

a) The rights prescribed in Clause 1, Article 86 of this Law;

b) To request project owners and construction contractors to strictly implement the designs;

c) To reject requests of project owners for unreasonable design changes;

d) To refuse to conduct taking-over inspection of works or work items if they are constructed not according to the designs;

dd) Other rights as stated in the contracts and prescribed by relevant laws.

2. Designing contractors have the following obligations:

a) The obligations prescribed in Clause 2, Article 86 of this Law;

b) To appoint fully capable persons to conduct design author’s supervision according to the contracts; persons performing this task shall take responsibility before law for their violations and shall compensate for damage caused due to their faults;

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d) To consider and remedy nationalities in the construction designs at the request of project owners;

dd) To promptly notify to project owners of construction activities which are carried out not in accordance with approved designs and propose handling measures;

e) Other obligations stated in the contracts and prescribed by relevant laws.

Article 115. Safety in construction[148]

1. Construction contractors shall ensure safety for people, construction works, assets, equipment and vehicles in the course of construction, fire and explosion prevention and fighting, and environmental protection.

2. Project owners shall organize the supervision of construction contractors’ compliance with safety regulations; suspend or terminate construction 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. Construction contractors shall determine danger zones in construction; organize development and submission of measures to ensure safety for people, construction works, assets, 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 at 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 construction.

5. Construction machinery, equipment and supplies subject to strict occupational safety requirements shall be inspected before they are used.

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Article 116. Environmental protection in construction

In the course of construction, construction contractors shall:

1. Work out and implement measures to protect the environment in the course of construction, including air environment and water environment, limits of 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 works

1. The relocation of works must comply with approved construction master plans and ensure their quality and safety, not affect adjacent works, and ensure their original architecture, for works with conservation requirements.

2. Before relocating works, project owners or work owners shall apply for relocation permits.

3. Contractors that conduct the relocation of works shall apply measures to ensure labor safety and safety for relocated works and adjacent works and environmental protection.

Article 118. Demolition of construction works[149]

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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 construction 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) Detached houses are demolished for building 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; 

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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 capacity requirements, or hire experienced and qualified consultancy organizations to develop and verify demolition plan or solutions, and carry out the demolition; take responsibility before law and pay compensation for damage caused due to 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, assets, demolished works and adjacent works; take responsibility before law and pay compensation for damage caused due to their faults; 

c) Persons competent to decide the demolition of construction works shall take responsibility before 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. Incidents in construction works

1. In the course of construction, operation, exploitation or use of works, if detecting threats of unsafety or occurrence of incidents that may affect human lives, adjacent works and communities, project owners, construction contractors, use managers or competent state agencies shall:

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b) Apply necessary measures to limit and prevent further possible dangers to works and promptly notify such to related competent organizations and persons;

c) Protect incident scenes, except cases in which remedies shall be taken promptly to prevent or stop damage.

2. Upon detecting, or receiving notices of, incidents, competent state agencies and related organizations and persons shall, within the ambit of their respective tasks and powers:

a) Promptly apply urgent measures to remedy the incidents;

b) Competent state agencies shall organize identification of causes of incidents and clarify responsibilities of organizations and individuals at fault.

3. Works in which incidents occur may be further constructed, operated, exploited or used only when it is permitted by competent state agencies handling the incidents.

4. Organizations and individuals that cause incidents to works shall pay compensations for damage and bear related expenses, and may be administratively handled; individuals may be examined for penal liability in accordance with law.

Section 3. SUPERVISION OF CONSTRUCTION, TAKING-OVER INSPECTION AND HANDOVER OF CONSTRUCTION WORKS

Article 120. Construction supervision

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The State shall encourage the supervision of the construction of separate houses.

2. Supervision of the construction of works must ensure the following requirements:

a) Supervision shall be conducted throughout the process of construction from commencement of construction, construction activities to completion and taking-over inspection of construction jobs or constructed items;

b) Supervision shall be based on approved construction designs, applied standards, technical regulations, regulations on the management and use of building materials, technical instructions and construction contracts;

c) Honesty, objectivity and non-self-seekingness.

3. Selected construction supervision contractors shall propose supervision solutions and the process of controlling the quality, volume, progress, labor safety and environmental protection and the process of examination and taking-over inspection, measures to manage records and documents in the process of supervision and other necessary contents.

Article 121. Rights and obligations of project owners in construction supervision

1. Project owners have the following rights:

a) To conduct supervision by themselves when they have full construction supervision capabilities and take responsibility for their supervision;

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c) To change or request consultancy organizations to change supervisors in case the supervisors fail to strictly comply with regulations;

d) To suspend the performance of, or terminate construction supervision contracts in accordance with law;

dd) Other rights as stated in the contracts and prescribed by relevant laws.

2. Project owners have the following obligations:

a) To select supervision consultants that have full capability conditions suitable to the type and grade of construction works to sign construction supervision contracts in case they fail to conduct the supervision by themselves;

b) To notify related parties of the rights and obligations of supervision consultants;

c) To promptly respond to proposals of supervisors;

d) To fully perform the obligations agreed upon in the construction supervision contracts;

dd) To preserve construction supervision results;

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g) Other obligations stated in the contracts and prescribed by relevant laws.

Article 122. Rights and obligations of construction supervision contractors

1. Construction supervision contractors have the following rights:

a) To participate in the taking-over inspection and certification of completed construction jobs or works;

b) To request construction contractors to comply with approved designs and signed construction contracts;

c) To reserve their opinions on supervision jobs they perform;

d) To suspend construction when detecting that works are at risk of unsafety or contractors conduct construction not according to designs and promptly notify such to project owners for handling;

dd) To reject unreasonable requests of related parties;

e) Other rights stated in the contracts and prescribed by relevant laws.

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a) To conduct supervision strictly according to contracts;

b) Not to accept volumes that fail to ensure quality or conform to applied standards, technical standards and requirements of construction designs;

c) To refuse to conduct taking-over inspection of works that fail to meet quality requirements;

d) To notify project owners of irrationalities in construction designs;

dd) To supervise the implementation of regulations on safety and environmental protection;

e) To pay compensations for damage caused by the falsification of supervision results on construction volumes implemented not according to designs, not in conformity with applied standards and technical regulations which have not been reported by supervisors to project owners or competent persons for handling, and by other violations due to their faults;

g) Other obligations stated in the contracts and prescribed by relevant laws.

Article 123. Taking-over inspection of construction works

1. The taking-over inspection of construction works covers:

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b) Taking-over inspection of completed work items or construction works before being put into operation or use.

2. Completed work items or construction works may only be put into operation or use after their taking-over inspection results show that they meet requirements of construction designs, applied standards and technical regulations and regulations on the management and use of building materials and their taking-over inspections are conducted in accordance with this Law.

3. Project owners shall organize the taking-over inspection of construction works. Organizations and individuals participating in taking-over inspection of construction works shall take responsibility for products they have certified when conducting the pre- acceptance test.

4.[150] For national important works, large-sized works with complicated technical requirements, works significantly affecting the community safety ad interests, and works using public investment funds, taking-over inspections during the process of construction and of completed works shall be examined. The responsibility for examination of taking-over inspections is prescribed as follows:

a) The council established by the Prime Minister shall conduct taking-over inspections of construction works of national important projects and large-sized works with complicated technical requirements;

b) Specialized construction agencies shall examine taking-over inspections performed by project owners with regard to construction works other than those mentioned at Point a of this Clause.

5. [151] The Government shall elaborate the quality management, taking-over inspection and settlement of incidents of construction works and large-sized works with complicated technical requirements.

Article 124. Handover of construction works

1. The handover of construction works must comply with the following provisions:

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b) Safety is ensured in the operation and exploitation when the works are put into use.

c)[152] For urban area construction investment projects, all or some works of the project may be handed over for putting into use provided that the construction investment must be completed before the handover 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. Persons taking part in the handover of works shall take responsibility for products certified by them in the course of handover. If they are not use managers of works, project owners shall hand over works to use managers after organizing the taking-over inspection of the works. The handover of construction works shall be recorded in writing.

3. When handing over construction works, construction contractors shall deliver to project owners construction completion drawings, documents on the operation process, maintenance process and list of reserve equipment, spare parts and supplies and other necessary related documents.

4. Pending the handover of construction works to their managers for use, project owners shall temporarily manage and operate these works.

5.[153] For urban area construction investment projects, apart from the provisions in Clauses 1, 2, 3 and 4 of this Article, project owners shall hand over 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. Construction contractors shall provide warranty for works they have constructed. Work and technological equipment supply contractors shall provide warranty for equipment they have supplied.

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3. The warranty duration of works, their 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 the warranty of construction works.

Article 126. Maintenance of construction works

1. [154] 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 suitable to use purposes, types and grades of construction works and their items and equipment constructed and installed into works;

c) The maintenance of works must ensure safety for people, assets 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.

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5.[156] The Government shall elaborate the maintenance and periodical assessment of safety of construction works in the course of use and responsibility to announce expired construction works.

Article 127. Termination of operation and use of construction works

1. Project owners or use managers of works or competent state agencies shall decide to terminate the operation and use of construction works when these works’ lifetime expires, these works are at risk of becoming unsafe or causing incidents affecting the safety of users and safety of adjacent works, the environment and community.

2. When deciding to terminate the operation and use of works under common use, project owners or use managers or competent state agencies shall issue written notices of their decisions to work-using organizations, individuals and households.

3. The operation and use of construction works may resume only after incidents have been remedied or safety threats have been eliminated. For an expired work, if wanting to continue to use the work, its owner or user shall conduct quality assessment, reinforce and renovate it and repair its damage (if any) to ensure its safety and utilities.

Section 5. CONSTRUCTION OF SPECIAL-TYPE WORKS

Article 128. Special-type construction works

1. Special-type construction works include:

a) State-secret works;

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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 secrets in construction investment activities in the national defense, security, foreign relations, economic, scientific and technological and other fields.

2. Agencies, organizations and persons that are assigned to manage and construct state- secret works have the power to decide on and shall take responsibility for constructing, and organizing the construction of, works from the stages of project formulation, survey, designing, construction and construction supervision of works to the stage of taking-over and putting of works into operation.

3. The Government shall decide on the construction of state-secret works.

Article 130. Construction of urgent works[157]

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;

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2. Ministers, heads of central-level 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.

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 construction planning prescribed in this Law.

Article 131. Construction of makeshift works[158]

1. Makeshift works are those constructed to serve, for definite terms, the following purposes:

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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, size and existence duration.

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 duration.  Project owners are allowed to request provincial- or district-level 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 force-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 order of construction investment and suit funding sources. Construction investment costs shall be calculated accurately and fully for each project, construction work or bidding package and must be suitable to design requirements, construction conditions and market price levels.

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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 amounts of projects. Project owners may hire cost management consultancy organizations and individuals with full 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 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 order of construction investment.

5. Construction investment costs of projects using public investment funds, non-public investment state funds[160] 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 amounts, 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 amount

1. Total construction investment amount includes all construction investment costs of a project determined according to the basic 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 amount determined according to the preliminary design shall serve as a basis for estimating construction investment costs.

2. The contents of total construction investment amount include costs of construction, equipment, compensation, support and resettlement, project management, construction investment consultancy, other costs and provisional amounts for arising volumes and inflation. For projects for which only construction investment economic-technical reports are required to be made, the total construction investment includes the costs in the work construction cost estimate prescribed in Article 135 of this Law, compensation, support and resettlement expenses and other costs.

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4. The total construction investment amount shall be appraised and approved and serve as the basis for managing project costs. For projects using public investment funds, non-public investment state funds[161], the approved total construction investment amount is the maximum level which project owners may use to implement the projects.

5. The approved total construction investment amount of a project using state funds public investment funds, non-public investment state funds[162] may be adjusted only when the project is adjusted under Clause 1, Article 61 of this Law. For projects using other funds, investment decision-makers shall decide on the adjustment of their total construction investment amounts.

Article 135. Construction cost estimates

1. Construction cost estimate covers costs necessary for constructing a work, performing a bidding package or construction job, which shall be determined based on the volume calculated according to the technical design, construction drawing design, 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 provisional fund.

3. A construction cost estimate using public investment funds, non-public investment state funds[163] 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 funds[164], non-public investment state funds may be adjusted only in the following cases:

a) Adjusting the total construction investment amount under Clause 1, Article 61 of this Law;

b) The design is permitted to be modified or supplemented not against the basic design or the estimated construction cost structure is permitted to be changed but must not exceed the approved total construction investment amount;

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5. For projects using other funds, investment decision-makers or project owners shall decide on 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.[165] 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 chairperson of provincial-level people’s committees is provided for as follows:

a) For projects using public investment funds, 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 funds 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 funds, project owners shall determine and manage construction investment costs by referring to the promulgated construction norms.

4. [166] 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.

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5. [167] The Government shall periodically review, update and adjust the system of promulgated construction norms.

6. [168] 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 settlement for construction investment projects

1. [169] The payment and settlement for construction investment projects must comply with the Law on management of investment capital. The payment and settlement for projects using public investment funds shall comply with regulations laid down herein and the Law on public investment. Project owners shall take responsibility before law for the accuracy and lawfulness of unit prices, volumes and values requested for payment or settlement in payment or settlement dossiers.

2. After construction works are inspected for taking-over, handed over and put into use, settlement of construction investment projects shall be made. For projects using public investment funds, non-public investment state funds[170], investment decision-makers shall approve settlements for construction investment projects within their approved investment amounts. The Government shall specify the settlement time limit for construction investment projects.

3. The payment and settlement for construction contracts must comply with Articles 144 and 147 of this Law.

Section 2. CONSTRUCTION CONTRACTS

Article 138. General provisions on construction contracts

1. Construction contracts are civil contracts established in writing between principals and contractors to perform in part or wholly the work in construction investment activities.

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a) Voluntariness, equality, cooperation, non-violation of law and social ethics;

b) Assurance of adequate funds for payment according to contractual agreement;

c) Having completed the selection of contractor and concluded the process of contract negotiation;

d) If the contractor is a partnership of contractors, there must be a partnership agreement. The partners shall sign and append their seals (if any) to the construction contract, unless otherwise agreed by the parties.

3. The principles of performance of construction contracts include:

a) The contractual parties shall properly implement their commitments in the contract regarding the scope of work, quality requirements, quantity, category, schedule, methods and other agreements;

b) Honesty, cooperation and lawfulness;

c) No infringement upon the interests of the State and community and lawful interests of other organizations and individuals.

4. Language used in construction contracts is Vietnamese. For construction contracts with the participation of foreign parties, the languages used therein are Vietnamese and another language as agreed upon by the parties.

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Article 139. Effect of construction contracts

1. A construction contract becomes effective when fully meeting the following conditions:

a) The contract signees have full civil act capacity and act according to their competence in accordance with law;

b) The principles of signing of construction contracts prescribed at Point a, Clause 2, Article 138 of this Law are adhered to;

c) The contractor has full construction operation and practice capability conditions prescribed by this Law.

2. The time when a construction contract becomes effective is the time of its signing or another specific time as agreed upon by contractual parties.

Article 140. Types of construction contract

1. Construction contracts shall be categorized according to the characteristics and contents of work to be performed and applied contract prices.

2. According to the characteristics and contents of work to be performed, construction contracts include:

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b) Work construction contract;

c) Contract on supply of equipment for installation in construction work;

d) Contract on designing, procurement of supplies and equipment and construction, turnkey contract;

dd) Other construction contract.

3. According to the form of applied contract price, construction contracts include:

a) Package contract;

b) Fixed unit price-based contract;

c) Adjustable unit price-based contract;

d) Time-based contract;

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e) Combined price-based contract;

g) Other construction contract;

h)[171] (annulled)

Article 141. Contents of construction contracts

1. A construction contract includes the following contents:

a) Applied legal bases;

b) Language used in the contract;

c) Content and volume of work;

d) Quality, technical requirements of work; pre-acceptance test and handover;

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e) Contract price, advance payment, currency used in payment, and payment for the 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 violations of the contract, rewards and fines for violations of the contract;

l) Suspension and termination of the contract;

m) Settlement of disputes over the contract;

n) Risks and force majeure events;

o) Settlement and liquidation of the contract;

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2. For general construction contracts, beside the contents prescribed in Clause 1 of this Article, the management contents and responsibilities of the construction contractor shall be added.

3. The Government shall elaborate construction contracts.

Article 142. Dossiers of construction contracts

1. A dossier of construction contract must comprise a contract with the contents prescribed in Article 141 of this Law and its enclosed documents.

2. A construction contract may be enclosed with some or all of the following documents:

a) Written notice of contract winning or contractor appointment;

b) Specific terms of the contract or terms of reference, for construction consultancy contracts;

c) General terms of the contract;

d) Bidding dossier or dossier of requirements of the principal;

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e) Bid dossier or dossier of proposals of the contractor;

g) Written records of contract negotiation, documents modifying and supplementing the contract;

h) Annexes;

i) Other related documents.

3. The order of priority application of documents enclosed with a construction contract shall be agreed upon by contractual parties. In case the contractual parties have no agreement thereon, the order prescribed in Clause 2 of this Article will 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 in the contract. Adjustment of a construction contract may be made only 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;

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c) When the project is adjusted, affecting the contract, unless otherwise agreed upon by the 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 funds, non-public investment state funds[172] 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 would change the investment objectives and contract performance time or increase 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. Contractual parties shall reach agreement on methods, time and dossiers of and conditions on payment.

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4. For package 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 actually completed and tested volumes and unit prices or adjusted unit prices as agreed upon in the contracts.

6. For time-based contracts, payment of expenses for consultants shall be determined by multiplying the consultants’ salary levels and expenses related to their activities by their actual working time already pre-acceptance tested (on a monthly, weekly, daily or hourly basis).

7. For charge-plus cost-based contracts, payment shall be made based on direct expenses for their performance of contractual work and management expenses and profits of the contractor as agreed upon.

8. Payment for arising volumes without price units stated in construction contracts shall be made as agreed upon in the contracts.

9. Currency used in the payment of construction contracts is Vietnam dong; foreign currencies may be used for payment as agreed upon by contractual parties in accordance with the law on foreign exchange management.

Article 145. Suspension and termination of construction contracts

1. Contractual parties has the right to suspend the performance of their construction contract in the following cases:

a) The principal has the right to suspend the performance of the construction contract when the contractor fails to meet requirements on quality, labor safety and schedule stated in the signed contract;

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2. The principal has the right to terminate the performance of the contract in the following cases:

a) The contractor falls bankrupt or is dissolved;

b) The contractor refuses or continuously fails to perform work under the contract resulting in violations 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 principal falls bankrupt or is dissolved;

b) Due to the fault of the principal the work is suspended repeatedly beyond the schedule agreed upon by the parties, unless otherwise agreed upon by the parties;

c) The principal fails to make payment to the contractor after the time limit agreed upon by the parties from the date the principal receives complete and valid payment dossiers, 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 fines for construction contracts, compensations for damage caused by violations and settlement of disputes over construction contracts

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2. For works using public investment funds, non-public investment state funds[173], the fine level must not exceed 12% of the value of the violated contract. In addition to the fine level as agreed upon, the violating party 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 principal in the following cases:

a) The work quality fails to ensure the agreements reached in the contract or the completion time is 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 principal shall pay compensations to the contractor in the following cases:

a) Due to the fault of the principal, the contractual work is discontinued or performed behind schedule, encounters risks or machines, equipment, supplies and structures of the contractor are left unused;

b) The principal provides documents and conditions necessary for the jobs not in accordance with the contractual agreements, making the contractor re-implement construction, suspend or adjust its job;

c) The principal supplies raw materials, materials and equipment and meets other requirements not according to the time and requirements stated in the construction contract;

d) The principal fails to make payment as agreed upon in the contract.

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6. If a party violates the contract due to the fault of a third party, the violating party shall take responsibility for the violation to the other party. The dispute between the violating party and the third party shall be settled in accordance with law.

7. If the contract violation of a party infringes upon the body, interests and property of the other party, the inflicted party is entitled to request the other party to bear the responsibility for contract violations as agreed upon in the contract and prescribed by relevant laws.

8. Principles and order of settlement of disputes over construction contracts are prescribed as follows:

a) Observance of contractual agreements and commitments in the course of contract performance, ensuring equality and cooperation;

b) Contractual parties shall themselves negotiate on the settlement of disputes. If their negotiation is unsuccessful, their disputes shall be settled through conciliation or commercial arbitration or court proceedings in accordance with law.

Article 147. Settlement and liquidation of construction contracts

1. 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.

2. The time limit for settlement for a construction contract shall be agreed upon by the parties. For construction contracts using public investment funds, non-public investment state funds[174], the time limit for settlement is 60 days from the date of pre-acceptance test of the completion of the entire work under the contract, including arising work (if any). For large construction contracts, the time limit for settlement may be longer but must not exceed 120 days.

3. A construction contract may be liquidated in the following cases:

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b) The construction contract is terminated or cancelled in accordance with law.

4. The time limit for liquidation of a construction contract shall be agreed upon by the contractual parties. For construction contracts using public investment funds, non-public investment state funds[175], the time limit for liquidation thereof is 45 days from the date the contractual parties fulfill their contractual obligations or the contract is terminated under Clause 2, Article 145 of this Law. For large construction contracts, the time limit for their liquidation may be longer but must not exceed 90 days.

Chapter VIII

CONSTRUCTION OPERATION CAPABILITY CONDITIONS

Article 148. General provisions on capability condition of organizations and individuals engaged in construction activities

1. Individuals conducting construction activities must have diplomas and training certificates relevant to their construction jobs granted by lawful training institutions.

2. Contractors being foreign organizations and individuals conducting construction activities in Vietnam shall comply with the law on bidding and must possess operation licenses granted by state management agencies in charge of construction.

3. [176] 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, construction planning design managers, construction survey managers, construction design or design verification managers, construction supervision consultants, and managers in charge of formulating, verifying and managing construction investment costs. Practice certificates shall be classified into class I, class II and class III.

4.[177] 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, construction planning designing organizations, construction designing and design-verifying organizations, construction organizations, and 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; provincial-level Construction Departments and socio-professional organizations that meet edibility requirements laid down by the Government shall grant capability certificates of other classes.

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5.[179] 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 licenses of contractors being foreign organizations or foreigners.

Article 149. Construction practice certificates

1. Construction practice certificate is a document certifying practice capability granted by a competent agency to individuals prescribed in Clause 3, Article 148 of this Law who have adequate professional qualifications relevant to and experiences about the field of practice.

2. To be granted a construction practice certificate, an individual must meet the following conditions:

a) Possessing professional qualifications relevant to the content of application for a practice certificate;

b) Having a working period and experience relevant to the content of application for a practice certificate;

c) Having passed a test on professional experience and legal knowledge related to the field of practice.

3. The competence to hold tests and grant construction practice certificates is prescribed as follows:

a) Specialized agencies of the Ministry of Construction are competent to hold tests and grant class-I construction practice certificates;

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4. [180] Architecture practicing certificates shall be subject to provisions of law on architecture.

Article 150. Conditions on construction planning designing organizations

1. Having full relevant capability conditions for making construction planning designs.

2. Individuals holding the title of construction plan design manager must possess practice and capability certificates relevant to each type of construction plan.

Article 151. ^[181] (annulled)

Article 152. Conditions on construction investment project management consultancy organizations and construction investment project management units

1. Construction investment project management consultancy organizations must meet the following conditions:

a) Having full construction capability conditions suitable to project management work according to sizes and types of projects;

b)[182] Individuals holding the title of construction investment project manager, individuals in charge of professional fields in project management must have relevant qualifications, training certificates, working experiences and practice certificates relevant to the scale and type of projects.

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a) Possessing the establishment decision issued by a competent agency or organization, for specialized construction investment project management units and regional construction investment project management units or project owners for project management units they have established;

b) Having full construction capability conditions suitable to project management work according to sizes and types of project;

c) Having an organizational structure meeting project management requirements; having a fixed working office;

d)[183] Individuals holding the title of construction investment project manager, individuals in charge of professional fields in project management must have relevant qualifications, training certificates, working experiences and practice certificates relevant to the scale and type of projects.

Article 153. Conditions on construction survey organizations

1. Possessing adequate construction survey capabilities.

2. For every construction survey task, there must be a construction survey manager appointed by the construction survey contractor. A construction survey manager must have full construction survey capabilities and relevant practice certificates. Individuals participating in each construction survey job must have qualifications relevant to the assigned job.

3. Machinery and equipment serving construction survey must meet quality requirements and ensure safety for survey and environmental protection activities.

4. Laboratories serving construction survey must satisfy prescribed standards and shall be accredited by competent state management agencies.

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1. Having full capability conditions for work construction designing and verifying work construction designs.

2.[184] Individuals holding the title of construction design or design verification manager must have construction designing practice capabilities and practice certificates relevant to requirements of each type and grade of work.

Article 155. Conditions on construction supervision and testing consultancy organizations

1. Having full capability conditions suitable to construction supervision and testing.

2. Individuals engaged in construction supervision and testing consultancy must possess practice certificates relevant to performed jobs.

Article 156. Conditions on construction investment cost management organizations[185]

1. Having full capability conditions suitable to construction investment cost management.

2. Individuals in charge of estimating, verifying and managing construction investment costs must possess construction valuation practice certificates.

Article 157. Conditions on work construction organizations

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2.[186] Site chief commanders must have relevant qualifications and construction practice capabilities.

3. Having construction equipment meeting requirements on construction safety and quality.

Article 158. Conditions on independent practitioners

Individuals independently practicing construction plan designing, construction survey, work construction designing, construction investment project management consultancy, construction supervision consultancy, formulation, verification and management of construction investment costs must meet the following conditions: [187]

1. Having registered operations in the fields relevant to the practicing content;

2. Possessing practice and capability certificates relevant to performed jobs.

Article 159. Management of construction capabilities[188]

1. Information on construction capabilities of organizations and individuals granted certificates must be published on the websites of managed by agencies competent to grant certificates and integrated into the 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 portal of the Ministry of Construction must be made within 03 working days from the receipt of information from the agency competent to grant certificate.

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Chapter IX

RESPONSIBILITIES OF STATE AGENCIES TO MANAGE CONSTRUCTION INVESTMENT ACTIVITIES

Article 160. Contents of state management of construction investment activities

1. Formulating, and directing the implementation of, strategies, schemes, master plans and plans on development of the construction market and capacity of the construction sector.

2. Promulgating, and organizing the implementation of, legal documents on construction.

3. Formulating and promulgating construction standards and technical regulations.

4. Organizing and managing construction planning, project management and appraisal and construction designing; promulgating and announcing construction norms and prices.

5. Guiding, examining and assessing the quality management of construction works; managing construction investment costs and construction contracts; managing construction capabilities; managing bidding work in construction activities; managing occupational safety and sanitation and environmental protection in construction activities.

6. [189] Manage the grant, re-grant, modification, conversion and revocation of licenses, certificates, certifications and settlement of other administrative procedures in construction investment activities.

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8. Organizing scientific and technological research and application in construction and dissemination of knowledge and law about construction.

9. Training human resources for construction investment activities.

10. Managing and providing information to serve construction investment activities.

11. Managing and archiving construction work dossiers.

12. Carrying out international cooperation in construction activities.

Article 161. Responsibilities of the Government[190]

1. Unify the state management of construction investment activities nationwide; assign and decentralize 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

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1. To assume the prime responsibility for formulating and submitting to the Government and the Prime Minister legal documents, strategies, schemes, master plans and plans on development of the construction market and capacity of the construction sector.

2.[191] 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.^[192] 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. To direct, guide, examine and assess the quality management of construction works; to monitor, examine and propose the handling of quality and safety of national important works, large works and technically complex works in the process of construction, operation and use; to manage construction investment costs and construction contracts; to manage construction capabilities; to manage bidding work in construction activities; to organize, consider and approve quality prizes for construction works.

5.[193] 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. To examine, inspect and settle complaints and denunciations and handle violations in construction investment activities.

7. To organize scientific and technological research and application in construction and dissemination of knowledge and law about construction.

8. To organize construction professional training and retraining for cadres and civil servants of state management agencies in charge of construction.

9.[194] Guide and examine the management of safety, labor sanitation and environment in the construction of works; take charge of managing safety, labor sanitation and environment in the construction of works in its management sectors.

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11.[195] Develop and manage the information system and national database on construction activities; manage and provide information to serve construction investment activities.

12. To manage and archive construction work dossiers.

13. To carry out international cooperation in construction activities.

14. To perform other tasks related to construction investment activities assigned by the Government.

Article 163. Responsibilities of ministries and ministerial-level agencies

1. [196] Within the scope of their powers, specialized construction work-managing agencies shall:

a) Coordinate 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 safety, labor sanitation and environment in the construction of works in their management sectors in accordance with this Law;

b) Study, promulgate, guide 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; organizing professional training and retraining in construction investment for 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;

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2. Ministries and ministerial-level agencies shall:

a)[197] Perform the state management functions according to their assigned tasks and powers; promulgate documents according to their competence; direct the implementation and inspection of construction planning and construction investment plans under their assigned management;

b) Coordinate 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 issues under their assigned management;

c)[198] Summarize the situation of, implementing, supervising and assessing construction investment activities and take responsibility for managing the quality of construction works and managing the safety, labor sanitation 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-level People’s Committees shall:

a) Perform the state management functions as assigned 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 according to their competence; direct the implementation of construction planning and construction investment plans; decentralize and authorize district-level People’s Committees, management boards of industrial parks, export processing zones, hi-tech parks and economic zones to formulate, appraise and approve construction zone planning schemes and detailed planning for construction of function zones; organize the provision of guidance, examination and handling of complaints, denunciations and violations in construction investment activities;

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c)[200] 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 summarization and monitoring;

d) Organize professional training and retraining in construction investment for cadres and civil servants of attached agencies and units;

dd)[201] 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-and commune-level 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 civil servants of attached agencies and units;

b) Coordinate with and support People’s Committees of higher levels in the implementation, monitoring, examination and supervision of construction investment projects in localities under their management. Take responsibility for management of construction work quality within the assigned scope of management;

c) Send periodical and annual reports on the management of construction investment activities in localities to People’s Committees of higher levels for summarization and monitoring;

d) Perform other tasks as prescribed by law.

Article 165. Construction inspectorates

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2. The Ministry of Construction shall direct and organize specialized inspection of construction investment activities nationwide. Provincial-level Construction Departments shall organize specialized inspection of construction investment activities in 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, stopping and handling of violations within their competence or propose competent state agencies to handling violations of the construction law.

4. The Government shall elaborate construction inspection.

Chapter X

IMPLEMENTATION^[202]

Article 166. Grandfather clause

1. Construction investment projects which are approved before this Law takes effect are not required to be re-approved, and their unimplemented subsequent activities must comply with this Law.

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3. Works that are constructed before the date this Law takes effect and still exist in conformity with construction planning but become architecturally inappropriate after site clearance shall be permitted to exist in their original conditions; their renovation, repair and upgrade must comply with this Law.

4. The Government shall elaborate clause 1 of this Article.

Article 167. Entry in force

1. This Law comes into force as of January 1, 2015.

2. Construction Law No. 16/2003/QH11 and Article 1 of Law No. 38/2009/QH12 Amending and Supplementing a Number of Articles of Laws Concerning Capital Construction Investment cease to be effective on the date this Law takes effect.

Article 168. Elaboration

The Government and competent agencies shall elaborate the articles and clauses as assigned in the Law./.

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CHAIRPERSON




Nguyen Hanh Phuc