(Chinhphu.vn) – The Government issued Decree No. 175/2024/NĐ-CP dated 30/12/2024 on specifications for articles and enforcement in construction governance within the Law on Construction.
The Decree clearly stipulates the sequence of construction investment activities. Accordingly, the sequence for implementing construction investment, as prescribed in Clause 1, Article 50 of the 2014 Law on Construction, is specified as follows:
a. Preparation phase comprises the following activities: preparing proposals, projects financed by official development assistance (ODA) loans and foreign concessional loans (where applicable); preparing and appraising pre-feasibility study reports on construction investment or proposals for investment policy approval for the purpose of deciding on or approving the investment policy (where applicable); conducting construction surveys for formulation; preparing, appraising and approving construction plans as a basis for project formulation; preparing, appraising and approving feasibility study reports on construction investment or economic-technical reports on construction investment for project approval and decisions on construction investment; and undertaking other necessary relevant activities.
b. Implementation phase comprises the following activities: preparing construction sites and clearing unexploded ordnance (where applicable); conducting construction surveys for the preparation of detailed designs following the basic design stage; preparing, appraising and approving construction designs and cost estimates; obtaining construction permits (for works subject to the construction permit requirement under applicable regulations); signing contracts; carrying out construction works; supervising construction activities; making advance payments and payments for completed volumes; conducting operation and trial runs; inspecting and accepting completed works; finalising contracts; monitoring and evaluating; and undertaking other relevant activities.
c. Construction completion phase comprises the following activities: finalising construction contracts and settling investment capital for completed projects; certifying construction completion; handing over completed works; providing construction warranties and transferring relevant documentation; monitoring and evaluating projects; and undertaking other necessary activities.
The sequence for implementing emergency construction investment projects shall comply with Article 69 of this Decree. The sequence for implementation involving construction components under the public-private partnership (PPP) model (hereinafter referred to as PPP projects) shall comply with the according legislation (*).
For projects not specified in the aforementioned provision (*), depending on the specific conditions and technical requirements of each project, the person authorised to decide on the investment shall determine whether the activities specified at Points b and c above are to be carried out sequentially or in combination and concurrently, in accordance with the contents of the project approval decision.
For projects implemented under turnkey contracts, the sequence of construction shall be carried out in accordance with the contractual provisions.
Classification of construction investment projects:
The Decree stipulates that construction investment projects as prescribed in Article 49 of the 2014 Law on Construction, as amended and supplemented under Clause 8, Article 1 of Law No. 62/2020/QH14, shall be classified for the purpose of managing construction activities in accordance with this Decree as follows:
Based on the functions served, sector-specific characteristics and management objectives of the projects and their constituent works, construction investment projects shall be classified in accordance with Appendix X to this Decree.
Based on the sources of capital used and the form of investment, construction investment projects shall be classified into the following categories: projects funded by public investment capital; projects funded by state capital other than public investment capital; PPP projects; and projects funded by other sources of capital. Construction investment projects financed by a combination of several of the above-mentioned sources shall be classified as follows:
a. Projects utilising a portion of public investment capital shall be classified as public investment projects and managed in accordance with the appropriate legislation.
b. PPP projects utilising public investment capital shall be managed in accordance with the legislation governing PPP investment.
c. Projects financed by a combination of state capital other than public investment capital and other sources of capital: where the proportion of state capital other than public investment capital exceeds 30% or VND 500 billion of the total investment, the project shall be managed in accordance with the regulations applicable to projects funded by state capital other than public investment capital. In other cases, the project shall be managed in accordance with the regulations applicable to projects funded by other sources of capital. The proportion of state capital other than public investment capital shall be considered and determined by the person authorised to decide on the investment, serving as the basis for preparing the feasibility study report on construction investment or the economic-technical report on construction investment.
Construction investment projects for which only an economic-technical report on construction investment is required include:
– Construction investment projects serving religious purposes;
– New construction, renovation and upgrading projects with a total investment not exceeding VND 20 billion (excluding compensation and site clearance costs and land use levies), except for construction investment projects involving cultural heritage works, which shall be implemented in accordance with the legislation on cultural heritage;
– Group C construction investment projects undertaken for maintenance purposes;
– Projects involving the dredging and maintenance of public maritime channels and inland waterways;
– Construction investment projects primarily involving the procurement of goods, provision of services or installation of equipment, or repair and renovation projects that do not affect the load-bearing safety of structures, where construction costs (excluding equipment costs) account for less than 10% of the total investment and do not exceed VND 10 billion (except for important state projects, Group A projects and projects implemented under the PPP model).
The Decree further stipulates that the person authorised to decide on the investment may require the preparation of a feasibility study report on construction investment for the above-mentioned projects where specific construction engineering requirements or technological design requirements necessitate the preparation of a basic design. These projects are not subject to appraisal by specialised construction authorities. The person authorised to decide on the investment shall be responsible for organising the appraisal of the feasibility study report on construction investment, while the project owner shall be responsible for organising the appraisal of the detailed design developed after the basic design stage, ensuring that the appraisal contents comply with the applicable legal provisions.
Businesses also proposed that the province strengthen coordination and introduce support policies to develop labour supply networks, particularly for highly skilled workers; consider expanding bus routes connecting the province with neighbouring provinces and cities; plan and develop centralised parking facilities and provide additional designated stopping and parking areas in industrial parks; and prioritise investment in social housing and accommodation for industrial workers and other employees.
Application of standards, materials and new technologies in construction
Under this Decree, the standards applicable to a construction work must be considered and approved by the person authorised to decide on the investment at the time the investment decision is made. These standards shall be specified in the project approval decision or in a separate written document. During project implementation, where necessary, the project owner may propose amendments or additions to the applicable standards, provided that such amendments or additions do not alter the project elements that would trigger the requirement for project adjustment under the applicable regulations. Such amendments or additions must receive written approval from the person authorised to decide on the investment before they may serve as the basis for implementation.
The selection and application of foreign standards and establishment-level standards must comply with the Law on Construction and other relevant legal provisions.
Where foreign standards are applied: Depending on the level of detail required at each design stage, the explanatory documentation accompanying the basic design, construction designs developed after the basic design stage, or technical specifications, where applicable, must include an assessment of compliance with national technical regulations and compatibility with relevant standards. Priority shall be given to foreign standards that have been widely adopted.
Where inhouse standards are applied: Explanatory documentation must demonstrate compliance with national technical regulations and compatibility and consistency with relevant standards. The publication of inhouse standards must strictly adhere to the requirements and procedures stipulated in other relevant legal instruments.
The use of new materials and technologies must comply with national technical regulations and be compatible with relevant standards, while ensuring feasibility, sustainability, safety and effectiveness.
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