Decision No. 14/2006/QĐ-BYT Issuing the Management Procedures for Health Care Construction Projects Funded by State Budget

DECISION OF THE MINISTER OF HEALTH

Issuing the Management Procedures for Health Construction Projects Funded by State Budget

health works funded by the state budget

THE MINISTER OF HEALTH

Pursuant to Decree No. 49/2003/NĐ-CP dated May 15, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Health;

Pursuant to Decree No. 209/2004/NĐ-CP dated December 16, 2004 of the Government on construction project quality management;

Pursuant to Decree No. 16/2005/NĐ-CP dated February 7, 2005 of the Government on investment project management for construction works;

Pursuant to Circular No. 08/2005/TT-BXD dated May 6, 2005 of the Ministry of Construction guiding certain contents regarding the preparation, review, approval of investment projects for construction works and the implementation of Decree No. 16/2005/NĐ-CP dated February 7, 2005 of the Government;

Based on the proposal of the Director of the Medical Equipment and Health Construction Department, the Director of the Planning and Finance Department, and the Director of the Legal Affairs Department of the Ministry of Health.

DECISION:

Article 1. Attached herewith is the "Management Procedures for Health Construction Projects Funded by State Budget."

Article 2. The Project Investors using state budget funds for health construction projects shall be responsible for implementing the Management Procedures for Health Construction Projects and other regulations on investment and construction project management as prescribed by law.

Article 3. This Decision takes effect fifteen days from the date of publication in the Official Gazette. It revokes Decision No. 2149/QĐ-BYT dated June 5, 2002 of the Minister of Health on the issuance of Investment and Construction Management Procedures for projects funded by the state budget under the jurisdiction of the Ministry of Health.

Article 4. The Heads of the Office, Departments, Bureaus, Inspectorate of the Ministry of Health, organizations mentioned in Article 2, and related agencies/persons are responsible for enforcing this Decision./.

PROCEDURE

Management of Health Construction Investment Projects

funded by state budget

(Issued pursuant to Decision No. 14/2006/QĐ-BYT

dated March 24, 2006 of the Minister of Health)

The Management Procedures for Health Construction Projects Funded by State Budget are established based on the functions and tasks of the Ministry of Health as stipulated in Decree No. 49/2003/NĐ-CP dated May 15, 2003 of the Government, aiming to guide the direct investors under the Ministry of Health and the direct investors under other Ministries, sectors, and localities with health construction investment projects to comply with the national regulations on construction project investment and management issued together with Decree No. 16/2005/NĐ-CP dated February 7, 2005 of the Government (Decree No. 16/2005/NĐ-CP) and other regulatory legal documents. These procedures guide from planning investment construction projects, preparing investment, preparing to implement projects, implementing projects, handing over for use, to warranty and maintenance of construction works.

The "State budget" referred to above includes: Centralized investment capital for construction and development, public expenditure capital with investment construction nature, government loans from foreign countries allocated to the health sector, basic depreciation capital of production and business units.

I. CONDITIONS FOR PROJECT INVESTMENT PREPARATION:

1. Industry planning:

To have a basis for preparing and submitting annual and long-term investment construction plans, each industry, field, and locality must have Development Plans up to 2010 and vision to 2020 approved by competent state authorities.

2. Comprehensive development plan until 2010 and vision to 2020:

The head of the unit is responsible for organizing the development plan up to 2010 and vision to 2020 for their own unit or locality based on the orientation of the industry and local development plan, National Strategy on Health Care and Protection approved by the Prime Minister. The development plan is expressed through the orientation of specialized industries, key activities of the unit or locality. The comprehensive development plan is a condition for preparing, reviewing, and approving investment projects of each unit or locality.

II. INVESTMENT PREPARATION WORKS:

1. Requesting permission to prepare investment:

The head of the unit submits the dossier to the Ministry of Health for projects decided to invest by the Minister of Health and obtains investment decision for other projects based on approved development plans and reports assessing the current infrastructure and technical equipment status of the unit.

2. Investor:

The investor of the construction work is the owner of the capital or the person assigned to manage and use the capital for construction investment. For projects decided to invest by the Ministry of Health, the investor is the heads of units directly invested. In other cases, the investor is designated by the decision-making authority before preparing the construction investment project in accordance with the State Budget Law.

3. Preparing Investment Projects:

3.1. For projects decided to invest by the Minister of Health:

3.1.1. The investor is permitted to designate consulting firms with legal personality and sufficient professional capacity to prepare the Investment Report, Investment Project, Economic and Technical Report, and submit them to the competent authority for investment decision. For projects with Class I and Special construction works, the investor must organize architectural design competitions according to current regulations. For projects using consultancy costs from foreign sources, the investor must comply with specific provisions of the funding organization.

3.1.2. The content of the Investment Report and Investment Project must comply with the provisions of Clause 4, and the content of the Economic and Technical Report must comply with Clause 12 of Decree No. 16/2005/NĐ-CP.

3.1.3. The scale of investment must be consistent with the healthcare system planning and the development plan of the unit approved by the competent authority.

3.1.4. The preliminary design must comply with the design standards issued by the Minister of Health.

3.1.5. The preliminary design must be reviewed by the Ministry of Construction (for Group A) or the Provincial Construction Department (for Groups B and C) before submitting for project approval.

3.1.6. The investor must propose the project management form within the content of the Investment Project. The Ministry of Health will decide on this when approving the investment project.

3.2. For health construction projects decided to invest by the Chairman of the People's Committee of the province:

3.2.1. The scale of investment must be consistent with the healthcare system planning and the development plan of the unit approved by the competent authority.

3.2.2. The basic design must comply with the medical facility construction standards issued by the Minister of Health and approved in writing by the Ministry of Health.

3.2.3. The basic design must be reviewed by the Ministry of Construction (for Group A projects) or the local Construction Department (for Groups B and C) before submitting for project approval.

3.2.4. The list of medical equipment (if applicable) must be carried out according to specific regulations of the Ministry of Health.

3.2.5. The project investor must propose the Project Management form within the investment project content. The People's Committee of the province (which issues the investment decision) will decide on this when approving the investment project.

3.3. Regarding hiring foreign consultants:

The Project Management Board may enter into contracts with individual or organizational foreign consultants who have experience and capacity to cooperate with the Project Management Board to manage new construction technology applications that domestic consultants lack the capability to implement or have special requirements. Hiring foreign consultants for projects funded by state budget funds must be approved by the authorized investment decision maker. The investor must submit the application for permission to hire foreign consultants with the following contents:

3.3.1. The necessity to hire foreign consultants;

3.3.2. Objectives of hiring foreign consultants;

3.3.3. Volume of work requiring foreign consultant services;

3.3.4. Method of selecting foreign consulting organizations;

3.3.5. Expected foreign consulting organizations to be hired (if any), their qualification documents;

3.3.6. Value, total value of works requiring foreign consultant services;

3.3.7. Source of funds to pay foreign consulting organizations;

3.3.8. Plan for implementing the hiring of foreign consultants.

4. Reviewing, examining, and approving investment projects:

The investor is responsible for submitting the project investment construction dossier to the investment decision-making level for approval.

The project investment construction dossier includes: (a) the proposal for project approval according to the model attached as Appendix No. 2 to Decree No. 16/2005/NĐ-CP; (b) the project including the explanatory section and the basic design (as stipulated in Article 6 and Article 7 of Decree No. 16/2005/NĐ-CP); examination documents from relevant agencies; (c) permission to invest documents from the competent authority for national key projects and Group A projects.

4.1. For projects decided upon by the Minister of Health:

4.1.1. Preliminary review: The investor sends ten sets of the project dossier, which has been approved by the investor’s basic council, to the Ministry of Health for review at the departmental level according to each specialized field: (1) construction investment; (2) list - configuration - budget estimate of medical equipment (if applicable).

4.1.2. Examination of the investment project: After the project has been reviewed at the departmental level, it will be submitted by the permanent agency for construction investment management of the Ministry of Health to the advisory council on construction investment project management of the Ministry of Health for examination.

4.1.3. Content of preliminary review and examination of medical construction investment projects shall be conducted according to Article 10 of Decree No. 16/2005/NĐ-CP.

4.1.4. Approval of investment projects: The Minister of Health will approve investment projects when the submission dossier has completed the preliminary review and examination steps mentioned above.

4.1.5. Delegation of investment decision-making authority: For small repair works funded by public funds with a total investment amount of up to 300 million dong, the Minister of Health delegates the investor to organize the preparation of design - budget estimates and to organize reviews and approvals.

4.2. For medical construction projects decided upon by the Chairman of the Provincial People's Committee:

Hospitals with a scale of 200 beds or more, and other medical facilities under programs, projects, and investments assigned by the Government to the Ministry of Health as the main body or executing agency before submitting to the competent state authorities for approval must be sent to the Ministry of Health for review regarding compliance with the planning system of medical facilities, hospital regulations, technical tiering, and production lines. Other projects follow the provisions of the investment decision-making level and current regulations.

5. Adjustment of investment construction projects:

5.1. An investment construction project that has been approved can only be adjusted if one of the following situations occurs:

5.1.1. The appearance of force majeure factors due to natural disasters such as earthquakes, typhoons, floods, storms, tsunamis, landslides, wars, or the threat of war;

5.1.2. Due to abnormal fluctuations in raw material prices, changes in exchange rates affecting the portion of capital using foreign currency, or due to new state policies that allow changes in the construction cost base;

5.1.3. Due to changes in the investment decision-maker or investor when new factors appear that bring higher economic and social benefits to the project;

5.1.4. When the approved urban planning changes directly affecting the project.

5.2. Classification of project adjustments:

When adjusting the project does not change the scale, investment objectives, and does not exceed the approved total investment amount, the investor is permitted to adjust the project independently. In cases where the adjustment changes the basic design concerning architecture, planning, scale, initial investment objectives, or exceeds the approved total investment amount, the investor must submit to the investment decision-maker for consideration and decision. Any changes must be resubmitted to the competent authority for re-examination.

III. INVESTMENT PLAN FOR CONSTRUCTION PROJECTS:

1. Investment Development Orientation:

Based on the industry planning and development strategy, investment development work must be built according to the five-year and annual plans of the Ministry of Health for projects decided upon by the Minister of Health and according to the directives of the investment decision-maker for other projects.

2. Preparation of the Investment Construction Plan:

Annually, before July 30, the investor must report on the implementation of the first six months, forecast the full-year plan, and simultaneously register the "Investment Construction Plan" for the next year based on the project progress specified in the Investment Decision.

3. Conditions for recording annual investment and construction plans:

Investment and construction projects can only be recorded in the annual plan if they meet the following conditions:

3.1. New projects starting construction:

For Group A projects, there must be an Investment Decision approved by the competent authority before October 31, and a Decision approving the Construction Technical Design - Item Budget for the start-up work in the following year, which must be approved by the competent authority before December 31 of the previous year.

For Group B and C projects, there must be an Investment Decision before October 31 and a Decision approving the Technical Design - Total Budget before December 31 of the previous year.

3.2. Carry-over Projects:

For Group A projects that have already implemented over 30% of the Total Investment Amount: There must be a Decision approving the Technical Design - Total Budget before December 31 of the previous year.

For Group B and C projects, they must be within the implementation period of the project as stipulated by current regulations.

IV. PREPARATORY WORK FOR PROJECT IMPLEMENTATION:

1. Project Management Organization:

1.1. For projects decided on investment by the Minister of Health:

The Investor shall base on the Project Management Form prescribed in the Decision approving the investment project to:

1.1.1. Establish a Project Management Board under its direct management: Select and submit to the Minister of Health for appointment the Director of the Project Management Board who is an officer with sufficient professional capacity as provided for in Article 55 of Decree No. 16/2005/NĐ-CP.

1.1.2. In cases where the Investor does not have sufficient project management capacity, the Investor must select a consulting organization for project management according to Article 56 of Decree No. 16/2005/NĐ-CP through one of the current tendering forms for consultancy services, and submit to the Minister of Health for approval.

1.1.3. The tasks and powers of the Investor and the Project Management Board in the case where the Investor establishes a Project Management Board shall be carried out according to Article 36 of Decree No. 16/2005/NĐ-CP.

1.1.4. In cases where the Investor hires a consultancy firm for project management, the Investor must have a support department to supervise the work of the consultancy firm to promptly resolve any issues arising during the project implementation process.

1.2. For projects decided on investment by the Chairman of the Provincial People's Committee:

The Department of Health shall manage health facilities in the locality as follows:

1.2.1. Serve as the Investor for projects under programs, projects, and plans assigned by the Government to the Ministry of Health as the main agency or permanent body.

1.2.2. Serve as the Investor or participate in reviewing and supervising investment for other healthcare construction projects in the locality according to the provisions of the entity issuing the investment decision.

2. Selection of Consultants for Technical Design - Total Budget:

Based on the Decision approving the investment project issued by the competent authority, the Investor shall organize a tender to select an investment construction consulting agency with legal personality and sufficient professional capacity to prepare the Technical Design - Total Budget according to current regulations.

3. Preparation, Review, and Approval of Technical Design - Total Budget:

3.1. The Technical Design - Total Budget must be prepared in accordance with the Approved Basic Design accompanying the Investment Project; the contents of the Technical Design - Total Budget must comply with the current regulations of the Ministry of Construction on budget management, construction quality.

3.2. The Technical Design - Total Budget must be reviewed by an organization with legal personality and professional capacity. The Investor shall self-review the Technical Design - Total Budget; if the Investor lacks the conditions for review, it may hire organizations or individuals with the necessary conditions for review. Depending on the requirements of the Investor, the review of the Technical Design - Total Budget can be conducted for the entire or part of the contents of the Technical Design - Total Budget documents.

3.3. The Ministry of Health shall delegate the Investor to approve the Technical Design - Total Budget of the construction works under projects decided on investment by the Ministry of Health after approving the Basic Design according to the relevant legal provisions.

4. Management of Unit Prices and Budgets:

The unit prices for preparing budgets are regional unified unit prices and price announcements for materials, equipment issued by local price management agencies according to the central government's delegation. In cases where the design - budget includes items, materials, and equipment not covered in the above documents, the Investor and the design consulting agency must request temporary pricing approval in writing from the local price management agency or the Institute of Construction Economics under the Ministry of Construction.

5. Use of "Design Standards" for Healthcare Facilities:

The Ministry of Health has issued "Design Standards" for healthcare facilities. Consulting organizations for construction, Investors, Departments of Health, and Departments of Construction at localities must use these "Design Standards" as the basis for preparing and reviewing investment projects for healthcare facility construction.

During the use of design standards, if any issues arise, the aforementioned organizations should report them to the Ministry of Health for timely research and adjustment.

6. Building Permits for Construction Works:

6.1. Before commencing construction, the Investor must obtain a building permit, except for construction works involving repairs, renovations, and internal installations that do not alter the architectural appearance, load-bearing structure, and safety of the building.

6.2. Conditions for issuing building permits for construction works in urban areas shall be carried out according to Article 65 of the Construction Law. The rights and obligations of the applicant for a building permit shall be implemented according to Article 68 of the Construction Law and shall be specifically guided by the local Department of Construction.

7. Liquidation of State Assets:

When preparing an investment project, the Investor must conduct quality inspections of construction components within the land clearance area, carry out asset liquidation work to serve land clearance and compensation purposes. Asset liquidation must be carried out in accordance with the law. Components of construction works that need to be demolished for land clearance must be specified in detail in the investment decision.

V. MANAGEMENT OF PROJECT IMPLEMENTATION:

1. Contractor Selection in Construction Activities:

1.1. The Investor must prepare a Tender Plan, Tender Document, organize tendering, bid opening, and evaluation, and submit to the Ministry of Health (or the competent authority) for approval.

1.2. Tender data such as: design documents of the works, equipment configuration, tender budget (tender package price), tender evaluation criteria, tender conditions, tendering method, time for implementing each tender package must be approved by the Ministry of Health (or competent authority) together with the approval of the tender plan.

1.3. The selection of contractors shall be carried out in accordance with "Section 3: SELECTION OF CONTRACTORS IN CONSTRUCTION ACTIVITIES" of Decree No. 16/2005/NĐ-CP.

2. Tender implementation period in the year:

2.1. The tender plan for construction installation packages recorded in the annual plan must be approved and implemented before July 31 of each year;

2.2. The tender plan for procurement packages of equipment must be approved and implemented before September 30 of each year;

2.3. The tender plan with additional funding must be approved and implemented within no more than 30 days from the date the Project Owner receives the additional funding notification.

3. Contract signing and implementation:

The Project Owner bases on the tender results to: (1) Sign the contract according to the contract model issued in the tender documentation and the provisions stated in the Decision on Direct Award or the Decision approving the tender results; (2) Commence the work; (3) Supervise the implementation of construction, installation, trial operation of equipment, and organize acceptance for commissioning.

4. Construction supervision:

The Project Management Board, established or hired by the Project Owner, must have sufficient technical staff in architecture, construction, machinery installation, electricity and water supply fields suitable for each project and sub-project to supervise construction. Technical supervisors, consulting organizations, contractors, and project owners must bear full responsibility under the law for any errors (if any) during the construction process.

5. Handling of matters arising during construction:

Any changes, design modifications (if any) during the project implementation must be documented in a "Minutes" of agreement between the Contractor, Design Consulting Organization, and the Project Owner. Additional quantities and design modifications exceeding the total budget estimate can only be settled upon approval by the Ministry of Health (or investment decision-making authority). Design modifications due to insufficient site survey by the design consulting organization must take responsibility for supplementation and modification without payment for the design fee.

6. Disbursement work:

During the implementation of investment, the Project Owner must carry out disbursements at interim advance stages, settlement of completed construction and installation quantities, and other costs according to the signed contract in compliance with current state regulations, without settling fictitious quantities and leaving arrears while funds are available.

7. Completion documents:

All constructed works and sub-projects, before technical final inspection, must have completion documents. Completion documents are prepared by the contractor based on updated design documents reflecting modifications and supplements recorded in the construction diary. Drawings in the completion documents must be clear and fully annotated with changes from the design documents to accurately settle quantities. Completion documents need to be fully handed over to the asset management department for monitoring events during usage and facilitating future maintenance and repair of the works.

8. Inspection and final inspection:

During construction supervision, the Project Owner, contractors, technical supervisors, or supervising consulting organizations, and design consulting organizations must prepare complete inspection minutes and quality certificates of materials and structures in accordance with current regulations. Before demolishing old structures for land clearance and inspecting hidden parts, the Project Owner must record the status in photographs. After completing each sub-project, a comprehensive technical final inspection must be organized to review all documentation, certificates, design modifications during construction, and verify the accuracy of the completion documents. When organizing the final inspection, all necessary parties must be invited and a "Final Inspection Minutes" must be prepared in accordance with the current Construction Quality Management Regulations of the Ministry of Construction.

9. Handover of works for use:

Works and sub-projects, after completion and with a conclusion in the Final Inspection Minutes stating "permitted for use," will be handed over to the user management department. During handover, completion documents with detailed operating instructions, technology transfer (if any), and special attention to infrastructure systems, particularly points prone to failure and damage during use, must be provided.

10. Settlement work:

10.1 Annual capital settlement:

Within seven days after the end of each quarter and fifteen days after the end of the planned year, the Project Owner must base on accounting records to prepare reports on capital implementation, quarterly and annual financial statements, and send them to the Ministry of Health (investment decision-making authority) and relevant funding disbursement agencies as stipulated in Decision No. 214/2000/QĐ-BTC dated December 28, 2000; Circular No. 44/2003/TT-BTC and Circular No. 53/2005/TT-BTC dated June 3, 2005 of the Ministry of Finance.

Annually on July 10 and February 15 of the following year, the Project Owner has the responsibility to prepare semi-annual and annual capital settlement reports as required and send them to the Ministry of Health (or investment decision-making authority). Based on the annual financial statement of the Project Owner's agency, the investment decision-making authority will conduct an audit at least once a year before approving the final capital settlement of the completed project.

10.2. Final capital settlement:

For ongoing projects, prior to sending the treasury for payment to the contractor at the end of each completed phase (including project management cost items and other costs such as: project preparation costs, surveys, designs, compensation for land clearance...; equipment costs; construction and installation costs...), a report must be prepared in accordance with regulations and sent to the Ministry of Health (or investment decision-making authority) for review and approval.

For completed investment projects: The investor unit shall be responsible for preparing and submitting the final settlement dossier for approval within twelve months at the latest from the completion date for Group A projects; nine months for Group B projects; and six months for Group C projects, in accordance with Circular No. 45/2003/TT-BTC dated May 15, 2003 of the Ministry of Finance to the Ministry of Health (or the authority issuing the investment decision) for examination and approval.

10.3. Audit, examination, evaluation of final settlement:

The final settlement dossier must be audited by an auditing organization with legal personality and appropriate capacity in relation to the scale of the project, and must be examined by the Settlement Advisory Team established by the Minister of Health (or the authority issuing the investment decision, if applicable).

The final settlement dossier must be evaluated by the Project Management Advisory Council established by the Minister of Health (or the authority issuing the investment decision).

The time limit for examining and evaluating the final settlement dossier at the Ministry of Health: Six months for Group A projects; three months for Group B projects; and one month for Group C projects, counted from the date when the investor submits the complete final settlement dossier to the Settlement Advisory Team established by the Minister of Health.

VI. WARRANTY AND MAINTENANCE OF CONSTRUCTION PROJECTS:

1. Warranty:

Warranty is the responsibility of the construction contractor, and the warranty work shall be carried out in accordance with the provisions of the law. The warranty period is stipulated in the construction contract.

2. Maintenance:

2.1. Maintain all documents including the entire set of documents on land ownership rights, building permits, completion documents for buildings - infrastructure systems, and these documents need to be supplemented and checked regularly.

2.2. The manager using the facility must inspect and understand the current status of the facility and existing infrastructure. For newly completed facilities, it is necessary to hire specialized agencies to set benchmarks for monitoring subsidence continuously over three years. Any abnormal phenomena discovered must be reported immediately in writing to the higher-level specialized management agency for timely handling.

2.3. Annually, during the planning period, a maintenance capital plan for regular upkeep of the facility must be prepared. When minor damages are found, they must be repaired immediately to prevent further damage.

The technical infrastructure system, including electricity, water supply, communication systems, drainage, and waste treatment, must be inspected regularly by technical staff.

VII. INVESTMENT SUPERVISION WORK:

The investor shall organize the implementation of the project, prepare periodic reports on the implementation of the project quarterly for the Ministry of Health (or the authority issuing the investment decision) for monitoring, supervision, assessment, and support in managing the project. The content of the report shall follow the guidelines set forth in Circular No. 01/2000/TT-BKH dated January 10, 2000 of the Ministry of Planning and Investment.

The investor must promptly report to the Ministry of Health (or the authority issuing the investment decision) about any difficulties encountered during the implementation of the project, propose solutions, and bear responsibility for any issues arising due to untimely resolution.

VIII. COMMUNITY MONITORING, INSPECTION, AND AUDIT:

1. Community Monitoring:

The investor must create favorable conditions for political organizations, political-social organizations, social organizations, and occupational social organizations, as prescribed by law, to carry out lawful activities in community monitoring of investment projects.

The Project Management Board must have an office and staff present at the site with complete project files ready to handle incidents occurring during construction.

2. Inspection and Audit:

During the implementation of investments, the investor must retain all related documents and provide them fully to state agencies with jurisdiction as prescribed by law. Annually, the Ministry of Health will establish inspection and audit teams to review the management of investment construction projects that have been or are being implemented. These teams are responsible for reviewing the implementation of the above regulations, urging progress, promptly correcting any violations (if any), and reporting the implementation of investment to the Minister of Health for timely adjustment and handling.

IX. IMPLEMENTATION PROVISIONS:

Heads of units under the Ministry of Health, Directors of Provincial Health Departments, and investors of medical construction projects financed by the state budget are responsible for strictly implementing the investment management regulations for construction projects issued together with Decree No. 16/2005/NĐ-CP dated February 7, 2005, guiding documents, and "The management process for medical construction projects funded by the state budget." Add

The Project Management Advisory Council of the Ministry of Health, the Medical Equipment and Construction Department, the Planning and Finance Department, and the Inspectorate of the Ministry of Health, in coordination with relevant departments and bureaus, are responsible for guiding and supervising the implementation of "The management process for medical construction projects funded by the state budget." /./