Circular No. 15/2000/TT-BXD guiding forms of management and implementation of investment and construction projects

CIRCULAR

Guidelines for forms of management implementation of investment projects and construction

Implement state management functions in the Construction sector according to Decree No. 15/CP dated March 4, 1994 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Construction;

Implement the Investment and Construction Management Regulations issued together with Decree No. 52/1999/NĐ-CP dated July 8, 1999 and Decree No. 12/2000/NĐ-CP dated May 5, 2000 of the Government regarding amendments and supplements to certain articles of the Investment and Construction Management Regulations issued together with Decree No. 52/1999/NĐ-CP, the Ministry of Construction guides the forms of management implementation of investment and construction projects as follows:

I.GENERAL PRINCIPLES

1. Based on the scale, nature of the project, and their own capacity, the Investor shall choose one of the following forms of management implementation of the project:

1.1. The Investor directly manages the implementation of the project;

1.2. Project management;

1.3. Turnkey;

1.4. Self-execution.

2. For projects using state budget capital, state investment credit, state-guaranteed credit, and state-owned enterprise development capital, the Investor must submit to the competent authority for investment decision-making to decide on the form of project management implementation; for projects using other sources of capital, the Investor decides on the form of project management implementation.

Costs for managing the implementation of investment and construction projects are implemented according to Circular No. 09/2000/TT-BXD dated July 17, 2000 of the Ministry of Construction and are included in the total investment ceiling and project estimate.

3. For central and local administrative agencies (such as Ministries; agencies equivalent to Ministries; government agencies; General Departments under Ministries; political organizations; provincial People's Committees; Departments and People's Committees at district level), they can only be Investors for construction projects of their own material and technical facilities.

For other projects, the Investor must be the person directly managing, operating, and utilizing the project and have the responsibilities and rights of an Investor as stipulated in Article 14 of the Investment and Construction Management Regulations issued together with Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government. In cases where the Investor of the project has not been clearly determined, the competent authority for investment decision-making assigns the specialized project management board to perform the Investor's functions (depending on the characteristics of each project).

II.FORM OF THE INVESTOR DIRECTLY MANAGING THE IMPLEMENTATION OF THE PROJECT

The form of the Investor directly managing the implementation of the project is applied to projects where the Investor has appropriate professional capacity and staff to organize the management implementation of the project in the following cases:

1. In the case where the Investor does not establish a project management board but uses its existing organization and appoints personnel (full-time or part-time) to manage the implementation of the project.

1.1. This form applies to Group B and C projects when the Investor has relevant departments specializing in technical and financial management suitable for managing the implementation of the project.

1.2. Requirements for professional expertise, business skills, and experience for those directly managing the implementation of the project:

a) The person responsible for managing the implementation of the project must have appropriate professional expertise for the requirements of the project, with a bachelor's degree or higher for Group B project management, and a college diploma or higher for Group C project management, with a minimum of two years of professional work experience.

b) The technical manager of the project must have a college diploma or higher, with appropriate professional expertise for the requirements of the project, and a minimum of two years of professional work experience.

c) The economic and financial manager of the project must have expertise in economics, finance, and accounting, with a college diploma or higher, and a minimum of two years of professional work experience.

d) For projects in remote areas, those directly managing the implementation of the project must have a college diploma or higher, with appropriate professional expertise and business skills for the requirements of the project, and a minimum of one year of professional work experience.

1.3. The Investor must issue a decision assigning tasks and authorities to departments, boards, and individuals appointed to manage the implementation of the project on a full-time or part-time basis.

2. In the case where the Investor establishes a subordinate project management board to manage the implementation of the project:

2.1. This form applies to Group A projects; Group B and C projects with high technical requirements or where the Investor manages multiple projects simultaneously.

2.2. The project management board is established by the decision of the Investor and must ensure the following principles:

a) The project management board is a unit subordinate to the Investor. The tasks and authorities of the project management board must be consistent with the responsibilities and authorities of the Investor as stipulated in Article 14 of the Investment and Construction Management Regulations issued according to Decree No. 52/1999/NĐ-CP of the Government, consistent with the Charter of the Investor's organizational activities and relevant laws.

b) The organizational structure of the project management board is decided by the Investor and must ensure sufficient professional and business capacity to fulfill the task of managing the implementation of the project. The project management board includes the Board Director, Deputy Directors, and specialized and business units assisting the Board Director.

c) The project management board must implement regular and comprehensive reporting to the Investor.

The Investor implements guidance, inspection of the project management board's activities, and timely addresses issues outside the scope of the project management board's authority to ensure the progress, quality, and other requirements of the project.

d) When the project is completed and put into operation, if the project management board has fulfilled its assigned tasks, the Investor will issue a decision to dissolve the board or assign new tasks to the project management board.

2.3. When deciding or proposing the appointment of the Board Director, technical supervisor, and economic-financial supervisor of the project, the Investor must base it on the work history and professional capacity standards of these individuals as stipulated in Point 1.2, Section II of this Circular; specifically, for Group A projects, the Board Director, technical supervisor, and economic-financial supervisor of the project must have a bachelor's degree or higher, with appropriate professional expertise for the requirements of the project, and at least two years of professional work experience.

III.FORM OF PROJECT MANAGEMENT

The Project Director Management Form is a project management form where an independent legal entity with sufficient capacity to manage and direct the project implements it. The Project Director Management Form is carried out in two forms: Project Management Consulting under Contract and Specialized Project Management Board.

1. Project Management Consulting under Contract:

1.1. If the Project Investor does not have the conditions to directly manage and implement the project, they shall hire a consulting organization with sufficient capacity to manage and implement the project, which is referred to as Project Management Consulting.

1.2. The Project Management Consulting Organization shall perform project management contents according to the contract signed with the Project Investor.

1.3. For the management implementation contents of the project that the Project Investor does not hire consulting organizations to manage and direct, the Project Investor shall implement and decide according to their tasks and authorities defined in the Investment and Construction Management Regulation issued together with Decrees No. 52/1999/NĐ-CP and No. 12/2000/NĐ-CP of the Government.

2. Specialized Project Management Board:

2.1. This form applies to projects belonging to construction specialties assigned by the Government to Ministries, agencies equivalent to Ministries (including the Ministry of Construction, the Ministry of Transport, the Ministry of Industry, the Ministry of Agriculture and Rural Development, the Ministry of Culture and Information, the Ministry of Defense, the Ministry of Public Security, the General Post Office Corporation) and provincial People's Committees for management and implementation; projects assigned by provincial People's Committees to Departments with construction specialties (corresponding to the Ministries with construction specialties mentioned above) and district People's Committees for implementation.

2.2. The organizational structure and tasks of the Specialized Project Management Board must ensure the following principles:

a) The Specialized Project Management Board is established by the Ministries or provincial People's Committees, has full legal personality, and is responsible before the law for all its activities.

b) The Specialized Project Management Board has a director, deputy directors, and appropriate staff to independently manage and direct the project.

c) The Specialized Project Management Board performs the functions and tasks of the Project Investor regarding the management and implementation of the project from when the project is approved until it is handed over for operation.

In necessary cases, the Specialized Project Management Board may be tasked with implementing works of the investment preparation phase or other tasks of the Project Investor as stipulated in Article 14 of the Investment and Construction Management Regulation issued pursuant to Decree No. 52/1999/NĐ-CP of the Government.

2.3. Conditions regarding professional capacity of the Specialized Project Management Board:

a) The Director must have a bachelor's degree or higher, possess professional capacity suitable for managing the project, and have experience in project management from at least two projects.

b) Heads of departments and business units must have a bachelor's degree or higher, and their professional expertise must match the work content they are responsible for.

c) The Specialized Project Management Board must have technical, technological, economic, and legal professional forces to ensure sufficient capacity to manage and implement assigned projects to achieve quality and efficiency.

IV.KEY DELIVERY FORM

1. The Key Delivery Form is applied when the Project Investor is permitted to organize bidding to select a general contractor to undertake the entire project from survey, design, procurement of materials and equipment, construction, to handing over the project for operation.

For projects using funds specified in Articles 10 and 11 of the Investment and Construction Management Regulation issued together with Decrees No. 52/1999/NĐ-CP and No. 12/2000/NĐ-CP of the Government, this form only applies to Group C projects, and other cases require approval from the Prime Minister.

2. Responsibilities for managing and implementing the project:

2.1. The Project Investor is responsible for:

a) Processing procedures to approve project contents;

b) Organizing bidding to select a general contractor;

c) Signing and implementing contracts signed with contractors;

d) Organizing land clearance to hand over the construction site to the contractor according to the progress in the contract and relevant laws;

e) Ensuring funds for payment according to the plan and economic contract;

g) Promptly resolving issues arising during project implementation;

h) Performing other responsibilities of the Project Investor as stipulated in Article 14 of the Investment and Construction Management Regulation issued pursuant to Decree No. 52/1999/NĐ-CP.

2.2. The Contractor is responsible for:

a) Fulfilling obligations according to the contract signed with the Project Investor;

b) Being accountable to the Project Investor and the law for the schedule, quality, cost, and other requirements of the project as per the signed contract;

c) If subcontracting to sub-contractors, they must fulfill commitments in the bidding documents and contracts signed by the general contractor with the Project Investor;

d) Fully responsible for the project implementation process until handing over to the Project Investor for operation;

e) Implementing warranty services and insurance systems as prescribed by law.

V.SELF IMPLEMENTATION OF PROJECTS

1. The Self Implementation of Projects form can only be applied in the following cases:

1.1. The Project Investor has the capacity for production and construction activities suitable for the project requirements and uses legitimate capital such as the enterprise's own capital, self-raised capital from organizations and individuals, excluding loans from credit institutions.

1.2. The Project Investor has the capacity for production and construction activities suitable for new planting, annual crop care, aquaculture (belonging to agriculture, forestry, fisheries, industry), seed breeding, land reclamation and construction of paddy fields, regular maintenance and repair of construction works and production equipment.

2. When implementing the self implementation of projects (self-production, self-construction), the Project Investor must closely supervise production and construction activities and be accountable to the law for the quality and cost of products and construction works.

3. The Project Investor may use their own management team or a subordinate Project Management Board to manage and implement the project, complying with legal regulations on product quality and construction work quality management.

VI.MONITORING, INSPECTION AND VIOLATION HANDLING

1. Monitoring, Inspection:

1 1. Construction management agencies of ministries, sectors, and localities shall be responsible for inspecting the organization and implementation of projects in accordance with the Investment and Construction Management Regulation issued together with Decree No. 52/1999/ND-CP dated July 8, 1999, Decree No. 12/2000/ND-CP dated May 5, 2000 of the Government, and the guidance provided in this Circular.

1.2. Construction inspection bodies at all levels shall carry out inspections of violations related to project implementation management according to decisions made by competent authorities.

Inspections must be conducted in accordance with laws on inspection; upon completion of the inspection, a conclusion report must be issued, and if any violations are discovered, they must be referred for legal handling.

2. Handling of Violations:

Construction management agencies at all levels, Project Owners, organizations managing project implementation, investment and construction consulting organizations, construction enterprises, and other relevant organizations and individuals who contravene regulations on project implementation management set forth in the Investment and Construction Management Regulation issued together with Decree No. 52/1999/ND-CP dated July 8, 1999, Decree No. 12/2000/ND-CP dated May 5, 2000 of the Government, and the guidance provided in this Circular shall be subject to legal handling depending on the severity of the violation.

VII. IMPLEMENTATION

1. Effectiveness:

This Circular shall take effect fifteen days from the date of signature and replace the guidance on forms of project implementation management for investment and construction projects in Circular No. 01/2000/TT-BXD dated March 1, 2000 of the Ministry of Construction.

2. Transitional Provisions:

2.1. Forms of project implementation management decided by competent authorities under Decrees No. 42/CP dated July 16, 1996, and Decree No. 92/CP dated August 23, 1997 shall continue to be implemented in accordance with the provisions of these two Decrees and the guidance provided in Circular No. 18/BXD-VKT dated June 10, 1995 of the Ministry of Construction until the completion of the project.

2.2. The form of Self-Implementation of Projects decided by competent authorities under Decree No. 52/1999/ND-CP but not yet initiated by the time Decree No. 12/2000/ND-CP takes effect shall be implemented in accordance with the provisions of Decree No. 12/2000/ND-CP and the guidance provided in this Circular.

2.3. Other forms of project implementation management shall be carried out in accordance with the provisions of Decree No. 52/1999/ND-CP and Decree No. 12/2000/ND-CP of the Government and the guidance provided in this Circular.

3. Ministries, ministerial-level agencies, government agencies, People's Committees of provinces and centrally-administered cities, central agencies of mass organizations, State-owned Corporations, and other relevant organizations and individuals shall be responsible for organizing the implementation of projects in accordance with the Investment and Construction Management Regulation issued together with Decree No. 52/1999/ND-CP dated July 8, 1999, Decree No. 12/2000/ND-CP dated May 5, 2000 of the Government, and the guidance provided in this Circular.

Any difficulties encountered during implementation should be reported to the Ministry of Construction for consideration and resolution./.