Circular No. 16/2016/TT-BXD guiding the implementation of certain Articles of Government Decree No. 59/2015/NĐ-CP dated June 18, 2015 on the forms of organization and management of construction investment projects

CIRCULAR

Guidelines for Implementing Certain Articles of Decree No. 59/2015/NĐ-CP dated June 18, 2015 of the Government on Forms of Organizing and Managing Construction Investment Projects

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Pursuant to the Construction Law No. 50/2014/QH13 dated June 18, 2014;

Pursuant to Decree No. 62/2013/NĐ-CP dated June 25, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Construction;

Pursuant to Decree No. 59/2015/NĐ-CP dated June 18, 2015 of the Government on Project Management for Investment Construction;

Considering the proposal of the Director of the Construction Activity Management Department,

The Minister of Construction issues this Circular guiding the implementation of certain articles of Decree No. 59/2015/NĐ-CP on forms of organizing and managing construction investment projects.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

1.    Scope of Regulation: This Circular guides the restructuring of activities, establishment of Project Management Boards for construction investment projects funded by state budget capital, non-state budget capital; drafting operational regulations for specialized Project Management Boards and regional Project Management Boards (hereinafter referred to as specialized PMBs and regional PMBs). For projects funded by ODA and preferential loans from foreign sponsors with agreements on project management forms, project management shall be carried out according to agreements with sponsors.

2.    Applicability: This Circular applies to persons deciding to establish specialized PMBs and regional PMBs as prescribed in Clause 1, Article 63 of the Construction Law, investors, project owners, Project Management Boards for construction investment projects funded by state budget capital, non-state budget capital, and related organizations and individuals.

3.    Ministries, ministerial-level agencies, central agencies of political organizations, political-social organizations, provincial people's committees, economic groups, state-owned corporations shall base their guidance on the organization and implementation of projects within their management scope, when necessary, on the provisions of the Construction Law, Decree No. 59/2015/NĐ-CP dated June 18, 2015 of the Government on Construction Investment Project Management (hereinafter referred to as Decree No. 59/2015/NĐ-CP), and this Circular.

4.   Investors and project owners of projects funded by other sources shall base their application, organization, and management of projects suitable to their specific conditions on the provisions of Decree No. 59/2015/NĐ-CP and the guidelines set forth in this Circular.

Article 2. Interpretation of Terms

In this Circular, the following terms shall be understood as follows:

1.    Member units of economic groups and state-owned corporations: are enterprises operating under the Enterprise Law and listed in the Charter of the economic group or state-owned corporation.

2.    Project Management Director: is a professional position appointed and relieved by the General Director of the Project Management Board to directly manage and direct one or more specific projects assigned.

4.    Person deciding to establish a Project Management Board: is the authority authorized to establish specialized PMBs and regional PMBs as prescribed in Clause 1, Article 63 of the Construction Law.

4.    Entrusted Project Management: is the act where the investor agrees to allow the project owner to entrust the specialized PMB or regional PMB located at the project site to undertake project management tasks and hand over completed works to the project owner according to the terms of the signed contract.

Article 3. Principles for Restructuring Activities and Establishing Specialized PMBs and Regional PMBs

The restructuring of activities and establishment of specialized PMBs and regional PMBs as prescribed in the Construction Law must ensure the following principles:

1.     Consistency with the development orientation, planning, and mid-term public investment plans of ministries, localities, enterprises, investment policies, and requirements for restructuring public investment and state-owned enterprises.

2.    Compliance with the conditions for establishing specialized PMBs and regional PMBs stipulated in Clause 2, Article 62 and Clause 1, Article 63 of the Construction Law.

3.    Ensuring that the reorganization and restructuring of activities to establish specialized PMBs and regional PMBs do not disrupt project schedules and do not increase the staffing of Project Management Boards. Staff members in the staffing of specialized PMBs and regional PMBs shall not concurrently hold other positions or tasks outside of the assigned project management duties.

4.    Self-funding operations based on using project management costs within the approved total investment amount of the project and other lawful revenues (if any). For specialized PMBs and regional PMBs managing projects in mountainous, island, and particularly difficult areas, small-scale projects requiring feasibility studies for construction investment, newly approved projects without allocated funds, the person deciding to establish specialized PMBs and regional PMBs, and the investor shall provide support for operational funding based on specific conditions.

5.    Ensuring the operational capacity conditions of specialized PMBs and regional PMBs when they are organized and established in accordance with laws on construction.

Article 4. Organizational Model for the Operation of the Investment Construction Management Board

1.   The specialized and regional Investment Construction Management Boards established by the Minister, head of a ministry-level agency, Chairman of the People's Committee of a province or district pursuant to Articles 17 and 18 of Decree No. 59/2015/ND-CP shall be public service organizations operating under a financial self-management mechanism, independently ensuring regular expenses as stipulated in Decree No. 16/2015/ND-CP dated February 14, 2015 of the Government on the self-management mechanism of public service organizations.

2.   The specialized and regional Investment Construction Management Boards established by the authorized representative of state-owned economic groups or corporations pursuant to Articles 17 and 18 of Decree No. 59/2015/ND-CP shall be independent accounting units or dependent accounting units using the legal personality of the parent company to manage and implement projects. These Boards may be reorganized and established according to the resolutions of the Board of Members or the Board of Directors and operate under a mechanism of self-financing or receive operational funding when they are dependent accounting units of the parent company.

3.   An investment construction management board for a single project established pursuant to Article 19 of Decree No. 59/2015/ND-CP shall be a subordinate public service organization of the investor, established, dissolved, and operated based on the decision of the investor in accordance with the conditions of the project and relevant laws.

4.    For projects funded from other sources, the investor shall decide on the organizational form of the project management board appropriate to the management requirements and specific conditions of the project.

Chapter II

REORGANIZATION OF OPERATIONS, ESTABLISHMENT OF SPECIALIZED AND REGIONAL INVESTMENT CONSTRUCTION MANAGEMENT BOARDS REGIONAL AREA

Article 5. Reorganization of Operations of Investment Construction Management Boards

The reorganization and restructuring of operations of investment construction management boards established by investors before the Construction Law came into effect shall be guided as follows:

1.   Reorganization of operations of investment construction management boards for single projects funded by state budget capital or state capital outside the budget:

a)   Investment construction management boards for single projects established by investors prior to the effective date of the Construction Law may continue their operations until the completion of the project and the commissioning of the works. Depending on the specific requirements and conditions of each ministry, locality, and enterprise, the investor may reorganize these boards to form specialized and regional Investment Construction Management Boards as prescribed by the Construction Law;

b)   Investment construction management boards for single projects established by investors after the effective date of the Construction Law (excluding those established in accordance with Clause 2, Article 62 of the Construction Law) must be reorganized and integrated into specialized and regional Investment Construction Management Boards established by the Minister, head of a ministry-level agency, Chairman of the People's Committee of a province or district, or the authorized representative of state-owned economic groups or corporations;

c)   For projects funded by state capital decided upon by member units of state-owned economic groups or corporations but lacking the conditions to establish an investment construction management board for a single project, the investor shall propose to the Board of Members or the Board of Directors of the state-owned economic group or corporation to entrust the management of the project to a specialized and regional Investment Construction Management Board of the group or corporation or to hire a consulting firm to manage the project in accordance with Clause 2, Article 20 of Decree No. 59/2015/ND-CP;

d)   For projects belonging to different target programs being constructed in the same administrative area of a province or district, the program managers need to coordinate with the provincial or district People's Committees to integrate the projects and entrust their management to specialized and regional Investment Construction Management Boards at the provincial or district level;

đ) For projects funded by ODA or preferential loans from foreign sponsors with commitments and agreements on the form of project management, the management of the project shall be carried out in accordance with the commitments and agreements with the sponsor;

e)    For projects implemented under the EPC general contracting model, the investor may agree to entrust the EPC general contractor to manage and implement the project in accordance with Article 22 of Decree No. 59/2015/ND-CP. The investor is responsible for organizing functional departments to monitor and inspect the project management activities of the EPC general contractor.

2.   Investment construction management boards for multiple projects established by investors and currently operating in some ministries, localities, state-owned economic groups, or corporations need to be reorganized to meet the requirements and conditions for specialized and regional Investment Construction Management Boards as prescribed by the Construction Law. The reorganization of operations of investment construction management boards for multiple projects funded by state budget capital or state capital outside the budget includes the following contents:

a)   Investors and project owners shall review the functions, tasks, and organizational structures of existing investment construction management boards and propose plans for reorganization and restructuring of these boards to report to the competent authority for consideration and decision on the reorganization of operations of the boards;

b)   Supplement和完善剩余的翻译内容，确保所有段落都符合官方法律文件的标准格式和要求。

c) Enhance material resources and supplement operational capacity to meet the requirements of the specialized and regional Construction Management Board's capability conditions as stipulated in Article 64 of Decree No. 59/2015/NĐ-CP.

3. Based on specific local conditions, the People's Committee of the province shall examine and improve the functions, tasks, and operational activities of the Management Board for urban development zones established pursuant to Decree No. 11/2013/NĐ-CP dated January 14, 2013 of the Government on Urban Development Investment Management to manage construction investment projects for civilian works and technical infrastructure facilities at the local level.

Article 6. Establishment of Specialized and Regional Project Management Boards

1. Ministries, ministerial-level agencies, provincial and district People's Committees, economic groups, and state-owned corporations have the responsibility to establish specialized and regional project management boards in accordance with Article 17 of Decree No. 59/2015/NĐ-CP to manage construction investment projects funded by the state budget and state capital outside the state budget that they decide to invest in.

Depending on the specific conditions of ministries, sectors, localities, and enterprises, the authorized person as stipulated in Clause 1, Article 63 of the Construction Law may choose one or several existing investment project management boards to reorganize their operations and establish specialized and regional project management boards in compliance with the guidance provided in Clause 2, Article 5 of this Circular.

2. Establishment of Specialized and Regional Project Management Boards of Ministries, Ministerial-Level Agencies, Provinces, and Districts

a) For Ministries and ministerial-level agencies:

- Ministries managing specialized construction works in accordance with Article 76 of Decree No. 59/2015/NĐ-CP shall establish specialized and regional project management boards to manage investment projects decided by themselves. In cases where there are affiliated enterprises with the function of managing projects, the decision-maker for establishing the project management board shall consider and convert the business model of the enterprise or supplement the functions of the specialized and regional project management board to take charge of managing projects within their jurisdiction based on specific conditions. Depending on the number and scale of projects under delegated management and specific organizational implementation conditions, the Minister of the specialized construction management ministry may authorize the Director-General to establish subordinate project management boards to manage projects delegated to the General Administration for investment decisions.

- Ministries, sectoral agencies, and ministerial-level agencies shall base their decisions to establish specialized and regional project management boards on the needs and scale of construction investment according to the medium-term public investment plan and annual plans to meet the requirements and organizational management conditions for implementing projects. In cases where it is not feasible to establish a project management board or the established project management board does not have the capacity to manage all projects within its jurisdiction, the investment decision-maker shall entrust the project management to a specialized and regional project management board located where the project is situated.

b) For provinces:

- The Chairman of the Provincial People's Committee decides to establish specialized and regional project management boards in accordance with Point b, Clause 1, Article 18 of Decree No. 59/2015/NĐ-CP, including: Project Management Board for Civil and Industrial Construction Investment, Project Management Board for Transportation Construction Investment, Project Management Board for Agricultural and Rural Development Construction Investment. For centrally-administered cities and provinces with planning for economic zones, industrial parks, export processing zones, high-tech zones, new urban areas, and natural conservation areas numbering two (02) or more, additional regional project management boards may be established to manage infrastructure development projects in these areas.

- The Provincial People's Committee directly manages or delegates management to relevant departments for the activities of specialized and regional project management boards established by itself.

c) For districts:

- The Chairman of the District People's Committee decides to establish a district-level regional project management board after obtaining approval from the Provincial People's Committee to manage projects decided upon by the district and commune levels and projects entrusted to the district as the investor, except those projects managed directly by the investor as stipulated in Clause 1, Article 21 of Decree No. 59/2015/NĐ-CP.

- The District People's Committee directly manages the activities of the district-level project management board.

3. Establishment of Specialized and Regional Project Management Boards of Economic Groups and State-Owned Corporations:

a) The authorized person of economic groups and state-owned corporations decides to establish specialized and regional project management boards to manage projects using state capital decided upon by the Board of Directors or the Board of Management for investment. If the economic group or state-owned corporation already has a subsidiary with the function and sufficient capacity to manage projects, it can establish a specialized and regional project management board based on restructuring and organizing the operations of this subsidiary.

b) The Board of Directors or the Board of Management of economic groups and state-owned corporations examines and approves the establishment of specialized and regional project management boards under subsidiaries when necessary to manage projects decided upon by the subsidiaries. Specialized and regional project management boards established by subsidiaries must meet the legal requirements for construction capacity and operate in accordance with the guidelines of this Circular.

c) For Group A projects of economic groups and state-owned corporations decided upon by ministries and sectors for investment, the management of such projects is entrusted to the specialized and regional project management boards of economic groups and state-owned corporations based on the approval of the investment decision-maker.

Chapter III

FUNCTIONS, TASKS, LIMITATIONS, AND OPERATIONAL ORGANIZATION OF SPECIALIZED AND REGIONAL PROJECT MANAGEMENT BOARDS

Article 7. Position and functions of specialized and regional Project Management Units (PMUs)

1. Position of specialized and regional PMUs:

a) Specialized and regional PMUs established by the Minister, head of an agency at the level of a ministry, Chairman of the Provincial People's Committee, or Chairman of the District People's Committee are public service organizations operating under the principle of self-financing for their operational costs as stipulated in Clause 4, Article 3 of this Circular;

b) Specialized and regional PMUs established by the authorized person of state-owned economic groups or corporations are independent accounting units or dependent accounting units of the Parent Company. The project management unit operates on the principle of financial autonomy or receives project management funding from the Parent Company to operate;

c) When operating, specialized and regional PMUs must register their operational capacity with the local construction management authority where their main office is located;

d) Specialized and regional PMUs coordinate and cooperate with relevant agencies and organizations according to the provisions of Article 17 of this Circular.

2. Functions of specialized and regional PMUs as specified in Clause 2, Article 63 of the Construction Law and Clause 3, Article 17 of Decree No. 59/2015/NĐ-CP are detailed as follows:

a) Serve as the investor for certain projects using budget funds or state capital outside the budget when assigned. Based on specific conditions of the ministry, locality, enterprise, the investment decision-maker considers and decides to assign the project management unit to perform the role of investor for each specific project;

b) Receive and manage the use of capital for investment construction in accordance with the law;

c) Perform the rights and obligations of the investor and project management unit as stipulated in Articles 68 and 69 of the Construction Law and related laws;

d) Carry out other functions when assigned by the authorized person to establish the project management unit and organize the implementation of project management tasks as stipulated in Article 8 of this Circular;

đ) Hand over completed construction works to the investor or the manager for use when construction ends or directly manage and exploit the completed works according to the requirements of the investment decision-maker;

e) Accept entrustment to manage projects from other investors when requested and have the necessary capacity to ensure the completion of assigned project management tasks.

Article 8. Tasks and powers of specialized and regional PMUs

Based on the provisions regarding the rights and obligations of the investor and project management unit for construction investment in Articles 68 and 69 of the Construction Law, the tasks and powers of specialized and regional PMUs are detailed as follows:

1. Implement the tasks and powers of the investor including:

a) Drafting project plans: draft and submit for approval annual implementation plans for projects, clearly defining the sources of resources to be used, progress schedules, deadlines for completion, quality objectives, and criteria for evaluating results;

b) Organizing preparatory work for construction investment: carry out procedures related to urban planning, land use, natural resources, technical infrastructure, and environmental protection, fire prevention, and control; organize the preparation of projects, submit them for review and approval according to regulations; receive and disburse investment capital and perform other preparatory project tasks;

c) Project implementation tasks: hire consultants to conduct surveys and design construction and submit for review and approval or organize the review and approval of construction designs and budgets (according to the hierarchy); lead coordination with relevant agencies and organizations to implement compensation, land clearance, and resettlement (if applicable) and recovery and transfer of land for project implementation; organize the selection of contractors and signing of construction contracts; supervise the implementation process; disburse and pay according to construction contracts and other necessary tasks;

d) Tasks to conclude construction and hand over works for operation and use: organize acceptance and handover of completed works; trial operation; settle accounts, terminate construction contracts, settle construction investment capital, and warranty the works;

đ) Financial management and disbursement tasks: receive and disburse capital according to the project implementation schedule and contracts signed with construction contractors; implement financial management systems and assets of the project management unit as prescribed;

e) Administrative coordination and accountability tasks: organize the office and manage personnel of the project management unit; implement salary systems, incentive policies, rewards, and disciplinary measures for staff within the management scope; establish internal information systems and archive information; provide accurate and timely information about the activities of the project management unit upon request of the investment decision-maker and competent state authorities;

g) Supervision, evaluation, and reporting tasks: implement investment supervision according to legal regulations; regularly evaluate and report project implementation results to the investment decision-maker and competent state management authorities;

2. Implement project management tasks including:

a) Organize the implementation of project management contents as stipulated in Articles 66 and 67 of the Construction Law;

b) Coordinate activities with organizations and individuals participating in the project to ensure requirements for progress, quality, cost, safety, and environmental protection;

c) Perform other project management tasks assigned or delegated by the investment decision-maker or investor.

3. Accept entrustment to manage projects according to contracts signed with other investors when requested, matching their operational capacity.

4. Supervise construction of works when having the required operational capacity as stipulated by law.

Article 9. Organization and operation of specialized project management boards and regional areas

1.    The person deciding to establish the project management board decides on the organizational structure and operations of the project management board, which includes several main departments such as: Board of directors, office, some functional departments according to their functions, and project management departments. During the course of operation, based on the scale, quantity, and specific conditions of the projects under management, the Director of the Project Management Board proposes organizational schemes for subordinate departments based on the division of responsibilities according to each function or mission, or the combination of assigned functions and missions, to be submitted to the person deciding to establish the Project Management Board for approval of the number and names of departments within the Project Management Board.

The organizational structure and working relationships between departments of the Project Management Board are specifically guided in Article 15 of this Circular.

2.   Personnel of specialized project management boards and regional areas

a)     Key positions in the Project Management Board include: Director, Deputy Directors, Chief Accountant of the Project Management Board, appointed and relieved from duty by the person deciding to establish the Project Management Board.

b)    The Director of the Project Management Board decides on the recruitment, appointment, and relief from duty of staff members of the Project Management Board according to the classification level, ensuring compliance with legal regulations on recruitment, management, and utilization of civil servants and employees in public service units and enterprises.

c)    Project Manager is a professional management position appointed and relieved from duty by the Director of the Project Management Board and arranged to work in project management departments.

d)    Individuals responsible for professional tasks of the Project Management Board must meet the qualification requirements stipulated by laws on construction; Project Managers must meet the qualification requirements set forth in Article 54 of Decree No. 59/2015/NĐ-CP of the Government. For projects using ODA funds or preferential loans from foreign sponsors, individuals holding key positions in the Project Management Board must also have appropriate language proficiency.

3.    The staffing and number of personnel of specialized project management boards and regional areas are determined based on the approved job position plan and the structure of civil servants according to professional titles.

4.    Specialized project management boards and regional areas operate under a self-management mechanism, independently bearing responsibility for implementing tasks, organizing the administrative apparatus, managing civil servants and employees, and financial management according to the operational regulations approved by the competent authority establishing the Project Management Board in accordance with the law.

5.    Specialized project management boards and regional areas may accept entrustment to manage projects in accordance with Article 12 of this Circular. In cases where multiple projects are managed simultaneously, they may hire organizations or individuals with sufficient qualifications to perform specific project management tasks.

Article 10. Operating expenses of specialized project management boards and regional areas

1. Sources of operating expenses for specialized project management boards and regional areas include:

a)    Project management costs included in the approved total investment cost of the project: project management costs are determined by preparing a budget or applying the project management cost standards prescribed by the Ministry of Construction. If the Project Management Board signs a project management entrustment contract with the investor, the level of project management costs to be used will depend on the assignment of project management tasks among the parties to the contract.

b)    Fees and charges extracted from the implementation of project management tasks such as tender organization, design review, construction budget estimation, and other lawful sources of income. The levels of fees and charges retained for the activities of the Project Management Board shall be implemented in accordance with the regulations of the Ministry of Finance.

c)    Funds from other lawful sources of income and other activities.

d)    Financial support for the implementation of the person deciding to establish the Project Management Board and the person deciding to invest. The level of financial support for the Project Management Board's activities is implemented for the cases specified in Clause 4, Article 3 of this Circular. Forms of financial support may include: advance payment of operating funds, support for working equipment, training, and other forms of support when necessary.

2.  When the investor entrusts the Project Management Board to manage the project, the entrusted project management costs shall not exceed the project management costs calculated according to the standards of the Ministry of Construction.

3.    When the progress of the project is delayed due to unforeseeable reasons or the fault of the construction contractor, the Director of the Project Management Board must submit a report explaining the situation and propose solutions to adjust and supplement project management costs for the investor to consider and decide.

Article 11. Procedures and formalities for establishing and dissolving specialized and regional Project Management Units

1.    Specialized and regional Project Management Units established by the Minister, head of a ministerial-level agency, Chairman of the People's Committee at provincial or district level shall be established and dissolved according to the procedures and formalities prescribed in Government Decree No. 55/2012/NĐ-CP dated June 28, 2012 on the establishment, restructuring, and dissolution of public service organizations.

2.   Specialized and regional Project Management Units of state economic groups and corporations shall be established and dissolved according to the resolutions of the Board of Members and the Board of Directors in accordance with the Charter of operation of the state economic group or corporation.

Article 12. Delegation of project management activities by specialized and regional Project Management Units

1.   Specialized and regional Project Management Units have the responsibility to accept delegation to manage projects for investors who do not meet the conditions to organize and implement projects as stipulated by law, in accordance with their operational capacity and specific conditions. The delegation of project management is carried out through a project management delegation contract signed between the parties. In cases where the investor and the decision-maker for the establishment of the specialized and regional Project Management Unit are the same person, the delegation of project management will be implemented according to the division of tasks by the investment decision-maker and the project management delegation contract.

2.   The procedures for implementing project management delegation are specifically guided as follows:

a)   The investor proposes requirements for project management delegation to the specialized and regional Project Management Unit responsible for implementing the project to reach a preliminary agreement on accepting the delegation of project management. The proposal must clearly describe the project and the requirements, scope of work in project management that need to be carried out;

b)   Based on the preliminary agreement with the specialized and regional Project Management Unit, the investor has the responsibility to report to the investment decision-maker for approval to assign the project management task to the specialized and regional Project Management Unit expected to accept the delegation of project management;

c)   The investor organizes negotiations and signing of the project management delegation contract in accordance with the provisions of the construction contract law.

3.  When implementing project management delegation, the investor has the responsibility to organize a specialized department under its direct supervision to monitor the implementation of the project management delegation contract and coordinate to carry out the tasks specified in Clause 2 of Article 17 of this Circular.

4.    Specialized and regional Project Management Units are permitted to provide project management delegation services to other investors when meeting the following conditions:

a)    Ensuring completion of the project management tasks assigned by the investment decision-maker according to the approved project implementation schedule;

b)   Having sufficient conditions for operational capacity as prescribed by construction laws;

c)  Being delegated project management by the investor according to the procedures stipulated in Clause 2 of this Article.

Chapter IV

DEVELOPMENT OF REGULATIONS ON THE OPERATIONS OF SPECIALIZED AND REGIONAL PROJECT MANAGEMENT UNITS

Article 13. Requirements for developing regulations on the operations of specialized and regional Project Management Units

Based on the provisions of the Construction Law, relevant laws, and guidance from this Circular, the Director of the Project Management Unit is responsible for organizing the drafting and submitting to the decision-maker for the establishment of the Project Management Unit for approval of the Regulations on the Operations of the Project Management Unit, ensuring compliance with the following requirements:

1.   Fully reflecting the functions, powers, and responsibilities as the project investor; the tasks and scope of project management activities in relation to related agencies and organizations and within the Project Management Unit itself.

2.   The organizational structure, machinery, and personnel of the Project Management Unit must be suitable for the number, scale, and nature of the projects entrusted to it. The activities of the Project Management Unit must clearly distinguish between the functions of the investor and the execution of project management tasks.

3.   Each position in the Project Management Unit must clearly define the duties, professional competence requirements, and scope of responsibilities and powers granted.

4.   Implementing financial autonomy and self-funding for regular activities of the Project Management Unit.

Article 14. Contents of the Operation Regulations of Specialized and Regional Project Management Boards

1. The Operation Regulations of Specialized and Regional Project Management Boards shall include the following main contents:

a) Legal basis for issuing the Operation Regulations of the Project Management Board;

b) Position and functions;

c) Tasks and authorities;

d) Organizational structure and staffing;

đ) Operating funds;

e) Working systems and incentives for officials and employees;

g) Financial management and asset management;

h) Control, evaluation systems, and responsibility for reporting and explaining;

i) Other necessary contents (if any).

2. The model of the Operation Regulations of Specialized and Regional Project Management Boards shall be referred to in Appendix I of this Circular.

Article 15. On the organizational structure of Specialized and Regional Project Management Boards

1. To perform the function of the principal investor and manage projects, depending on the number and scale of projects and the workload assigned, the Project Management Board may have an organizational structure including: Board of Directors, project office, some specialized departments to carry out the functions of the principal investor, and professional departments to manage the implementation of projects. Departments managing project operations can be organized according to the projects entrusted with management or according to the investment construction procedures such as: project preparation; land clearance; design and budget management; tendering and contract management; construction supervision; acceptance and handover of completed works.

2. The Director of the Project Management Board shall specify the functions, tasks, and authorities of subordinate departments and the working relationships between these departments based on ensuring the following requirements:

a) Regulations on responsibilities and procedures for departments managing project operations in reporting, explaining, submitting for review and approval, and handling situations related to the projects entrusted with management;

b) Clarifying the tasks and authorities of functional departments in advising the Director of the Project Management Board and coordinating work with departments managing project operations;

c) Self-organizing supervision of the Project Management Board's activities to avoid overlap between performing the functions of the principal investor and carrying out project management tasks.

Article 16. Financial and Asset Management of Specialized and Regional Project Management Boards

1. Financial Management of the Project Management Board

a) Implementing financial regulations for investment construction in managing and using investment capital for projects entrusted as the principal investor and for projects managed under delegation;

b) Implementing financial and accounting regulations for public service units with income or enterprises for the activities of the Project Management Board.

2. Asset Management of the Project Management Board

a) The Project Management Board is equipped with assets to serve project management activities in accordance with the law. Assets of the Project Management Board must be used for their intended purpose, economically, and effectively. It is strictly prohibited to lease, lend, give away, or use the assets of the Project Management Board for personal purposes;

b) The Project Management Board regularly reports to the person deciding to establish the Project Management Board and the person deciding on investment about assets handed over, donated, or left behind by contractors or suppliers for the Project Management Board to manage and use in accordance with the law;

c) Assets of the Project Management Board must be revalued after the completion of each project; unused assets must be disposed of in accordance with current regulations.

Article 17. Coordination of Work between the Project Management Board of the Specialized Sector/Area and Relevant Agencies and Organizations

Based on the scale, nature, and conditions of the assigned project, the decision-maker for establishing the Project Management Board shall define the coordination of work between the Project Management Board and relevant agencies and organizations. Specifically as follows:

1. For the decision-maker to establish the Project Management Board and the investment decision-maker:

a) Shall be directly directed, inspected, and supervised by the decision-maker to establish the Project Management Board and the investment decision-maker of the projects entrusted as the principal investor in performing their assigned functions and tasks or executing the powers and responsibilities delegated by the investment decision-maker;

b) Shall submit for approval the Operation Regulation of the Project Management Board (including in cases of adjustment or supplementation);

c) Shall submit for review and approval the contents within the responsibility of the principal investor according to the assigned tasks and as prescribed by law;

d) Shall report periodically or urgently on the implementation of the assigned managed projects; propose measures to coordinate in handling issues exceeding their authority;

e) Shall explain necessary contents upon request of the decision-maker to establish the Project Management Board and the investment decision-maker.

2. For the entrusted principal investor and the user management entity:

a) Shall perform rights and obligations towards the entrusted principal investor according to the signed contract and as prescribed by relevant laws; shall be subject to inspection and supervision by the principal investor during the execution of entrusted managed projects;

b) Shall receive, manage, and utilize construction investment capital and advance payments, settlements, and final accounts with contractors according to the authorization of the principal investor;

c) Shall carry out project management tasks of the principal investor according to authorization and as prescribed by relevant laws;

d) Shall coordinate with the user management entity when preparing and approving design tasks for construction works, organizing selection of construction contractors, and inspecting, accepting, and transferring completed works into operation and use (including warranty of works as prescribed);

đ) Shall transfer completed works to the principal investor or the user management entity according to construction laws; shall manage completed construction works in cases where the user management entity has not been determined or at the request of the investment decision-maker.

3. For construction contractors:

a) Shall organize the selection of contractors, negotiate, and sign contracts with selected contractors according to the provisions of law or under the authorization of the principal investor of the entrusted managed project;

b) Shall perform rights and obligations towards construction contractors according to the construction contract and as prescribed by relevant laws;

c) Shall accept and handle proposals and difficulties of contractors within their authority or refer them to competent authorities for resolution during the implementation process.

4. For state management agencies according to their level of authority:

a) Shall implement (or under delegation) procedures related to project preparation and issuance of construction permits according to the provisions of law;

b) Shall submit to specialized construction management agencies at the appropriate level for examination of projects, designs, and construction budgets according to construction laws;

c) Shall lead coordination with People's Committees at all levels in implementing compensation, land clearance, and resettlement;

d) Shall coordinate with local authorities in administrative management, ensuring community security and safety during project implementation and handover of works for use;

đ) Shall report and explain to competent state authorities about project management implementation (when requested), construction accidents, safety during construction, and propose measures to coordinate in handling issues exceeding their authority;

e) Shall be subject to inspection, audit, and supervision by competent state authorities according to the provisions of law.

Chapter V

IMPLEMENTATION

Article 18. Responsibilities of the Ministry of Construction

1. Organize to direct, guide and supervise the implementation of the reorganization and restructuring of activities, establishment of specialized and regional Project Management Units (PMUs) in accordance with the provisions of Decree No. 59/2015/NĐ-CP of ministries, localities, economic groups, and state-owned corporations.

2. Aggregate periodic reports from ministries, localities, economic groups, and state-owned corporations on the operation status of investment construction project management units under their jurisdiction.

3. Guide the timely resolution of issues related to the reorganization and establishment of investment construction project management units and their operations according to the requirements of the investment decision-makers and investors.

4. Organize training and capacity building for ministries, localities, and enterprises on investment construction project management when required.

5. Coordinate with relevant professional associations to guide the evaluation of the conditions and capabilities of project management units, examine and issue certificates of capability for organizations and individuals participating in investment construction project management activities.

Article 19. Responsibilities of the Decision-Maker for Establishing Specialized and Regional PMUs, Investment Decision-Makers, and Investors

1. The decision-maker for establishing a project management unit shall be responsible for:

a) Deciding on the establishment, merger, and dissolution of project management units in accordance with the law;

b) Deciding on the functions, tasks, organizational structure, and staffing of project management units;

c) Appointing and dismissing the director and key personnel of project management units;

d) Approving the operational regulations of project management units;

đ) Supervising and directing project management units to fulfill assigned tasks and implement reporting systems in investment and construction in accordance with current regulations;

e) Providing financial support and working tools for project management units when necessary;

g) Regularly and randomly supervising and inspecting the activities of project management units in accordance with this Circular;

h) Periodically compiling and reporting the operational status of project management units under their authority to the competent state management agency on construction in accordance with the division of responsibilities.

2. The investment decision-maker shall be responsible for:

a) Deciding on the form of project management to apply when making an investment decision;

b) Deciding on the plan and measures for reorganizing the activities of existing project management units within their authority in accordance with this Circular, suitable to specific conditions.