Decision No. 1834/2001/QĐ-BGTVT on the organization form, functions, tasks, powers, responsibilities of the Project Management Board and standards for the Project Director when implementing transportation construction projects.

Pursuant to …;

Regarding the Regulation on the organizational form, functions, tasks, authorities, responsibilities of the Project Management Board and the standards for the Project Director of enterprises when implementing transportation construction projects

___________________________

THE MINISTER OF TRANSPORTATION

Pursuant to Decree No. 22/CP dated March 22, 1994 of the Government on the tasks, authorities, responsibilities for state management and the organizational structure of the Ministry of Transport;

Pursuant to the Management and Investment Construction Regulations issued pursuant to Decree No. 52/1999/NĐ-CP dated July 8, 1999 and Decree No. 12/2000/NĐ-CP dated May 5, 2000 of the Government;

At the proposal of the Director of the Department of Inspection and Quality Control of Road Transport under the Ministry of Transport.

Pursuant to …;

Article 1: Now hereby promulgates with this Decision the "Regulation on the organizational form, functions, tasks, authorities, responsibilities of the Project Management Board and the standards for the Project Director of enterprises when implementing transportation construction projects."

Article 2: This Decision shall take effect fifteen days from the date of signature.

Article 3: The Heads of the Office of the Ministry, Heads of Departments under the Ministry, Directors of the Departments of Inspection and Quality Control of Road Transport, Directors of specialized management departments, General Directors of the Vietnam Railway Corporation, Directors of Provincial Departments of Transport (Construction and Transportation), General Directors, Directors of Project Management Boards, enterprises implementing construction projects, and heads of related units are responsible for enforcing this Decision.

REGULATIONS

ORGANIZATIONAL FORM, FUNCTIONS, TASKS, AUTHORITIES, RESPONSIBILITIES OF THE PROJECT MANAGEMENT BOARD AND STANDARDS FOR THE PROJECT DIRECTOR OF ENTERPRISES WHEN IMPLEMENTING TRANSPORTATION CONSTRUCTION PROJECTS
(Issued pursuant to Decision No. 1834/2001/QĐ-BGTVT dated June 12, 2001 of the Minister of Transport) 

Chapter I

GENERAL PROVISIONS

Article 1: Content of the regulation:

This regulation determines the functions, tasks, authorities, and responsibilities of the Project Management Board and the standards for the Project Director of enterprises (contractors) when participating in the implementation of projects in the transport industry.

Article 2: Scope of application:

This regulation applies to all Project Management Boards and Project Directors of transportation construction projects implemented with budget funds, credit funds (including BOT or BT projects approved by the State).

Article 3: Some conventions:

3.1. Contractor (enterprise) includes:

a. Joint Stock Companies established according to Decision 90/TTg and 91/TTg, other enterprises (at the level of Joint Stock Companies) - Hereinafter referred to as JSC.

b. Road Transport Construction Enterprises directly under Joint Stock Companies, Vietnam Railway Corporation, specialized management departments, or under Provincial Departments of Transport or Construction and Transportation, and other enterprises (at the level of Enterprises) - Hereinafter referred to as RTC.

3.2. Project Director for construction projects in the transport industry - Hereinafter referred to as PD.

3.3. Project Management Board of the contractor at the site established according to the construction contract package or transportation construction project - Hereinafter referred to as PMB.

Chapter II

ORGANIZATIONAL FORMS OF MANAGEMENT BY CONTRACTORS AT THE SITE

Article 4: There are two forms of organization for the Project Management Board of contractors at the site:

- When the contract package (or project) is awarded to an independent company or designated - Hereinafter referred to as Form 1.

- When the contract package (or project) is awarded to a Joint Stock Company level (or a consortium of RTCs, JSCs) or designated - Hereinafter referred to as Form 2.

4.1. Form 1:

In this form, the Project Management Board may be established or not established.

a. In case the Project Management Board is not established: The company directly manages all construction activities of the contract package (or project) and is directly responsible before the Project Owner and the law regarding schedule, quality, and cost according to the conditions of the Contract.

b. In case the Project Management Board is established: the model of the Project Management Board is organized according to Form 2 (at Point 4-2) of this regulation.

4.2. Form 2:

For contract packages awarded to a Joint Stock Company level (or a consortium of RTCs, JSCs), the Project Management Board can be organized in one of the following models:

a. Independent Project Management Board:

a.1. The Joint Stock Company or Consortium establishes the Project Management Board. The Project Director implements the task of managing construction activities on-site according to the direction of the General Director of the Joint Stock Company (if the Joint Stock Company wins the bid) or the Management Council of the Consortium (if the Consortium of RTCs, JSCs wins the bid).

a.2. The standards, authorities, and responsibilities of the Project Director are carried out according to Section V of this regulation.

b. Dependent Project Management Board:

b.1. In principle, it is organized to operate and has functions, tasks, and authorities like the Independent Project Management Board.

b.2. Main difference: The Dependent Project Management Board only has a subsidiary account (internal account), the main account being at the Joint Stock Company or each member unit of the Consortium. This internal site account is directly managed by the Project Director and must ensure sufficient funding for normal site operations to meet the project's schedule and quality requirements. All costs for site operations, procurement of major or special materials and equipment... must have plans prepared by the Project Director and approved by the General Director of the Joint Stock Company or the Management Council of the Consortium.

c. Depending on the specific characteristics of each project and site, contractors (or a consortium of contractors) may apply one of the above project management forms and have an agreement on the delegation of functions, tasks, and authorities between the Project Director and the parties involved in the project.

Chapter III

FUNCTIONS AND TASKS OF THE PROJECT MANAGEMENT BOARD

Article 5: Functions:

5.1. The On-site Project Management Board represents the successful bidder in executing a construction contract (or project) for traffic infrastructure.

5.2. The Director of the Project Management Board is the head of the On-site Project Management Board, responsible for managing the construction of a contract (or project) according to the signed Contract.

5.3. Depending on the organizational form of the contractor, the functions of the On-site Project Management Board shall be applied appropriately.

Article 6: Tasks.

6.1. Implement the provisions of the Contract for the package (or project) signed between the Investor and the Contractor.

6.2. Develop plans and direct all construction activities on the site.

6.3. Study design projects, approved technical guidelines, and compare them with the actual site to direct the preparation of quality control designs and propose solutions that fit the reality.

6.4. Summarize any additional quantities, establish missing unit prices, conduct supplementary surveys to serve the preparation of quality control designs to be submitted to Consultants and Investors before implementation.

6.5. Regularly inspect, urge units to adjust production organization on the site reasonably and resolve difficulties encountered by these units.

6.7. Periodically organize morning meetings at the site with construction units to grasp production situations and propose measures to accelerate construction progress.

6.8. Organize an internal quality inspection system to ensure construction quality according to the requirements of the Contract, promptly address incidents occurring on the construction site following the guidance of Supervising Consultants and Investors.

6.9. Effectively manage relationships with Investors, Supervising Consultants, local authorities to facilitate the smooth implementation of construction units under the Contract.

6.10. Regularly report to Consultants and Investors according to prescribed forms with the following contents:

a. Monthly plan execution status (work progress).

b. Human resources and equipment deployment on the site.

c. Construction quality.

d. Incidents, difficulties, and obstacles faced by the Contractor.

e. Payment and debt situation.

g. Propose appropriate solutions...

6.11. Carry out acceptance and handover procedures as stipulated in the Contract, prepare completion documents according to Decision No. 2578/QD-BGTVT of the Ministry of Transport.

6.12. Settle accounts with the Investor according to the provisions of the Contract and settle accounts internally among participating parties in the contract.

6.13. Monitor and handle defects during the warranty period of the project.

6.14. Other specific matters.

Chapter IV

ORGANIZATIONAL STRUCTURE OF THE PROJECT MANAGEMENT BOARD

Article 7: The command structure of the On-site Project Management Board includes: 01 General Manager responsible for overall management and several Deputy General Managers (appointed by the General Manager) assisting in various fields:

a. Technology, quality, and schedule.

b. Planning, scheduling, and finance.

Article 8: The On-site Project Management Board's functional departments include:

8.1. The Planning Department has the following responsibilities:

a. Establish, monitor, and adjust the progress schedules of participating units in the project.

b. Propose necessary measures to ensure progress (dispatching machinery, materials, increasing work fronts, hiring additional subcontractors...).

c. Allocate tasks to member units, prepare contracts with member units, and monitor the implementation of these contracts after signing.

d. Prepare cost estimates and manage expenditures of the On-site Project Management Board.

e. Conduct economic accounting for project implementation, balancing funds received from the project and payments made to joint venture contractors and member units.

g. Prepare other subcontract agreements when necessary and issue supplementary and change orders when there are changes in executed quantities.

h. Monitor executed quantities, prepare monthly payment documents for contractors.

i. Work with related agencies: Investors, Insurance...

k. Prepare project implementation reports for Consultants and Investors.

8.2. The Technical Department has the following responsibilities:

a. Organize an internal unified quality assurance system covering materials, technology, equipment, personnel, etc., throughout the site.

b. Establish and manage the site laboratory system.

c. Inspect and confirm the quantity and quality of completed works by each member unit to work with Supervising Consultants, issue certificates confirming completed work at each stage.

d. Prepare quality control designs to be reviewed by Consultants and provided to member units for implementation.

e. Research optimal construction methods to improve quality, progress, and reduce project costs.

g. Handle technical issues during construction.

h. Prepare completion documents for the project.

8.3. The Finance Department has the following responsibilities:

a. Track revenues and expenses and record costs of the contract (or project).

b. Manage assets and expenditures of the On-site Project Management Board office.

c. Settle accounts for contract costs with immediate superiors, Investors, and subcontractors.

8.4. The Office has the following responsibilities: Administrative, human resource, and management support for the On-site Project Management Board and the Consultant's Office.

Article 9: Responsibilities of the Direct Superior towards the Project Management Board.

The direct superior of the Project Management Board shall be responsible for:

9.1. Resolving initial financial matters for preparatory work proposed by the Project Management Board.

9.2. Being responsible for resolving financial issues in cases where the tender price of the package is low to allow the Project Management Board to maintain normal production on-site.

9.3. Promptly providing opinions on proposals made by the Project Director.

9.4. Guiding and directing accounting procedures according to current regulations.

Chapter V

STANDARDS, RIGHTS, AND RESPONSIBILITIES OF THE PROJECT DIRECTOR

Article 10: Standards for the Project Director:

10.1. The Project Director must have a bachelor's degree or higher in relevant technical fields, with at least ten years of work experience and at least one project management experience on-site.

10.2. Proficient in state (or industry) laws and regulations concerning basic construction investment management currently in effect.

10.3. Knowledgeable about technical standards and procedures in the construction field, familiar with construction processes from commencement to completion, understanding major construction works and required construction technology solutions, capable of organizing construction reasonably in accordance with project requirements, and particularly must understand and clearly grasp the conditions of the signed contract.

10.4. Possessing a minimum level of English proficiency suitable for executing ODA projects.

10.5. Having good health (age not exceeding fifty-five for males and fifty for females), possessing good moral character, being honest, objective, and dedicated to work.

10.6. Those serving as Project Directors must complete training organized and certified by the Ministry of Transport (this requirement must be implemented starting January 1, 2002). Additionally, the Project Director must be interviewed and approved by a panel organized by the head of the Project Owner.

Article 11: Rights of the Project Director:

11.1. As the highest executive authority directly overseeing units on-site within the scope of the tender package (or project) they manage, aiming to effectively implement the provisions of the contract signed with the Project Owner.

11.2. Authority to sign economic contracts for purchasing materials, equipment, labor, etc., and subcontracts with other units upon approval by the direct superior. For subcontracts with subcontractors not under the winning bidder’s company (or consortium), approval from the Project Owner is required.

11.3. Right to propose the establishment of the Project Management Board's personnel structure and changes in personnel during operations. Right to propose organizational schemes (or operational regulations) for the Project Management Board.

11.4. Authority to reward, penalize, suspend, or refuse activities of units or individuals who violate regulations, procedures, technical construction standards, and labor safety rules, or who negatively impact the contractor's reputation and fail to meet contract requirements.

11.5. Authority to inspect overall progress and quality of construction on-site to adjust tasks among units based on this inspection, coordinate work, mobilize key equipment and materials within the site to match unit capabilities, ensuring overall progress on the principle of mutual support for the common benefit of the project.

11.6. Authority to establish a dedicated account for expenditures based on approval by the direct superior and having a separate seal (if the Project Management Board operates independently) or maximum financial authority (if the Project Management Board operates dependently) to ensure normal operations throughout the construction supervision process until acceptance and handover for use.

Article 12: Responsibilities of the University Director:

12.1. Shall be responsible to their direct superior for the delegated terms stipulated in the plan or operational regulations, which have been approved by the direct superior.

12.2. Shall be responsible to the Investor and under the law for the contents of the project (or package) as reflected in the Contract and other regulatory documents.

Chapter VI

IMPLEMENTING PROVISIONS

Article 13. Awards.

13.1. Directors of the University and the University Board who perform excellently the tasks set out in Chapter III and V of this Regulation shall all be considered for awards by the Ministry of Transport.

13.2. The level of award shall be implemented according to the general system prescribed by the State and shall be specifically decided by the Minister of Transport for each case and for each project.

Article 14:

14.1. The provisions regarding the standards for the University Director recorded in Article 10 of Chapter V of this Regulation shall be uniformly applied to construction projects within the transportation sector.

14.2. The provisions recorded in the remaining chapters, articles, and sections shall be appropriately applied by enterprises (contractors) in accordance with the specific conditions of the signed construction contract and shall not contravene the Enterprise Law.

Article 15: During the implementation of this Regulation, if any difficulties arise, relevant agencies and units shall promptly report to the Ministry of Transport in writing (through the Bureau of Inspection and Quality Control of Road Transport) for research, amendment, and supplementation to ensure compliance.