Decision No. 37/2007/QD-BYT Issuing the Project Management Procedure for Health Care Construction Projects Funded by State Budget

DECISION OF THE MINISTER OF HEALTH

Issuing the Project Management Procedures for Health Care 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 the Construction Law, Decree No. 16/2005/NĐ-CP dated February 7, 2005 of the Government and Decree No. 112/2006/NĐ-CP dated September 29, 2006 on project management for construction investment projects;
Pursuant to the Bidding Law No. 61/2005/QH11 dated November 29, 2005 of the National Assembly, Session XI, and Decree No. 111/2006/NĐ-CP dated September 29, 2006 of the Government guiding the implementation of the Bidding Law and contractor selection under the Construction Law;

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

Pursuant to Decree No. 99/2007/NĐ-CP dated June 13, 2007 of the Government on construction investment cost management;

Based on the proposals of the Heads of the Departments: Medical Equipment - Health Care Construction, Planning - Finance, Legal Affairs, and the Office of the Ministry of Health,

DECISION:

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

Article 2. This Decision shall take effect fifteen days from the date of publication in the Official Gazette and shall replace Decision No. 14/2006/QĐ-BYT dated March 24, 2006 of the Minister of Health on the issuance of "Project Management Procedures for Health Care Construction Projects Funded by State Budget."

Article 3. The Heads of the Office, Department Heads, Inspectors of the Ministry of Health; the Project Investors of health care construction projects funded by state budget and other related agencies and individuals are responsible for implementing this Decision.

PROCEDURE

MANAGEMENT OF INVESTMENT PROJECTS FOR HEALTH CARE CONSTRUCTION FUNDED BY STATE BUDGET

(issued pursuant to Decision No. 37/2007/QĐ-BYT dated October 25, 2007)

of the Minister of Health)

The Project Management Procedures for Health Care Construction Projects Funded by State Budget are established to guide the direct investors under the Ministry of Health and the direct investors under various Ministries, sectors, and localities with health care construction projects to comply with national regulations on investment and construction management. These procedures guide from planning the construction project, preparing for investment, preparing to implement the project, implementing the project, handing over and putting the project into use, to warranty and maintenance of the construction project.

The "state budget" referred to above includes: Development capital, operational funds with investment characteristics, foreign loans allocated to the health sector, and basic depreciation funds of production and business units.

I. CONDITIONS FOR PROJECT INITIATION

1. Industry planning:

To have a basis for drafting and submitting annual and long-term investment construction plans, each specialty, field, and locality must have a Health System Development Plan until 2020 approved by the competent state authority.

2. Overall development planning until 2020:

The head of the unit is responsible for developing the overall development plan until 2020 for their unit and local health system based on the orientation in the industry and local development plan, and the National Strategy for Health Care and Protection approved by the Prime Minister. The development plan is expressed through the orientation of specialized fields and key activities of the unit and locality. The overall development plan is a condition for initiating, reviewing, and approving investment projects of each unit and locality.

II. INVESTMENT PREPARATION WORK

1. Requesting permission to prepare for investment:

The head of the unit submits the file requesting the decision on investment preparation based on the approved overall development plan and the report evaluating the current infrastructure and technical equipment status of the unit.

2. Investor:

For projects using state budget funds, the construction project investor is determined by the investment decision-maker before the project initiation, in accordance with the State Budget Law.

For projects decided on investment by the Prime Minister, the investor is one of the following entities: Ministry, agency equivalent to a ministry, government agency, other central agencies (collectively referred to as ministry-level agencies), provincial People's Committees, municipal People's Committees directly under the Central Government (collectively referred to as provincial-level People's Committees), and state-owned enterprises.

For projects decided on investment by the Minister, head of a ministry-level agency, or Chairman of People's Committees at all levels, the investor is the unit managing and using the construction project.

For projects decided on investment by the Ministry of Health, the investor is the head of the units receiving investment.

For projects using credit funds, the borrower is the investor.

For projects using other funds, the investor is the owner of the capital or the person representing according to the law.

For projects using mixed funds, the investor is appointed by the contributing members or the person with the highest contribution ratio.

3. Initiating investment projects:

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

3.1.1. The investor is permitted to designate a consulting agency 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-making. For projects with Class I and special construction works, as stipulated in Decree No. 209/2004/NĐ-CP dated December 16, 2004 of the Government on construction quality management, the investor must organize an architectural design competition before initiating the project. After obtaining the results of the architectural design competition, the selection of the consulting agency is carried out in accordance with Decision No. 49/2007/QĐ-TTg dated April 11, 2007 of the Prime Minister on special cases allowed to designate tenderers as specified in point d, Clause 1, Article 101 of the Construction Law.

3.1.2. For projects using consultancy costs from foreign sources, the investor must comply with specific provisions of the funding organization.

3.1.3. The contents of the Investment Report and Investment Project must comply with Articles 4 and 5 of Decree No. 16/2005/NĐ-CP and Clause 2 of Article 1 of Decree No. 112/2006/NĐ-CP, and the contents of the Economic and Technical Report must comply with Article 12 of Decree No. 16/2005/NĐ-CP and Clause 7 of Article 1 of Decree No. 112/2006/NĐ-CP.

3.1.4. The scale of investment must be consistent with the Master Plan for the Development of the National Health System to 2010 and Vision to 2020 approved by the Prime Minister under Decision No. 153/2006/QD-TTg dated June 30, 2006, and the Master Plan for the Development approved by the competent authority.

3.1.5. The contents of the Basic Design must comply with Article 7 of Decree No. 16/2005/NĐ-CP, Article 1 of Decree No. 112/2006/NĐ-CP, and must be consistent with the design standards and model designs for health facilities issued by the Minister of Health, and must be reviewed by specialized units under the Ministry of Health before submission for approval.

3.1.6. The agency responsible for reviewing the project must send the project dossier to seek the review opinion on the basic design from the competent authority. The basic design must be reviewed by the Ministry of Construction (for Group A projects) and the local Construction Department (for Groups B and C) before being submitted to the Ministry of Health for project approval.

3.1.7. When investing in the construction of the following projects, the investor does not need to prepare an investment project but only needs to prepare an economic and technical report on construction to submit for approval by the investment decision-maker:

- Construction works for religious purposes;

- New construction, renovation, repair, and upgrade works with a total investment amount below 7 billion VND, consistent with the socio-economic development plan, industry development plan, and construction planning, except in cases where the investment decision-maker deems it necessary and requires the preparation of an investment project.

- The investor is responsible for organizing the review of the construction drawing design so that the investment decision-maker can approve the economic and technical report.

3.1.8. The investor must propose the project management form within the content of the investment project for the Ministry of Health to consider and decide.

3.2. For construction projects of healthcare facilities decided upon by the Chairman of the Provincial People's Committee for investment:

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

3.2.2. The basic design must comply with the design standards and model designs for healthcare facilities issued by the Ministry of Health, and for Group A projects, it must be agreed upon in writing by the Ministry of Health.

3.2.3. The agency responsible for reviewing the project must send the project dossier to seek the review opinion on the basic design from the competent authority. The basic design must be reviewed by the Ministry of Construction (for Group A projects) and the local Construction Department (for Groups B and C) before approving the project.

3.2.4. The investor must propose the project management form within the content of the investment project for the Provincial People's Committee (the investment decision-making body) to consider and decide.

3.3. Regarding the hiring of foreign consultants:

The hiring of foreign consultants shall be carried out according to Clause 4 of Article 36 of Decree No. 16/2005/NĐ-CP and Decision No. 131/2007/QD-TTg dated August 9, 2007 of the Prime Minister regarding the regulations on hiring foreign consultants in construction activities in Vietnam.

The Project Management Board may enter into contracts with individual or organizational foreign consultants with experience and capacity to cooperate with the Project Management Board to manage construction projects applying new construction technologies 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 dossier for hiring foreign consultants including the following contents:

- The necessity to hire foreign consultants;

- The objectives of hiring foreign consultants;

- The volume of work to be contracted to foreign consultants;

- The method of selecting foreign consulting organizations;

- The proposed foreign consulting organization to be hired (if any), along with their capacity documentation;

- The value and total value of the work to be contracted to foreign consultants;

- The source of funds to pay foreign consulting organizations;

- The plan for implementing the hiring of foreign consultants.

4. Reviewing, examining, and approving investment projects:

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

The project dossier for construction investment includes: (a) the project examination report according to the template at Appendix No. 1 of Circular No. 02/2007/TT-BXD dated February 14, 2007, of the Ministry of Construction; (b) the project including the explanatory part and the basic design (as stipulated in Article 6 and Article 7 of Decree No. 16/2005/NĐ-CP, Clause 3 of Article 1 of Decree No. 112/2006/NĐ-CP), and the examination documents of the competent authorities; (c) permission documents for investment for national key projects; approval documents for supplementary planning for Group A projects not included in the industry planning.

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

4.1.1. Examination: The investor sends ten copies of the project dossier, which has been approved by the investor’s basic council, to the Ministry of Health for examination at the departmental level according to each specialized field: (1) construction investment; (2) equipment catalog, configuration, and budget (if applicable).

4.1.2. Examination of the Investment Project: After the project has been completed and approved through departmental-level examination, the competent authority for construction investment management of the Ministry of Health will submit it to the Advisory Council on Investment Project Management of the Ministry of Health for examination.

4.1.3. The content of the examination and evaluation of construction investment projects is carried out according to Article 10 of Decree No. 16/2005/NĐ-CP and Clause 6 of Article 1 of Decree No. 112/2006/NĐ-CP.

4.1.4. Approval of the investment project: The Minister of Health will examine and approve the investment projects when the submitted dossier has completed the above examination and evaluation steps.

4.1.5. Delegation in construction, renovation, upgrading, and expansion of infrastructure:

For small-scale repair and construction works with a total investment amount below 1 billion VND, consistent with the approved overall site plan, using annual budgetary funds for renovation and expansion; the investor reviews and approves the technical construction design - budget and the decision to select contractors after the bidding plan has been approved by the Ministry of Health.

4.2. For construction projects of healthcare facilities decided upon by the Chairman of the Provincial People's Committee for investment:

Projects for constructing healthcare facilities belonging to Group A must be sent to the Ministry of Health for review regarding their compliance with the development plan for the healthcare system, hospital regulations, technical tiering, and production lines before submitting them to competent state authorities for approval.

5. Adjusting investment construction projects:

5.1. An investment construction project that has been decided upon can only be adjusted under one of the following circumstances:

5.1.1. Being affected by natural disasters such as earthquakes, typhoons, floods, storms, tidal waves, enemy attacks, or other force majeure events;

5.1.2. The appearance of factors that bring higher efficiency to the project;

5.1.3. When the development planning or construction planning changes directly affecting the location, scale, nature, or objectives of the project.

5.2. Authority to adjust projects and total investment amount:

Before adjusting a project or the total investment amount, the investor must report to the investment decision-maker for permission prior to making the adjustment.

If adjusting a project does not change its scale, investment objectives, and does not exceed the approved total investment amount, the investor may make the adjustment independently. In cases where the adjustment changes the initial design basis concerning architecture, planning, scale, or investment objectives, or exceeds the approved total investment amount, the investor must submit the adjustment to the investment decision-maker for examination and decision. Any changes must be resubmitted to the competent authority for re-examination. The contents of the project adjustment dossier include three parts:

- Evaluation of the implementation status of the project and achieved results, investment effectiveness.

- The necessity to adjust the project.

- The contents of the adjustment.

III. INVESTMENT PLANNING FOR CONSTRUCTION PROJECTS

1. Investment Development Orientation:

Based on the industry's planning and development strategy, investment development work must be carried out 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-makers for other projects.

2. Preparing the Investment Construction Plan:

Annually, before July 30th, the investor must report on the implementation of the first six months, forecast the full-year implementation plan, and at the same time, based on the project progress stipulated in the Investment Decision, register the "Investment Construction Plan" for the following year.

3. Conditions for Registering Annual Investment and Construction Plans:

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

3.1. New Start Projects:

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

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

3.2. Ongoing Projects:

For Group A projects that have exceeded 30% of the total investment: There must be a Decision approving the Technical Design - Total Budget before December 31st of the previous year.

For Group B projects, they must be within the four-year (48-month) implementation period from the start date.

For Group C projects, they must be within the two-year (24-month) implementation period from the start date.

IV. PREPARATION WORK FOR IMPLEMENTING PROJECTS

1. Project Management Organization:

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

1.1.1. The Ministry of Health decides on the form of project management in accordance with Clause 2 of Article 45 of the Construction Law.

1.1.2. In cases where the investor directly manages the project, the investor establishes a Project Management Board to manage the project. The Project Management Board must have the organizational capacity to perform project management tasks as prescribed in Circular No. 02/2007/TT-BXD dated February 14, 2007, issued by the Ministry of Construction. The Project Management Board may hire consulting organizations to manage and supervise certain tasks that it lacks the conditions and capacity to handle, but this must be agreed upon by the investor.

For small-scale construction and repair projects with a total investment under one billion dong, the investor may not establish a Project Management Board and instead use their own specialized machinery to manage and direct the project or hire professionals with experience to assist in managing the project.

1.1.3 In cases where the investor hires a consulting organization to manage and direct the project, the consulting organization must have the necessary conditions and capacity to manage the project appropriately to its scale and nature. The responsibilities and rights of the project management consultant are implemented according to the agreement between both parties. The project management consultant may hire organizations or individuals to participate in management, but this must be approved by the investor and consistent with the contract signed with the investor. When applying the method of hiring a project management consultant, the investor still needs to use specialized units within their own machinery or designate personnel to inspect and monitor the execution of the contract by the project management consultant.

1.1.4. The duties and powers of the investor and the Project Management Board when the investor establishes a Project Management Board are implemented according to Articles 36 and 37 of Decree No. 16/2005/ND-CP, Clause 2 of Article 1 of Decree No. 112/2006/ND-CP.

1.1.5. In cases where a project management consultant is hired, the investor must have a support department to oversee the work of the project management consulting organization to promptly resolve issues arising during the project implementation process.

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

The Department of Health is responsible for managing healthcare facilities in the locality as follows:

1.2.1. Serving as the Investor for projects under government programs, projects, and plans assigned to the Ministry of Health as the main agency or permanent body;

1.2.2. Serving as the Investor or participating in the assessment and supervision of other healthcare facility construction projects in the locality as stipulated by the investment decision-making level.

2. Selecting Consultants to Prepare Technical Designs - Total Budget:

For projects required to organize architectural design competitions in accordance with Article 26 of Decree No. 16/2005/NĐ-CP, after obtaining the results of the architectural design competition, the Project Investor and the author of the selected architectural design scheme shall directly negotiate and sign a contract to implement the project preparation and construction design when the author of the selected architectural design scheme meets the prescribed capacity conditions; if the author of the architectural design scheme does not meet the capacity conditions, they may form a consortium with a consulting organization that meets the capacity conditions to sign a contract with the investor. If the author of the selected architectural design scheme refuses to carry out the project preparation and construction design, the investor shall organize the selection of another contractor in accordance with the provisions of the law.

For projects not required to hold architectural design competitions, the Project Investor bases on the Decision approving the investment project of the competent authority and organizes bidding to select an Investment Construction Consulting Organization with legal personality and sufficient professional capacity to prepare Technical Design - General Estimate in accordance with current regulations.

3. Preparation, review, and approval of Technical Design - General Estimate:

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

3.2. The Technical Design - General Estimate must be reviewed by an organization with legal personality and professional capacity. The Project Investor shall self-review the Technical Design - General Estimate; if the Project Investor lacks the capacity for review, it is permitted to hire organizations or individuals with the necessary capacity to conduct the review. Depending on the requirements of the Project Investor, the review of the Technical Design - General Estimate can be carried out for the entire or part of the contents of the Technical Design - General Estimate documentation. The Technical Design - General Estimate is a basic document for allocating development investment for the project.

3.3. The construction drawings of each project component must be reviewed and approved before preparing the bidding plan for constructing that component.

3.4. The Ministry of Health assigns the Project Investors of projects decided to invest by the Minister of Health to approve the Technical Design - General Estimate, Construction Drawings - Detailed Estimate of works belonging to projects decided to invest by the Ministry of Health.

3.5. The Project Investor is allowed to adjust the capital structure (construction and installation, equipment, project management costs, other costs, contingency costs) within the General Estimate but must not exceed the total investment amount of the project. Before implementing the adjustment of the capital structure within the General Estimate, the Project Investor must report to the investment decision-maker for permission in writing.

4. Management of unit prices and estimates:

The preparation of construction estimates is carried out in accordance with Article 9 of Decree No. 99/2007/NĐ-CP dated June 13, 2007, of the Government.

The review, approval, and adjustment of construction estimates are carried out according to the guidelines set forth in Articles 10 and 11 of Decree No. 99/2007/NĐ-CP dated June 13, 2007, of the Government.

The establishment of unit prices and the management of construction prices are carried out in accordance with Articles 15 and 16 of Decree No. 99/2007/NĐ-CP dated June 13, 2007, of the Government, with specific provisions as follows:

4.1. Establishment of construction unit prices

4.1.1. Construction unit prices are established based on economic-technical norms and the following cost factors:

- The price of building materials is determined in accordance with standards, types, and quality of materials used for specific construction projects. The price of building materials is determined based on market prices provided by organizations with the function of supply, quotations from manufacturers, information on prices from suppliers, or prices already applied to similar standard and quality projects. The price of materials delivered to the construction site is calculated according to the method of establishing construction unit prices.

- The price of construction labor is determined based on the prevailing labor market rates in each region, province, and industry. The price of construction labor is calculated based on the minimum wage level announced by authorized state agencies; the investor's financial capacity and payment ability, and other requirements.

- The price of machinery and construction equipment is determined according to the method guided by the Ministry of Construction.

4.1.2. For construction projects using ODA funds that require the use of foreign labor, imported materials, imported construction equipment, and other special requirements, construction unit prices are established by supplementing costs based on actual conditions and special characteristics of the project.

4.2. Management of construction prices.

4.2.1. The Project Investor bases on the method of establishing construction unit prices, technical requirements, and specific construction methods of the project to organize the establishment of construction unit prices and comprehensive construction prices as the basis for determining the total investment amount and construction estimates to manage construction investment costs.

4.2.2. The Project Investor constructing the project may hire organizations or individuals with the necessary capacity and experience to perform tasks or parts of tasks related to the establishment of construction prices. Organizations or individuals providing consultancy must bear responsibility before the Project Investor and the law for ensuring the rationality and accuracy of the construction prices they establish.

5. Use of "Design Standards - Design Models" for healthcare facilities:

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

During the use of Design Standards, if any issues arise, the above organizations need to reflect them to the Ministry of Health for timely research and adjustment.

6. Construction Permit for Projects:

6.1. Prior to commencing construction of the project, the investor must have a construction permit for the project in accordance with Article 17 of Decree No. 16/2005/NĐ-CP, Clause 9 of Article 1 of Decree No. 112/2006/NĐ-CP, and the guidelines on issuing construction permits as stipulated in Part II of Circular No. 02/2007/TT-BXD dated February 14, 2007, issued by the Ministry of Construction.

6.2. The conditions for issuing construction permits for projects within urban areas shall be implemented in accordance with Article 65 of the Construction Law. The rights and obligations of the applicant for construction permits shall be carried out in accordance with Article 68 of the Construction Law and shall be specifically guided by the Department of Construction at the local level.

7. Liquidation of state assets to create a construction site:

During the preparation of the investment project, the investor must conduct quality inspections of the components of the works within the scope of land clearance, perform the liquidation of state assets to serve land clearance and compensation. The liquidation of state assets must be carried out in accordance with the provisions of the law. Components of the works that need to be demolished for land clearance must be specified in detail in the investment decision.

V. MANAGEMENT OF PROJECT IMPLEMENTATION

1. Procurement activities:

1.1. The investor must prepare a tender plan, tender documents, organize tenders, open tenders, evaluate tenders, and submit them for approval by the competent authority.

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

1.3. The selection of contractors for construction shall be carried out in accordance with Decree No. 111/2006/NĐ-CP dated September 29, 2006, guiding the implementation of the Bidding Law and the selection of construction contractors under the Construction Law.

2. Tendering deadlines within the year:

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

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

2.3. The tender plan with additional funding must be approved and implemented within thirty days from the date the investor receives the additional funding notification.

3. Contract signing and execution:

The investor bases the results of the tender to: (1) sign contracts according to the contract templates issued in the tender documents and the provisions in the tender award decision or the tender result approval decision; (2) commence construction; (3) supervise contract execution, trial operation of equipment, and organize acceptance for commissioning.

Contracts in construction activities shall be implemented in accordance with Articles 19, 20, 21, 22, and 23 of Decree No. 99/2007/NĐ-CP dated June 13, 2007, on managing construction project costs.

The investor organizes groundbreaking ceremonies, commencement ceremonies, and completion ceremonies for construction projects in accordance with Decision No. 226/2006/QĐ-TTg dated October 10, 2006, of the Prime Minister.

4. Construction supervision:

The project management board established and organized by the investor and the consulting firm hired by the investor to manage the project (if any) must have an office and must be present at the construction site regularly to supervise construction. Technical supervisors, consulting firms, contractors, and investors must bear full responsibility under the law for the quality of construction works and any errors during the construction process.

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

5. Handling of matters arising during construction:

Any changes or modifications to the design (if any) during the implementation of the project must be documented in a "memorandum" agreed upon between the contractor, the design consultant, and the investor. Additional quantities due to design modifications exceeding the total budget estimate can only be settled after approval by the Ministry of Health (or the investment decision-making body). Design changes due to insufficient field surveys must be supplemented and modified by the design consultant without payment for the design fees.

6. Certification of compliance with construction work quality:

All medical facilities must have certification of compliance with quality standards before being put into use.

Prior to commencing construction, the investor must enter into a contract with a consulting agency having legal personality and sufficient capacity to issue certification of compliance with construction work quality.

The inspection and certification of compliance with construction work quality are regulated in Article 28 of Decree No. 209/2004/NĐ-CP dated December 16, 2004, on construction quality management.

6.1. The content of inspection and certification of compliance may include one, several, or all of the following:

- Structural safety of the works;

- Safe use, exploitation, and operation of the works;

- Fire prevention and firefighting safety;

- Environmental safety.

6.2. Selection of organizations for quality certification.

The investor selects and enters into a contract with a quality certification organization with the required capacity as stipulated in Circular No. 11/2005/TT-BXD dated July 14, 2005, issued by the Ministry of Construction, suitable for the type and level of the works to carry out inspection and certification of quality. For specialized contents such as fire prevention and firefighting safety, labor safety, and environmental impact assessment, the selected certification organizations must comply with current laws.

Organizations conducting quality certification must ensure the principle of independent operation, free from economic interests, and have no organizational or other binding relationships with the investor, the design contractor, the construction contractor, the supplier of materials and equipment, the project management consultant, and the construction supervision consultant of the certified works.

7. Disbursement procedures:

During the implementation of investment, the Investor must disburse funds at various stages including interim payments, payment for completed construction work volume, and other costs as stipulated in the signed contract, in accordance with current state regulations. The Investor shall not make payments for fictitious volumes of work and shall not leave any outstanding debts while there are still allocated funds available.

Interim payments and capital disbursement for construction projects shall be carried out in accordance with Articles 41 and 42 of Decree No. 16/2005/ND-CP and Article 24 of Decree No. 99/2007/ND-CP issued by the Government.

8. Completion Documents:

All completed construction works and sub-projects must have completion documents before undergoing final technical acceptance. These documents are prepared by the contractor based on updated design drawings reflecting all modifications made during construction recorded in the project diary. Drawings in the completion documents must be clear and accompanied by detailed descriptions of changes from the original design to ensure accurate settlement of construction work volume. Completion documents should be fully handed over to the asset management department of the entity for monitoring events during usage and facilitating future maintenance and repairs.

9. Acceptance and Final Acceptance:

During construction supervision, the Investor together with contractors, technical supervisors, or consulting firms must prepare complete acceptance records and quality certificates for materials and structures in compliance with current regulations. Before demolishing old buildings within the land clearance area and upon acceptance of hidden works, the Investor must record the existing conditions through photographs. After completing each sub-project, a final technical acceptance must be organized to review all documentation, certificates, and design modifications made during construction, and to verify the accuracy of the completion documents. When organizing final acceptance, all necessary parties must be invited, and a "final acceptance record" must be prepared in accordance with the current construction quality management regulations of the Ministry of Construction.

10. Handover of Completed Works for Operation:

Completed works and sub-projects that are permitted for use as recorded in the final acceptance record will be handed over to the operational management department. At the time of handover, completion documents with full operation instructions and technology transfer documentation (if applicable) and certificates confirming the quality of the construction works must be provided.

11. Capital Settlement and Reporting System (for projects decided by the Minister of Health):

11.1. Accounting Work Organization:

The Investor is responsible for organizing accounting work and recording budget development capital expenditures according to the accounting system applicable to investors as stipulated in Decision No. 214/2000/QĐ-BTC dated December 28, 2000, issued by the Ministry of Finance.

11.2. Annual Budget Capital Settlement:

- Prepare the capital settlement report (quarterly financial statement). Upon the end of the accounting period (month, quarter, year), the Investor must close the books, prepare the quarterly financial statement, and submit it to higher-level authorities, payment agencies, lending institutions, and funding sources no later than 20 days after the end of the quarter.

- Annually, by July 10, the investor is responsible for preparing and submitting a mid-year capital settlement report to the Ministry of Health.

- Prepare the annual capital settlement report at the end of the fiscal year. The Investor must close the books, prepare the annual financial statement for national budget development capital, and submit it to the Ministry of Health according to the prescribed accounting system for investors no later than 30 days after the end of the fiscal year.

11.3. Capital Settlement for Completed Projects:

- When a sub-project is completed and put into use, the Investor must prepare a capital settlement report for the sub-project, conduct an audit of the completed sub-project, and submit it to the Ministry of Health for review and approval, which includes construction costs, equipment, consultancy fees, project management costs, and other expenses.

- Project completion settlement: no later than 12 months (for Class A projects); 9 months (for Class B projects); 6 months (for Class C projects), the Investor is responsible for preparing the project completion settlement dossier according to the prescribed forms in Circular No. 33/2007/TT-BTC dated April 9, 2007, issued by the Ministry of Finance, conducting an audit of the completed project, and submitting it to the Ministry of Health (or the authority that approved the project decision) for review and approval. Within six months of receiving the approval decision for the project completion settlement, the Investor must settle all debts and close the project account at the payment agency or lending institution.

- Annually, no later than July 10, the Investor is responsible for reporting the status of the project completion settlement according to Form No. 02/THQT prescribed in Circular No. 33/2007/TT-BTC dated April 9, 2007, issued by the Ministry of Finance.

- Annually, no later than January 15 of the following year, the Investor is responsible for reporting the status of the project completion settlement according to Form No. 01/THQT prescribed in Circular No. 33/2007/TT-BTC dated April 9, 2007, issued by the Ministry of Finance.

11.4. Audit, Review, and Verification of Settlement:

- All significant national projects, Class A, B, and C projects using state funds must undergo an audit of the settlement before being submitted to the competent authority for review and approval of the settlement.

- The Investor must organize the selection of auditing contractors in accordance with the bidding law and sign an auditing contract for the completed project settlement in accordance with the Civil Code.

- Auditing contractors must be auditing enterprises established and operating in accordance with Vietnamese laws on enterprise establishment and operation and Decree No. 105/2004/NĐ-CP dated March 30, 2004, issued by the Government on independent auditing.

- Auditing contractors must perform the audit of the completed project settlement, prepare an audit report, and comply with the standards for auditing completed project settlement reports issued by the Ministry of Finance.

- The settlement report must be reviewed by the Settlement Consulting Organization and appraised by the Ministry of Health's Project Management Advisory Council before being submitted to the Ministry of Health's leadership for approval. The Settlement Consulting Organization and the Ministry of Health's Project Management Advisory Council shall be established by the Minister of Health.

- The review and appraisal period for the settlement report at the Ministry of Health's agency: six months for Group A projects, three months for Group B projects, and one month for Group C projects, starting from the date when the Project Owner submits the complete settlement report to the Settlement Consulting Organization.

VI. WARRANTY AND MAINTENANCE OF CONSTRUCTION PROJECTS

1. Warranty:

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

2. Maintenance of Construction Projects:

All construction projects funded from any sources, upon completion of the warranty period as prescribed, must implement maintenance work to maintain the architectural characteristics and functionality of the project, ensuring that the project operates and is utilized in compliance with design requirements throughout its operational life.

The maintenance of construction projects shall be conducted in accordance with Circular No. 08/2006/TT-BXD dated November 24, 2006, issued by the Ministry of Construction.

Documents and materials serving the maintenance of construction projects include:

- Completion documents of construction projects (legal documents and quality management materials);

- Logs tracking the operation or usage of the project;

- Maintenance procedures for construction projects;

- Documents and materials for periodic inspection of the project or parts of the project during its operational life;

- Technical standards for maintenance of construction projects.

For healthcare projects, the Project Owner must inspect and evaluate the quality of the project every three years at most. Upon discovering any unusual phenomena, they must promptly report in writing to the competent authority above for timely measures.

VII. INVESTMENT SUPERVISION WORK

The Project Owner organizes the implementation of the project, prepares periodic reports on the implementation of the project quarterly for the investment decision-making authority to monitor, supervise, assess, and support project management. The content of the report follows the guidelines set forth in Circular No. 03/2003/TT-BKH dated May 19, 2003, issued by the Ministry of Planning and Investment.

The Project Owner must promptly report to the investment decision-making authority 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 Project Owner must create favorable conditions for political organizations, social-political organizations, social organizations, and occupational social organizations, as prescribed by law, to conduct lawful activities in community monitoring of investment projects.

2. Inspection and Audit:

During the implementation of investments, the Project Owner must retain all relevant documents and present 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 investment management of all ongoing or completed projects. These teams are responsible for reviewing the implementation of the aforementioned regulations, urging progress, promptly correcting any violations (if any), and reporting the investment situation 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 Project Owners of construction projects must strictly comply with the investment management regulations for construction projects issued together with Decree No. 16/2005/NĐ-CP dated February 7, 2005, Decree No. 112/2006/NĐ-CP dated September 29, 2006, amending and supplementing certain articles of Decree No. 16/2005/NĐ-CP on project management, Decree No. 99/2007/NĐ-CP dated June 13, 2007 on investment cost management, Decree No. 209/2004/NĐ-CP dated December 16, 2004 on construction quality management, guiding legal documents, and this "procedure"./.