Decision No. 500/BXD-CSXD Issuing the Regulation on Registration and Issuance of Construction Practice Certificates

Pursuant to …;

Regarding the issuance of regulations on registration and issuance of construction practice certificates

_______________________________

THE MINISTER OF CONSTRUCTION

Based on Decree No. 15/CP dated March 4, 1994 of the Government stipulating the functions, tasks, and organizational structure of the Ministry of Construction.

Based on Decree No. 42/CP dated July 16, 1996 of the Government promulgating the Regulations on investment management and construction.

At the proposal of the Director of the Policy Department for Construction.

Pursuant to …;

Article 1.- Attached to this Decision is the Regulation on Registration and Issuance of Construction Practice Certificates, which replaces the previous Regulation on Registration of Construction Practice issued pursuant to Decision No. 22/BXD-QLXD dated January 26, 1993 of the Ministry of Construction.

Article 2.- This Decision shall be uniformly implemented throughout the country and takes effect from the date of signature.

Article 3.- The Ministries, ministerial-level agencies, agencies under the Government, People's Committees of provinces and centrally governed cities are responsible for organizing the implementation of this Decision.

MINISTRY OF CONSTRUCTION

Ngo Xuan Loc

(Signed)

REGULATIONS

REGISTRATION AND ISSUANCE OF CONSTRUCTION PRACTICE CERTIFICATES
(Attached to Decision No. 500/BXD-CSXD dated September 18, 1996 of the Minister of Construction)

Chapter 1:

GENERAL PROVISIONS

Article 1.

1. The registration and issuance of construction practice certificates are aimed at implementing state management over the professional capacity of economic organizations that are Vietnamese legal entities engaged in construction business (hereinafter referred to collectively as construction enterprises), with the purpose of ensuring the quality of construction works and fair competition in the construction sector according to the law.

2. The professional capacity of construction enterprises is determined based on their registration regarding:

- Technical qualifications and management experience of staff;

- Construction experience of construction enterprises;

- Financial capability;

- Equipment and technology invested;

- Workforce of construction technical workers;

3. Depending on the capacity registered by construction enterprises, the competent authority shall issue construction practice certificates to enterprises in accordance with the provisions of this Regulation.

4. The construction practice certificate issued by the competent authority to construction enterprises has nationwide validity for bidding, signing contracts for construction project tendering and contracting.

The investor must request construction enterprises to present their construction practice certificates during bidding, and simultaneously require them to declare additional information and verify their actual capacity to ensure compliance with the requirements set forth in the tender documents according to the State's Bidding Regulations.

5. Business activities and construction services of foreign legal entities in Vietnam are subject to separate regulations.

Article 2. Construction activities regulated in this Regulation include all works of the construction process of projects from land leveling; foundation, underground structure, superstructure construction, finishing works, installation of electromechanical equipment, facilities, and technology, interior and exterior decoration, and landscape works.

Article 3. The capacity of construction enterprises confirmed in the construction practice certificate includes the following capabilities:

1. Performing construction works (as listed in Appendix 1 of this Regulation).

Enterprises that have invested in equipment and technology, and have suitable technical and managerial staff for specific construction works shall be recognized for the capacity to perform such construction works; and may undertake the volume of each type of work within the confirmed capacity, with the value of implementation in one year not exceeding twenty times the lawful charter capital of the enterprise in that year or the business capital owned by state-owned enterprises confirmed by the competent financial authority.

2. Performing construction works including: new construction, expansion, renovation, upgrading, and repair of project components and construction projects classified according to the provisions in Appendix of the Investment Management and Construction Regulations promulgated together with Decree No. 42/CP dated July 16, 1996 of the Government (details in Appendix 6 of this Regulation).

3. For Class 1 construction enterprises and General Construction Corporations established under Decisions 90/TTg and 91/TTg dated March 7, 1994, having consulting organizations with sufficient capacity can undertake general contracting for construction projects (from survey design, management, and construction works).

Article 4. When construction enterprises undertake construction projects, they are responsible for the quality of the works and must implement warranty systems for the works according to current regulations.

Chapter 2:

REGISTRATION OF CONSTRUCTION PRACTICE CAPACITY

Article 5. All types of construction enterprises must register to obtain construction practice certificates or extend, adjust the contents of the certificates at the competent authorities as stipulated in this Regulation.

Article 6. Contents of registration:

1. Qualifications of managers and operators of construction enterprises: The legal representative of construction enterprises must have knowledge in economic management or construction engineering and related technical fields directly related to construction technology, trained at universities.

2. Number, qualifications, and experience of key technical and management staff recruited long-term by the enterprise.

3. Experience of the enterprise in main construction contracting in the last five years.

4. Lawful charter capital of the enterprise or business capital owned by state-owned enterprises confirmed by the competent financial authority, accompanied by the enterprise's balance sheet.

5. List of quantities and characteristics of major technical equipment invested in line with the construction industry registered by the enterprise.

6. Number of skilled workers recruited long-term classified by trade and level.

Article 7. The application dossier for issuing construction practice certificates includes:

1. Application form for issuing construction practice certificates (according to Model 1 in Appendix 2 of this Regulation).

2. Decision or Business License for establishment of the enterprise issued by the competent authority, Enterprise Charter, Business Registration Certificate of the enterprise, summary of the enterprise's development process. For enterprises engaged in multiple industries (general business) including construction business, there must be a subordinate unit specializing in construction business and having equivalent capacity conditions to those of specialized construction enterprises.

3. Declarations of the enterprise's capacity registered in accordance with the contents prescribed in Article 6 and Appendix 3 of this Regulation.

4. Decision on classification or temporary classification of the enterprise by the competent authority.

Article 8. Application for adjustment or extension.

1. Request for adjustment or extension (in accordance with Form 2 of Appendix 2 to this Regulation).

2. Supplement legal documents and lists of changes in organizational structure, capital, and capacity compared to the previous registration (in accordance with Appendix 3 to this Regulation).

3. One month before the construction business practice certificate expires, the enterprise must submit an application for extension.

Chapter 3:

ISSUANCE OF CONSTRUCTION BUSINESS PRACTICE CERTIFICATE

Article 9. Authority to examine and issue construction business practice certificates.

1. The Ministry of Construction examines and issues construction business practice certificates for the following enterprises:

a) State-owned enterprises engaged in construction (including General Construction Corporations, Construction Companies, Construction Workshops, and corporations and companies with construction activities) established by Decisions of the Prime Minister, Ministries, ministerial-level agencies, and government agencies.

b) Construction enterprises established under the Law on Foreign Investment in Vietnam.

c) State-owned enterprises engaged in construction established by Decisions of Provincial People's Committees that have been ranked as Class 1 enterprises.

d) Construction enterprises belonging to other economic sectors recognized by Provincial People's Committees as equivalent to Class 1 state-owned enterprises.

2. Provincial People's Committees and provincial-level municipalities (hereinafter referred to as Provincial People's Committees) examine and issue construction business practice certificates for enterprises not covered in Clause 1 of this Article, in accordance with guidelines from the Ministry of Construction, or may delegate the Director of the Construction Department to conduct such examinations and issue certificates.

Article 10. Examination and issuance of construction business practice certificates.

1. The head of the authority specified in Article 9 of this Regulation shall examine and issue construction business practice certificates according to the provisions of this Regulation. In cases where it deems necessary, opinions of relevant state management agencies at the same level shall be sought to assess the enterprise's capacity accurately before issuing the certificate.

2. The time limit for examining and issuing construction business practice certificates is twenty days from the date of receipt of complete and valid registration files as prescribed.

Article 11.

1. Construction business practice certificates issued by competent authorities to enterprises established in accordance with Model 4 of Appendix 4 to this Regulation are effective throughout the country.

2. The validity period of construction business practice certificates issued:

- Five years for enterprises that have been engaged in construction business for two years or more.

- Two years for newly established enterprises that have been engaged in construction business for less than two years.

Article 12. When applying for a construction business practice certificate, construction enterprises pay the prescribed fee to the registration agency as stipulated by the Ministry of Finance.

Chapter 4:

MANAGEMENT, INSPECTION AND HANDLING OF VIOLATIONS

Article 13.

1. The Ministry of Construction uniformly manages the issuance of construction business practice certificates nationwide.

When issuing a construction business practice certificate to a construction enterprise, the Ministry of Construction sends a copy of the issued certificate to the relevant ministries, ministerial-level agencies, central-level political-social organizations managing the enterprise, and the People's Committee of the province where the enterprise's main office is located.

Annually, the Ministry of Construction compiles the situation of registration and evaluates the overall capacity of construction enterprises nationwide to report to the Government.

2. Provincial People's Committees (or Construction Departments authorized) manage the issuance of construction business practice certificates locally in accordance with the authority specified in Clause 2 of Article 9 of this Regulation, and supervise the construction business activities of other enterprises with headquarters in their locality or undertaking construction projects in their locality (including foreign contractors licensed by the Ministry of Construction to undertake construction projects in their locality).

When issuing a construction business practice certificate to an enterprise within their authority, Provincial People's Committees (or Construction Departments authorized) send a copy of the issued certificate to the Ministry of Construction, and notify the local Department of Finance and the local Public Security Department for coordinated management.

Annually, Provincial People's Committees (or Construction Departments authorized) compile the situation of registration and evaluate the construction business capacity of enterprises they have issued certificates to, and submit reports to the Ministry of Construction (in accordance with Form 5 of Appendix 4 to this Regulation).

Article 14. Enterprises that have been issued a construction business practice certificate are responsible for:

1. Construction enterprises issued a construction business practice certificate by the Ministry of Construction when operating in a locality must present the issued certificate to the local Construction Department where the main office is located and the Construction Department where the contracted project is located.

2. At the end of each fiscal year, during the first quarter of the following year, enterprises must submit a report on the status of construction projects undertaken in the year to the authority issuing the construction business practice certificate (Form 4 of Appendix 3).

3. When there are significant changes in key personnel such as the enterprise manager, legal representative, technical person in charge, chief accountant, or amendments to the company charter and other major changes affecting the enterprise's legal entity, the enterprise must notify the authority issuing the construction business practice certificate in writing.

Article 15. Inspection and Audit.

1. Authorities issuing construction business practice certificates are responsible for monitoring, inspecting, and auditing the activities of construction enterprises based on the issued certificates.

2. Central and local state management agencies, in accordance with their functions, cooperate with the Ministry of Construction and local Construction Departments to inspect and audit the activities of construction enterprises based on issued construction business practice certificates.

3. Regular or spot inspections must be announced in advance to avoid disrupting normal business operations of construction enterprises.

Article 16. Handling violations.

1. Construction enterprises violating this Regulation, such as擅自修改证书内容、超出证书范围经营或出租出借所获建筑执业证书等行为，将根据行政违法行为的性质和程度受到行政处罚。

2. If construction enterprises fail to submit annual reports as required by Article 14 or if the reports are not truthful, they will not be considered for adjustments or extensions of their construction business practice certificates.

3. When examining violations in construction practice, the competent authority issuing construction practice certificates must coordinate with relevant functional agencies and local authorities at all levels to handle such cases.

Chapter 5:

IMPLEMENTING PROVISIONS

Article 17.

1. This Regulation replaces the Construction Practice Registration Regulation issued together with Decision No. 22/BXD-QLXD dated January 26, 1993, of the Ministry of Construction, and shall take effect from the date of signature.

2. Enterprises that have been granted Construction Practice Licenses by the competent authority according to the Construction Practice Registration Regulation issued together with Decision No. 22/BXD-QLXD dated January 26, 1993, of the Ministry of Construction may continue to use those licenses until March 31, 1997, for nationwide operations. At the same time, within the aforementioned period, these enterprises must re-register to obtain construction practice certificates in accordance with this Regulation.

Article 18. Ministries, ministerial-level agencies, government-affiliated agencies, People's Committees of provinces and centrally governed cities are responsible for directing construction enterprises under their management to register to obtain construction practice certificates in accordance with the provisions of this Regulation.