Decision No. 79/2005/QD-BTC on the issuance of the Regulation on rewards and penalties for construction progress of the National Convention Center project.

DECISION OF THE MINISTER OF FINANCE

Regarding the issuance of the Regulation on rewards and penalties for construction progress of the National Convention Center project

National Convention Center

 

THE MINISTER OF FINANCE

 Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Construction Law No. 16/2003/QH11 dated November 26, 2003;

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, authorities, and organizational structure of the Ministry of Finance;

Pursuant to Notification No. 97/TB-VPCP dated May 17, 2005 of the Government Office on the conclusions of Deputy Prime Minister Nguyen Tan Dung, Head of the Steering Committee for the Construction of the National Convention Center at the Steering Committee meeting on May 15, 2005; Notification No. 196/TB-VPCP dated October 19, 2005 of the Government Office on the conclusions of Deputy Prime Minister Nguyen Tan Dung, Head of the Steering Committee for the Construction of the National Convention Center at the Steering Committee meeting on October 10, 2005;

After reaching consensus with the Ministry of Construction and upon the proposal of the Investment Department Director,

 DECISION:

 Article 1. This Decision promulgates the Regulation on rewards and penalties for construction progress of the National Convention Center project.

Article 2. This Decision takes effect fifteen days from the date of publication in the Official Gazette.

Article 3. The Project Investor of the National Convention Center investment and construction project; the Director of the Management Board for the construction of the National Assembly Building and Ba Dinh Hall (new); construction contractors and suppliers/installers of equipment; consulting units, organizations and individuals participating in the construction of the National Convention Center project shall be responsible for implementing this Decision.

 

REGULATIONS

 

Rewards and Penalties for Construction Progress of the National Convention Center Project

(Issued together with Decision No. 79/2005/QD-BTC dated November 15, 2005)

of the Minister of Finance)

PART I

GENERAL PROVISIONS

Article 1. Purpose and Objectives

1. Purpose:

a) To motivate and encourage material incentives for positive and creative labor achievements, application of new scientific and technological advances to accelerate the construction progress of the National Convention Center project; to put the project into operation according to the approved schedule, timely serving the APEC Conference in early October 2006;

b) To clarify the responsibilities of contractors, consulting units, the Management Board for the construction of the National Assembly Building and Ba Dinh Hall (new), and other units involved in the construction process.

2. Eligibility:

This applies to units, organizations, and individuals participating in the construction of the National Convention Center project including:

- The consortium of nine units headed by the Hanoi Construction Corporation (as stipulated in document No. 1502/CP-CN dated October 12, 2004 of the Government regarding the selection of the construction contractor consortium and supply/installation of equipment for the National Convention Center project) and the management board of the consortium.

- The Management Board for the construction of the National Assembly Building and Ba Dinh Hall (new); the project management consulting unit and construction supervision (PMC).

- The design consulting firm (GMP) joint venture of Von Gerkan, Marg and Partners-Inros Lackner (Germany) and Vietnamese sub-design firms.

- Surveying consulting units; technical design review and estimate auditing units.

- The working group assisting the Steering Committee for the Construction of the National Convention Center.

- The Land Clearance Council for the National Convention Center project and its working group.

- Units implementing technical systems ensuring security and safety of the project under the Ministry of Public Security.

- Units participating in site security.

Article 2. Principles for Rewards and Penalties

1. Principles for Rewards:

a) When the project is completed according to or exceeds the construction milestones approved and ensures quality.

b) The reward money and progress bonus shall be implemented through the Progress Reward Fund and must be publicly announced to workers, officials, employees, and staff involved in the construction of the project.

2. Principles for Penalties:

a) When the project fails to complete according to the construction milestones approved.

b) Clearly identify the responsibility of organizations and individuals related to the failure to meet construction deadlines.

Article 3. Sources of Reward and Penalty Money

1. Source of Reward Money:

The source of reward money is drawn from the savings due to reduced project costs as per Notification No. 97/TB-VPCP dated May 17, 2005 and Notification No. 196/TB-VPCP dated October 10, 2005 of the Government Office.

2. Source of Penalty Money:

a) For construction contractors and consulting contractors:

The penalty amount is deducted from the value of the Contract signed between the Project Management Board and the contractor.

The penalty amount is recorded in the post-tax profit of the contractor.

b) For the Project Management Board for the National Assembly Building and Ba Dinh Hall (new):

The penalty for delays caused by subjective reasons of the Project Management Board is deducted from the Salary Fund of the Project Management Board.

Article 4. Progress Reward Fund

Establish the Progress Reward Fund including the reward money drawn and recovered penalty money (if any), managed, accounted for, and disbursed by the Project Management Board for the National Assembly Building and Ba Dinh Hall (new) upon decision of the competent authority to grant rewards.

Article 5. Forms of Rewards and Penalties

1. Rewards and penalties based on construction milestones approved for each phase.

2. Special rewards for outstanding collectives and individuals with excellent achievements during the construction process.

Chapter II

SPECIFIC PROVISIONS

Article 6. Time Markers for Rewards and Penalties

These are the main markers of the overall construction schedule of the project approved by the Steering Committee for the National Convention Center in Notification No. 23/TB-VPCP dated January 31, 2005 of the Government Office.

Detailed progress milestones are established and submitted by the Project Management Board for the National Assembly Building and Ba Dinh Hall (new) and contractors for approval by the Ministry of Construction.

Article 7. Authority to Decide Rewards and Penalties

The Ministry of Construction reviews and decides on rewards and penalties based on the recommendations of the Competition and Reward Council for the National Convention Center Project.

Article 8. Basis for Determining Rewards and Penalties

1. For construction contractors and equipment suppliers/installers:

a) The Construction Contract and Equipment Supply/Installation Contract signed between the Project Management Board for the National Assembly Building and Ba Dinh Hall (new) and the contractors.

b) The conclusion of the State Acceptance Council in the Acceptance Record of works according to the approved progress milestones.

c) Completion files and Acceptance Record of the Basic Acceptance Council.

2. For consulting contractors:

a) The Consulting Work Contract signed between the Project Management Board for the National Assembly Building and Ba Dinh Hall (new) and the contractors.

b) The progress of delivering design documents or supervisory work volumes.

c) The Acceptance Record of consulting work.

3. For the Land Clearance Council and the Working Group assisting the Council:

The results of land clearance work according to the construction project schedule requirements.

4. For other units and individuals:

The results of completing assigned tasks.

5. For special rewards:

Outstanding achievements of exemplary collectives and individuals contributing to accelerating the construction project progress.

Article 9. Levels of Incentives and Penalties for Progress

1. Level of Incentive:

The incentive level for the entire project shall be determined at a maximum of 1% of the value of construction works (excluding the value of imported materials and equipment) of the National Convention Center project.

Specific incentive levels for each progress milestone and for each unit and individual shall be decided by the Ministry of Construction.

2. Level of Penalty:

- For contractors responsible for construction and installation of equipment and consulting contractors:

The penalty for failing to complete the specified milestones or for delays in completing the consulting work as stipulated in the Contract shall be calculated at 10% of the value of the delayed construction or consulting work. Units related to the failure to meet the progress schedule must conduct reviews to clarify the responsibility of each unit, and simultaneously allocate the total penalty amount among all units causing the delay.

- For the Project Management Board:

If the delay is due to the subjective reasons of the Project Management Board, then for each milestone not completed on time, one month's salary will be deducted from the Project Management Board's payroll fund.

Article 10. Establishment and Management of Reward and Penalty Funds

The Project Management Board shall open a separate account for the Progress Reward Fund at the State Treasury where the project payment account is opened, and organize the management and accounting of reward and penalty amounts; implement payments and recoveries of rewards and penalties upon decisions of competent authorities.

Rewards are deducted after the payment of the value of completed construction works. After each payment, the Project Management Board shall deduct 1% of the value of the completed construction works paid that time (excluding the value of imported materials and equipment) and transfer it into the Progress Reward Fund.

Penalties are recovered and deducted from the value of construction and consulting works during each payment according to the determined penalty value when milestones are not met and deposited into the Progress Reward Fund.

Article 11. Payment and Recovery of Rewards

1. Payment of Rewards:

The Project Management Board shall make reward payments based on the incentive decision of the Ministry of Construction.

The amount of reward for each progress milestone shall not exceed the amount of reward deducted up to the time of awarding the reward.

Upon completion of the project according to or ahead of the scheduled progress milestones, the remaining reward amount from the deducted reward fund minus previously paid rewards shall be settled.

2. Recovery of Rewards:

In cases where the project does not complete according to the approved progress schedule due to subjective reasons of participating construction units, a review must be conducted to clarify the responsibility of each unit and individual; the reward money must be recovered and returned to the Progress Reward Fund and remitted to the state budget as prescribed.

Article 12. Other Issues

1. In cases where the project fails to complete according to the approved schedule due to objective reasons or force majeure such as natural disasters, enemy attacks, floods, etc., there will be no penalties and no need to return the reward money already paid according to previous progress milestones.

2. In cases where the Progress Reward Fund is not fully utilized, the remaining reward money must be remitted to the state budget.

Chapter III

IMPLEMENTATION

This regulation only applies to the investment construction project of the National Convention Center; it does not apply to other projects.

During implementation, if there are any difficulties, please send comments to the Ministry of Finance for study and amendment./.