Exceeding the budget for safety design for construction utilizing public investment, non-public investment state capital, PPP projects to be fined in Vietnam?

Hello LawNet, I have a question as follows: Is there a penalty for exceeding the budget for safety design for construction utilizing public investment, non-public investment state capital, PPP projects in Vietnam? Thank you!

What are the penalties for violation of regulations on construction design for contractors, organizations and individuals participating in construction activities in Vietnam?

Pursuant to Clause 1, Article 30 of Decree 16/2022/ND-CP stipulates as follows:

“Article 30. Violation of regulations on construction design (design implemented following fundamental design, one-step design) and estimates
1. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed on:
a) Failing to produce law-compliant construction design dossiers;
b) Failing to revise construction design in a law-compliant manner;
c) Failing to execute subsequent design steps in a manner conforming to previous approved design steps.”

Accordingly, contractors, organizations and individuals participating in construction activities will be administratively fined from VND 20,000,000 to VND 30,000,000 for violation of regulations on construction design.

Exceeding the budget for safety design for construction utilizing public investment, non-public investment state capital, PPP projects to be fined in Vietnam? (Image from the internet)

What are the penalties for exceeding the budget for safety design for construction utilizing public investment, non-public investment state capital, PPP projects in Vietnam?

Pursuant to Clause 2, Article 30 of Decree 16/2022/ND-CP stipulates as follows:

“Article 30. Violation of regulations on construction design (design implemented following fundamental design, one-step design) and estimates
2. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed on:
a) Designating producers and/or suppliers of construction materials, parts, and equipment to engage in construction design work of construction utilizing public investment, non-public investment state budget;
b) Failing to regulate the use of non-baked materials in design dossiers for construction that mandates the use of non-baked materials or failing to guarantee the percentage of non-baked materials as per the law or failing to fulfill regulations on the use of other materials for the construction;
c) Exceeding the budget for safety design for construction utilizing public investment, non-public investment state capital, PPP projects;
d) Granting earth and rock in a manner not suitable for geological surveying results or calculating transport distance in a manner not suitable for surveying results for construction utilizing public investment, non-public investment state capital, PPP project;
dd) Applying cost estimates which contain details or norms not suitable for work or contain data inconsistent with applied norms thereby increasing the cost estimates for construction utilizing public investment, non-public investment state capital, PPP projects;
e) Determining costs for materials, parts, personnel, construction machinery in a manner not conforming to applicable regulations and law to construction price management, regulations applicable at the time in which construction estimates are determined and market price where construction occurs for projects utilizing public investment, non-public investment state capital, PPP projects;
g) Miscalculating the quantity, producing estimates which contain quantity inconsistent with the quantity calculated from design drawings, or including quantity in calculation for construction cost estimates despite failing to produce design drawings for auxiliary works for projects utilizing public investment, non-public investment state capital, PPP projects.”

Accordingly, contractors, organizations and individuals participating in construction activities will be administratively sanctioned from VND 30,000,000 to VND 50,000,000 in case of exceeding the budget for safety design for construction utilizing public investment, non-public investment state capital, PPP projects in Vietnam according to the above regulations.

What are the penalties for failing to include all standards and features of equipment, materials, and parts in design dossiers in Vietnam?

Pursuant to Clause 3, Article 30 of Decree 16/2022/ND-CP stipulates as follows:

“Article 30. Violation of regulations on construction design (design implemented following fundamental design, one-step design) and estimates
3. A fine ranging from VND 50.000.000 to VND 70.000.000 shall be imposed on:
a) Failing include all standards and features of equipment, materials, and parts in design dossiers;
b) Failing to include geography surveying results in construction design dossiers, failing to rely on geography surveying results for development of construction design dossiers, or failing to ensure consistency between surveying results and construction design dossiers;
c) Failing to utilize sample design or typical design in construction as mandated by the law;
d) Failing to fulfill regulations on environmental protection, fire safety, climate change adaptation, and other safety conditions in the design;
dd) Failing to adequately perform designer's supervision as per the law;
e) Failing to purchase professional liability insurance.”

Accordingly, in case the design documents do not fully meet the standards and usage features of equipment, materials and components, contractors, organizations and individuals participating in construction activities will be administratively sanctioned. from 50,000,000 VND to 70,000,000 VND.

In addition to being administratively sanctioned under the provisions of violations, to determine remedial measures corresponding to violations according to Clause 4, Article 30 of Decree 16/2022/ND-CP.

Note: The administrative sanction in the above regulations only applies to violating organizations. In case of individual violations, the administrative sanction will be 1/2 of that of the individual.


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