Shall a fine up to VND 40,000,000 imposed for failing to produce report on construction supervision in Vietnam?
What are requirements for construction supervision in Vietnam?
Based on Article 120 of the Law on Construction 2014 which stipulates as follows:
“Article 120. Supervision of construction
1. Construction projects must be monitored for quality, quantity, progress, labor safety, and environmental protection during execution.
The State encourages the supervision of the construction of individual houses.
2. Supervision of the construction of the project must ensure the following requirements:
a) Conducted throughout the construction process from the commencement of construction, during the implementation period until the completion and acceptance of the work and the construction project;
b) Supervise the construction in accordance with the approved construction design, applied standards, technical regulations, regulations on the management and use of construction materials, technical instructions, and construction contracts;
c) Honest, objective, non-profitable.
3. The selected construction supervision contractor must propose supervision solutions and quality control, quantity, progress, labor safety, environmental protection procedures, inspection and acceptance procedures, document management methods during the supervision process, and other necessary content."
Current supervision of construction must meet the requirements as stipulated above.
An organization that fails to produce report on construction supervision will be fined up to 40 million VND?
How much is the fine for failing to produce report on construction supervision in Vietnam?
Based on Article 35 of Decree 16/2022/ND-CP which stipulates as follows:
“Article 35. Violations of regulations on the supervision of construction
1. A fine ranging from 30,000,000 VND to 40,000,000 VND shall be imposed for one of the following acts:
a) Failure to perform supervision of construction in accordance with regulations;
b) Signing acceptance documents without a construction supervision practice certificate or having an inappropriate certificate with the professional field, type of project, grade, or practice duration as granted;
c) Failure to produce report on construction supervision as required.
2. A fine ranging from 40,000,000 VND to 60,000,000 VND shall be imposed for one of the following acts:
a) Falsifying supervision results;
b) Allowing the contractor to execute the work against the construction permit, approved design, or using inappropriate materials, or against the approved construction method;
c) Allowing the contractor not to use non-baked building materials as regulated;
d) Accept work not in accordance with regulations;
đ) The construction supervision contractor is not independent of other construction contractors, manufacturers, suppliers of materials, products, components, equipment used for the project concerning projects funded by public investment, non-public state capital, and PPP projects.
3. Remedial measures:
a) Mandatory supervision of construction according to regulations for the act stated at Point a Clause 1 of this Article regarding ongoing construction projects;
b) Mandatory preparation of a report on the supervision of construction for the act stated at Point c Clause 1 of this Article regarding ongoing construction projects;
c) Mandatory cancellation and proper resupervision of the actual construction for the act stated at Point a Clause 2 of this Article regarding ongoing construction projects;
d) Mandatory supervision of construction according to the design approved for acts stated at Point b Clause 2 of this Article regarding ongoing construction projects;
đ) Mandatory use of appropriate non-baked materials for the remaining parts of the project for acts stated at Point c Clause 2 of this Article regarding ongoing construction projects;
e) Mandatory acceptance of the construction work according to regulations for acts stated at Point d Clause 2 of this Article;
g) Mandatory replacement of the construction supervision contractor independent of other contractors for acts stated at Point đ Clause 2 of this Article regarding the ongoing construction projects."
Thus, an organization that fails to produce report on construction supervision will be fined up to 40 million VND.
Additionally, based on the violation, the corresponding remedial measures as stipulated above will be applied.
Note that the administrative penalty stipulated above only applies to violating organizations. In case of a violation by an individual, the administrative penalty will be half of that for an organization.
How long is the prescriptive period for imposing penalties for administrative violations in construction in Vietnam?
Based on Article 5 of Decree 16/2022/ND-CP which stipulates as follows:
"Article 5. Prescriptive period for administrative penalties
1. The prescriptive period for administrative penalties is 1 year for real estate business activities, technical infrastructure management, and building materials production.
The prescriptive period for administrative penalties is 2 years for construction activities, management, and development of housing.
2. The starting time to calculate the prescriptive period for administrative penalties stipulated in Clause 1 of this Article is specified as follows:
...
o) For violations concerning construction stipulated in this Decree, except for cases specified in Points a, b, c, d, đ, e, g, h, i, k, l, m, n of this Clause, the person with authority to impose penalties shall rely on the Law on Handling Administrative Violations and relevant documents to determine the starting time to calculate the prescriptive period for administrative penalties."
Violations of regulations on the supervision of construction will have a prescriptive period for administrative penalties of 2 years.
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