Transfer of Management in Urban Areas: What is it? What are the Responsibilities of the Receiving Party?
What is Transfer of Management in Urban Areas?
According to Clause 8 Article 4 of Decree 35/2023/ND-CP, which amends and supplements the regulations on administrative management transfer in urban areas as stipulated in Article 38 of Decree 11/2013/ND-CP.
The concept of transfer of management in urban areas is defined in Clause 1 Article 38 of Decree 11/2013/ND-CP (amended and supplemented by Clause 8 Article 4 of Decree 35/2023/ND-CP) as follows:
Transfer of Management in Urban Areas
1. Transfer of management in urban areas refers to the transfer between developer and the receiving party as prescribed in Clause 4 of this Article regarding the following matters:
a) Buildings, construction items in the urban area under the managing authority of the receiving party, as invested and built by the developer;
b) Rights, responsibilities, obligations related to: management of construction activities; management of construction order within the project scope; provision of urban services.
Thus, the transfer of management in urban areas is the transfer between the developer and the receiving party regarding the following matters:
- Buildings, construction items in the urban area under the managing authority of the receiving party, as invested and built by the developer;
- Rights, responsibilities, obligations related to: management of construction activities; management of construction order within the project scope; provision of urban services.
Based on Clause 4 Article 38 of Decree 11/2013/ND-CP (amended and supplemented by Clause 8 Article 4 of Decree 35/2023/ND-CP), the receiving party is the Provincial People's Committee for urban areas within its jurisdiction.
In some other cases, the receiving party is stipulated under specialized law or is the authorized managing unit specified in the investment policy approval document.
What is Transfer of Management in Urban Areas? What are the responsibilities of the receiving party in urban area management transfer?
How to Implement the Handover, Management, and Use of Assets Post-Handover?
According to the provisions outlined in Clause 6 Article 38 of Decree 11/2013/ND-CP (amended and supplemented by Clause 8 Article 4 of Decree 35/2023/ND-CP) as follows:
Transfer of Management in Urban Areas
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6. Implementation of the management handover in urban areas and management, use of assets post-handover
a) The developer is responsible for transferring according to the handover plan in the construction investment feasibility study report appraised by the specialized construction agency under construction law; is accountable for the quality of the works, organizes warranty, maintenance according to law, manages and ensures operational quality for untransferred works; provides urban services until handover completion and for retained urban infrastructure invested for business;
b) In cases where the receiving party is a state management agency, the Provincial People's Committee shall receive according to the law on management and use of public assets. After receiving, the Provincial People's Committee shall assign the assets to agencies, organizations, units, and direct them to manage, use, and exploit the works, construction items in the urban area according to the law on management and use of public assets;
c) The receiving party is responsible for receiving according to regulations; agreeing with the developer, reporting the handover results to the Provincial or District People's Committee for monitoring; organizing the provision of urban services or transferring to agencies, organizations, units, or enterprises for post-handover management;
d) The Provincial People's Committee is responsible for directing and inspecting the implementation of rights and responsibilities of the parties involved in the urban area management handover in its jurisdiction.
Thus, the handover of management in urban areas and the management, use of assets post-handover are carried out according to the aforementioned contents.
What are the Responsibilities of the Receiving Party in Urban Area Management Transfer?
Based on the provisions stipulated in point c Clause 6 Article 38 of Decree 11/2013/ND-CP (amended and supplemented by Clause 8 Article 4 of Decree 35/2023/ND-CP), the receiving party in urban area management transfer has the following responsibilities:
- Receive the handover as per regulations;
- Agree with the developer, report the handover results to the Provincial or District People's Committee for monitoring;
- Organize the provision of urban services or transfer them to agencies, organizations, units, or enterprises for post-handover management.
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