A fine of up to 80,000,000 VND for violations against regulations on selection of organizations and individuals to participate in construction activities in Vietnam?

Hi Lawnet, let me ask the following problem: In case of violation of regulations on selection of organizations and individuals to participate in construction activities in Vietnam, how will they be punished according to current regulations? Thank you!

Administrative fines of up to 80,000,000 VND for violations of regulations on the selection of organizations and individuals to participate in construction activities in Vietnam?

Pursuant to Article 7 of Decree 16/2022/ND-CP stipulating as follows:

“Article 7. Violations against regulations on selection of organizations and individuals to participate in construction activities
1. A fine ranging from VND 60,000,000 to VND 80,000,000 shall be imposed for selecting an organization or individual that is not qualified when participating in one of the following activities:
a) Construction survey;
b) Making construction planning design;
c) Construction investment project management;
d) Designing and verifying construction designs;
dd) Architectural design, architectural design verification;
e) Construction of works;
g) Supervising the construction of works;
h) Management of construction investment costs;
i) Construction inspection;
k) Experiments specialized in construction.
2. Investors using foreign contractors shall be fined from VND 100,000,000 to VND 120,000,000 for one of the following acts:
a) Allowing foreign contractors to participate in construction activities without obtaining construction permits as prescribed;
b) Allowing foreign contractors to fail to fulfill their commitments in the joint venture contract with Vietnamese contractors or not to use Vietnamese subcontractors as prescribed;
c) Allow foreign contractors to temporarily import for re-export for construction machinery and equipment that can be met in the country as prescribed;
d) Allow foreign contractors to use foreign workers to perform construction jobs that the Vietnamese labor market can satisfy according to regulations;
dd) Failing to notify relevant contractors and specialized construction agencies when using foreign contractors to perform construction investment project management consultancy or construction quality supervision.
3. Additional sanctioning forms:
Suspend construction activities for 3 to 6 months for projects, works or work items that commit acts specified at Points c and e, Clause 1 of this Article.”
4. Remedial measures:
a) Forcible selection of organizations and individuals that fully satisfy the conditions for the acts specified at Points a, c, g, h, i and k, Clause 1 of this Article, for works that have not yet started construction, or under construction and points b, d, dd, and e, Clause 1 of this Article, for works that have not yet started construction;
b) Forcing foreign contractors to apply for construction permits according to regulations, for the acts specified at Point a, Clause 2 of this Article;
c) Forcing the investor to request the foreign contractor to remedy and strictly comply with the commitments in the joint venture contract with the Vietnamese main contractor, to use the Vietnamese subcontractor in accordance with regulations in case the project has not yet been completed. Commencement of construction or being under construction with the acts specified at Point b, Clause 2 of this Article;
d) Forcing the investor to request the contractor to re-export construction machinery and equipment with the acts specified at Point c, Clause 2 of this Article;
dd) Forcible notification in writing to relevant contractors and specialized construction agencies of the acts specified at Point dd, Clause 2 of this Article.”

Accordingly, based on violations of the selection of organizations and individuals participating in construction activities in Vietnam to determine the level of administrative sanction according to the above provisions.

Xử phạt hành chính lên đến 80.000.000 đồng đối với hành vi vi phạm quy định về lựa chọn tổ chức, cá nhân tham gia hoạt động xây dựng?

Administrative fines of up to 80,000,000 VND for violations of regulations on selection of organizations and individuals to participate in construction activities in Vietnam?

Organizations and individuals participating in construction activities in VIetnam must ensure which conditions?

Pursuant to Article 148 of the Law on Construction 2014 (amended and supplemented by points a, point b, point c, clause 53, Article 1 of the revised Law on Construction 2020) stipulates as follows:

“Article 148. General provisions on capacity conditions of organizations and individuals engaged in construction activities
1. Individuals participating in construction activities must have training diplomas and certificates suitable to the jobs they undertake, granted by lawful training institutions.
...
5. The Government shall detail the capacity conditions of organizations and individuals participating in construction activities; regulations on the program, content and form of organization of tests for the grant of practice certificates; regulations on the grant, re-grant, conversion and revocation of practice certificates; regulations on conditions, competence, order and procedures for granting and revoking construction operation permits for contractors being foreign organizations and individuals.”

Accordingly, when participating in construction activities in Vietnam, organizations and individuals will need to ensure the conditions specified above.

Penalties for violations of construction survey?

Pursuant to Article 8 of Decree 16/2022/ND-CP stipulating as follows:

“Article 8. Violations against regulations on construction survey
1. A fine ranging from VND 10,000,000 to VND 20,000,000 shall be imposed for failing to store or storing incompletely the report on construction survey results as prescribed.
2. A fine ranging from VND 40,000,000 to VND 60,000,000 shall be imposed for failing to approve or approve the report on construction survey results which is incorrect or incomplete in accordance with regulations.
3. A fine ranging from VND 60,000,000 to VND 80,000,000 shall be imposed for one of the following acts:
a) Failing to organize the formulation or approval of construction survey tasks;
b) Failing to organize the formulation or approval of construction survey technical plans;
c) Failing to organize the formulation and approval of the revised and supplemented construction surveying tasks before the contractor conducts the construction survey for the sections that must be modified or supplemented as prescribed;
d) The organization of formulation or approval of construction survey tasks is incomplete or inconsistent with the contents as prescribed;
dd) Approving the construction survey technical plan when there is no approved construction survey task or it is not suitable with the contents of the approved construction surveying task;
e) Failure to organize construction survey supervision or incomplete construction survey supervision, not in accordance with regulations;
g) Failing to approve or improperly approving survey cost estimates for works using public investment capital, foreign state capital for public investment, or PPP projects;
h) Let the actual capacity of human resources and survey equipment at the site or in the laboratory (if any) of the construction surveying contractor fail to meet the approved construction survey technical plan.
4. Remedial measures:
a) Forcing the organization to prepare or approve construction survey tasks in accordance with regulations with the acts specified at Points a and d, Clause 3 of this Article, for works that have not yet started construction;
b) Forcing the organization to make or approve the construction survey technical plan in accordance with regulations with the acts specified at Points b and dd, Clause 3 of this Article, for works that have not yet started construction;
c) Forcing the organization to prepare and approve the modified or supplemented construction surveying tasks according to regulations with the acts specified at Point c, Clause 3 of this Article, for works that have not yet started construction;
d) Forcible organization of construction survey supervision or construction survey supervision according to regulations with the acts specified at Point e, Clause 3 of this Article, for works under construction;
dd) Forcible approval or re-approval of the estimate with the acts specified at Point g, Clause 3 of this Article (applicable in cases where an economic contract has not been signed with the survey contractor);
e) Forcible addition of capacity or selection of organizations or individuals that ensure capacity with the acts specified at Point h, Clause 3 of this Article during the survey work.”

Accordingly, based on violations of regulations on construction survey to determine the level of administrative penalty according to the above provisions.

The level of administrative sanction according to the above provisions applies only to organizations. In case of individual violations, the administrative sanction will be half of that of the organization.

In addition, based on violations to determine remedial measures and additional penalties according to the above provisions.

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