Is it mandatory to hire construction project management consultancies in Vietnam?
Is it mandatory to hire construction project management consultancies in Vietnam? Can construction project management consultancy partially or totally construction project management tasks in Vietnam? How many forms of construction project management in Vietnam are there?
Hi, I have a question that needs to be answered. My company is T construction investment company, let me ask is hiring construction project management consultancies is mandatory? Because of professional apparatuses with all conditions and capacities to manage a construction project, so my company does not want to hire to save costs.
Please advise.
1. Is it mandatory to hire construction project management consultancies in Vietnam?
Article 23 of Decree 15/2021/ND-CP stipulates that the investor managing a project by their own as follows:
1. The investor shall use its legal status and professional apparatuses with all conditions and capacities to manage a construction project. In case of ineligibility for the management, the investor may hire organizations or individuals that are qualified under this Decree to engage in the project management.
2. The project manager must fully meet the eligibility specified in Article 73 of this Decree, except for the management of a construction project requiring an economic-technical report.
3. Individuals engaged in the project management shall work on a full-time or part-time basis subject to the investor's decision and must have professional expertise suitable to the requirements of the tasks taken.
Thus, according to the above regulations, hiring construction project management consultancies in Vietnam is not mandatory. Your company has a professional apparatuses with all conditions and capacities to manage a construction project, unless the conditions are not met, the new investor must hire a qualified organization or individual to participate in the project manager.
2. Can construction project management consultancy partially or totally construction project management tasks in Vietnam?
According to Article 24 of Decree 15/2021/ND-CP, engaging construction project management consultancies is as follows:
1. The construction project management consultancy may partially or totally construction project management tasks according to the agreement concluded with the investor.
2. The selected construction project management consultancy must send notifications of rights and obligations of the representative and the steering apparatus of project to the investor and relevant contractors.
3. The investor must observe the execution of construction project management consultancy contract, deal with issues arising between the construction project management consultancy, contractors and local governments during the project process.
4. The selection of the construction project management consultancy contractor must comply with the provisions of the law on procurement for the projects governed by the law on procurement.
Therefore, the construction project management consultancy may partially or totally construction project management tasks according to the agreement concluded with the investor in Vietnam.
3. How many forms of construction project management in Vietnam are there?
Pursuant to Article 20 of Decree 15/2021/ND-CP stipulating selection of forms of construction project management as follows:
1. For a project funded by public investment capital, the investment-decision maker shall select the project management form specified in Clause 2, Article 62 of the Construction Law 2014, amended in Clause 19, Article 1. Law No. 62/2020/QH14, in specific:
a) The investment-decision maker decides to apply the form of field-based PMB, area-based PMB on the basis of the number and progress of projects in the same field, in the same route, in an administrative area or at the request of the fund granting body;
b) In case the form of project management under Point a of this Clause is not applied, the investment-decision maker shall decide to apply the form of single-project PMB or the investor shall manage the project by itself or engage a project management consultant to do it.
2. For a project funded by state capital other than public investment capital or other funds, the investment-decision maker shall select the project management form specified in Clause 1, Article 62 of the Construction Law 2014, amended in Clause 19, Article 1. Law No. 62/2020/QH14, in accordance with management requirements and project specific conditions.
3. With regard to projects funded by ODA or concessional loans granted by foreign donors, organizations in charge of CPM shall comply with regulations of international agreements on ODA or agreements with donors. If the international agreements on ODA or agreements with donors do not promulgate organizations in charge of CPM, it shall comply with this Decree.
4. For PPP projects, the project management form shall comply with the provisions at Points a, b, c and d, Clause 1, Article 62 of the Construction Law 2014, amended in Clause 19 of Article. 1 of Law No. 62/2020/QH14 in accordance with management requirements, project specific conditions and arrangements in the project contract.
According to this Article, there are currently 4 forms of construction investment project management in Vietnam as mentioned above.
Best Regards!
