What are penalties for contractors engaging in construction work that do not meet construction eligibility in Vietnam?

What are penalties for contractors engaging in construction work that do not meet construction eligibility in Vietnam? What are penalties for violation of details of bid or contracts in Vietnam? 

When I inspect, I find that the contractors engaging in construction work is not qualified construction eligibility, will he be fined?

1. What are penalties for contractors engaging in construction work that do not meet construction eligibility in Vietnam?

Pursuant to Clause 2, Article 24 of Decree No. 16/2022/ND-CP stipulating violation of regulation on construction eligibility as follows:

2. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed on organizations engaging in construction work which:

a) Assign individuals who lack the appropriate license of operation or eligibility to work on certain type, level of construction;

b) Engage in construction work without the appropriate eligibility as per the law;

c) Engage in construction work without valid certificate of eligibility as per the law.

In addition, in Clause 4, Article 24 of Decree No. 16/2022/ND-CP, additional forms of penalty as follows:

a) Suspension of construction work for 3 to 6 months for violations under Point b Clause 2 of this Article;

Thus, construction contractors that do not meet the eligibility requirements will be fined from VND 30,000,000 to VND 50,000,000, and suspended of construction work for 3 to 6 months for violations.

2. What are penalties for violation of details of bid or contracts in Vietnam? 

Pursuant to Article 25 of Decree 16/2022/ND-CP stipulating violation of details of bid or contracts in Vietnam as follows:

1. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed on contractors who fail to adequately comply with the bid or contracts.

2. Remedial measures: Mandated compliance with the bid or contracts for violations under Clause 1 of this Article if the contract is being implemented.

In the above case, when inspecting and detecting that the construction contractors engage in construction work without the appropriate eligibility, the construction contractors will be fined from VND 30,000,000 to VND 50,000,000, suspended of construction work for 3 to 6 months for violations in Vietnam.

Best Regards!

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