What are the fines for bringing construction into use without organizing commission in Vietnam?

What are the fines for bringing construction into use without organizing commission in Vietnam?

Pursuant to Article 18 of the Decree 16/2022/NĐ-CP stipulating violation of regulation on construction commissioning in Vietnam as follows:

1. A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed on:

a) Failing to commission in the right procedures as per the law;

b) Failing to request construction agencies to examine the commissioning affairs as per the law.

2. A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed on bringing structural components, work items, or construction into use without organizing commission as per the law.

3. A fine ranging from VND 100.000.000 to VND 120.000.000 shall be imposed on:

a) Commissioning workload which have not been implemented or workload which is greater than the workload which has been implemented for construction utilizing public investment, non-public investment state capital, public-private partnership projects;

b) Failing to guarantee quality of structure which has been commissioned.

4. Remedial measures:

a) Mandated submission of request of project developers to competent authorities for inspection of commissioning affairs within 10 days from the date on which decisions imposing penalties for administrative violations for violations under Point b Clause 1 of this Article;

b) Mandated organization of commissioning of structural components and work items brought into use for within 1 to 3 months for violations under Clause 2 of this Article;

c) Mandated organization of commissioning for actual workload implemented and recall of the incorrectly commissioned or paid amount of money to accounts of project developers for violations under Point a Clause 3 of this Article;

d) Mandated rectification of structure quality as per the law for violations under Point b Clause 3 of this Article.

Pursuant to Clause 3 Article 4 of the Decree 16/2022/NĐ-CP stipulating the maximum fine as follows:

3. In this Decree, the maximum fine is regulated as follows:

a) VND 1.000.000.000 for construction and real estate trading;

b) VND 300.000.000 for construction material production, technical infrastructure management, and housing development and management;

c) Fines mentioned under this Decree apply to organizations (except for fines under Point a, Point b, and Point c Clause 1 Article 24; Point a, Point b, and Point c Clause 1 Article 59, Point a Clause 3 Article 64, Article 65, Clause 1 (except for Point e) Article 70 of this Decree which apply to individuals). Fine imposed on an individual shall equal half of that imposed on an organization for the same violation.

As regulations above, when an organization bring a construction into use without organizing commission, it shall be fined from VND 80.000.000 to VND 100.000.000. In addition, it is also forced to organize commissioning of structural components and work items brought into use for within 1 to 3 months.

Violators being individuals shall be fined from VND 40.000.000 to VND 50.000.000.

Are investors permissible to authorize other persons to sign in the construction commissioning report in Vietnam?

Pursuant to Clause 7 Article 23 of the Decree 06/2021/NĐ-CP stipulating signatories of the construction commissioning report as follows:

a) Legal representative of the investor or the authorized person;

b) Legal representative of the construction supervision contractor or the chief supervisor;

c) Legal representative, construction foreman or project director of the main construction contractor or the general contractor (under the general contract); In case the contractor is a consortium, the legal representative, construction foreman or project director of each consortium member;

d) Legal representative and design manager of the contractor that will be signatories at the request of the investor;

dd) Legal representative of the authority having competence in signing the project contract or an authorized person under the public-private partnership contract.

As regulations above, investors are allowed to authorize an eligible person to sign in the construction commissioning report.

What are regulations on delivery of construction works or projects in Vietnam?

Pursuant to Article 27 of the Decree 06/2021/NĐ-CP stipulating delivery of construction works or projects in Vietnam as follows:

1. The delivery of construction works and projects shall be subject to regulations laid down in Article 124 of the Law No. 50/2014/QH13, which is amended and supplemented in clause 46 of Article 1 in the Law No. 62/2020/QH14.

2. Depending on the specific conditions of each construction work, each completed project constituent or each construction item that is completed and tested according to regulations can be delivered and put into operation at the request of the investor or the operator.

3. Investors shall undertake the preparation of 01 set of documents serving the purposes of management, operation and maintenance of construction works or projects in accordance with the provisions of Appendix IX of this Decree, and delivery thereof to owners or managers or users thereof during the process of such delivery. Owners or managers or users of construction works shall be responsible for retaining and archiving delivery documentation during the process of operation and use of such construction works.

4. In case of partially putting construction works into operation or in use, investors shall undertake the preparation of construction completion documentation, the preparation and handover of documentation serving the purposes of management, operation and maintenance of the part of construction work to be put to use.

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