What are conditions for construction of works in Vietnam? In what cases are contractors allowed to stop construction in Vietnam?

What are conditions for construction of works in Vietnam?

Can I ask what conditions are required when starting a construction project? Hope to receive an answer. Thank you!

Reply:

According to Article 107 of the 2014 Construction Law, amended by Clause 39, Article 1 of the 2020 Amended Construction Law, conditions for commencement of construction of works are specified as follows:

1. The commencement of construction of a work must satisfy the following conditions:

a) The construction grounds are available for entire or partial handover according to the construction schedule;

b) The construction permit has been granted for the work subject to the provisions of Article 89 of this Law;

c) The construction drawing design of the work item or the work to be constructed has been approved;

d) The project owner has signed a construction contract with the contractor performing construction activities related to the constructed work as prescribed by law;

dd) Measures have been developed to ensure safety and environmental protection in the course of construction;

e) The project owner has sent the written notification of the construction starting date to the local construction management agency at least 03 working days before the commencement of construction.

Starting construction of individual houses only needs to meet the conditions of having a construction permit for projects that are required to have a construction permit according to the provisions of Article 89 of the Construction Law 2014 in Vietnam.

What are conditions for construction of works in Vietnam? In what cases are contractors allowed to stop construction in Vietnam? (Image from the Internet)

In what cases are contractors allowed to stop construction in Vietnam?

I am a construction contractor. During the construction process, if the contractor violates or fails to comply with the contract, can the construction be stopped?

Reply:

Clause 1, Article 113 of the Construction Law 2014 regulates rights and obligations of construction contractors including:

1. Construction contractors have the following rights:

a/ To reject illegal requests;

b/. To propose construction design modifications to suit construction reality, ensuring quality and efficiency;

c/ To request payment for the value of completed construction volumes according to the contracts;

d/ To stop construction when there are threats of unsafety to people and works or the principals fail to strictly perform their contractual commitments;

dd/ To request compensations for damage caused due to faults of the principal;

e/ Other rights stated in the contracts and prescribed by relevant laws.

According to this Article, the contractor is allowed to stop construction when there is a risk of unsafety to people and the project or the contractor fails to comply with the commitments in the contract in Vietnam.

So, in your case, the contractor violates and fails to comply with the contract, then you as the contractor can stop the construction in Vietnam.

Does irregular construction work require business registration in Vietnam?

The company I want to do construction in the locality specializes in constructing houses for individuals. But in reality, very little happens in the company's operations. Customers are mainly individual businesses. Therefore, according to regulations, for professions that do not require business registration, joint business registration can be applied according to Clause f, Article 3 of Decree No. 39/2007/ND-CP stipulating (Independent, regular commercial activities do not require other business registration)? Because in the local reality, this construction industry does not need a business license? Please advise on this case.

Reply:

Pursuant to Clause 2, Article 1 of the Law on amendment and supplement to article 6 and annex 4 on the list of conditional business lines of the Investment Law 2016, construction service business is a conditional business line.

Thus, it is mandatory for your company to register this business and then apply for a license to carry out construction works in Vietnam.

According to Article 157 of the 2014 Construction Law, amended by Clause 56, Article 1 of the 2020 Amended Construction Law, the conditions on work construction organizations are stipulated as follows:

1. Having full work construction capabilities corresponding to types and grades of construction works.

2. Site chief commanders must have relevant qualifications and construction practice capabilities.

3. Having construction equipment meeting requirements on construction safety and quality.

Best regards!