Forms of management for construction investment projects in Vietnam from December 30, 2024

Forms of management for construction investment projects in Vietnam from December 30, 2024​ (Image from the Internet)

On December 30, 2024, the Government of Vietnam issued Decree 175/2024/ND-CP to guide Law on Construction 2014 (amended in 2020) on managing construction activities.

Forms of management for construction investment projects in Vietnam from December 30, 2024​

The specific forms of managing construction investment projects are stipulated in Article 24 of Decree 175/2024/ND-CP as follows:

- For projects utilizing public investment capital, the investment decision-maker selects the form of project management stipulated in Clause 2, Article 62 of Law on Construction 2014 (as amended by Clause 19, Article 1 of the amended Law on Construction 2020). To be specific:

“Article 1. Amending and supplementing certain articles of the Construction Law

...

19. Amend and supplement Article 62 as follows:

“Article 62. Forms of organizing construction investment project management

...

2. Specialized construction investment project management boards, regional construction investment project management boards are applied for projects utilizing public investment capital when the decision-maker delegates simultaneous or continuous management implementation of projects belonging to the same specialty or in the same geographic area.”

+ The investment decision-maker decides to apply the form of specialized construction investment project management boards, regional construction investment project management boards (hereinafter referred to as specialized project management boards, regional project management boards) based on the number, implementation progress of projects within the same specialty, on the same route, within an administrative area or upon the financing body's request or when delegating the specialized project management board, regional project management board to act as the project owner;

+ In cases where the project management form as per point a, clause 1, Article 24 of Decree 175/2024/ND-CP is not applicable, the investment decision-maker decides to apply the form of a single project construction investment management board or have the project owner organize project management or hire a project management consultancy.

- For projects utilizing state capital outside of public investment or other capital, the investment decision-maker determines the form of project management as stipulated in Clause 1, Article 62 of Law on Construction 2014 (amended by Clause 19, Article 1 of the amended Law on Construction 2020), suitable to the management requirements and specific conditions of the project.

“Article 1. Amending and supplementing certain articles of the Construction Law

...

19. Amend and supplement Article 62 as follows:

“Article 62. Forms of organizing construction investment project management

1. Based on the scale, nature, source of capital used, and conditions for implementing construction investment projects, the investment decision-maker decides on one of the following forms of project management organization:

a) Specialized construction investment project management boards, regional construction investment project management boards;

b) Single project construction investment management board;

c) The project owner using its specialized subsidiary apparatus;

d) A project management consultancy organization.”

- For projects using ODA funds, concessional loans from foreign donors, the form of project management organization is applied according to the agreement document on ODA, concessional loans; in cases where there is no specific provision, the form of project management organization is implemented according to the regulations of Decree 175/2024/ND-CP.

- For PPP projects, the form of project management is implemented according to points a, b, c, and d of Clause 1, Article 62 of Law on Construction 2014 (amended by Clause 19, Article 1 of the amended Law on Construction 2020 in accordance with the management requirements, specific conditions of the project and the agreements in the project contract.

- The Minister of National Defense, Minister of Public Security stipulates the competency conditions of the project management director, individuals assigned specific professional responsibilities, and working relationships suitable for the unique management requirements of the sector concerning construction investment projects serving defense and security.

For more details, refer to Decree 175/2024/ND-CP effective from December 30, 2024.

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