New regulations on project management boards for investment in construction projects in Vietnam from December 30, 2024

New regulations on project management boards for investment in construction 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 guiding the Law on Construction 2014 (amended in 2020) on the management of construction activities.

New regulations on project management boards for investment in construction projects in Vietnam from December 30, 2024

According to Article 26 of Decree 175/2024/ND-CP, the project management board for the construction investment of a project is regulated as follows:

- For construction investment projects not specified in point a of clause 1 Article 24 of Decree 175/2024/ND-CP:

“Article 24. Forms of Management for Construction Investment Projects

1. For projects using public investment capital, the investment decision-maker selects the form of project management specified in clause 2 Article 62 of the Law on Construction 2014, amended and supplemented by clause 19 Article 1 of Law 62/2020/QH14. To be specific:

a) The investment decision-maker decides to apply the form of sectoral project management board, regional project management board (hereinafter referred to as specialized project management board, regional project management board) based on the number, schedule of projects of the same sector, the same route, in an administrative area or as required by the capital sponsor or when assigning the sectoral project management board, regional project management board as the investor;”

Or projects with specific, unique characteristics, as per the content of the construction investment project approval decision, the Investor establishes the project management board for the construction investment of a project to organize and manage one or several construction investment projects under its management authority.

- The project management board for the construction investment of a project is an organization under the investor, with its seal and can open an account at the state treasury or commercial banks as per legal regulations to perform the project management tasks assigned by the investor; responsible before the law and the investor for its project management activities.

- The project management director of the project management board for the construction investment of a project must meet the competency conditions specified in Article 85 of Decree 175/2024/ND-CP:

“Article 85. Professional Experience Requirements for Issuing Construction Investment Project Management Practice Certificates

An individual is considered for issuance of a construction investment project management practice certificate when meeting the general conditions specified in Article 79 of this Decree and the corresponding professional experience conditions for the levels of practice certificates as follows:

1. Level I: Has acted as project management director for 01 group A project or 02 group B projects.

2. Level II: Has acted as project management director for 01 group B project or 02 group C projects.

3. Level III: Has participated in managing 01 project from group C or higher.”

Individuals assigned professional field responsibilities of the project must ensure conditions as per regulations in point c clause 5 Article 25 of Decree 175/2024/ND-CP, as follows:

“Article 25. Organization and Activities of the Specialized Project Management Board, Regional Project Management Board

...

5. The specialized project management board, regional project management board are organized in accordance with the functions, tasks assigned, the number, scale of projects to be managed, and include the following main departments:

...

c) Individuals assigned charge of the professional field of the project must hold a practice certificate with a level appropriate to the project group, construction grade and task handled, specifically: for the field related to the scope and work plan, work volume, construction quality, work schedule, safety in construction and environmental protection in construction must hold a practice certificate in project management or construction supervision; the professional field regarding construction investment costs and risk management must hold a practice certificate in construction valuation.”

- The investor stipulates the functions, tasks, powers, and organizational structure of the project management board for the construction investment of a project according to the provisions in clause 2 Article 64 of the Law on Construction 2014:

“Article 64. Project Management Board for the Construction Investment of One Project

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2. The project management board for the construction investment of one project has a seal, account, and performs tasks, powers as authorized by the investor. The organizational structure of the project management board includes a Director, Deputy Director, and specialized staff, depending on the requirements, characteristics of the project. Members of the project management board work according to dedicated policies or part-time as decided by the investor.”

- The project management board for the construction investment of one project as decreed will self-dissolve upon completion of project management work.

Further details on Decree 175/2024/ND-CP effective from December 30, 2024.

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