Vietnam: Construction project phases

Decree No. 59/2015/NĐ-CP of Vietnam’ Government  specifies tasks of each stage of construction investment implementation as follows:

First, pre-construction includes:

- Formulation, appraisal and approval of Pre-feasibility study reports (if any);

- Formulation, appraisal and approval for feasibility study reports or Construction economic-technical reports to consider making construction investment decision;

- Performance of other necessary tasks related to pre-construction.

For projects of national importance, group A projects, the investor or the agency or organization assigned to prepare the project shall organize the preparation of a pre-feasibility study report to have a basis for considering and deciding on construction investment policies. For Group A projects (except for projects of national importance) that have approved planning, ensuring the contents of the preliminary design plan (construction site, design drawings, technological lines,...) in the pre-feasibility study report, the pre-feasibility study report is not required.

Regarding projects of national importance, The Prime Minister shall decide to establish the State appraisal council to appraise pre-feasibility study reports and feasibility study reports as prescribed in regulations of law.

Specialized construction agencies under the Ministry of Construction, the Ministry of specialized construction management; Department of Construction, Department of specialized construction management; the Division with the function of construction management under the district-level People's Committee, etc. has the authority to appraise construction investment projects funded by the state budget, construction investment projects using non-budget state capital, PPP projects and construction investment projects using other capital.

Second, construction includes:

- Land allocation or land lease (if any);

- Site investigation, demining (if any);

- Construction survey;

- Formulation, appraisal and approval for design and construction estimate; issuance of construction permits (if they are required);

- Selection of contractors and signing of construction contracts;

- Execution of constructions works;

- Supervision of work execution;

- Advances or payments of completed constructions works; constructions work acceptance;

- Transfer of completed construction works and putting into operation; operation, testing and performance of other tasks.

This is considered the most work-intensive phase. In particular, it is necessary to focus on the work of construction design and construction management.

Third, completion and inauguration of the project include:

- Termination of the construction contract;

- Construction work warranties.

Decree No. 59/2015/NĐ-CP of Vietnam’ Government specifies specific conditions of the project, the investment decider shall decide to perform sequentially or combine and alternate jobs in the project implementation phase and finish construction and put the work into operation.

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