New Points Regarding Construction Project Investment Management According to the 2014 Construction Law

The Amended Construction Law was passed by the 13th National Assembly at its 7th session on June 18, 2014, and took effect from January 1, 2015. The 2014 Construction Law consists of 10 chapters and 168 articles, increasing by 1 chapter and 45 articles compared to the 2003 Construction Law. It addresses existing limitations and includes many new points that are more appropriate compared to the current Law.

Regarding the new points related to the management of construction investment projects in the Construction Law 2014 compared to the current Law, within the provincial level and for construction investment projects using state budget funds, the detailed comparison can be found as follows:

1. Regarding the authority to decide on investment in construction projects.

According to the current regulations, the Chairpersons of People's Committees at all levels decide on the investment of projects in groups A, B, and C within the scope and budget balance capability of the locality after being approved by the People's Council at the same level. Meanwhile, according to the Construction Law 2014, the authority to decide on investment in construction projects is carried out according to the provisions of the law on public investment.

2. Regarding the authority to appraise construction investment projects.

According to the current regulations, the provincial People's Committee organizes the appraisal of the project that it decides to invest in, with the Department of Planning and Investment acting as the coordinating body for project appraisal. The district and commune People's Committees organize the appraisal of projects that they decide to invest in, with the unit responsible for managing budget planning under the investor serving as the coordinating body for project appraisal.

According to the Construction Law 2014, for projects using state budget funds, specialized construction agencies according to the division level (including the Departments of Construction, Transportation, Agriculture and Rural Development, Industry and Trade, and the units with construction management functions under district-level People's Committees) are responsible for leading the organization and appraisal of project contents.

3. Regarding the authority to approve designs and construction estimates.

According to current regulations, the decision-making investor approves the construction investment project along with the basic design. Subsequent design steps after the basic design are organized and appraised by the investor and approved along with the estimate.

However, according to the Construction Law 2014, the decision-making investor approves technical designs and construction estimates in the case of three-step designs; approves construction drawing designs and construction estimates in the case of two-step designs based on the results of appraisal by specialized construction agencies. The investor approves the construction drawing design in the case of three-step design.

4. Regarding the Investor, Project Management Board, and project management forms.

- According to current regulations, for projects using state budget funds where investment is decided by the Chairpersons of People's Committees at all levels, the investor is the unit managing and using the project. Conversely, according to the Construction Law 2014, the investor is the agency or organization assigned by the decision-making investor to manage and use the funds for construction investment.

- Previously, the Project Management Board was established by the investor to assist in project management coordination in the case where the investor directly manages the project. According to the Construction Law 2014, the Chairpersons of provincial-level and district-level People's Committees decide to establish specialized construction investment project management boards, regional construction investment project management boards to manage a number of projects within the same specialty or locality. These specialized and regional construction investment project management boards are assigned to act as the investor for several projects and perform project management functions and tasks.

- According to current regulations, there are two forms of project management: the investor directly manages the project or hires a project management consultant. The Construction Law 2014 stipulates that for projects using state budget funds, the specialized construction investment project management board and the regional construction investment project management board directly manage the project. Hiring a project management consultant is only applicable to projects using other state funds outside the budget, other funds, and projects of special, single nature.

5. Regarding construction activity capacity.

Construction Law 2014 has added the following positions that require a practicing certificate for construction activities as per the regulations: occupational safety, project management director, individuals directly participating in project management, construction inspection, and site commander.

Additionally, individuals granted a construction activity practicing certificate must not only meet the requirements regarding professional qualifications and experience as previously regulated but also pass an examination assessing professional experience and legal knowledge related to the field of practice.

Source: Quang Ngai Province Electronic Information Portal

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