Penalties for violation of regulations on construction commencement in Vietnam

Penalties for violation of regulations on construction commencement in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Violation of regulations on construction commencement in Vietnam

Violation of regulations on construction commencement according to Article 15 of Decree 16/2022/ND-CP is as follows:

(1) A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed on:

- Failing to submit notice on commencement date (together with copies of construction permit, construction design dossiers) to local construction authorities where the structure is built and construction agencies as per the law;

- Failing to notify local construction authorities in a timely fashion about the commencement date or failing to attach construction design dossiers with the notice for cases where construction permit is not required;

- Failing to submit reports that contain all of the following information to construction agencies: name, address, name of structure, construction location, construction scale, expected progress after commencement or failing to submit commencement notice using the right form.

(2) A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed on commencing construction without (except for commencing construction of detached houses):

- Construction premise for total or partial transfer depending on project progress;

- Construction contract signed by project developers and the contractors;

- Safety and environmental protection measures for construction process.

(3) A fine ranging from VND 60.000.000 to VND 80.000.000 shall be imposed on commencing construction without the approved construction drawing of the structure or work items.

(4) Commencement of construction without construction permit will be met with penalties in accordance with Clause 7 Article 16 of Decree 16/2022/ND-CP.

(5) Remedial measures:

- Mandated transfer of construction premises depending on project progress for violations under Point a Clause 2 of Article 15 of Decree 16/2022/ND-CP;

- Mandated signing of construction contracts between project developers and contractors for violations under Point b Clause 2 of Article 15 of Decree 16/2022/ND-CP;

- Mandated adoption of safety and environmental protection measures during construction process for violations under Point c Clause 2 of Article 15 of Decree 16/2022/ND-CP.

Note: The above fine level applies to violating organizations, if individuals commit similar violations, the fine level is equal to ½ according to point c, clause 3, Article 4 of Decree 16/2022/ND-CP.

2. Conditions for commencement of construction of works in Vietnam

Conditions for commencement of construction of works according to Article 107 of the Construction Law 2014 (amended 2020) are as follows:

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

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

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

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

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

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

+ 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.

- The commencement of construction of separate houses must meet only the condition prescribed at Point b, Clause 1 of Article 107 of the Construction Law 2014.

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