Procedures for selection of consultant in inspection of project of national significance in Vietnam

Procedures for selection of consultant in inspection of project of national significance in Vietnam (Internet image)

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

1. Procedures for selection of consultant in inspection of project of national significance in Vietnam

Procedures for selection of consultant in inspection of project of national significance (PNS) according to Article 11 of Decree 29/2021/ND-CP are as follows:

- Selection of inspection consultant in special cases:

+ The interdisciplinary Appraisal Expert Group shall determine the consultancy contractor that has sufficient competence and experience to immediately render consultancy services and recommend such contractor to the Council's Chairperson to obtain his/her approval.

+ Within 15 days from the contract-awarding date, the interdisciplinary Appraisal Expert Group must complete the direct appointment procedure, including:

++ Prepare and send a draft agreement to the consultancy contractor under which requirements regarding extent and scope of work to be carried out, work schedule and work quality that must be met and equivalent value based on which the agreement is negotiated and finalized should be included;

++ Proceed to negotiate and complete that agreement;

++ Submit the result of selection of consultant in inspection of specific projects to the Council's Chairperson for his/her approval;

++ Prepare conclusion of the agreement with the selected consultant. The agreement is signed by three parties, including the representative of the Council, the project owner (investor or the authority assigned to prepare investment in projects) and the selected consultant.

- Other cases prescribed by the law on bidding.

2. Costs of appraisal and hire of inspection consultant for PNS conducted by the Council in Vietnam

Costs of appraisal and hire of inspection consultant for PNS conducted by the Council according to Article 12 of Decree 29/2021/ND-CP are as follows:

- Cost of inspection refers to the cost of hire of inspection consultant for PNS conducted by the Council.

- Cost of appraisal refers to costs used for assisting in appraisal of PNS conducted by the Council (exclusive of cost of inspection referred to in Clause 1 of this Article). Cost of appraisal shall include remuneration paid to the Council’s members and the interdisciplinary Appraisal Expert Group; cost of meeting, stationery supplies and site survey (if any), other relevant and cost contingency.

- Cost of inspection and appraisal of PNS shall be determined as follows:

+ Maximum cost of inspection of pre-feasibility study report equals to the maximum cost of inspection of feasibility study report;

+ Cost of appraisal equals 20% of the abovementioned maximum cost of inspection. If the maximum cost of inspection is not available and it is required to make an estimate of inspection cost as prescribed in Point c Clause 3 of Article 12 of Decree 29/2021/ND-CP, an estimate of corresponding appraisal cost shall be made.

+ The maximum cost of inspection of feasibility study report shall comply with regulations of law on construction. In the case where a foreign consultant or domestic-foreign joint venture is hired or the maximum cost is not available, it is required to make a cost estimate, including:

++ Cost of hiring experts: salary paid to consulting experts during the inspection and appraisal;

++ Other costs: costs of serving and supporting activities of consultancy contractor during the period of providing inspection consulting services such as travel cost (abroad and domestic), cost of hiring office and office equipment, operating cost, communication cost, accommodation cost for consulting experts, professional liability insurance premiums (if any) and other costs;

++ Taxes: taxes payable by the inspection consultancy contractor as prescribed by Vietnam’s law;

++ Cost contingency: contingency for additional work load and cost escalation during the period when the inspection consultancy contractor performs its duties.

- Cost of appraisal and hire of consultant in inspection of PNS shall be included in the total investment and paid by project owners, investors or authorities assigned to prepare investment in such projects at the request of the Council, which ensures that any requirement regarding appraisal and inspection progress is met according to the stipulated plan.

Project owners, investors or authorities assigned to prepare investment shall be liable for paying cost of inspection to inspection consultants as agreed upon in the signed agreement after receiving opinions from the Council.

- Where necessary, the Council shall request project owners, investors or authorities assigned to prepare investment to make, appraise and approve the estimate of costs of hiring inspection consultant.

In the case where the project owners, investors or authorities assigned to prepare investment fail to have sufficient competence and experience to carry out appraisal, consultancies that have sufficient competence and experience as prescribed may be hired to carry out inspection prior to approval.

- The Council shall allow the Council members and the interdisciplinary Appraisal Expert Group to autonomously take control of their spending and other relevant costs with a view to assuring the Council's appraisal activities.

- Inspection consultants shall be responsible to the Council, project owners, investors or authorities assigned to prepare investment and to the law for inspection results.

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