Current law has regulations on the legal framework of the real estate market. Legal procedures need to be carried out in accordance with the law to ensure the legality of any construction investment project.
1. Construction investment project
1.1. What is a construction investment project?
According to the provisions of Clause 15, Article 3 of the Construction Law 2014 , a construction investment project is a collection of proposals related to the use of capital to conduct construction activities for new construction, repair , renovating construction works to develop, maintain and improve the quality of works or products and services within a specified time and cost. At the stage of preparing a construction investment project, the project is expressed through a Construction Investment Pre-feasibility Study Report, Construction Investment Feasibility Study Report or Investment Economic-Technical Report. construction investment .
In particular, construction activities will include work as prescribed in Clause 21, Article 3 of the 2014 Construction Law, including:
- Prepare construction planning
- Establishing construction investment projects
- Construction survey
- Design and construction
- Construction
- Construction supervision
- Project management
- Contractor selection
- Acceptance of construction works and handover to put the project into operation and use, warranty and maintenance of construction works
- Other activities related to construction
1.2. Types of construction investment projects
Currently, there are many different construction investment projects depending on each classification criteria and regulations for each group of construction projects, which also have processes, procedures, and implementation methods. , managed… separately.
In particular, the classification of construction investment projects is basically determined according to the provisions of Article 5 of Decree 15/2021/ND-CP.
See more : Classification of construction investment projects according to regulations .
1.3. Procedure for implementing construction investment projects
According to the provisions of Clause 1, Article 50 of the Construction Law 2014, the construction investment sequence includes 3 stages:
1.3.1. Prepare construction investment projects
The contents of construction investment projects in the preparation phase include:
– Construction survey;
– Prepare, appraise, pre-feasibility study report, decide or approve investment policy (if any);
– Prepare, appraise and approve detailed construction planning to serve the preparation of Construction Investment Feasibility Study Report;
– Prepare and appraise Feasibility Study Report to approve/decide on construction investment;
– Perform other necessary work related to project preparation
Specifically, tasks include: applying for investment policies, planning, land allocation, land lease and site clearance:
* Process and procedures for applying for investment in construction projects:
The process of applying for investment policy approval will need to be carried out as follows:
– Research scale, market, search for land sources, information on land recovery and conversion of land use purpose, make investment plans and agree on location to implement project planning.
– Please approve the investment policy and investment approval document of the People’s Committee of the province or city.
See more : Order and procedures for applying for investment policy approval from the Provincial People’s Committee.
* Investment project planning order and process
For projects that have been approved for investment, the process will depend on the type of project that has or has not been planned.
See the flow chart of construction investment project planning for planned projects and projects without detailed planning:
Note : The planning certificate has been abolished since January 1, 2019 (according to the provisions of Clause 15, Article 29 of the Law amending and supplementing a number of Articles of 37 Laws related to planning 2018)
* Procedures for land allocation, land lease, and site clearance
After completing the application for approval of the investment policy and detailed project planning, it will be necessary to carry out the process of land allocation, land lease and project land clearance in the following diagram order:
1.3.2. Implement construction investment projects
1.3.2. Implement construction investment projectsAt this stage, the contents of construction investment projects that need to be implemented are:
– Prepare construction sites and clear bombs and mines (if any);
– Construction survey;
– Prepare, appraise and approve designs and construction estimates;
– Issuing construction permits (for projects that are required to have a construction permit);
– Selecting contractors and signing construction contracts;
– Construction works; construction supervision; advance payment, payment for completed volume; operation and test run; Acceptance of completed construction works; Handing over the project to use and other necessary work ;
The construction phase of the project includes:
– Select construction and supervision contractors
– Carry out construction, during the construction process, you can request to adjust the construction investment project in accordance with reality.
– Acceptance of completed construction works and handover of completed works, operation, test run and other necessary work;
1.3.3. Construction completed and put into use
The basic content of an investment project in the closing phase includes the following tasks that need to be performed:
- Completion of construction projects
- Settlement and audit of capital construction investment projects
- Certificate of project ownership
- Warranty for construction works and putting them into use
Depending on specific conditions, the requirements for a technical construction investment project can be implemented in the correct order or simultaneously combine the work contents of the stages of construction investment project preparation. build.
1.4. Process and content of preparing investment reports for construction projects
Each stage of implementing a construction investment project will have a lot of work, including key work that is carefully regulated about the project investment process (sequence, procedures). specifically.
The issue of preparing a report and establishing an investment project is an important initial step that determines the issue of applying for a construction permit for a construction investment project, although it is only a content in the preparation phase. According to regulations, establishing construction investment projects is an important content of implementing construction investment projects in the preparation phase. According to regulations, the way to prepare a construction investment project will depend on the specific type of project to prepare the types of reports.
Sequence and procedures for preparing construction investment reports and applying for investment permits
Nationally important construction investment projects, according to regulations, must prepare a construction investment report and submit it to the National Assembly for approval and investment licensing;
* Content of Project Construction Investment Report
– Necessity of construction investment projects, advantages, disadvantages…
– Expected scale: capacity, area, main and auxiliary construction items, etc.
– Preliminary basic analysis of technology, engineering, infrastructure, site plans, resettlement, fire prevention, labor safety, etc.
– Investment form: capital and capital mobilization plan, term, progress, phasing…
* Procedures for applying for investment and construction permits
– Investor: submits the Construction Investment Report to the Ministry of Industry Management to get opinions from relevant units and the Ministry of Industry synthesizes and proposes opinions to the Prime Minister.
– Time limit for comments:
- 5 working days from the date of receiving the construction investment report, the sector-managing ministry must send a document to seek opinions from relevant local ministries.
- Within 30 working days from the date of receiving the request, the consulted agency must provide a written response on the contents within the scope of its management.
- 7 days after receiving the written response according to the above deadline, the sector-managing Ministry must prepare a report to submit to the Prime Minister.
– Report to the Prime Minister: summary of report content, opinions of relevant ministries and branches, proposed opinions with original opinion documents.
Order and procedures for establishing construction investment projects
When must a construction investment project be established? According to regulations, group A construction investment projects must establish projects to clarify the need for investment and the effectiveness of construction investment regardless of investment capital. The content of creating a construction investment project includes two parts: project explanation and basic design.
* Content of the explanation of the construction investment project
– Necessity of project investment (basis for establishing a construction investment project in terms of legal, economic – technical, market demand, development ability…), investment objectives, market assessment , construction investment form, location, land use needs…
– Description of the scale, construction area, and construction items
– Provide project implementation solutions: site clearance, resettlement, architectural design for the project, project exploitation, labor use, progress, phasing, project management form construction investment project.
– There is an environmental impact assessment report, fire and explosion prevention and control solutions and security and defense requirements.
– Total investment of the project: capital source, capital mobilization, capital repayment plan for projects that need capital recovery, financial targets, project efficiency assessment…
* Basic design content of the project
– Main design solutions, ensuring sufficient conditions to determine total investment and implementation.
– Project basic design explanation: summary of design tasks, technology explanation, construction. Explanations can be presented separately or together with the project design.
Some basic contents of project investment reports
Procedures for preparing an economic-technical report on investment
According to regulations, for small-scale construction projects with simple techniques (where the sample design and foundation treatment are not complicated, it is only necessary to prepare an Economic – Technical Report on investment ( referred to as Investment Report for short). Projects subject to only making investment reports according to regulations include:
- Construction works are individual houses of people;
- Construction works for religious purposes;
- Projects to renovate, repair, upgrade and build new agency headquarters with a total investment of less than 3 billion VND;
- Construction, repair, maintenance and repair projects of non-business capital and projects of industries that have sample designs and technical standards approved by the industry management ministry on the basis of compliance compatible with industry planning, regional planning or medium and long-term plans with investment capital of less than 3 billion VND;
- Construction investment projects using capital from the state budget for social infrastructure have a total investment of less than 7 billion VND. These projects must not be for business purposes, be consistent with socio-economic and construction planning, have investment policies or be arranged in the annual investment plan.
* Content of construction project investment report
Legal documents for construction investment projects that need to be prepared when selling construction project investment reports include:
– Legal basis and investment necessity
– Project name and investment form (new construction investment project, renovation, expansion, maintenance project)
– Investor: clearly state the name of the agency, unit and individual
– Location and premises: ward (road, street)/commune, district/district, city/province
– Amount of work
– Investment capital and capital sources
– Construction start and completion time
In addition, for investment projects to build factories… serving production and business, it is necessary to add the following contents to the investment report:
– Products, (services) and capacity scale.
– Equipment (specify value and source of supply).
– Sources of raw materials and supplies.
– Debt repayment ability (if there is loan capital) and payback period.
– Environmental protection measures (if there is a project that has a negative impact on the environment).
In addition, for construction investment projects under 100 million VND, it is not necessary to fully implement the investment report contents.
1.5. Construction investment project costs
Costs of establishing construction investment projects
Costs for establishing construction investment projects according to regulations Section I Part II Decision 79/QD-BXD 2017 announcing the cost norms for construction investment project management and consulting issued by the Minister of Construction issued will include the following costs:
+ Consulting costs for setting up construction investment projects: used to determine the cost of consulting work in the total construction investment, construction estimate and is the basis for determining the appropriate consulting package price. consistent with the procedure for establishing construction investment projects. The consulting contract price is determined on the basis of the results of selecting a consulting contractor in accordance with the provisions of law on bidding.
+ Project investment consulting costs: Fees paid to people directly performing consulting and management work of the consulting organization, other costs (buying professional liability insurance), calculated taxable income before but excluding VAT.
- Consulting costs are determined by project level according to regulations on construction classification
- Consulting costs are determined on the basis of a percentage (%) corresponding to the scale of construction costs, scale of equipment costs or scale of construction costs and equipment costs.
Cost of appraisal of construction investment projects
Pursuant to Decree No. 59/2015/ND-CP and Decree No. 11/2013/ND-CP, the investor of a construction project, when appraised by a competent professional agency, shall conduct a project appraisal. Construction investment and basic design appraisal will require payment of a construction investment project appraisal fee. Prices and fees for appraisal of construction investment projects (fees for appraisal of construction investment projects) according to regulations will be collected according to the Fee Schedule issued with Circular 209/2016/TT-BTC and must not exceed 150,000,000 (One hundred and fifty million) VND/project.
Current fee schedule for appraisal of construction investment projects
The basis for determining the amount of construction investment project appraisal costs receivable is the total investment approved by the competent authority and the collection level, specifically as follows:
Construction investment project appraisal fee = Total approved investment x Fee level
Construction project management costs
According to the provisions of Decree 68/2019/ND-CP on project cost management, construction project management costs are determined at Point d, Clause 4, Article 4 including:
“The costs to organize and carry out project management work from the project preparation stage, project implementation and completion of construction to put the project’s works into exploitation and use. For investment projects in the form of public-private partnership (PPP), project management costs include project management costs of competent state agencies, operating costs of project management units under state agency competent to implement the project and project management costs of the investor;”
2. Construction investment project management board
2.1. What is a construction investment project management board?
What is the concept of construction investment project management board? Project management board or construction investment project management board as prescribed in Article 7 of Circular 16/2016/TT-BXD guiding the implementation of Decree 59/2015/ND-CP on organizational form When managing construction investment projects, this is a public service organization, operating according to the principle of self-funding as prescribed in Clause 4, Article 3 of Circular 16/2016/TT-BXD and established by the decision of Ministers, heads of ministerial-level agencies, and Chairman of People’s Committees at provincial and district levels.
Currently, according to the provisions of Article 63 of LXD 2014, investment project management boards will be divided into the following types:
- Specialized construction investment project management board
- Regional construction investment project management board
In particular, every management board has basic parts including:
- Board of directors of construction investment project management board
- Construction investment project management directors
- Other construction investment project management departments
2.2. Duties of construction investment project management board
According to regulations, the project management board is established to:
- Assigned to be the investor of a number of projects
- Perform project management functions and tasks, participate in project management consulting when necessary.
Pursuant to the provisions of the law on construction investment project management in Clause 3, Article 63 of the Construction Law 2014, regulations on responsibilities, rights and obligations of regional and specialized construction investment project management boards include:
- Implement the rights and obligations of the investor according to the provisions of Article 68 of this Law, directly manage projects assigned by the investment decider and exercise the rights and obligations as prescribed in Article 69 of this Law. Construction law;
- Handing over the project to agencies and units for management, operation, exploitation and use; In case of necessity, assigned by the investment decision maker, they will directly manage, operate, exploit and use the project.
- Provide project management consulting for other projects upon request and exercise rights and obligations as prescribed in Article 70 of LXD 2014.
2.3. Authority and how to establish a construction investment project management board
Clause 1, Article 63 of the Construction Law stipulates the authority to establish a construction project management board including:
– Heads of ministerial-level agencies establish specialized and regional project management boards appropriate to the specialties in the field of management or according to the requirements for building facilities and infrastructure in the regions. , area.
– The Chairman of the People’s Committee of the province/centrally-run city establishes the following Committees to carry out the management of construction investment projects (under the management of the Provincial level) in the province including:
- Investment project management board for construction of civil and industrial works;
- Management board of investment projects for construction of traffic works;
- Management board of investment projects for construction of agricultural and rural development projects;
- Urban infrastructure and industrial park investment project management board, Urban development project management board (Only applicable to centrally run cities).
– Chairman of the District People’s Committee established: Construction investment project management board with the role of investor and project manager at the district/district level of construction investment.
Depending on the objectives, nature, scale of the project, construction items, and place of project implementation, determine the person competent to establish a construction investment project management board.
* Note: Cases where it is necessary to hire a regional or specialized project management board and select a unit with experience and qualifications to manage construction investment projects include:
- Projects using State budget capital that the investment decider assigns an agency or organization to manage and use capital to invest in construction will be the Investor.
- The project uses State budget capital at the commune, ward, and town level, which is beyond the scope of allowing the Investor to self-perform project management.
2.4. Content of construction investment project management
Currently, the content of management and implementation of construction investment projects is prescribed in Article 66 of the Construction Law 2014 as follows:
– Manage scope, plan, and workload; quality management of construction investment projects; manage progress and extend construction investment projects;
– Management of construction investment costs;
– Safety management in construction; environmental protection in construction; contractor selection and construction contract; risk management of construction investment projects;
– Management of construction information systems, construction investment project management records and other necessary contents are implemented in accordance with the provisions of this Law and other relevant laws.
At the same time, the investor is responsible for implementing or assigning the Project Management Board, project management consultant, and general contractor (if any) to perform part or all of the construction investment project management content. according to regulations on investment project management content in Article 66 of the Construction Law.
Currently, there are many construction investment project management software that help manage orderly, effectively, quickly and completely.
Above is all the legal information on the process and procedures for establishing construction investment projects and project management regulations. Hopefully these shares will help readers get useful news and a comprehensive perspective when they want to carry out a specific construction investment project across the country and understand the process, order, and procedures. Implementation procedures and relevant regulations help complete construction investment project planning and implementation most effectively.
