LAW ON CONSTRUCTION

LAW ON CONSTRUCTION Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam as amended and added to by Resolution 51-2001-QH10 dated 25 December 2001 of Legislature X of the National Assembly at its 10th Session; This Law governs construction activities. Article 4 Fundamental principles in construction activities Organizations and individuals engaged in construction must comply with the following fundamental principles: Ensure that works are built in accordance with master plans and in accordance with the design of the works; ensure the beauty of construction works, protection of the environment and general landscape; ensure that works are built in conformity with natural conditions and the particular cultural and social conditions of each locality; and ensure that construction works combine socio-economic development with national defence and security; Ensure compliance with construction regulations and construction standards; Ensure quality, schedule and safety of construction works; ensure the lives and property of people; ensure fire fighting and prevention, explosion prevention; and ensure environmental hygiene; Ensure synchronous construction of each building works, and synchronous construction of technical infrastructure works; Ensure economy and efficiency, ensure that there is no waste of expenditure or loss and that there are no other negative elements in construction. Article 10 Conduct which is strictly prohibited in construction activities The following conduct is strictly prohibited in construction activities: Constructing works in areas in which construction is prohibited; constructing works which encroach on or illegally occupy safety corridors for traffic routes, irrigation works, dyke embankments, energy works, cultural or historical heritage sites and on areas which are protection corridors for other works in accordance with law; and constructing works in areas where there is a danger of landslide and flood, except for works the purpose of which is to overcome these dangers; Construction works contrary to master plans or in violation of construction boundaries and standard ground floor level of construction works; construction works without a construction permit where the law requires such permit, or works constructed incorrectly in terms of the provisions of an issued construction permit; A contractor engaging in construction activities which exceed its capability for construction practice or capability for construction activities; selection of a contractor to implement work when that contractor fails to satisfy the conditions on capability for construction practice or on capability for construction activities; Construction works which fail to comply with construction regulations and construction standards; Breaching regulations on safety of lives and property of persons and on environmental hygiene in construction; Building an extension encroaching on or illegally occupying public space, public areas, pathways or other expanses which are already the subject of approved and proclaimed construction master plans; Giving or receiving bribes in construction activities; making arrangements in tendering with an ulterior motive aimed at buying or selling a tender, aimed at collusion in a tender, or aimed at reducing a tender price below the cost of building the works the subject of the tender; Abuse of position or power to breach the laws on construction; condoning or concealment of conduct in breach of the laws on construction; Obstruction of lawful construction activities; Other conduct in breach of the laws on construction. Article 14 Conditions applicable to organizations and individuals designing construction master plans Organizations which design construction master plans must satisfy the following conditions: Be registered for the activity of design of construction master plans; Have full capability for the activity of design of construction master plans; Any individual undertaking the job of person in charge of drawings of a construction master plan or person in charge of design of a specialized part of such drawings must have full capability for construction practice and must have a practising certificate appropriate for each type of construction master planning. Any individual who independently practises design of construction master plans must satisfy the following conditions: Have full capability for practice of and a practising certificate for design of construction master plans; Be registered for the activity of design of construction master plans. The Government shall provide regulations on the scope of activity of design of construction master plans by individuals who independently practise design of construction master plans. Article 18 Amendment of regional construction master plans Regional construction master plans shall be amended in one of the following circumstances: There is a change in the master plan for overall socio-economic development of the region, in the master plan for development of a branch in the region, or in the strategy for national defence and security; There is a change in geographical, natural or socio-economic conditions or in population numbers. The authority to approve tasks of amending regional construction master plans and to approve amended regional construction master plans shall be provided for as follows: The Prime Minister of the Government shall approve tasks of amending regional construction master plans and shall approve amended regional construction master plans for key areas and for inter-provincial areas on the proposal of the Ministry of Construction after obtaining the opinion of relevant ministries, branches and people's committees. Provincial people's committees shall formulate tasks of amending and (sic) amended regional construction master plans within the administrative boundaries that they manage and shall submit them to the same level people's council for decision. Article 22 Amendment of general master plans for urban construction General master plans for urban construction shall be amended in one of the following circumstances: There is a change in direction of socio-economic development of the region; In order to attract investment from capital sources for urban construction and for other objectives which do not make a great change to the direction of urban development; There are fluctuations in geographical and natural conditions. The person authorized to approve tasks of master planning and general master planning for urban construction shall approve tasks of amending master planning and general master planning for urban construction after they have been amended. Article 26 Amendment of detailed master plans for urban construction Detailed master plans for urban construction shall be amended in one of the following circumstances: When the general master plan for urban construction is amended; When there is a requirement to encourage and attract investment. The person authorized to approve detailed master plans for urban construction shall approve amended detailed master plans for urban construction. When amending detailed master plans for urban construction as prescribed in clause 1(b) of this article, opinions must be obtained from citizens within the planning zone, and large changes may not be made to the structure of the general master plan for construction. Article 28 Tasks of master planning for construction in rural residential areas Provincial people's committees shall formulate tasks of master planning for construction in rural residential areas and shall submit them to the same level people's council to pass and to submit in turn to the district people's committee to approve. The contents of tasks of master planning for construction in rural residential areas shall comprise: Forecast scale of population increase in rural residential areas during each period; Organization of space for production establishments, small-scale industries and traditional craft villages in rural residential areas; Developmental direction of residential areas. Article 31 Amendment of master plans for construction in rural residential areas Master plans for construction in rural residential areas shall be amended in one of the following circumstances: There are amendments of the strategy for local socio-economic development; There are amendments of the regional construction master plan; There are fluctuations in geographical and natural conditions. District people's committees shall approve tasks of amendment of construction master plans and shall approve the construction master plans after they have been amended as applicable to rural residential areas within the administrative boundaries managed by such people's committee. Article 38 Conditions applicable to organizations and individuals formulating investment projects for construction of works Organizations and individuals organizing formulation of investment projects for construction of works must satisfy the following conditions: Be registered for the activity of formulation of investment projects for construction of works; Have capability for construction activities consistent with the work of formulating investment projects for construction of works; Have an individual who satisfies the conditions on capability to practise project formulation and who satisfies the demand of the investment project for construction of works to undertake the job of chief formulator of the project. Any individual participating in project formulation must have capability for practice appropriate for each type of investment project for construction of works. Any individual who independently practises formulation of investment projects for construction of works must satisfy the following conditions: Be registered for the activity of formulation of investment projects for construction of works; Have the capability to practise formulation of investment projects for construction of works. The Government shall provide regulations on the scope of activity of formulation of investment projects for construction of works by individuals who practise independently. Article 41 Rights and obligations of investors in construction of works throughout formulation of investment projects Investors in construction of works shall have the following rights throughout formulation of investment projects: To formulate themselves the investment project when they satisfy the conditions on capability to formulate an investment project for construction of works; To negotiate, sign and supervise implementation of the contract; To request the relevant organizations to provide information and data servicing formulation of the investment project for construction of works; To suspend implementation of or terminate a contract when a consultant which has contracted to formulate the project breaches that contract; (đ) Other rights in accordance with law. Investors in construction of works shall have the following obligations throughout formulation of investment projects: To hire a consultant to formulate the project when the investor lacks the capability to formulate the investment project for construction of works; To fix the contents of tasks of the investment project for construction of works; To provide information and data relating to the project to the consultant formulating the investment project; To organize check and acceptance, evaluation and approval of the investment project for construction of works in accordance with authority or by submission to the authorized level for evaluation and approval; (đ) To perform correctly the signed contract; To archive the file of the investment project for construction of works; To compensate for loss caused by using a consultant lacking capability to formulate the project, caused by provision of incorrect information, arising from an evaluation or check and acceptance which was incorrect in terms of the regulations, or arising from any other breach which was the fault of the investor; Other obligations in accordance with law. Article 42 Rights and obligations of consultants contracted to formulate investment projects for construction of works Consultants which are contracted to formulate investment projects for construction of works shall have the following rights: To request the investor to provide information and data relevant to formulation of the investment project for construction of works; To refuse to implement any unlawful requests from the investor; Other rights in accordance with law. Consultants which are contracted to formulate investment projects for construction of works shall have the following obligations: Only to accept work to formulate an investment project for construction of works which is appropriate in terms of the capability for construction activities of the consultant; To perform correctly the signed contract; To be liable for the quality of the investment project for construction of works which the consultant formulates; Not to disclose information and data which was relevant to the formulation of the investment project for construction of works implemented by the consultant without the consent of the other contracting party or of an authorized person; (đ) To compensate for loss caused by inappropriate use of information, data, construction regulations and standards or technical solutions, or arising from any other breach which was the fault of the consultant; Other obligations in accordance with law. Article 44 Rights and obligations of persons making investment decision for construction of works A person making an investment decision for construction of works shall have the following rights: Not to approve an investment project for construction of works which fails to satisfy its objectives and effectiveness; To suspend implementation of an approved investment project for construction of works or of a project which is preparing for implementation when he or she considers it necessary; To change or amend the objectives and contents of an investment project for construction of works; Other rights in accordance with law. A person making an investment decision for construction of works shall have the following obligations: To organize evaluation and approval of the investment project for construction of works; To inspect implementation of the investment project for construction of works; To be responsible before the law for the contents of his or her decision approving an investment project for construction of works, of his or her decision suspending implementation of a project, and of other decisions within his or her authority; Other obligations in accordance with law. Article 49 Conditions applicable to organizations undertaking construction survey Organizations undertaking construction survey must satisfy the following conditions: Be registered for the activity of construction survey; Have full capability for construction survey; Any surveying task must have a person in charge of construction survey who has full capability to practise construction survey and who has the appropriate practising certificate. The construction survey contractor shall appoint the person in charge of construction survey. Individuals participating in each construction surveying work must have expertise appropriate for the work assigned to them; Machinery and equipment servicing construction survey must satisfy the requirements on quality, must ensure the safety of surveying work and must ensure protection of the environment. Laboratories servicing construction survey must satisfy the stipulated standards and must be recognized by the State administrative body for construction. Article 50 Rights and obligations of investors in construction of works during construction survey Investors in construction of works shall have the following rights during construction survey: To carry out themselves the construction survey when they satisfy the conditions on capability for construction survey; To negotiate, sign and supervise implementation of a contract; To change surveying tasks upon reasonable request from the designer; To suspend implementation of or terminate a contract in accordance with law; (đ) Other rights in accordance with law. Investors in construction of works shall have the following obligations during construction survey: To approve the surveying tasks set by the designer or survey contractor and to assign such tasks to the construction survey contractor; To select a construction survey contractor where the investor lacks capability to carry out itself the construction survey; To provide information and data relating to surveying work to the construction survey contractor; To fix the scope of the survey and to guarantee the conditions necessary for the construction survey contractor to perform the contract; (đ) To perform correctly the signed contract; To organize check and acceptance and to archive the survey results; (g) To compensate for loss caused by provision of incorrect information or data, arising from incorrectly setting the surveying tasks, or arising from any other breach which was the fault of the investor; (h) Other obligations in accordance with law. Article 51 Rights and obligations of construction survey contractors Construction survey contractors shall have the following rights: To request the investor to provide information and data relevant to surveying tasks; To refuse to implement any requests outside the surveying tasks; Other rights in accordance with law. Construction survey contractors shall have the following obligations: Only to sign a contract to perform surveying work appropriate in terms of their capability for activities and to perform correctly the signed contract; To perform correctly the surveying tasks which are assigned to them, ensuring quality and with liability for the survey results; To propose further surveying tasks when they detect factors directly affecting design solutions; To protect the environment within the area being surveyed; (đ) To purchase professional indemnity insurance; To compensate for loss arising from failure to perform correctly the surveying tasks, from discovery of an [additional] Inserted by Allens Arthur Robinson to aid comprehension. volume of work due to the survey being incorrect in terms of actualities or caused by use of inappropriate information, data, construction regulations and standards, or arising from any other breach which was the fault of the contractor; (g) Other obligations in accordance with law. Article 52 Requirements applicable to design for construction of works A design for construction of works must satisfy the following general requirements: It must conform with the construction master plan, the landscape, natural conditions and the regulations on architecture; and it must conform with the approved investment project for construction of works. It must conform with the technological design where an investment project has a technological design. The foundations of the works must be strong and must not sink, crack or be deformed outside the permissible limits, thereby affecting the life span of the works and of adjacent works. The contents of the design for construction of works must comply with the requirements for each design step, must satisfy the requirements on use function, must ensure a beautiful design and a reasonable prime cost. (đ) It must be safe and economical; it must comply with the applicable construction regulations and construction standards, the standards on fire fighting and prevention and explosion prevention, and the standards on protection of the environment and other relevant standards. The design of public works must comply with standards on design to assist disabled persons. It must ensure synchronous construction of each building works and satisfy the requirements for operation and use of the works; it must integrate with related works. Civil works and industrial works must, in addition to ensuring the items stipulated in clause 1 of this article, also satisfy the following requirements: Architecture must be in conformity with the habits and customs and cultural and social conditions of each area and each locality; Safety of persons if there is an incident; safe, favourable and effective conditions for fire prevention and rescue operations; distance between buildings; use of fire-proof materials and facilities in order to minimize loss to adjacent buildings and the surrounding environment in the event that a fire occurs; Favourable, hygienic and healthy conditions for users of the works; Maximum use of favourable natural conditions and minimization of unfavourable natural conditions in order to save energy. Article 54 Steps in design for construction of works Design for construction of works shall comprise these steps: preliminary designs; technical designs; and design drawings for execution of building works. Depending on the nature and scale of the particular construction works, the design may be formulated in one, two or three steps as follows: One step design, namely formulation of the design drawings for execution of building works, applicable to those works for which only an eco-technical report is required to be prepared; Two step design, namely formulation of preliminary designs and formulation of design drawings for execution of building works, applicable to those works for which an investment project for construction of works must be prepared; Three step design, namely formulation of preliminary designs, formulation of technical designs, and formulation of design drawings for execution of building works, applicable to those works for which an investment project for construction of works must be prepared and the works are large-scale and complex. Where two or three step design must be implemented, the earlier design step must be approved prior to the subsequent step being undertaken. The Government shall provide detailed regulations on design steps applicable to each type of construction works and on the contents of each design step. Article 55 Competitions to select architectural designs for construction works It is encouraged to hold a competition to select an architectural design for construction works. A competition must be held to select an architectural design for the following works prior to the investment project for construction of works being formulated: Headquarters of State bodies from district level upwards; Large-scale buildings for cultural activities and sports and other large-scale public works; Other works of special architecture. The costs of a competition shall be included in the total invested capital of the construction works. The copyright of an author the architectural design plan of which is selected shall be guaranteed, and such author shall be given priority to conduct the subsequent design steps if the author satisfies the conditions on capability for design for construction of works. The Government shall provide detailed regulations on competitions to select architectural designs for construction works. Article 56 Conditions applicable to organizations and individuals undertaking design of construction works Organizations which undertake design for construction of works must satisfy the following conditions: Be registered for the activity of design for construction of works; Have full capability for the activity of design for construction of works; Any individual undertaking the job of person in charge of design or head designer must have full capability for construction design practice and must have a practising certificate appropriate for each type and level of works. Any individual who independently practises design for construction of works must satisfy the following conditions: Have full capability for construction design practice and a practising certificate for design for construction of works; Be registered for the activity of design for construction of works. The Government shall provide regulations on the scope of activity of design for construction of works by individuals who independently practise design for construction of works. With respect to construction design of separate dwelling-houses: Where a separate dwelling-house has a total floor construction area of more than two hundred and fifty (250) square metres, the house has three or more storeys, or the house is situated on a cultural or historical heritage site, the design must be undertaken by a design organization which satisfies the conditions on capability for construction design activities or by an individual designer who satisfies the conditions on capability for construction design practice. Where a separate dwelling-house is on a smaller scale than that stipulated in paragraph (a) above, an individual or household may itself do the design but the design must conform with the approved construction master plan and such individual or household shall be responsible before the law for the quality of the design and the effect of the works on the environment and for the safety of adjacent works. Article 57 Rights and obligations of investors in construction of works during design for construction of works Investors in construction of works shall have the following rights during design for construction of works: To carry out themselves the design for construction of works when they satisfy the conditions on capability for construction design activities and on practising capability appropriate for each type and level of works; To negotiate, sign and supervise implementation of a contract for design; To require the design contractor to perform correctly the signed contract; To request changes and additions to design; (dd) To suspend implementation of or terminate a contract for design for construction of works in accordance with law; Other rights in accordance with law. Investors in construction of works shall have the following obligations during design for construction of works: To select a design contractor where the investor does not satisfy the conditions on capability for construction design activities or on practising capability to carry out itself the design of the works; To fix the tasks of design of the construction works; To provide complete information and data to the design contractor; To perform correctly the signed contract; (đ) To evaluate and approve the designs or submit them to the authorized body for evaluation and approval in accordance with the provisions of this Law; To organize check and acceptance of the design file; To archive the design file; To compensate for loss caused by setting design tasks, or providing information or data, or accepting a design file contrary to the regulations; or for loss arising from any other breach which was the fault of the investor; Other obligations in accordance with law. Article 58 Rights and obligations of contractors for design for construction of works Contractors for the design for construction of works shall have the following rights: To refuse to implement any requests outside design tasks; To request provision of information and data relevant to design work; To have copyright in their design of works; Other rights in accordance with law. Contractors for the design for construction of works shall have the following obligations: Only to accept a contract to perform the design for construction of works appropriate in terms of their capability for construction design activities or their practising capability for design for construction of works; To perform correctly design tasks, to meet the schedule and to ensure quality of the design; To be liable for the quality of the design work that they undertake to do; To supervise the author during the process of execution of building works; (đ) To formulate surveying tasks to service the design work appropriate for the requirements of each design step; Not to appoint a manufacturer of building materials and supplies or of construction equipment for the works; To purchase professional indemnity insurance; To compensate for loss when setting inappropriate surveying tasks; or when using inappropriate information, data, construction regulations and standards, technical solutions or technology which affect the quality of the works; or for loss arising from any other breach which was the fault of the contractor; Other obligations in accordance with law. Article 59 Evaluation and approval of designs for construction of works The State administrative body for construction shall organize evaluation of the preliminary designs when it approves an investment project for construction of works. An investor shall organize evaluation and approval of the subsequent design steps which must not be inconsistent with the approved preliminary designs. The person evaluating or approving a design shall be responsible before the law for the results of evaluation or approval. The Government shall provide regulations on evaluation, contents of evaluation, and approval of designs of construction works. Article 60 Changes to designs for construction of works An approved design for construction of works may only be changed when the investment project for construction of works is amended and such amendment requires a change in design, or in other necessary circumstances. Any person authorized to make a decision on change to a design shall be responsible before the law for such decision. The Government shall provide detailed regulations on changes to designs of construction works. Article 62 Construction permits Prior to commencing construction work, an investor must have a construction permit, except in the case of the following works: Works in the category of State secrets, works to be constructed pursuant to an emergency order, and temporary works to service construction of main works; Construction works built along a route which does not pass through an urban area and which comply with the construction master plan, where the competent State body has already approved the investment project for construction of the works; Small-scale technical infrastructure works in remote and distant communes; Separate dwelling-houses in remote and distant regions which are not in urban areas or concentrated residential areas, or which are in rural residential areas for which there is no approved construction master plan; (đ) Works, being repairs or improvements; interior installation of equipment which does not change the architecture, weight-bearing structure or safety of the works. With respect to separate dwelling-houses in rural areas, regulations on construction permits must be consistent with the actual situation in the locality. District people's committees shall provide detailed regulations on concentrated residential areas within their respective localities for which construction permits must be issued. With respect to the construction of works and separate dwelling-houses in areas for which construction master plans have been approved and proclaimed but as yet not implemented, only provisional construction permits shall be issued with a term equal to the duration for implementation of the master plan. Article 65 Conditions for issuance of construction permits in urban areas The issuance of construction permits in urban areas must satisfy the following conditions: Consistency with the approved detailed construction master plan; Compliance with regulations on red-lined boundaries and construction boundaries; on urban design; on safety requirements for surrounding works; on protection of safety corridors for traffic works, irrigation works, dyke embankments, energy works, cultural or historical heritage sites and on areas which are protection corridors for other works in accordance with law; Construction works and separate dwelling-houses in areas for preservation of cultural or historical heritage sites must ensure construction density and that there is land for planting trees and places for parking vehicles, and must not adversely affect the landscape and environment; Works being repairs or improvements must not have an adverse effect on the structure of neighbouring works and must preserve a distance from surrounding works; they must not adversely affect water supply and water discharge systems, ventilation and lighting systems, environmental hygiene, and fire fighting and prevention and explosion prevention; There must be the stipulated distance from hygiene works, from containers of toxic chemicals, and from other works which are able to cause environmental pollution; and there must be no adverse effect on users of immediately adjoining works; When roads are built or up-graded, an underground tunnel system must be built for synchronous installation of technical infrastructure works; and standard ground floor levels on the road surface must comply with standard ground floor levels in the construction master plan and urban design; Construction works of high-rise residential housing of special category and category 1 must have design of an underground level, except in cases where there are particular requirements on design of underground levels; With respect to provisional construction works, the issuance of construction permits must comply with articles 62.3 and 63.2 of this Law. Article 67 Responsibilities of construction permit-issuing bodies To display publicly the regulations on issuance of construction permits and to provide guidance on them. To issue construction permits within a time-limit not to exceed twenty (20) working days, or fifteen (15) days in the case of separate dwelling-houses, from the date of receipt of a complete and valid application file. To inspect that construction is carried out in accordance with the terms of the construction permit and to suspend construction and withdraw the construction permit when the investor carries out construction in breach. Persons authorized to issue construction permits shall be responsible before the law for issuance of incorrect permits or for issuance of permits out of time, and must compensate for loss and damage caused in accordance with law. Construction permit-issuing bodies shall notify the competent authorities not to supply power, water, business and other services to works constructed inconsistently with the master plan, constructed without a construction permit or constructed contrary to the terms of the issued construction permit. Construction permit-issuing bodies shall resolve complaints and denunciations regarding issuance of construction permits. Article 68 Rights and obligations of applicants for issuance of construction permits Applicants for construction permits shall have the following rights: To require the construction permit-issuing body to explain, guide and implement correctly the regulations on issuance of construction permits; To lodge complaints and denunciations regarding a breach of law during issuance of construction permits; To commence construction of works if, upon expiry of the timelimit stipulated in article 67.2 of this Law, the construction permitissuing body fails to provide its written opinion when the conditions stipulated in clauses 1, 3, 4, 5, 6 and 7 of article 72 of this Law have been satisfied. Applicants for construction permits shall have the following obligations: To submit complete application files and the fee for issuance of the construction permit; To be liable for the truthfulness of their application file for issuance of a construction permit; To provide written notification of the date of commencement of construction of works to the people's committee of the commune where the works are located, within a time-limit of seven working days prior to such commencement date; To implement correctly the terms of the construction permit; any amendment of or change to design must be approved by the construction permit-issuing body. Article 70 Principles of compensation Allens Arthur Robinson Note: The literal translation is "property compensation". in order to conduct site clearance for construction of works The payment of compensation in order to conduct site clearance for construction of works must ensure the interests of the State as well as the lawful rights and interests of organizations and individuals concerned. The issue of residential housing for organizations and individuals must be resolved by new stable housing, with residential conditions which are equal to or better than the former housing, and there must be assistance to create jobs and a stable life for persons who have to resettle, unless there is some other agreement between the parties concerned. The payment of compensation in order to conduct site clearance for construction of works shall be implemented by one or a combination of the forms of payment of money, land use right or residential housing ownership, and must ensure equality and be conducted publicly, transparently and correctly in accordance with law. In the case of payment of compensation in order to conduct site clearance for construction of technical infrastructure works in urban areas, the plan for site clearance must ensure the construction of new works as well as renewal of street-frontage works in accordance with the approved detailed construction master plan; and must ensure that the State is able to accommodate the land price difference after site clearance and investment in construction of works. Compensation shall not be paid in the following cases: Land which was encroached on or illegally occupied; Works which were built illegally; architectural objects, trees, vegetation, crops and other assets which appeared or were generated on the surface of an area being the subject of a construction master plan after the date of proclamation of the construction master plan; In other cases as stipulated by the laws on land. Article 71 Organization of site clearance for construction of works When organizing site clearance for construction of works, a council for compensation for clearance of a construction site must be established. In the case of site clearance pursuant to an approved construction master plan but where there is as yet no investment project for construction of works, payment of compensation shall be conducted as follows: The people's committee at the authorized level shall establish a council for compensation for clearance of a construction site and preside over site clearance via such council, or shall assign the task to an enterprise which specializes in site clearance. Funding for site clearance shall be taken from the budget or shall be raised, and shall be recovered upon assignment or lease of land to the investor in construction of the works on the cleared site. The time-limit for site clearance for construction of works shall be implemented in accordance with the requirements for socioeconomic development in the locality and the decision of the authorized person. In the case of site clearance pursuant to an investment project for construction of works, payment of compensation shall be conducted as follows: In the case of an investment project for business purposes, a council for compensation for clearance of a construction site headed by the investor in construction of the works shall co-ordinate with the people's committee at the authorized level to organize site clearance; in the case of an investment project not for business purposes but in order to service the community, a council for compensation for clearance of a construction site headed by the people's committee at the authorized level shall co-ordinate with the investor in construction of the works to organize site clearance. Funding for site clearance shall be taken directly from the investment project for construction of works. The time-limit for clearance of a construction site for construction of works must satisfy the requirements of the schedule for implementing the project as approved. The Government shall provide regulations on principles, methods and a price frame for compensation when conducting clearance of construction sites, which regulations shall provide the basis for provincial people's committees to fix compensation prices within their respective localities. With respect to any organization or individual with property on a construction site for which compensation has been resolved correctly in accordance with the regulations but such organization or individual has failed to implement such resolution, coercive measures shall be taken to enforce implementation and such organization or individual shall be liable to pay all costs of enforcement. Any person who deliberately breaches the regulations on compensation in order to conduct site clearance for construction of works with an ulterior motive or who causes loss and damage to assets of the State or of an organization or an individual shall, depending on the seriousness of the breach, be disciplined or subject to criminal prosecution and must pay compensation for damage in accordance with law. Article 72 Conditions for commencement of construction Construction of works may only commence after the following conditions have been satisfied: There is a surface area for construction ready to be handed over, either the total surface area or a partial area depending on the construction schedule as agreed between the investor in construction of works and the contractor for execution of the works. There is a construction permit, if the project falls within the category which must have one, except where clause 1(c) of article 68 of this Law applies. There are approved design drawings for execution of building works applicable to items of works or to the construction works. There is a construction contract. There are sufficient capital funds to ensure the building schedule in accordance with the approved building schedule in the investment project for construction of works. There are measures to ensure safety and environmental hygiene during the construction process. With respect to new urban areas, depending on the nature and scale, the whole or each part of technical infrastructure works must be completed prior to commencement of construction of works. Article 73 Conditions for execution of building works Contractors engaged in the activity of execution of building works must satisfy the following conditions: Be registered for the activity of execution of building works; Have full capability for the activity of execution of the relevant type and level of building works; The head of the construction site must have full capability for construction practice in execution of the relevant building works; Have equipment for execution of building works which guarantees safety and quality of the works. Any individual who undertakes self-organization of construction of a separate dwelling-house with a total floor construction area of less than two hundred and fifty (250) square metres or where the house has less than three storeys must have capability for construction practice in execution of building works, and shall be liable for quality, safety and environmental hygiene. Article 79 Ensuring environmental hygiene during execution of building works During the process of execution of building works, contractors for execution of building works shall have the following responsibilities: To take measures to ensure environmental hygiene during the process of execution of building works, including the air environment, the water environment, solid waste, noise and other requirements of environmental hygiene; To compensate for loss caused by any breach of environmental hygiene by a contractor during the process of execution of building works or transportation of materials; To comply with other provisions of the laws on protection of the environment. Article 80 Check and acceptance of and hand-over of constructed works Check and acceptance of constructed works shall comply with the following provisions: It shall comply with the regulations on quality control of construction works. There must be check and acceptance of each job, each section, each stage and each item of works, and a check and acceptance to commission the works. In particular, there must be check and acceptance of each section of concealed works, and there must be drawings of completed works prior to subsequent jobs being carried out. Check and acceptance shall only be conducted when the object of the check and acceptance has been completed and there is a complete file as required by regulations. Check and acceptance for commissioning of constructed works shall only be conducted when all design and quality requirements have been satisfied and when the works achieve the standards stipulated by regulations. Hand-over of constructed works shall comply with the following provisions: It shall satisfy the requirements on principles, contents and order for hand-over of completed building works and their commissioning in accordance with the laws on construction. It must ensure safety during operation and exploitation when works are commissioned. 3 Contractors for execution of building works shall be responsible to complete all building works, to clean up the site, to formulate drawings of the completed works, and to prepare all documentation servicing check and acceptance and hand-over of constructed works. 4. Investors in construction of works shall be responsible to conduct check and acceptance and to receive constructed works. Any individual participating in check and acceptance and hand-over of work shall be personally liable for the product certified by him or her during the processes of execution of building works and of hand-over of constructed works. Article 82 Warranty of constructed works Contractors for execution of building works shall be responsible to provide a warranty for the constructed works, and contractors for procurement of equipment for works shall be responsible to provide a warranty for such equipment. The contents of a warranty of constructed works shall comprise remedying, repair and/or replacement of equipment which is damaged or defective or when works become abnormal in operation or use due to the fault of the contractor. The warranty period shall be fixed depending on the type and level of works. The Government shall provide detailed regulations on the warranty period of constructed works. Article 84 Building works incidents If a building works incident occurs during the process of execution of building works or during the operation, exploitation and use of works, the contractor for execution of building works, the owner or the person managing use of the works shall be responsible: To stop building work, or to stop operation, exploitation or use of works, and to take prompt measures to ensure the safety of persons and property; To take the necessary measures to prevent and limit any danger that may continue to happen, and to notify the competent organizations and individuals and also the organizations and individuals concerned; To protect the site, except where emergency remedial measures must be taken to prevent loss and damage. Upon receipt of notification of a building works incident, the competent organizations and individuals shall, within the scope of their respective duties and powers, be responsible: To take immediate emergency remedial measures; The State administrative body for construction shall be responsible to appoint an organization which satisfies the conditions on capability to conduct an examination in order to determine the reasons for the incident and to clarify the liability of the entities which caused it. Any person at fault in causing a building works incident shall be liable to compensate for loss and damage and for related costs, or may be subject to criminal prosecution. Article 89 Rights and obligations of investors in construction of works throughout supervision of execution of building works Investors in construction of works shall have the following rights throughout supervision of execution of building works: To conduct supervision themselves when they satisfy the conditions on capability to supervise execution of building works; To negotiate and sign a contract and to monitor and supervise implementation of the contract; To change the supervisor, or to request the consultancy organization to change the supervisor, when the latter fails to conduct his or her work correctly in accordance with regulations; To suspend implementation of or terminate in accordance with law a contract for supervision of execution of building works; (đ) Other rights in accordance with law. Investors in construction of works shall have the following obligations throughout supervision of execution of building works: To hire a consultant supervisor when the investor does not have full capability for the activity of supervision of execution of building works; To notify the relevant parties of the rights and obligations of the consultant supervisor; To deal with proposals from the supervisor in a timely manner; To discharge fully the obligations agreed in the contract for supervision of execution of building works; (đ) Not to collude or use influence to impose false results of supervision; To archive the results of supervision of execution of building works; To compensate for loss and damage when selecting a consultant supervisor who fails to satisfy the conditions on capability for supervision of execution of building works; checks and accepts an incorrect volume of works or works constructed incorrectly in terms of design; or for loss arising from any other breach which was the fault of the investor; Other obligations in accordance with law. Article 90 Rights and obligations of contractors for supervision of execution of building works Contractors for supervision of execution of building works shall have the following rights: To certify check and acceptance when the works have been constructed correctly in terms of the design, correctly in accordance with construction regulations and construction standards, and quality; To require the contractor for execution of building works to perform correctly its contract; To maintain their own opinions with respect to the supervisory work that they have undertaken; To refuse any unlawful requests from related parties; (đ) Other rights in accordance with law. Contractors for supervision of execution of building works shall have the following obligations: To perform supervisory work correctly in accordance with the signed contract; Not to certify check and acceptance for a volume of works not constructed to the required quality and technical criteria set by the designer of the works; To refuse to certify check and acceptance for works which fail to satisfy requirements on quality; To make proposals to the investor regarding unreasonable items in the design in order that they may be promptly amended; (đ) To purchase professional indemnity insurance; Not to collude with the contractor for execution of building works or with the investor in construction of works or to conduct any other breach in order to impose false results of supervision; To compensate for loss and damage for imposing false results of supervision of a volume of works constructed incorrectly in terms of design or not in compliance with construction regulations and construction standards and the supervisor fails to notify the investor or authorized person to deal with the issue; or for loss arising from any other breach which was the fault of the supervisory contractor; Other obligations in accordance with law. Article 92 Construction of State secret works State secret works constructed as required must ensure secrecy during all construction activities and shall belong to the sectors of national defence, security, economics, science and technology and other sectors. Any person assigned management and implementation of construction of State secret works shall have the right to make decisions thereon and shall be responsible for carrying out construction through the stages of project formulation, survey, design, execution and supervision of execution of building works up to the stage of check and acceptance and commissioning of the works. The Government shall make a decision on construction of each State secret works when there is a requirement to construct same. Article 94 Construction of temporary works Temporary works may be constructed and shall only be permitted to exist for a fixed period. Temporary works shall comprise: Temporary works to service construction of main works; Works and separate dwelling-houses permitted to be built within a period stated in the master plan but for which site clearance has not yet been conducted. Within a time-limit not to exceed thirty (30) days from the date of commissioning of main works, the investor in construction of the temporary works which serviced construction of the main works shall itself dismantle the temporary works, unless they are large-scale temporary works or a residential area consistent with the approved construction master plan. With respect to works and separate dwelling-houses for which the construction permit provides permission for construction for a fixed duration only, the investor in construction of such temporary works shall itself organize dismantling and, if it fails to do so voluntarily, the works shall be compulsorily dismantled and the investor shall bear all costs of such work and shall not be entitled to compensation. Article 98 Requirements applicable to tendering in construction activities The objective of tendering in construction activities for selection of an appropriate contractor shall be to ensure competitiveness. Tendering shall only take place after the funding source to perform the work has been fixed. The time-limit for conducting tendering shall not be extended in order to ensure the schedule and effectiveness of an investment project for construction of works. A successful tenderer must have a technical plan, optimal technology and a reasonable tender price. Domestic tenderers participating in international tenders in Vietnam shall be entitled to the regime on preferential treatment in accordance with regulations of the Government. An entity participating in a tender may not use the legal entity status of another organization; may not make an arrangement to or in fact buy or sell a tender; may not use its influence to falsify the results of tendering, and may not reduce a tender price below the cost of building the works being the subject of the tender. Article 99 Open tendering in construction activities Open tendering shall be conducted in order to select a contractor for execution of building works, and the number of participating tenderers shall be unlimited. The party calling for tenders must widely announce on the mass media the conditions and time-limits for participation in the tendering. A tenderer may only participate in a tender if it has full capability for construction activities and full capability for construction practice appropriate for the type and level of works in accordance with the conditions announced by the party calling for tenders. The party calling for tenders shall be responsible to announce on the mass media the results of the tender consideration and the contract award price. Article 100 Limited tendering in construction activities Limited tendering shall be conducted in order to select a construction consultancy contractor and a contractor for execution of building works applicable to works with high technical requirements and when there is only a limited number of contractors which satisfy the conditions on capability for construction activities and capability for construction practice so as to be invited to participate in the tendering. With respect to investment projects for construction of works and works funded by State capital, the following shall not be permitted to participate in tendering for the same tender package: two or more enterprises which are subsidiaries of the same corporation; a corporation and its own member company; a parent company and its subsidiary; or a joint venture enterprise and one of the capital contributors to that joint venture. Article 101 Appointment of contractors in construction activities The person making the investment decision or the investor in construction of works shall have the right to appoint directly an organization with full capability for construction activities or individual with full capability for construction practice to undertake work or construction of works at a reasonable price in the following circumstances: Works in the category of State secrets, works constructed pursuant to an emergency order, and temporary works; Works of a research or experimental nature; Work, works or items of construction works which are on a simple or small scale in accordance with regulations of the Government; Repair, embellishment or restoration of works on cultural or historical-cultural heritage sites; (đ) Other special cases permitted by the person authorized to make the investment decision. Any person authorized to appoint a contractor shall be responsible before the law for selection of a contractor with full capability for construction activities and with full capability for construction practice. Any organization or individual appointed as a contractor must have full capability for construction activities and full capability for construction practice appropriate for the work and the type and level of works, and the financial status of the appointee must be healthy and transparent. Article 103 Selection of general contractors in construction activities Depending on the scale, nature, type and level of works and the specific conditions of the particular investment project for construction of works, the person making the investment decision or the investor in construction of works shall make a decision on the following forms of selection of a general contractor in construction activities: General design contractor to carry out the whole of the work of design of the building works; General contractor for execution of building works to carry out the whole of the building works; General contractor to carry out the whole of the work of design and execution of building works; General contractor to carry out the whole of the work of design, procurement of materials and equipment, and execution of building works; (đ) General turn-key contractor to carry out all of the work of a package from formulation of the project up to design, procurement of materials and equipment, and execution of building works. An independent contractor or a partnership of contractors participating in tendering for construction activities must satisfy the conditions on capability for construction activities appropriate for types and levels of works as prescribed in this Law. Where a form of general contractor prescribed in clause 1 of this article is applied, the general contractor must appoint a person satisfying the conditions on capability for construction practice to co-ordinate all of the work of such general contractor. Article 104 Rights and obligations of parties calling for tenders A party calling for tenders shall have the following rights: To require tenderers to provide necessary information servicing selection of a contractor; To select a successful tenderer or to rescind the results of selection of a tenderer in accordance with the laws on tendering; Other rights in accordance with law. A party calling for tenders shall have the following obligations: To prepare tender invitation documents and a tender plan consistent with the contents of the approved investment project for construction of works; To check the declaration of the selected tenderer regarding the capability for construction activities, capability for construction practice, and financial status of such tenderer; To provide in a timely manner and fully the capital funds in order that the work is able to be done on schedule; To notify tenderers of any necessary requests and to implement correctly notified items; (đ) With respect to construction works funded by the State, to announce publicly the successful entity and the contract award price after the results of selection of a tenderer are available; To purchase insurance for the works; To compensate for loss caused to tenderers when such loss was the fault of the party calling for tenders; To be responsible before the law for any act of making illegal arrangements in tendering, of buying or selling a tender, of disclosing information during tender consideration, or of collusion with contractors or any other breach of the laws on tendering; Other obligations in accordance with law. Article 105 Rights and obligations of tenderers Tenderers shall have the following rights: To participate in tendering as an independent contractor or in partnership with other contractors; To request that information be provided and to conduct a site survey in order to prepare a tender; To lodge a complaint or denunciation upon discovery of a breach of the regulations on selection of contractors; Other rights in accordance with law. Tenderers shall have the following obligations: To prepare tenders which are truthful and accurate and which satisfy the requirements set out in the tender invitation documents; To be responsible before the law for any conduct in breach as prescribed in article 98.6 of this Law; To compensate for loss caused by any conduct in breach which results in extension of the tendering or in re-tendering; To perform tender guarantees; (đ) Other obligations in accordance with law. Article 115 Rights and obligations of Construction Inspectorate The Construction Inspectorate shall have the following rights: To require the relevant organizations and individuals to provide data and to explain essential issues; To request evaluation of items relevant to the quality of works in necessary cases; To apply preventive measures in accordance with law; To prepare minutes of inspections and to deal with [breaches] in accordance with its own authority or to recommend that the competent State body take measures to deal with; (đ) Other rights in accordance with law. The Construction Inspectorate shall have the following obligations: To exercise the functions and duties of, and to implement the order and procedures for, an inspectorate in accordance with regulations; To present the decision on inspection and inspector cards to any entity being subject to inspection. An inspection must be minuted; To be responsible before the law for the conclusion of an inspection and to compensate for loss arising from an incorrect conclusion; To discharge other obligations in accordance with law. Article 121 Dealing with works constructed prior to date of effectiveness of this Law which are inconsistent with provisions of this Law Works constructed prior to the date of effectiveness of the Law on Construction which are inconsistent with the provisions of this Law shall be dealt with as follows: Existing construction works which comply with the master plan but have non-compliant architecture shall be permitted to retain their status quo; if the works are improved, up-graded or repaired, they must comply with the provisions of this Law. Existing construction works which do not comply with the master plan shall be dealt with as follows: The competent State body shall consider and issue the owner of the works with a temporary construction permit with the same duration as the duration for implementation of the master plan when there is a requirement to improve, up-grade or repair the works. When works are transferred to a planned zone, the owner of the works shall be compensated or assisted in accordance with law. With respect to works the subject of permission for temporary construction, if there is a request for compulsory relocation of such works prior to expiry of the duration for implementation of the master plan or prior to expiry of the duration stated in the temporary construction permit, compensation shall be paid in accordance with law.