Procedures of construction investment implementation from December 30, 2024

Decree No. 175/2024/ND-CP of the Government detailing a number of articles and measures to implement the Construction Law on construction management officially takes effect from December 30, 2024. Accordingly, the procedures of construction investment implementation are specifically regulated as follows:

a) Project preparation stage includes: preparing a proposal for a program or project using ODA loans and foreign concessional loans (if any); preparing and appraising a Pre-Feasibility Study Report for Construction Investment or a Report proposing an Investment Policy to decide or approve an investment policy (if any); conducting a construction survey to serve the project preparation; preparing, appraising and approving a construction plan as a basis for project preparation; preparing and appraising a Feasibility Study Report for Construction Investment or a Construction Investment Economic-Technical Report for project approval and construction investment decision; Other necessary work related to project preparation.

b) Project implementation stage includes: preparing construction grounds, clearing bombs and mines (if any); construction survey to serve the design implementation after the basic design; preparation, appraisal, approval of design, construction estimate; issuance of construction permit (for works required to have a construction permit); signing of construction contract; construction execution; construction supervision; advance payment, payment for completed volume; operation, trial run; acceptance of completed construction work; settlement of construction contract; supervision, evaluation of construction investment project; other necessary work related to project implementation.

c) Construction completion stage includes: construction contract settlement, project investment capital settlement, confirmation of project completion; handover of the project for use; construction warranty, handover of related documents; supervision and evaluation of construction investment projects; other necessary work.

Some notes:

• The above implementation procedures do not apply to emergency construction investment projects and Public-Private Partnership investment projects with construction components (PPP projects).
• For projects implemented under Lump sum turnkey contracts, the construction investment procedure is carried out in accordance with the provisions of the contract.
• Depending on the specific conditions and technical requirements of the project, the investment decision maker decides on the sequential or combined implementation procedures, and at the same time, for the works of the Project implementation stage and the Construction completion stage mentioned above, in accordance with the contents of the project approval decision.