Chương 1 Nghị định 16/2005/NĐ-CP: Những quy định chung

Chapter I

GENERAL PROVISIONS

Article 1 Governing scope

This Decree provides guidelines for implementation of the Law on Construction with respect to formulation and implementation of investment projects for construction of works; with respect to contracts in construction activities; and with respect to conditions applicable to capability of organizations and individuals for project formulation, for survey and design, and for execution and supervision of execution of building works.

Article 2 Classification of projects and State management of investment projects for construction of works

1. Investment projects for construction of works (hereinafter referred to as projects) shall be classified as follows:

(a) According to scale and nature: Important national projects means projects for which the National Assembly approves the policy and grants permission for the investment. Remaining projects shall be classified into three Groups A, B and C in accordance with Appendix 1 to this Decree;

(b) According to capital funding source:

- Projects funded by capital from the State Budget;

- Projects funded by credit facilities guaranteed by the State and by State owned credit facilities for investment and development;

- Projects funded by invested capital of State owned enterprises;

- Projects funded by other capital sources, including private capital, or a combination of funding sources.

2. Investment in the construction of works must conform with the overall master plan for socio-economic development, with master planning for branches and with construction master plans; and must ensure security, social and environmental safety, and must comply with the law on land and other relevant laws.

3. In addition to the provisions in clause 2 of this article, the State shall manage projects according to their capital funding source as follows:

(a) With respect to projects funded by capital from the State Budget, and also including component projects, the State shall assume management of the whole investment and construction process from formulation of the investment policy, formulation of the project, investment decision-making, preparation of design, preparation of total estimated budget, selection of contractor, and execution of building works up to the stage of check and acceptance, hand-over and commissioning of the works. The person making the investment decision shall be responsible for arranging sufficient capital for implementation of the project on schedule, not to exceed two years in the case of Group C projects and not to exceed four years in the case of Group B projects.

With respect to projects funded by capital from the State Budget, the competent State administrative body shall make decisions in accordance with delegated authority and the law on the State Budget.

(b) With respect to projects of enterprises funded by credit facilities guaranteed by the State, by State owned credit facilities for investment and development, and by invested capital of State owned enterprises, the State shall assume management

of the investment policy and of the scale of the investment only. The enterprise which has the project shall bear self-responsibility for arranging project management and project implementation in accordance with this Decree and other relevant laws.

(c) With respect to projects funded by other capital sources, including private capital, the investor shall decide the form and content of project management. With respect to projects funded by a combination of funding sources, the capital contributing parties shall reach agreement on the management method or the project shall be managed in accordance with the regulations applicable to the funding source with the highest percentage of the total invested capital.

4. With respect to projects for which the National Assembly approves the investment policy and Group A projects which are made up of component projects, if each component project is able to be managed and operated independently or implemented in investment stages as stipulated in the document approving the investment report, each component project shall be managed and implemented as if it were an independent project.

Article 3 Investor in construction of works

Investor in construction of works means a capital owner or a person assigned to manage and utilize capital for investment in construction of works, and shall be regulated as follows:

1. In the case of projects funded by capital from the State Budget, the person making the investment decision shall decide on the investor in construction of works prior to formulation of the investment project for construction of works and in accordance with the law on the State Budget.

2. In the case of projects funded by credit facilities, the investor shall be the borrower.

3. In the case of projects funded by other capital sources, the investor shall be the capital owner or the legal representative of the capital owner.

4. In the case of projects funded by a combination of funding sources, the investor shall be the entity agreed on by the capital contributing parties or the person with the highest percentage of capital.