OPERATING WITHOUT ELIGIBILITY CERTIFICATE FOR CONSTRUCTION ACTIVITIES, HOW IS THE PENALTY?

In the context of the strong development of Vietnam’s economy in general and construction investment activities in particular, ensuring quality and safety during the construction process is an important priority. The eligibility certificate for construction activities is an essential tool for state agencies to manage this activity of organizations and individuals, contributing to creating a reliable construction environment, and at the same time promoting the sustainable development of this industry.

Then, what is eligibility certificate for construction activities and how is it regulated by laws?

1.         What is eligibility certificate for construction activities?

Eligibility certificate for construction activities is a certification document issued by competent state agencies to organizations that meet all conditions when participating in construction activities, according to the provisions of the Construction Law and implementation manuals.

The organization’s eligibility certificate for construction is classified into class I, class II and class III, sequently issued by the specialized construction agency under the Ministry of Construction, the Department of Construction, and socio-professional organizations that fully meet the conditions prescribed by the Government.

2.         Which activities require a construction activity certificate?

Each organization engaging in construction activities in the following fields must meet conditions and obtain eligibility certificate:

–           Construction survey;

–           Construction planning;

–           Design and design assessment;

–           Construction project management consulting;

–           Construction execution;

–           Construction supervision;

Except for:

–           Performing project management tasks of specialized construction investment project management boards and regional construction investment project management boards (except for project management consultancy for other projects); Project Management Board invests in the construction of a project; The investor organizes the implementation of project management;

–           Designing, supervising and executing fire prevention and fighting in accordance with the law on fire prevention and fighting;

–           Designing, supervising and construction executing communication and telecommunications systems in the works;

–           Designing, supervising and executing construction finishing works such as plastering, tiling, painting, door installation and other similar works that do not affect the load-bearing structure of the work; supervision, interior construction works;

–           Participating in construction activities for separate houses; green parks, public lighting works; telecommunications signal transmission cable line; the project has only the works mentioned at this point;

–           Carrying out construction activities of foreign organizations under construction operation permits.

3.         How is the procedures for issuance of eligibility certificate for construction activities performed ?

Organizations with demand to apply for a eligibility certificate for construction activities shall follow the order and procedures as follows:

–           Step 1: Application submission

The organization submits 01 set of application documents for the issuance of construction activities as prescribed. Method of submission: through online network; post office; or submit directly to the competent authority.

–           Step 2: Dossiers handling

Competent agency handle the dossiers that have been fully and duly submitted.

Time for processing:

+          In case of first-time issuance of eligibility certificate: 20 working days.

+          In case of adjustment, amendment, supplement or extension of eligibility certificate: 20 working days.

+          In case of re-issue of capacity certificate: 10 working days.

In case the dossier is incomplete or invalid, the agency competent to issue the eligibility certificate must notify once in written to the applicant organization within 5 working

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4.         Penalties for violations?

Organizations engaged in construction activities may be handled according to regulations in case of non-compliance or incomplete compliance with legal requirements related to certificates of capacity for construction activities.

–           A fine ranging from VND 30,000,000 to VND 50,000,000 shall be imposed on a construction organization that commits one of the following acts:

+          Engage in construction work without the appropriate eligibility as per the law;

+          Engage in construction work without valid certificate of eligibility as per the law.

–           Additional forms of penalty that may be applied: Suspension of construction work for 3 months to 12 months.