Table of Contents

CHAPTER 1: OVERVIEW OF SITE COMMANDERS AND RELATED LEGAL DOCUMENTS

1. Overview of construction site commanders

1.1. Functions of a Site Commander

Is the contractor’s representative at the site, appointed by the contractor as the construction site commander
Is the decision-maker for all matters on the site
Is one of the points of contact between the company (of the contractor) and partners related to the construction project

1.2. Duties of a Site Commander

To manage production and construction activities, ensuring the following factors:
- Achieving quality,
- Meeting the schedule,
- Using funds reasonably
- Safety and environmental sanitation
- Representing the contractor in communications with partners on site

1.3. Authority of a Site Commander

To direct all activities on the site
To manage all physical and technical facilities at the site
To recommend to superiors (Enterprise, Company) to provide or supplement facilities on site
To contract for temporary labor
To purchase necessary, low-cost, urgent supplies and materials for the project
To reward or discipline subordinate employees on site

1.4. Responsibilities of a Site Commander

To be responsible for all activities on the site
To manage, use, protect, and exploit the site’s resources to complete the mission
To be responsible to superiors (enterprise director or company director) for all work taking place at the construction site

1.5. Quality Requirements for a Site Commander

a) General Requirements

Broad and solid professional knowledge
Good observation skills and scientific calculation abilities
Organizational, managerial, and decisive leadership skills
Knows how to use enforcement measures when necessary
Demeanor: flexible, creative, and principled

b) Some Specific Requirements

The Site Commander must understand the work process for implementing an item, a project, a construction project. Must know how to guide and instruct subordinates to perform correctly according to the plan set out.
The Site Commander must know economic management, specifically labor management, vehicle and machinery management, and materials management.
Maintain a close relationship with the Project Management Unit (PMU) to ensure supervision and acceptance testing are carried out correctly, facilitating the acceptance, payment, and settlement of quantities and costs accurately.
The Site Commander must know the site conditions regarding: estimating and mobilizing manpower, vehicles, and machinery. Estimating materials – ordering fabrication of details, components.
The Site Commander must know how to prepare reports on the volume of work in the current and upcoming months, and propose command solutions for subordinates to complete as instructed.
The Site Commander must know how to check and control occupational safety and environmental sanitation work.
The Site Commander must know how to estimate costs for wages, material purchases, compare actual performance with the amount paid to grasp a preliminary and simple understanding of implementation, and report timely recommendations to their superiors and the PMU.

1.6. Ranking of Site Commander Competency

a) Class 1 Site Commander

Holds a university degree or higher in a specialty relevant to the type of construction work
Has at least 7 years of continuous experience in construction work
Has been a Site Commander for one special-grade or Class I project, or two Class II projects of the same type.
Scope of operation: permitted to command special-grade, Class I, II, III, and IV projects of the same type;

b) Class 2 Site Commander

Holds a university degree or higher in a specialty relevant to the type of construction work
Has at least 5 years of continuous experience in construction work
Has been a Site Commander for one Class II project or two Class III projects of the same type.
For remote and deep-lying areas, individuals with a relevant university degree and a relevant construction specialty certificate for 2 years
Certificate from the Site Competency Assessment Council;
Scope of operation: permitted to command Class II, III, and IV projects of the same type;

Note: Individuals who have not yet been ranked can only be a site commander for Class IV projects. After serving as a site commander for 5 Class IV projects, they are permitted to command Class III projects of the same type.

1.7. Classification and Grading of Works

1.7.1. Ranking of Construction Organizations

a) Class 1 Competency Construction Organization

Has a Class 1 site commander of the same project type;
Has sufficient architects and engineers in specialties relevant to the type of construction work
Has sufficient technical workers with training certificates relevant to the tasks undertaken
Has essential construction equipment for project execution;
Has constructed at least 1 special-grade project, Class I project, or 2 Class II projects of the same type.

b) Class 2 Competency Construction Organization

Has a Class 1 site commander or 2 project commanders of the same type;
Has sufficient architects and engineers in specialties relevant to the type of construction work;
Has sufficient technical workers with training certificates relevant to the tasks undertaken
Has essential construction equipment for project execution
Has constructed at least 1 Class II project or 2 Class III projects of the same type.

1.7.2. Scope of Operation for Construction Organizations

Class 1: permitted to construct special-grade, Class I, Class II, Class III, and Class IV projects of the same type;
Class 2: permitted to construct Class II, Class III, Class IV projects of the same type
Organizations that do not yet meet the ranking conditions can only construct Class 4 projects; after constructing 3 Class 3 projects, they can be upgraded to Class 2.

Note: Organizations that have not yet been ranked can only construct projects meeting the ranking conditions; after completing 3 Class IV projects, they are upgraded to a construction organization for Class III projects of the same type.

2. Construction Law and Guiding Documents

2.1. Basic Contents of the Construction Law

The institutionalization of the Law is to meet the requirements of operating construction activities in a way that ensures both the competitiveness and integration of the construction industry into the regional economy, while also ensuring compliance with the regulations specified by the Government and Ministries in Decrees, Decisions, and guiding Circulars. This system of documents, for the first time, has established a relatively complete and synchronous legal framework to regulate construction activities within the territory of Vietnam.

2.1.1. Scope of Regulation, Subjects of Application, and Structure of the Construction Law

a) Scope of Regulation, Subjects of Application

The Construction Law regulates social relations arising in construction activities between organizations and individuals; specifies the rights and obligations of organizations and individuals investing in construction projects and engaging in construction activities. Domestic organizations and individuals; foreign organizations and individuals investing in construction projects and engaging in construction activities in the territory of Vietnam must comply with the provisions of the Construction Law. In cases where an international treaty to which the Socialist Republic of Vietnam is a signatory or has acceded contains provisions different from the Construction Law, the provisions of that international treaty shall apply.

b) Structure of the Construction Law

The Construction Law, with 10 chapters and 168 articles, includes general provisions on construction activities; construction planning; construction investment projects; surveying, construction design; construction of works; contractor selection and construction contracts; state management of construction; rewards, handling of violations, and implementation provisions.

2.1.2. Construction Activities

In construction investment projects, construction activity is the creation of a construction product according to an approved design. Specific construction activities are closely related to each other; on the other hand, construction activities can be carried out interwoven with many details implemented gradually. Therefore, to understand the Construction Law, it is necessary to approach and grasp the principles, contents, requirements, and legal regulations for specific construction activities. Construction activities include construction planning, establishing construction investment projects, construction surveying, and design.

a) Basic Principles in Construction Activities

For construction activities to be truly effective, when participating in construction activities, subjects must adhere to the following basic principles:

a1. Compliance with planning, architecture, environmental protection, suitability for natural conditions, cultural and social characteristics

Construction planning is the basis for implementing construction activities, controlling the development process of urban areas and functional areas, ensuring order and discipline in construction activities, serving the goals of socio-economic development, national defense, security, and environmental protection. Requirements for planning, architecture, landscape, and environment aim to orient construction with focus and priority, create a balance between the natural and social environments, and ensure harmony in spatial organization and synchronous connection of technical infrastructure works. Construction activities also require suitability for the natural conditions, cultural, and social characteristics of each region to harmoniously exploit resources and create a basis for sustainable socio-economic development of the region.

a2. Compliance with construction codes and construction standards

Construction codes and construction standards are important tools for managing construction activities. Construction codes are mandatory regulations applied in construction activities issued by competent state management agencies for construction, while construction standards are regulations on technical norms, economic-technical norms, work execution procedures, indicators, technical specifications, and natural indicators issued or recognized by competent organizations or agencies for application in construction activities. Compliance with construction codes and standards is the basis for strengthening the effectiveness of state management and construction; helping investors and contractors to use resources economically and rationally, ensuring quality, progress, safety of works, and synchronicity within each work and the entire project.

a3. Ensuring quality, progress, safety of works, human life, and property

Quality, progress, safety of works, human life, and property are important requirements when investing in construction projects. Because construction projects are often large-scale, require mobilization of many resources, and can have a large impact on the surrounding space… the issues of quality, progress, and safety in construction are of great significance. Ensuring quality, progress, and safety during construction is not only a requirement but also the responsibility of the subjects involved in construction activities, especially the investor and the contractor.

a4. Ensuring economy, economic efficiency, and synchronicity in each work and the entire project

The efficiency of a construction investment project is an important issue that needs to be considered before deciding to invest. The goal of economy, economic efficiency, and creating synchronicity in each work and the entire project requires subjects involved in construction activities to follow scientific methods for calculating the socio-economic efficiency of the project, for establishing and managing construction investment costs, for construction supervision, for project management….

b) Construction Planning

b1. Construction planning is the organization of urban and rural residential spaces, technical infrastructure systems, and social infrastructure systems; creating a suitable living environment for people living in territories, ensuring a harmonious combination of national interests and community interests, meeting the goals of socio-economic development, national defense, security, and environmental protection. Construction planning is expressed through a construction planning project, including diagrams, drawings, models, and explanations. Construction planning includes regional construction planning, detailed urban construction planning, and rural residential construction planning.

Among all construction activities, construction planning is the first activity, is directional, and is the basis for managing and implementing subsequent construction activities. Construction planning is organized, established, and approved by the Government and People’s Committees at all levels.

b2. People’s Committees at all levels are responsible for organizing the establishment of construction planning within the administrative boundaries under their management according to decentralization, serving as a basis for managing construction activities, deploying construction investment, and constructing works. In cases where People’s Committees at all levels do not have sufficient capacity to prepare construction planning tasks, adjust construction planning tasks, construction planning projects, or adjust construction planning, they may invite experts or hire consultants to do so. All organizations and individuals must comply with the construction planning approved by competent state agencies.

b3. Construction planning must ensure the following general requirements:

Be consistent with the overall socio-economic development plan, development plans of other sectors, and land use plans; detailed construction planning must be consistent with general construction planning; ensure national defense and security, creating momentum for socio-economic development;
Organize and arrange territorial space based on the rational exploitation and use of natural resources, land, and other resources in accordance with the natural conditions, historical, socio-economic characteristics, and scientific and technological progress of the country in each development period;
Create a comfortable, safe, and sustainable living environment; meet the increasing material and spiritual needs of the people; protect the environment.

c) Establishing Construction Investment Projects

c1. Construction Investment Projects

Based on the socio-economic development plan, construction planning, sector development planning, and approved investment plans, the investor organizes the establishment of a construction investment project to clarify the necessity and efficiency of the construction investment. Investment in construction aims to create the material and technical basis for the entire national economy in the forms of new construction, restoration, renovation, and upgrading of society’s fixed assets.

A construction investment project is a collection of proposals related to investing capital for new construction, expansion, or renovation of construction works for the purpose of developing, maintaining, and improving the quality of the work or products and services within a certain period. A construction investment project includes an explanation part and a basic design part. For small-scale, simple construction investment projects and religious works, only a Construction Economic-Technical Report needs to be prepared, which includes the basic requirements and contents as prescribed.
Construction investment projects are classified as follows:
- By scale and nature, including: national important projects for which the National Assembly approves the policy and permits investment; the remaining projects are divided into 3 groups A, B, C;
- By investment capital source, including: Projects using state budget capital; projects using credit capital guaranteed by the State, state development investment credit capital; projects using development investment capital of state-owned enterprises; projects using other capital including private capital or a mixture of many capital sources.
The establishment of a construction investment project must be consistent with the overall socio-economic development plan, sector planning, construction planning, ensure security, social safety, and environmental safety, and comply with the provisions of land laws and other relevant laws. Depending on the capital source used for the project, the state manages projects according to the following regulations:
- For projects using state budget capital, including component projects, the State manages the entire construction investment process from determining the investment policy, establishing the project, deciding on investment, preparing designs, total estimates, selecting contractors, construction, to acceptance, handover, and putting the work into operation. The person deciding the investment is responsible for arranging sufficient capital according to the project implementation schedule, but not exceeding 2 years for group C projects, and 4 years for group B projects. Projects using state budget capital are decided by competent state management agencies according to decentralization, consistent with the provisions of the law on the state budget;
- For projects using credit capital guaranteed by the State, state development investment credit capital, and development investment capital of state-owned enterprises, the State only manages the investment policy and scale. The enterprise with the project is responsible for organizing the implementation and management of the project in accordance with relevant legal provisions;
- For projects using other capital, including private capital, the investor decides the form and content of project management. For projects using a mixture of different capital sources, the contributing parties agree on the management method or manage according to the regulations for the capital source with the largest percentage of the total investment.

c2. Relationship between construction works and projects; type and grade of construction works, equipment installed in works, construction of works

A construction investment project may have one or more construction works; the works belonging to the project may differ in type and grade. If the project has one work, the project is also the work. A construction work is a product created by human labor, construction materials, equipment installed in the work, fixed to the land, possibly including underground, aboveground, underwater, and above-water parts, built according to a design.
Construction works are classified by type and grade. The type of construction work is determined by its function, including civil, industrial, transport, irrigation, energy, and other works. The grade of a work is determined by its type, based on the scale, technical requirements, construction materials, and service life of the construction work. Each type of work is divided into 5 grades: special grade, grade I, grade II, grade III, and grade IV.
The Construction Law also provides for technical infrastructure systems and social infrastructure systems, specifically as follows:
- Technical infrastructure systems include transportation systems, communications, energy supply, public lighting, water supply, drainage, waste treatment, and other works.
- Social infrastructure systems include health, cultural, education, sports, commercial, public service, green space, park, water surface, and other works.
The system of equipment installed in the work includes work equipment and industrial equipment. Work equipment is equipment installed in the construction work according to the construction design. Technological equipment is equipment within a technological line installed in the construction work according to the technological design.
The management and implementation of a construction investment project are carried out from the construction works of the project to the entire project. Specific regulations on construction standards, codes, surveying, design, construction, construction supervision, capacity conditions, cost estimation and management… are all tied to each type and grade of construction work. Therefore, the efficiency of project management and implementation stems from the good management and implementation of each work of the project.
A construction work may include items such as the foundation, the main structure, the technical systems of the work, and the equipment system of the work. Parts of the work include columns, beams, floors, foundations, roofs…. Understanding and consistent implementation of details regarding the project, work, work item, and work part are crucial in managing, implementing, and ensuring project efficiency.

c3. Rights and obligations of subjects in establishing construction investment projects

Rights and obligations of the construction investor
- The construction investor has the right to self-perform the establishment of the construction investment project when having sufficient capacity to do so; to negotiate, sign, and supervise contract implementation; to request relevant organizations to provide information and documents for establishing the construction investment project; to suspend implementation or terminate the contract when the project consulting contractor violates the contract and other provisions as stipulated by law.
- The construction investor has the obligation to hire a consultant to establish the project if they do not have sufficient capacity to self-perform; to define the content and tasks of the construction investment project; to provide information and documents related to the construction investment project to the project consultant; to organize acceptance, appraisal, and approval of the construction investment project within their authority or submit it to competent authorities for appraisal and approval; to properly implement the committed contract; to store the construction investment project dossier; to compensate for damages caused by using a consultant not suitable for the project establishment capacity, providing incorrect information; appraising and accepting not in accordance with regulations and other violations causing damage due to their fault, and other obligations as stipulated by law.
Rights and obligations of the project consulting contractor
- The project consulting contractor has the right to request the investor to provide information and documents related to the establishment of the construction investment project; to refuse to perform unlawful requests of the investor and other provisions as stipulated by law.
- The project consulting contractor is only allowed to accept the establishment of construction investment projects suitable for their construction activity capacity; to perform the work correctly according to the signed contract; to be responsible for the quality of the established construction investment project; not to disclose information and documents related to the project establishment they are undertaking without the permission of the hirer or competent person; to compensate for damages when using information, documents, construction codes, standards, and technical solutions that are not appropriate and other violations causing damage due to their fault, and other obligations as stipulated by law.

Rights and obligations of the person deciding the construction investment
- The person deciding the construction investment has the right not to approve the construction investment project when the project does not meet the objectives and efficiency; to suspend the implementation of an approved or ongoing construction investment project when deemed necessary; to change or adjust the objectives and scale of the construction investment project and other rights as stipulated by law.
- The person deciding the construction investment has the obligation to organize the appraisal and approval of the construction investment project; to inspect the implementation of the construction investment project; to be responsible before the law for the contents of the decision approving the construction investment project, the decision to suspend the implementation of the construction investment project, and other decisions within their authority, and other obligations as stipulated by law.

d) Construction Survey

d1. Concept

Construction survey includes topographic survey, construction geological survey, hydrogeological survey, survey of the current state of the work, and other survey work serving construction activities. Construction survey is only carried out according to an approved survey task. Construction survey documents are one of the bases for preparing various types of construction planning projects and construction work designs.

Therefore, construction surveys must be conducted to collect data on the natural conditions of the proposed construction area; data on the current state of the work; the current state of the region, construction site, to serve the tasks of: Preparing construction planning projects; Selecting and determining the construction site; Aligning the work route; Preparing the work design; Devising technical solutions for construction; Predicting the interaction between the construction work and the surrounding natural environment during construction and use.

d2. Requirements for Construction Survey

Construction survey must ensure the following requirements: The survey task must be suitable for the requirements of each type of work, each design step; Ensure honesty, objectivity, and accurately reflect reality; The volume, content, and technical requirements for construction survey must be consistent with the survey task, construction codes, and standards; For construction geological surveys, the corrosivity and seasonal fluctuation of the groundwater level must also be determined to propose appropriate prevention and control measures. For large-scale, important projects, there must be observational surveys of the environmental impacts on the work during construction and use.

d3. Rights and obligations of subjects in construction survey

Rights and obligations of the investor: To approve the survey task prepared by the design contractor or construction survey contractor and assign the survey task to the construction survey contractor; to adjust the survey task accordingto reasonable proposals from the survey contractor, design contractor, and construction contractor; to select a survey contractor with sufficient capacity to perform the survey work; to approve the survey technical plan prepared by the survey contractor; to hand over the site to the survey contractor; to organize implementation and supervise the execution of the signed contract. To organize the acceptance of survey results and fully pay the survey contractor according to the signed contract.
Rights and obligations of the design contractor in the construction survey of the work they design: To prepare the construction survey task for design work upon the investor’s request; to propose additional surveys and prepare additional survey tasks when detecting unusual factors directly affecting the design solution; or detecting that survey documents do not meet design requirements; to use construction survey information and documents for design work consistent with the design task according to the prescribed steps; to compensate for damages when incorrectly defining the construction survey task performed by them, affecting the work design, and other violations causing damage due to their fault.
Rights and obligations of the construction survey contractor: Only to accept construction survey work consistent with their capacity conditions as prescribed; the survey leader must have sufficient capacity as prescribed, and assign capable staff to perform the survey; to prepare the construction survey task upon the investor’s request; to prepare the survey plan; to perform the survey work according to the assigned survey task, the approved survey plan, and the signed contract; to propose and supplement the construction survey task when detecting factors directly affecting the design solution; to monitor and check the implementation of the survey process accordingto the plan approved by the investor; to record monitoring and checking results in the construction survey log; to protect the environment and construction works in the survey area; to be responsible before the investor and the law for the survey results.

e) Construction Design of Works

e1. Concept

Construction design of works can be carried out in one step, two steps, or three steps. One-step design is the construction drawing design applied to works that only require a Economic-Technical Report; two-step design includes the basic design step and the construction drawing design step, applied to works that require a construction investment project (except for works in the project requiring three-step design); three-step design includes the basic design step, the technical design step, and the construction drawing design step, applied to works belonging to investment projects that are also special-grade, Class I works, and Class II works with complex technical requirements as decided by the investment decider.

The reason design is divided into steps like this is that works have different scales, natures, and complexities, and the levels of technical and management requirements also differ. Small, simple works do not necessarily require all design steps because the design requirements can be clearly defined from the beginning. For large-scale works, the design requirements cannot be fully determined from the beginning, so the design needs to be refined and detailed gradually through the steps.

e2. Requirements for Construction Design of Works

Construction design of works must ensure the following general requirements: Be consistent with construction planning, landscape, natural conditions, and architectural regulations; be consistent with the technological design in cases where the construction investment project has a technological design; the work’s foundation must ensure stability, without settlement, cracking, or deformation exceeding allowable limits that affect the service life of the work and neighboring works; the content of the construction design must be suitable for the requirements of each design step, satisfying functional use requirements; ensure aesthetics, reasonable cost; be safe, economical, and compliant with applicable construction codes and standards; standards for fire and explosion prevention, environmental protection, and related standards; for public works, design must ensure standards for people with disabilities; be synchronous within each work, meeting the requirements for operation and use of the work; be synchronous with related works.

e3. Basic contents of each design step

Since each design step has different requirements, the design content for that design step differs.

At the basic design step: The basic design must show the main design solutions, ensuring sufficient conditions to determine the total investment and deploy subsequent design steps.
At the technical design step: The technical design must be consistent with the basic design that has been appraised and approved. However, it must calculate specifically, clarify, and detail the design solutions and contents mentioned in the basic design. The drawings must detail the main dimensions and technical specifications sufficiently to prepare estimates, total estimates, and construction drawing designs.
At the construction drawing design step: The construction drawing design explanation must fully clarify contents that the drawings cannot express to guide the construction personnel to execute according to the design. The drawings must detail all parts of the work, and structures with full dimensions, materials, and technical specifications for accurate construction and be sufficient to prepare construction cost estimates.

e4. Design Appraisal and Verification

State management agencies must appraise the basic design to assess its consistency with construction planning, with the project explanation regarding construction scale, technology, design capacity, work grade, data used in the design, applicable codes and standards; the reasonableness of design solutions, standards applied in design solutions, the capacity of consulting organizations, and the professional capacity of individuals establishing the project and basic design.

The investor must appraise the technical design or construction drawing design to check the consistency of the design with previously approved design steps, compliance with applicable codes and standards, and assess the work safety, environmental protection, and fire prevention.
If the investor lacks the capacity for appraisal, they may hire consulting organizations or individuals with sufficient capacity to verify the design as a basis for appraisal and approval. Depending on the investor’s requirements, design verification can be performed for part or all of the design appraisal contents.
After verification, if the verification results do not conflict with the design, the investor will approve the design based on the verification results. If the verification results conflict with the design, the investor will request the design contractor to clarify and correct (if necessary) before approval.
Design appraisal is done at each design step as a basis for implementing subsequent design steps, avoiding errors that lead to revising the design from the beginning.
The difference between design appraisal by state agencies and by the investor is that state management agencies only appraise the basic design regarding contents related to construction planning, reasonableness of design solutions, community safety, national security… while the investor appraises subsequent design steps to ensure consistency with the previously approved step, reasonableness of design solutions, compliance with construction codes and standards, work safety… before construction.

e5. Rights and obligations in construction design

Rights and obligations of the investor
- Rights of the investor: To self-perform construction design when having sufficient capacity for construction design activities as prescribed; to negotiate, sign, and supervise design contract implementation; to request design modifications, additions, and other rights as stipulated by law.
- Obligations of the investor: To select a construction design contractor if lacking the capacity for construction design activities; to define construction design tasks; to provide complete information and documents to the design contractor; to properly implement the signed contract; to appraise, approve or submit to competent agencies for appraisal and approval of the design as prescribed; to organize acceptance of the design dossier; to store the design dossier and other obligations as stipulated by law.
Rights and obligations of the construction design contractor
- Rights of the construction design contractor: To refuse to perform requests outside the design task; to request information and documents for design work; copyright for the work design and other rights as stipulated by law.
- Obligations of the construction design contractor: Only to accept construction design contracts suitable for their construction design capacity and professional practice capacity; to correctly perform the design task, ensuring progress and quality; to be responsible for the design quality they undertake; to perform author’s supervision during construction; to prepare construction survey tasks for design work suitable for the requirements of each design step; not to specify manufacturers of materials, supplies, and construction equipment; to purchase professional liability insurance; to compensate for damages when defining survey tasks, using information, documents, standards, construction codes, technical solutions, technology that are inappropriate, affecting the quality of the work, and other violations causing damage due to their fault, and other obligations as stipulated by law.

e6. Prohibited acts in construction design:

Renovating, expanding, making major repairs, restoring, or embellishing works without an approved construction design as prescribed, or constructing contrary to the approved design; engaging in design activities incorrectly or inconsistently with the practicing certificate, exceeding capacity as prescribed, leasing or lending one’s name; engaging in design activities without a practicing certificate.

e) Construction of Works

Construction of works includes construction and equipment installation for new construction, repair, renovation, relocation, restoration, rehabilitation; demolition of works; warranty and maintenance of works.

e1. Conditions for commencing construction of works

A construction work may only be commenced when it meets the following conditions: Have a construction site; have a construction permit for works requiring one; have approved construction drawing designs for the item or work (for works only requiring an Economic-Technical Report, after the Report is approved); have a construction contract; have sufficient funds to ensure construction progress as approved in the construction investment project; have measures to ensure safety and environmental sanitation during construction.

e2. Site clearance for construction works

Site clearance for construction must be formulated into a plan. The site clearance plan is presented in the construction investment project and is approved concurrently with the project approval. For projects requiring resettlement, a resettlement plan or project must be established and implemented before site clearance. The scope of site clearance must be consistent with the approved detailed construction planning and investment project. The duration of site clearance must meet the requirements of the approved project implementation schedule or the competent person’s decision.

Compensation for assets for site clearance must ensure the interests of the State and the legitimate rights and interests of related organizations and individuals. For housing of organizations and individuals, new stable accommodation must be provided, with conditions equal to or better than the old ones, support for job creation, and stabilization of life for those who must relocate, unless otherwise agreed by the involved parties. In cases of asset compensation for site clearance, it must ensure both the construction of the new work and the refurbishment of street-front works according to the approved detailed construction planning; ensure the State can regulate the land value difference after site clearance and construction investment.

e3. Construction Permit

According to Clause 1, Article 62 of the Construction Law, before commencing construction, the investor must have a construction permit. The regulation on issuing construction permits is to manage construction according to approved planning, prevent chaotic construction, construction not adhering to approved building lines and urban architecture, ensure safety for neighboring works, protect corridors for transport, irrigation, dike, energy works, cultural heritage sites, historical-cultural relics, and also manage construction so it does not affect the natural landscape, environment, fire safety, security, and national defense.

Cases not requiring a construction permit
Before commencing construction, the investor must have a construction permit, even for works whose basic design has been appraised by a State agency, except for the construction of the following works:
- Works belonging to state secrets; works built under urgent orders; temporary works serving the construction of main works, including temporary works of the investor and contractor located within the approved overall site plan;
- Linear works not passing through urban areas but consistent with approved construction planning;
- Works belonging to construction investment projects approved by competent state agencies, except works only requiring an Economic-Technical Report. However, before commencing construction, the investor must send the basic design appraisal results to the construction permit issuing agency for monitoring and management;
- Works belonging to urban area projects, industrial parks, residential areas with detailed 1/500 scale construction planning approved by competent state agencies;
- Works involving repair, renovation, or equipment installation inside that do not change the architecture, load-bearing structure, or safety of the work;
- Technical infrastructure works (including works: waste treatment plants, landfills, water supply, drainage, roads, canals, ditches, …) with a total investment of less than 7 billion VND located in remote, deep-lying communes that do not violate cultural heritage preservation areas, historical-cultural relics.
- Individual houses in remote, deep-lying areas not in urban areas; rural residential points without approved construction planning.
- Authority to issue construction permits: Provincial-level People’s Committees authorize the Director of the Department of Construction to issue construction permits for special-grade and Class I construction works according to work classification; religious works; historical-cultural relic works; fair and exhibition centers, large-scale advertisements, murals within their administrative boundaries; works on main urban streets as specified by the provincial People’s Committee. District-level People’s Committees issue construction permits for the remaining works and individual urban houses within the district’s administrative boundaries, except for the works mentioned above. Commune-level People’s Committees issue construction permits for individual houses in rural residential points with approved construction planning within the commune’s administrative boundaries as prescribed by the district People’s Committee.

e4. Requirements for construction sites

All construction sites must have a sign displayed. The sign’s content includes: Name of the construction investor, total investment, commencement date, completion date; name of the construction unit, name of the site commander; name of the design unit, name of the design lead; name of the construction supervision organization or person; the construction investor, design lead, construction supervision organization or person must also state their contact address and phone number.

e5. Rights and obligations of subjects in construction

Rights and obligations of the investor:
- Rights of the investor: To self-perform construction when having sufficient operational capacity; to negotiate, sign, and supervise contract implementation; to suspend implementation or terminate contracts; to stop construction, request remedy of consequences when the contractor violates regulations on work quality, safety, and environmental sanitation; to request related organizations and individuals to coordinate in carrying out tasks during the construction process, and other rights as stipulated by law.
- Obligations of the construction investor: To select a contractor with suitable capacity to execute the construction; to participate with the competent People’s Committee or preside over coordination with People’s Committees at all levels for site clearance to hand over to the construction contractor; to organize construction supervision; to check safety and environmental sanitation measures; to organize acceptance, payment, and settlement of the work; to hire a consulting organization with sufficient capacity to inspect the work quality when necessary; to consider and decide on the contractor’s design-related proposals during construction; to purchase work insurance; to store the work dossier; to compensate for damages, be responsible for their decisions; to ensure the work is constructed on schedule, with quality and efficiency, and other obligations as stipulated by law.

Rights and obligations of the construction contractor
- Rights of the construction contractor: To refuse to perform unlawful requests; to propose design modifications suitable to reality to ensure work quality and efficiency; to request payment for the value of completed construction according to the contract; to stop construction if the project owner fails to properly implement commitments in the signed contract, causing obstacles and losses to the contractor; to request compensation for damages caused by the project owner’s fault, and other rights as stipulated by law.
- Obligations of the construction contractor: To construct according to the design, construction standards, ensuring quality, progress, safety, and environmental sanitation; to maintain a construction log; to inspect materials and construction products; to manage workers on site, ensure security, order, and not affect surrounding residential areas; to prepare as-built drawings, participate in work acceptance; to provide warranty for the work; to purchase insurance types as stipulated by insurance laws; to compensate for damages when breaching the contract; to be responsible for the quality of construction they undertake, and other obligations as stipulated by law.
Rights and obligations of the design contractor during construction
- Rights of the design contractor during construction: To require the investor and construction contractor to implement according to the design; to refuse unreasonable design change requests from the investor; to refuse to accept the work or work item if construction does not follow the design.
- Obligations of the design contractor during construction: To appoint capable personnel for author’s supervision as prescribed; to participate in work acceptance at the investor’s request; to consider and handle unreasonable design issues upon the investor’s proposal; to detect and promptly notify the investor of construction deviating from the approved design and recommend remedial measures.

e6. Prohibited acts during construction

Constructing works in prohibited construction areas; constructing works encroaching on protective corridors of transport, irrigation, dikes, energy works, historical-cultural relics, and protected areas of other works as stipulated by law; constructing works in areas at risk of landslides, flash floods, except for works built to remedy these phenomena.
Construction contractors assigning management staff or construction commanders lacking the professional capacity corresponding to the type and grade of the work.
Accepting construction contracts exceeding their operational capacity as prescribed.
Lending or borrowing the contractor’s name; using another contractor’s name for construction activities.
Deploying construction inconsistent with commitments in the bid documents and the construction contract.
Constructing parts of works or works without a construction permit or contrary to the construction permit; without an approved construction design or contrary to the approved construction design.
Failing to follow construction processes and regulations, causing settlement or cracking of neighboring works.
Not having a site sign as prescribed; not having safety signs; not having safety covers or barriers; not having a protective safety fence.
Construction contractors using test results of construction materials or components from non-standardized laboratories.
Using construction materials; using construction components; using technological equipment without certificates of origin or quality certification as prescribed.
Not having a quality management system; not organizing construction supervision; constructing not according to design; constructing not according to construction codes and standards, affecting work quality or causing work incidents.
Improper acceptance; incorrect acceptance of quantities; falsifying payment and settlement values.

g) Construction Supervision

All construction works must be supervised during construction. Construction supervision is carried out to monitor and check the quality, quantity, progress, occupational safety, and environmental sanitation during construction. The investor must hire a supervision consultant or self-perform if they have sufficient capacity for construction supervision. The person performing construction supervision must have a construction supervision practice certificate suitable for the work, type, and grade of the project.

g1. Requirements for construction supervision

Construction supervision must be carried out regularly, continuously, honestly, objectively, and impartially from the commencement of construction throughout the construction process. Supervision must be based on the approved design and applicable construction codes and standards.

g2. Rights and obligations of subjects

Rights and obligations of the construction investor:
- Rights of the investor: To self-perform supervision when having sufficient construction supervision capacity; to negotiate, sign contracts, monitor, and supervise contract implementation; to change or request the consulting organization to change the supervisor if the supervisor fails to comply with regulations; to suspend implementation or terminate the contract, and other rights as stipulated by law.
- Obligations of the construction investor: To hire a supervision consultant if lacking the capacity to self-perform; to inform relevant parties of the rights and obligations of the supervision consultant; to promptly handle the supervisor’s proposals; to fully perform obligations agreed upon in the construction supervision contract; to store construction supervision results; to compensate for damages when selecting a supervision consultant lacking capacity, accepting incorrect quantities, incorrect designs, and other violations causing damage, and other obligations as stipulated by law.

Rights and obligations of the construction supervision contractor
- Rights of the construction supervision contractor: To accept and confirm when the work has been constructed according to the design, construction codes, standards, and ensures quality; to require the construction contractor to perform according to the contract; to reserve their opinions on the supervision work they undertake; to refuse unreasonable requests from relevant parties, and other rights as stipulated by law.
- Obligations of the construction supervision contractor: To perform supervision work according to the signed contract; not to accept quantities that do not ensure quality and technical standards required by the work design; to refuse acceptance when the work does not meet quality requirements; to propose design inconsistencies to the investor for timely modification; to purchase professional liability insurance; other violations causing damage, and other obligations as stipulated by law.

g3. Prohibited acts in construction supervision:

Performing supervision inconsistent with commitments in the bid documents; supervising when lacking capacity or having unsuitable capacity; colluding with the contractor in accepting quantities and quality; falsifying records, information, and data during supervision, and other prohibited acts under relevant laws.

h) Construction Investment Project Management

The content of construction investment project management includes managing quality, quantity, cost, progress, occupational safety, and the construction environment. The form of construction investment project management is decided by the investment decider and recorded in the project approval decision. Forms of construction investment project management include: hiring a consulting organization for project management or directly managing the project. Construction law prohibits project management unsuitable for capacity; prohibits collusion between the investor and organizations/individuals involved in project management to falsify project management contents; selecting project management consultants lacking capacity….

Specific contents on project management organization are presented in section III of this topic.

2.1.3. Content of State Management of Construction

The content of state management of construction includes:

Developing and directing the implementation of strategies and plans for construction activities.
Issuing and organizing the implementation of legal documents on construction.
Issuing construction codes and standards.
Managing quality, storing construction work dossiers.
Issuing and revoking licenses in construction activities.
Guiding, inspecting, handling complaints, denunciations, and violations in construction activities.
Organizing scientific and technological research in construction activities.
Training human resources for construction activities.
International cooperation in the field of construction activities.

The Government is the agency that uniformly manages the state administration of construction nationwide. The Ministry of Construction is responsible to the Government for the uniform state management of construction. Ministries and ministerial-level agencies, within their tasks and powers, coordinate with the Ministry of Construction to perform state management of construction. People’s Committees at all levels are responsible for state management of construction in their localities according to Government decentralization.

2.2. Legal documents guiding the law

Decree 46/2015/NĐ-CP dated May 12, 2015, of the Government on construction quality management and maintenance
Decree 59/2015/NĐ-CP dated June 18, 2015, of the Government on Construction Investment Project Management
Decree 32/2015/NĐ-CP dated March 25, 2015, of the Government on Construction Investment Cost Management
Decree 37/2015/NĐ-CP dated March 25, 2015, of the Government on Contract Management in construction activities

CHAPTER 2: RIGHTS AND OBLIGATIONS OF CONTRACTORS IN ORGANIZING THE IMPLEMENTATION OF CONSTRUCTION CONTRACTS

1. For General Contractor Contracts

1.1. The general contractor shall manage the construction quality according to Decree 46/2015/NĐ-CP.

1.2. The general contractor shall supervise the construction quality according to Decree 46/2015/NĐ-CP for subcontractors.

1.3. The general contractor shall be responsible to the investor and the law for the quality of work they undertake and that performed by subcontractors; compensate for damages when breaching the contract, using incorrect types of materials, constructing not ensuring quality, or causing damage, environmental pollution, and other violations causing damage.

1.4. The subcontractor shall be responsible to the general contractor for the quality of the work portion they undertake.

2. For Separate Construction Contracts

2.1. The construction contractor has the following rights:

a) To refuse to perform unlawful requests;

b) To propose design modifications suitable to reality to ensure work quality and efficiency;

c) To request payment for the value of completed construction according to the contract

d) To stop construction if the project owner fails to properly implement commitments in the signed contract, causing obstacles and losses to the contractor

đ) To request compensation for damages caused by the project owner’s fault

e) Other rights as stipulated by law.

2.2. The construction contractor has the following obligations:

a) To perform according to the signed contract

b) To construct according to the design, construction standards, ensuring quality, progress, safety, and environmental sanitation;

c) To maintain a construction log

d) To inspect materials and construction products

đ) To manage workers on site, ensure security, order, and not affect surrounding residential areas

e) To prepare as-built drawings, participate in work acceptance

g) To provide warranty for the work

h) To purchase insurance types as stipulated by insurance laws

i) To compensate for damages when breaching the contract, using incorrect types of materials, constructing not ensuring quality, causing environmental pollution, and other violations causing damage due to their fault

k) To be responsible for the quality of construction they undertake

l) Other obligations as stipulated by law

CHAPTER 3: CONSTRUCTION QUALITY MANAGEMENT

1. Managing construction quality

1.1. Requirements to ensure work quality

a. Select Construction Contractors and Material/Equipment Supply Contractors according to regulations

b. The contractor must use technology appropriate to the characteristics of the construction work

Must execute the approved construction drawing design
Must comply with current codes and standards. The construction contractor and the material-equipment supply contractor must properly implement the signed construction contract and supply contract

c. The contractor must organize internal quality supervision and be responsible for the quality of the work they perform

d. The contractor must be subject to construction supervision, material-equipment supply supervision from the Investor, the designer, and society

1.2. Current regulations on construction quality management

1.2.1. Sequence of implementation and construction quality management

a. Select a construction contractor.

b. Prepare and approve construction methods.

c. Check the conditions for construction commencement and report to the competent state management agency as required before commencement.

d. Organize construction and supervise, accept during the construction process.

e. Conduct quality inspection of the work or work item in cases specified in this Decree.

f. Accept the completed work item or work for handover.

g. Inspect the acceptance of the completed work item or construction work before putting it into use.

h. Prepare as-built records; store the work’s records as prescribed.

1.2.2. Responsibilities of the investor

Select organizations and individuals with sufficient capacity as prescribed to perform construction, construction supervision (if any), testing, quality inspection (if any), and other construction consulting tasks.
Notify relevant contractors of the tasks and powers of individuals in the investor’s quality management system and the construction supervision contractor for coordination.
Check the construction commencement conditions according to the provisions of the Construction Law.
Check the capacity conformity of the construction contractor against the bidding documents and construction contract, including: human resources, construction equipment, specialized construction laboratory, and the construction contractor’s quality management system.
Check the mobilization and arrangement of human resources by the construction supervision contractor against the requirements of the construction contract.
Check and supervise during the construction process, including:
- a) Check materials, components, construction products, and equipment installed in the work; perform quality control tests when necessary;
- b) Check construction methods, which must specify measures to ensure safety for people, machinery, equipment, and the work of the construction contractor;
- c) Check, urge, and supervise the construction contractor and other contractors in deploying work at the site;
- d) Request the design contractor to make adjustments when errors or irrationalities in the design are detected;
- e) Check documents for acceptance testing;
- f) Check and confirm as-built drawings;
Implement regulations on environmental protection for construction works according to the law on environmental protection.
Organize quality inspection of parts of the work, work items, and the entire construction work when there is doubt about the quality or when requested by a state management agency;
Organize acceptance testing of the construction work;
Organize the preparation of as-built records.
Temporarily suspend or halt construction by the construction contractor if the construction quality is deemed not to meet technical requirements or construction methods do not ensure safety.
Preside over and coordinate with relevant parties to resolve problems and issues arising during construction and to handle and remedy work incidents as prescribed in this Decree.
Prepare a completion report for putting the construction work into use or an ad-hoc report upon request and send it to the state management agency for construction as prescribed in this Decree.

1.2.3. Responsibilities of the construction contractor

Establish a quality management system appropriate to the scale of the work, specifying the responsibility of each individual and department for managing the construction work’s quality.
Define quality management responsibilities between parties in the case of applying the general contractor form for construction or general contractor for design and construction; general contractor for design, supply of technology equipment, and construction; design, supply of technology equipment, and construction, and other general contractor forms (if any).
Arrange human resources, supply materials and construction equipment according to the contract requirements and relevant legal regulations.
Receive and manage the construction site, preserve positioning and boundary markers of the work.
Prepare and approve construction methods, clearly specifying measures to ensure safety for people, machinery, equipment, and the work, and the construction schedule, unless otherwise specified in the contract.
Perform checks and tests on materials, components, supplies, work equipment, construction products, and parts of the work and installation into the construction work according to standards, design requirements, and construction contract requirements.
Construct according to the construction contract, construction permit, and construction design; ensure work quality and safety during construction.
Promptly notify the investor of any discrepancies found between the design, contract documents, and site conditions.
Rectify errors and quality defects in the work performed; preside over and coordinate with the investor to remedy the consequences of incidents during the construction process; prepare incident reports and coordinate with relevant parties during the investigation of the incident’s cause.
Maintain a construction log as prescribed.
Prepare as-built drawings as prescribed.
Report to the investor on progress, quality, quantity, occupational safety, and environmental sanitation during construction as requested by the investor.
Return the site, remove materials, machinery, equipment, and other assets from the site after the work has been accepted and handed over, unless otherwise agreed in the contract.

1.2.4. Responsibilities of the contractor manufacturing, producing, and supplying materials, products, equipment, and components used for the construction work

Ensure the quality of materials, products, equipment, and construction components according to the declared applicable standards and corresponding technical regulations, meeting design requirements.
Provide the procuring party with complete information and documents related to products and goods as prescribed by the law on product and goods quality and other relevant laws; ensure compliance with regulations on product and goods labeling.
Perform certification of conformity and standard compliance as prescribed by law and conduct quality control tests as required by the contract.
Implement agreements with the procuring party on the procedures and methods for quality inspection of materials, products, equipment, and construction components before and during production, as well as during the supply, use, and installation into the work.

1.2.5. Responsibilities of the construction supervision contractor

Appoint individuals with sufficient capacity as prescribed to perform the duties of chief supervisor and other supervision roles.
Establish an organizational chart and supervision outline, including the tasks, powers, and obligations of the supervision roles, prepare a quality control plan, inspection and acceptance procedures, and methods for managing relevant records and documents during the construction supervision process.
Perform construction supervision according to the provisions of the construction contract, the outline approved by the investor, and legal regulations on construction quality management.
Accept the work performed by the construction contractor as required by the construction contract.

1.2.6. Author’s supervision responsibilities of the construction design contractor (Decree 46/ND-CP)

The contractor who prepared the technical design (for three-step design) or the construction drawing design (for one-step or two-step design) must appoint a person with sufficient capacity to perform author’s supervision during the construction process, either on a non-regular basis or a regular basis if separately agreed with the investor in the contract.
Explain and clarify design documents upon request from the investor, construction contractor, and construction supervision contractor.
Coordinate with the investor when requested to resolve design-related problems arising during construction, adjust the design to suit the actual construction, and handle design irrationalities at the investor’s request.
Promptly notify the investor and recommend handling measures upon detecting construction by the contractor that deviates from the approved design.
Participate in the acceptance of the construction work at the investor’s request; if a work item or the construction work is found ineligible for acceptance, a timely written opinion must be sent to the investor.

1.2.7. Safety management in construction (Decree 46/ND-CP)

Before commencing construction, the construction contractor must prepare and approve the design of construction methods as prescribed, which must show safety measures for workers, construction equipment, the main work, temporary works, auxiliary works, adjacent works, fire prevention, and the environment.
Construction methods must be periodically reviewed and adjusted by the construction contractor to suit the actual site conditions.
Safety measures and occupational safety regulations must be publicly displayed on the construction site for everyone to know and comply with; dangerous locations on the site must have warnings to prevent accidents.
Operators of machinery and equipment, and individuals performing tasks with strict occupational safety requirements as defined by labor safety laws, must be trained in occupational safety and possess a valid safety card.
Machinery and equipment with strict occupational safety requirements must be inspected and registered with the competent state management agency as prescribed before being allowed to operate on site. When operating, procedures and safety measures must be followed.
The investor is responsible for organizing checks and urging the construction contractor to comply with the approved construction methods and safety solutions.
Workers participating in construction on site must be in good health, trained in safety, and provided with adequate personal protective equipment as prescribed by labor laws.
State management agencies for construction shall guide and inspect safety compliance during construction as prescribed.
When a safety incident occurs during construction, the resolution of the incident shall comply with Decree 46/2013/NĐ-CP.

1.2.8. Preparation and storage of as-built records for work items and construction works (Decree 46/NĐ-CP)

As-built records for work items and construction works must be fully prepared by the investor before putting the work item or work into operation.
As-built records for the work are prepared once for the entire construction investment project if all works (work items) of the project are put into operation at the same time. If the works (work items) of the project are put into operation at different times, as-built records may be prepared for each individual work (work item).
The number of as-built record sets is decided by the investor based on agreement with the contractors and relevant parties.
Storage of as-built records shall comply with legal guidance on archives.

1.2.9. Organization of construction work acceptance (Decree 46/ND-CP)

The investor is responsible for organizing the acceptance of the construction work, including: Acceptance of construction tasks during the construction process; acceptance of completed work items or construction works for putting into use. If necessary, the investor shall specify acceptance for important transitional construction phases of the work.
The construction contract must clearly state the acceptance procedures. Acceptance results must be recorded in minutes.
Completed parts and items of the construction work, and the completed construction work itself, are only permitted to be put into use after being accepted by the investor as prescribed.
For works and work items specified in Clause 1, Article 21 of this Decree, the investor’s acceptance work must also be inspected by the state management agency for construction before being put into use.

1.2.10. Inspection of acceptance work for putting the work into use (Decree 46/ND-CP)

The state management agency for construction shall inspect the investor’s acceptance work for the following works and work items:
- a) Specialized agencies under the Ministry of Construction or Ministries managing specialized construction works shall inspect the works;
- b) Departments of Construction or Departments managing specialized construction works shall inspect the specified works;
- c) The Ministry of Defense and the Ministry of Public Security shall organize inspections for works in the defense and security sectors.
At least 10 working days (for Class II, III, and IV works) or 20 working days (for special grade and Class I works) before the investor’s planned acceptance date for putting the work or work item into use, the investor must send the competent state management agency the completion report for the work item or work, along with a list of as-built records for the work item or work.
The competent state management agency is responsible for:
- a) Inspecting the completed work or work item, checking compliance with legal regulations on construction quality management upon receiving the investor’s report, and inspecting the acceptance of important transitional construction phases when necessary;
- b) Requesting the investor and relevant parties to explain and rectify any outstanding issues (if any);
- c) Requesting the investor and relevant parties to conduct quality inspections of parts, items, or the entire work when necessary;
- d) Issuing a written conclusion on the inspection contents within 15 working days (for Class III and IV works) or 30 working days (for special grade, Class I, and Class II works) from receiving the documents. If the investor has not received the competent state management agency’s written conclusion by this deadline, the investor may proceed with the acceptance to put the work into use. The aforementioned state management agency is responsible for its failure to provide an inspection conclusion.

CHAPTER 4. CONSTRUCTION PROGRESS MANAGEMENT AND SITE ORGANIZATION

1. Labor Management

Labor management is a systematic management method aimed at ensuring the full promotion of the capacity, proactiveness, and creativity of each person of the contractor and utilizing it most effectively. It includes tasks such as organizational planning, team building, staff recruitment, and establishing a quality management system appropriate to the scale, requirements, and nature of the construction site.

2. Management of Construction Machinery and Equipment

2.1. The selection of construction machinery and equipment must be consistent with the construction methods. 2.2. Main construction machinery and equipment are required to be inspected and must meet the technical requirements of the job and operational safety.

3. Management of Construction Progress

3.1. A construction schedule must be established before the work is implemented. The construction schedule must be consistent with the overall project schedule that has been approved. 3.2. For large-scale construction works with a long construction period, the construction schedule must be established for each phase by month, quarter, and year. 3.3. The construction contractor is responsible for creating a detailed construction schedule, arranging and combining tasks to be performed, but must ensure it is consistent with the overall project schedule. 3.4. The investor, construction contractor, supervision consultant, and relevant parties are responsible for monitoring and supervising the construction progress and adjusting the schedule if construction in some phases is delayed, but it must not affect the overall project schedule.

If the overall project schedule is deemed to be delayed, the investor must report to the investment decider to make a decision on adjusting the overall project schedule. 3.5. Accelerating the construction schedule is encouraged, provided that the work quality is ensured. If accelerating the construction schedule brings higher efficiency to the project, the construction contractor may be considered for a bonus according to the contract. If a delay in the construction schedule causes damages, the party at fault must compensate for the damages and be fined for breach of contract.

CHAPTER 5: CONTRACTOR SELECTION IN CONSTRUCTION ACTIVITIES

1. Purpose and Requirements of Contractor Selection in Construction Activities

1.1. Purpose of contractor selection in construction activities

The selection of a contractor in construction activities aims to choose a contractor with sufficient capacity to provide construction products and services suitable for the nature of the work, type, and grade of the work, meeting the requirements of the project and package, and bringing the highest efficiency to the procuring entity and the project.

1.2. Requirements for contractor selection in construction activities

The selection of contractors, including bidding, in construction activities must meet the following requirements:

Ensure the efficiency of the construction investment project
Select a contractor with sufficient construction operation capacity and construction practice capacity suitable for the package’s requirements, with an optimal technical and technological solution, and a reasonable bid price
Be objective, public, fair, transparent, and ensure competitiveness
Domestic contractors receive preferences when participating in international bidding organized in Vietnam
Do not violate acts prohibited by law

2. Forms of Contractor Selection in Construction Activities

There are many ways to select a contractor, such as open bidding, limited bidding, direct appointment, competitive shopping, direct procurement, and self-execution, of which competitive shopping forms only apply to goods procurement packages. The investment decider decides the form of contractor selection for each package in the bidding plan, depending on the characteristics of the package and the specific conditions of the procuring entity regarding capital, cost, and time for contractor selection. The Construction Law specifies 5 forms of contractor selection in construction activities: open bidding, limited bidding, direct appointment, competition, and selection of architectural design for construction works, and specifies the form of self-execution.

2.1. Open Bidding

2.1.1. Scope of Application

Open bidding is a form of contractor selection with no limit on the number of participating contractors. The procuring entity announces the invitation to bid in a bidding newspaper, on the e-bidding website, and other mass media so that all willing and capable contractors can participate. This is the preferred form of contractor selection in all cases due to its ability to generate the highest level of competition, especially for packages using funds from international sponsors, who often encourage this form. Open bidding is often applied in the following cases: The procuring entity has sufficient time to select a contractor from the widest possible range; It is not mandatory to apply other forms of contractor selection; The procuring entity wishes to create the highest competition in contractor selection.

2.1.2. Bidding Process

For open bidding, the process is as follows:

Pre-qualification of contractors (if any): Based on the nature and scale of the package, pre-qualification is conducted before open bidding for construction, goods procurement, and general construction contractor packages (except for design general contractor) to select contractors with sufficient capacity and experience as required by the package to be invited to bid. The investment decider decides whether to pre-qualify contractors in the bidding plan. The investor approves the pre-qualification documents. Pre-qualification proposals are evaluated based on capacity and experience criteria in the pre-qualification documents using a pass/fail method. Contractors who pass the pre-qualification step are invited to bid.
Preparation and approval of bidding documents: Bidding documents are prepared according to state-prescribed templates. Bidding documents are prepared by the procuring entity and must be approved by the investor.
Invitation to bid: The procuring entity announces the invitation to bid in the bidding newspaper, on the e-bidding website of the state management agency for bidding, and other mass media to invite contractors who wish to execute the package to participate (no limit on the number of contractors).
Issuance of bidding documents: Bidding documents will be sold to contractors for a maximum price of 1 million VND. For international bidding, the selling price of bidding documents is determined according to international practice.
Reception and management of bid proposals: The procuring entity must receive bid proposals before the bid closing time and manage them under the “Confidential” records management regime.
Bid opening: The bid opening ceremony is conducted publicly, with the presence of representatives of relevant parties in the contractor selection process. Key information of each contractor is announced at the bid opening ceremony and recorded in the bid opening minutes.
Evaluation of bid proposals: Bid proposal evaluation is conducted in two steps: preliminary evaluation and detailed evaluation. Preliminary evaluation aims to select contractors who meet the prerequisite conditions and the capacity and experience requirements stated in the bidding documents. Detailed evaluation includes technical evaluation and financial evaluation.
Preparation of bid evaluation report, submission for approval of bidding results: The procuring entity prepares a report on the bidding results and submits it to the investor. The investor approves the bidding results based on the appraisal report of the bidding results from the appraisal organization and the bidding results report from the procuring entity.
Notification of bidding results: The notification of bidding results is made immediately after the investor’s decision to approve the results.
Negotiation, finalization, and signing of the contract: The basis for contract negotiation is the approved bidding results, the contract template, the contents stated in the bid proposal and clarifications from the contractor, and the contents to be negotiated to finalize the contract. If negotiation and finalization are unsuccessful, the investor considers and decides to cancel the previous bidding results and selects the next-ranked contractor for award, providing a legal basis to invite them for negotiation and finalization.
For consulting packages, there is an additional step of contract negotiation before preparing the bid evaluation report and submitting for approval of bidding results. For complex construction packages, if necessary, a preliminary contract negotiation step is added before preparing the bid evaluation report and submitting for approval.

2.2. Limited Bidding

2.2.1. Scope of Application

Limited bidding is a form of contractor selection with a limited number of participating contractors. The number of contractors in limited bidding is not less than 5 contractors deemed to have sufficient capacity and experience to execute the package. The investor approves the list of these contractors. The procuring entity sends a direct invitation to bid to the contractors on the list.

Limited bidding is often applied in the following cases: Construction packages with high technical requirements, where only a certain number of contractors are interested and qualified to execute the package; construction consulting packages; at the request of the sponsor.

2.2.2. Bidding Organization Process

Limited bidding is carried out in the following steps:

The investor approves the list of contractors invited to bid and sends the invitation letters;
The following steps include: Issuing bidding documents to the contractors on the list; Receiving and managing bid proposals; Bid opening; Evaluating bid proposals; Preparing the bid evaluation report; Submitting for approval of bidding results; Notifying bidding results; Negotiating, finalizing, and signing the contract, which are conducted as in open bidding.

2.3. Direct Appointment

2.3.1. Scope of Application

Direct appointment is a form of contractor selection where the procuring entity directly selects one contractor with sufficient construction operation capacity, construction practice capacity, and meets the package’s requirements. The direct appointment form applies to the following packages and works:

Packages of a national secret nature requiring direct appointment to ensure information security as prescribed by the law on confidentiality; packages under urgent projects for national interest, energy security as decided by the Prime Minister when deemed necessary.
Works constructed under urgent orders; force majeure events due to natural disasters, enemy acts; incidents requiring immediate remedy. In this case, the investor or the agency responsible for managing and using the work has the right to appoint a contractor to perform without needing permission from the investment decider.
Temporary works: These are works built and existing for only a short time, including temporary works serving the construction of the main work, and works and individual houses permitted for temporary construction within the planning area but where site clearance has not yet been completed.
Works of a research or experimental nature;
Restoration, embellishment, and rehabilitation of cultural heritage works, historical-cultural relics;
Packages for the construction of statues, reliefs, monumental paintings, and works of art linked to copyright from creation to construction.
Consulting or construction packages with a value within the limit for direct appointment or due to other special requirements as stipulated by the Government. For these packages, it must be ensured that direct appointment is more effective than bidding.
Consulting service packages for preparing investment reports; consulting service packages for preparing investment projects in urgent cases where the investor can clearly determine the contractor’s capacity and experience meet the package’s requirements; consulting service packages for preparing planning.
For packages under national target programs, poverty reduction support programs for districts, communes in mountainous, remote, deep-lying areas, and areas with special difficulties: if the local community can undertake the work, it is assigned to the local people; if many local community organizations wish to participate, the organization with the most effective implementation plan is selected.
Unexploded ordnance (UXO) clearance to prepare the site for construction as stipulated by the Prime Minister.
Packages implemented at the request of the sponsor.
The author of the architectural design that won a competition or was selected is protected by copyright and is appointed to execute the consulting service package for preparing the investment project and construction design when having sufficient capacity as prescribed.
Other special cases as decided by the Prime Minister based on proposals from Ministries, sectors, localities, enterprises with related projects, and the appraisal report from the Ministry of Planning and Investment.

2.3.2. Direct Appointment Process

2.3.2.1. Process for packages with a value of 150 million VND or more

The procuring entity prepares the request for proposals and submits it to the investor for approval.
Issues the request for proposals to the contractor intended for direct appointment.
Receives the proposal from the contractor.
Evaluates the proposal: The procuring entity evaluates the contractor’s proposal and negotiates on the contractor’s proposals according to the requirements in the request for proposals. During the evaluation, the procuring entity may invite the contractor to negotiate, clarify, or amend and supplement necessary information in the proposal to demonstrate the contractor’s compliance with requirements on capacity, experience, progress, quality, technical solutions, and construction organization measures. If the contractor fails to meet the requirements, the investor will appoint another contractor.
Prepares the proposal evaluation report;
Submits, appraises, and approves the direct appointment results. The investor approves the direct appointment results.
Negotiates, finalizes, and signs the contract.

2.3.2.2. Process for packages with a value under 150 million VND

Based on the objectives, scope of work, and approved package price in the bidding plan, the procuring entity prepares and sends a draft contract to the contractor proposed for direct appointment. The draft contract includes requirements on the scope, content of work, execution time, work quality, required outcomes, and corresponding value.
The procuring entity and the contractor negotiate and finalize the contract.
Submits the direct appointment results to the investor for approval after negotiation and finalization.
Signs the contract.

2.4. Competition, Selection of Architectural Design for Construction Works

2.4.1. Scope of Application

Large-scale public works with special architectural requirements must have their architectural design selected through competition or selection. The investment decider decides on the competition or selection of the architectural design. For other works, the competition or selection is decided by the investor.

After the investment policy is approved, the investment decider decides to organize a competition or selection for the architectural design.

The organization or individual whose architectural plan is selected for the work is guaranteed copyright, and is appointed to prepare the project and subsequent design steps if they have sufficient capacity; if not, they can form a joint venture with qualified design consulting organizations. If the organization or individual with the selected architectural plan refuses to perform the subsequent design steps, the investor will select a suitable contractor, but the copyright still belongs to the organization or individual with the selected plan.

2.4.2. Architectural Design Competition

The investment decider approves the plan for organizing the competition; the competition budget; and the competition results. Forms of architectural design competition include: limited competition and open competition.

The competition process includes: preparation and execution.

Competition Preparation: Complete legal procedures and collect documents, data, and information on architecture and planning related to the construction land; Prepare the competition plan and budget; Prepare design requirements; Establish competition rules; The investor may establish a council to evaluate and rank the competition entries, or form an expert group, or invite a suitable professional body to assist in evaluation and ranking.

Competition Execution: Invite participation; evaluate and rank the entries; announce results and award prizes.

2.4.3. Architectural Design Selection: Selection is a form where the investment decider chooses one design consulting unit with sufficient capacity and experience to propose a minimum of 3 design options for the investor to select the best one for design and construction.

2.5. Self-Execution

Self-execution is a form where the investor organizes the execution of some or all project tasks when they have sufficient capacity as prescribed by the Construction Law. This form applies in the following cases:

The investor is a contractor with sufficient capacity to perform the project tasks.
The investor is not a contractor but has a subordinate unit with sufficient capacity as prescribed, then that unit may self-execute the work corresponding to its capacity.
The investor may self-organize the construction of single houses or routine repairs.

3. Process and Procedures for Contractor Selection in Construction Activities

3.1. Preparation and Submission of Bidding Plan, Bidding Documents

3.1.1. Preparation, Submission, and Approval of Bidding Plan

The bidding plan is prepared by the investor and submitted to the investment decider for approval before organizing contractor selection. The bidding plan is made for the entire project. For large-scale, complex projects lasting many years, or for consulting tasks in the project preparation phase (such as construction planning, surveys for project preparation, investment reports, project establishment,…), a bidding plan may be prepared for one or more packages to be implemented first. The approved bidding plan is the legal basis for the investor to organize contractor selection.

Content of the Bidding Plan

The bidding plan is a document that divides the entire project into packages, and the content for each package includes: package name; package price; capital source; pre-qualification (if any), form of contractor selection, bidding method; domestic or international bidding; time for contractor selection; form of contract/contract price type; contract execution time.
Bidding plan for the project preparation phase: for tasks performed before project approval (such as preparing 1/500 scale construction planning, surveys for project preparation, investment reports, construction investment projects, …), a bidding plan can be made for these packages but must still include all required contents: package name; package price; capital source; form of contractor selection, bidding method; domestic or international bidding; time for contractor selection; form of contract; contract execution time.
Bidding plan after project approval: The bidding plan must be made for the entire project (including the total value of work already performed), dividing the project into packages with content for each: package name; package price; capital source; pre-qualification (if any), form of contractor selection, and bidding method; domestic or international bidding; time for contractor selection; form of contract (proposed construction contract price type); contract execution time.

Basis for Bidding Plan

The bidding plan is based on the investment report, investment project, basic design, approved total investment, estimates, state-published cost norms and economic-technical norms, bidding time regulations, regulations for each form of contractor selection, state policies on prices, wages, money, … and other relevant documents.

Dividing the Project into Packages

Dividing the project into packages must ensure project efficiency, suit the investor’s management capacity, and the contractors’ ability to participate. The division must be based on the scale, nature, and time of project implementation; the sequence, characteristics, and technical requirements of the work to ensure project synchronicity and reasonable package scale. A package can be the entire project or part of it; a construction work can be one package or include several packages. The project can be divided into general contractor packages, facilitating project management and improving investment efficiency.

The number, scale, and execution time of packages in the bidding plan must ensure: Rational implementation sequence; Synchronicity between project parts or between main works and related works; Meeting the operational and exploitation progress requirements; Suitability for capital arrangement schedule; Creating opportunities for contractor participation; The scope and nature of each package must be clear and relatively independent of others.

Determining the technical nature of the package: decided by the investment decider in the bidding plan. It can be determined as follows:

Consulting packages with high technical requirements include: Design packages for main works of large, complex projects, special works, works applying new technology (like oil refineries, nuclear power plants, underground works…), works with difficult construction conditions.
Construction packages with high technical requirements include: Construction packages for main works of large, complex projects; special-grade works; construction packages applying new, complex technology for the first time (long-span structures, high-precision assembly…); construction packages in difficult environments.
General contractor packages with high technical requirements are packages with one of the characteristics of high-tech consulting or high-tech construction packages.

Determining the Form of Contract (Construction Contract Price)

For each package, depending on the complexity, scale, and expected execution time, different contract price types (lump sum, fixed unit price, adjustable price, combined price) can be applied. This must be determined in the bidding plan. Therefore, the investor needs to consider and choose the appropriate price type for each package, and should not rigidly set one price type for all packages or for different parts of a package. Because the time from planning to selection is often long, if prices fluctuate significantly, the predetermined price type may no longer be suitable. Further study on the topic of contracts in construction is needed.

Determining the Package Price

The package price is calculated for the entire package execution time, based on the total investment (if technical design, construction drawing design, and estimates are not yet approved), the construction estimate, and regulations on establishing and managing construction investment costs.

The price for a consulting package is determined based on the consulting cost in the total investment or the approved consulting cost estimate. For consulting packages implemented before project approval, it is based on the consulting cost in the preliminary total investment, the consultant’s cost, reference to state-published norms, and other references suitable for the project’s characteristics to prepare an estimate as a basis for the package price. Determining the price for consulting packages in the preparation phase (when scale and capital are not yet clear) requires combining suitable methods for comparison to find a suitable price. Pay special attention to using analogous methods, cost estimates, consultant experience, and project characteristics as a basis for calculation.
The price for a construction package is based on the construction cost in the total investment or the approved construction estimate (for projects only requiring an economic-technical report). In practice, according to bidding laws, the bidding plan for the entire project must be prepared right after project approval. Therefore, for most construction packages, the price is determined only from the approved basic design without a detailed design. Moreover, the time from plan approval to bidding can be several years (especially for large projects). Thus, accurately determining the price of each package is crucial. This requires the consultant helping the investor to have the capacity, experience, and understanding of the project to calculate a package price that is expected to be sufficient, avoiding multiple adjustments, which create procedures, extend schedules, and reduce efficiency.
The price for a general contractor package is based on the cost of the general contractor’s work within the approved total investment, including training, technology transfer (if any), and the general contractor’s project management costs. For general contractor packages of special projects, the price may be based on the preliminary total investment calculated by investment rate or the cost of similar completed projects and other investor requirements.

* Adjusting the Bidding Plan and Package Price

Before organizing contractor selection, the investor must review the suitability of the approved bidding plan with the implementation conditions. If an adjustment is necessary, the investor reports to the investment decider and makes the adjustment as prescribed if approved. Adjustments may include: merging, splitting, or adding packages, adjusting the package price, changing the form of contractor selection…

Package Estimate during Bidding

The package estimate can be all or part of the construction estimate or a combination of different estimates. Therefore, when preparing the package estimate, it is necessary to consider the scope of work, execution time, methods, and conditions to ensure a reasonable estimate.

As analyzed in previous sections, for construction packages in large-scale, complex projects, the package price in the bidding plan is often set without an approved technical or construction drawing design. Therefore, when organizing bidding (after a detailed design is approved), the package estimate may differ from the package price. If the approved package estimate is lower or higher than the package price, the estimate will replace the package price as the basis for considering the selection results, without needing to adjust the package price in the approved bidding plan. The package estimate is approved by the investor.

3.1.2. Preparation, Submission, and Approval of Bidding Documents

3.1.2.1. Preparation of Bidding Documents

Bidding documents are prepared by the procuring entity according to prescribed templates. The content includes: requirements for the contractor’s proposals (technical and financial), key requirements (prerequisite conditions), evaluation criteria, and other requirements.

Determining requirements for the contractor’s proposals

For consulting packages

a) Requirements for technical proposals

Personnel: list and experience records of consultants suitable for the package (manager, lead designer, architect, construction engineer, economic engineer, technical staff); personnel arrangement. For different consulting packages like surveying, design, project management, supervision,… it is necessary to base on the type and grade of the work, characteristics of each item, and the required level of personnel mobilization to set appropriate requirements.
Implementation solution: time and schedule; work methodology; facilities and working conditions; training and technology transfer (if any); general management organization; quality management; use of subcontractors (if any); commitment to responsibility for quality and progress.
Competitive proposals that bring efficiency to the investor and the project.
Other requirements.

b) Requirements for financial proposals

The bid price must include all costs, including taxes, to execute the package in accordance with the bidding documents, the proposed solution, and time; financial and commercial conditions and any related preferential proposals; competitive proposals that bring efficiency to the investor and project, quantified into money.

For construction packages

Require the contractor to propose technical solutions, construction schedule, bid price, and other competitive proposals that bring efficiency to the investor and project.

a) Requirements for proposals on technical solutions and schedule

Proposals on technical solutions (including subcontractors, if any):
- General technical solution: Construction methods for main items and tasks; Overall site layout; Solution for mobilizing materials, equipment, and labor consistent with the content and progress, for each phase: Quantity, type, technical specifications of mobilized equipment and machinery; quantity, type, quality of main materials; quantity, structure, qualifications of mobilized personnel (management, technical, and workers).
- Quality assurance solution: The contractor’s quality management system; Measures for organizing inspection and supervision of work.
- Safety measures for people, equipment, machinery, the work, and adjacent works; fire prevention and environmental protection measures.
- Solution for arranging auxiliary workshops for construction.
- Proposal for using technical infrastructure (electricity, water…) for construction.

The technical solutions declared by the contractor must demonstrate feasibility and be consistent with the proposed schedule and bid price, meeting requirements for each possible part of the work, at each possible stage throughout the package execution.

Proposals on construction schedule
- Package execution time and overall schedule chart with key construction milestones; chart for mobilizing materials, equipment, machinery, and personnel according to the schedule.
- Measures for managing the overall schedule, including the subcontractor’s progress (if any).

The contractor’s proposed schedule must be consistent with the declared technical solutions and the proposed bid price, meeting requirements for each possible part of the work, at each possible stage throughout the package execution.

b) Requirements for financial proposals

The proposed bid price must be competitive, include all necessary costs to execute the package, including taxes, consistent with the design documents, construction price levels, and the contractor’s proposed technical solutions and schedule.
Depending on the nature of the package, the contractor may be required to propose a total price, unit price, or a combination; items requiring unit prices, lump sum, taxes, profit.
Price reduction proposal and explanation, if any.
If the quantity in the bidding documents is calculated incorrectly (less or more) compared to the design, the contractor must propose a separate price for the missing or excess quantity.
The proposed bid price must not be lower than the contractor’s construction cost.

Additionally, depending on the package’s nature and project objectives, the investor may require the contractor to make other competitive proposals that bring efficiency, such as shortening the execution time; payment conditions, capital advance capability, and other financial conditions… These requirements must be clearly stated in the bidding documents. These proposals must be quantified into money.

For design-build (DB) general contractor packages

a) Requirements for technical proposals

Content for the design part is similar to a consulting package; content for the construction part is similar to a construction package, with additions:
List of tasks undertaken by the general contractor and subcontractors;
Personnel arrangement and implementation solutions of the general contractor, including management and coordination of design subcontractors; management and organization of subcontractor’s work;
Personnel mobilization and implementation solutions of subcontractors consistent with their intended work;
Solution for managing and coordinating construction contractors in cooperating with the design contractor to ensure project progress and quality.

b) Requirements for financial proposals

The bid price must include all necessary costs, including taxes, general contractor’s management fees, financial and commercial conditions, and any related preferential proposals; competitive proposals that bring efficiency, quantified into money.

For EPC general contractor packages

a) Requirements for technical proposals Requirements for design and construction are similar to a DB package, with additions:

Management solution, overall site layout;
Solutions related to the project preparation, appraisal, and approval process;
Technical solutions for material and equipment supply: require the contractor to propose a technology line and equipment consistent with the design and construction; origin of goods; overall supply solution; training, technology transfer; testing, commissioning, trial operation.

b) Requirements for financial proposals

For turnkey general contractor packages

a) Requirements for technical proposals

Similar to an EPC package, but adding requirements for the contractor to propose contents and solutions related to the project preparation, appraisal, and approval process.

b) Requirements for financial proposals

The bid price must include all costs, including taxes, to execute the entire package, general contractor’s management fees, financial and commercial conditions, and any related preferential proposals; competitive proposals that bring efficiency, quantified into money.

3.1.2.2. Submission and Approval of Bidding Documents

The procuring entity submits the bidding documents to the investor for review and approval. The investor approves the bidding documents based on the appraisal report from the appraisal agency/organization.

3.2. Organization of Bidding, Evaluation of Bid Proposals

3.2.1. Organization of Bidding

a) Issuance of Bidding Documents

The procuring entity sells bidding documents until the bid closing time to participating contractors, at a price decided by the investor based on the package scale, but not exceeding 1,000,000 VND for domestic bidding. For international bidding, the price follows international practice.
If the bidding documents need modification after issuance, all contractors who received them must be notified at least 10 days before bid closing, or 3 days for small-scale packages.

b) Preparation of Bid Proposals

The contractor prepares and submits the bid proposal according to the requirements of the bidding documents.

c) Reception and Management of Bid Proposals

The procuring entity receives and manages the submitted bid proposals under the “confidential” records management regime. Bid proposals received after the bid closing time are invalid and will be rejected.

d) Modification or Withdrawal of Bid Proposals

If a contractor wishes to modify or withdraw a submitted bid proposal, they must make a written request. The procuring entity will only accept if the request is received before the bid closing time. The withdrawal request must be sent separately.

e) Bid Opening

Bid opening must be conducted publicly immediately after the bid closing time at the specified time and location, in the presence of those present, regardless of the presence or absence of the invited contractors. The procuring entity may invite representatives of relevant agencies to attend. For consulting packages, bid opening is done twice: first, opening the technical proposals; second, opening the financial proposals of contractors who passed the technical evaluation, which occurs after the technical evaluation. For high-tech consulting packages, the second opening is for the financial proposal of the contractor with the highest technical score.

3.2.2. Evaluation of Bid Proposals

3.2.2.1. Evaluation of Consulting Package Bid Proposals

Evaluation includes preliminary evaluation of technical proposals and detailed evaluation.

a) Preliminary Evaluation of Technical Proposals (applies to all consulting packages)

Check the validity of the bid proposals
Check for compliance with prerequisite conditions: a contractor failing even one condition will be rejected.

The procuring entity compares the requirements for validity in the bidding documents with the contractor’s declaration and proposal. The contractor is responsible for clarification and providing additional information (if needed). Bid proposals are checked against prerequisite conditions; if any are violated, the bid is rejected. Bids that pass are moved to detailed evaluation.

b) Detailed Evaluation for packages not requiring high technical standards

Detailed evaluation includes technical evaluation, financial evaluation, and combined evaluation.

Technical Evaluation: using a scoring method on a 100 or 1000-point scale.
- Criteria include: experience, capacity (number and qualifications of consultants; equipment, labs, software, financial status…); personnel arrangement and implementation solution. Specific maximum points must be defined for each content.
- Evaluation is based on the criteria in the bidding documents. A bid proposal with a technical score meeting or exceeding the minimum requirement is considered technically responsive. The minimum requirement is set by the procuring entity based on the package’s nature but not less than 70% of the total technical score. The investor approves the list of technically qualified contractors for financial evaluation. Contractors below the minimum are rejected.
Financial Evaluation: using a scoring method based on the technical scoring scale.

Financial evaluation includes: correcting errors, adjusting discrepancies in the bid price; determining the financial score for each bid. The financial score is determined as stated in the bidding documents based on the principle: the higher the bid price (after error correction, discrepancy adjustment), the lower the score, and the lowest bid price receives the maximum score (100 or 1000 points).

Combined Evaluation: performed according to the combined evaluation criteria in the bidding documents. The total weight for technical and financial scores is 100%, with the technical weight not less than 70% and the financial weight not more than 30%.

In international bidding, contractors eligible for preference receive an additional 7.5% to their combined score.

The contractor with the highest combined score is ranked first by the procuring entity, submitted to the investor for approval. Their proposed award price (bid price after error correction, discrepancy adjustment) is checked; if it does not exceed the approved package price, they are invited for contract negotiation before the result is submitted for approval.

c) Detailed Evaluation for packages with high technical requirements

For high-tech packages, evaluation includes technical evaluation and review of the financial proposal of the contractor with the highest technical score.

Technical Evaluation: performed as for regular consulting packages, but the minimum technical requirement in the bidding documents must not be less than 80% of the total technical score. In international bidding, eligible contractors receive an additional 7.5% to the total technical score. Contractors below the minimum are rejected.
Ranking by technical score: The investor approves the list of contractors ranked by technical score. The contractor with the highest score is ranked first and invited to have their financial proposal reviewed.
Review of Financial Proposal: This contractor’s bid price is corrected for errors and discrepancies. If it does not exceed the approved package price, the contractor is invited for contract negotiation before the result is submitted for approval.

3.2.2.2. Evaluation of Design General Contractor Bid Proposals

Evaluation is performed as for a construction consulting package.

3.2.2.3. Evaluation of Construction Package Bid Proposals

Evaluation includes preliminary evaluation and detailed evaluation.

a) Preliminary Evaluation

Check the validity and compliance with prerequisite conditions against the bidding documents. Bids violating any prerequisite condition are rejected.
Evaluate the contractor’s experience, technical capacity, and financial capacity based on the requirements (if no pre-qualification was done) using a pass/fail method.

Bids that pass the preliminary evaluation are moved to detailed evaluation.

b) Detailed Evaluation

Detailed evaluation reviews the contractor’s proposals on technical solutions, schedule, price, and other competitive proposals to select the contractor offering the highest efficiency. This is done using one of the following methods:

Method of simultaneous evaluation of technical solution, price, and schedule

Applied to speed up evaluation for technically simple construction packages. This method must be specified in the bidding documents.

Method of evaluation based on evaluated price (for construction packages valued at 3 billion VND or more): involves technical evaluation and determination of the evaluated price.

Technical Evaluation:

Evaluates the reasonableness and feasibility of technical contents, including: reasonableness and feasibility of technical solutions; consistency between construction methods and schedule; measures for environmental sanitation and labor safety; quality assurance measures; construction schedule; other contents (if any) according to the evaluation criteria and method (scoring or pass/fail) stated in the bidding documents.

- If using the scoring method: The minimum required technical score is specified, depending on the package, but not less than 70% of the total technical score; for high-tech packages, not less than 80%. Bids meeting or exceeding this score are deemed responsive.
- If using the pass/fail method: The requirement level is set for each content. For basic requirements, only “pass” or “fail” is used. For non-basic requirements, “acceptable” may also be used, but not for more than 30% of the total required content. A bid is responsive if all contents are “pass” or “acceptable”.

Technically responsive contractors will have their evaluated price determined. The procuring entity prepares a report and submits the list of technically responsive contractors to the investor for approval.

- Determining the Evaluated Price:

The evaluated price is the price determined on a common basis for technical, financial, commercial, and other factors, used to compare and rank bids. The method must be stated in the evaluation criteria. Determining the evaluated price includes: Determining the bid price; Correcting errors; Adjusting discrepancies; Converting the bid price (after corrections) to a common currency (if any); Bringing costs to a common basis, including: Technical conditions like schedule; Operation, maintenance, and lifecycle costs, and other relevant technical factors; Financial and commercial conditions; Preference in international bidding (if any); Other factors. These factors are specified based on the package’s nature.

Bids are ranked by the evaluated price, with the lowest price ranked first.

Recommendation for award: The contractor with the lowest evaluated price, whose proposed award price (bid price after corrections) does not exceed the approved package price.

For construction packages valued at < 3 billion VND

It is not necessary to determine an evaluated price. The winning contractor is the one who:

Has a valid bid proposal; does not violate prerequisite conditions;
Is evaluated as meeting capacity and experience requirements;
Has technical proposals evaluated as responsive (using “pass”/”fail”);
Has the lowest bid price after error correction and discrepancy adjustment;
Has a proposed award price not exceeding the approved package price.

3.2.2.4. Evaluation of Design-Build (DB) General Contractor Bid Proposals

Evaluation is based on the criteria in the bidding documents, which include criteria for both E (design) and C (construction). The E part is evaluated like a consulting package, and the C part like a construction package.

3.2.2.5. Evaluation of EPC General Contractor (Design, Procure, Construct) Bid Proposals

Evaluation is based on criteria for E, P, and C. E is evaluated like a consulting package, P (procurement) like a goods procurement package, and C like a construction package.

3.2.2.6. Evaluation of Turnkey General Contractor Bid Proposals

Evaluation is similar to an EPC package but also considers the consulting work for project preparation.

3.3. Approval and Announcement of Bidding Results

3.3.1. Approval of Bidding Results

The procuring entity prepares a report on the bidding results, submits it to the investor for decision, and sends it to the appraisal agency.
The appraisal agency prepares an appraisal report based on the procuring entity’s report and submits it to the investor.
The investor approves the bidding results based on the results report and the appraisal report.

3.3.2. Notification (Announcement) of Bidding Results

The notification is made immediately after the investor approves the bidding results.

3.4. Negotiation, Finalization, and Signing of Contract

The investor invites the winning contractor for contract negotiation. The negotiation and finalization are based on: the approved bidding results, the contract template completed with package information; requirements from the bidding documents; contents from the bid proposal and clarifications (if any); and contents to be negotiated between the procuring entity and the winning contractor.
The results of the negotiation and finalization are the basis for the investor and contractor to sign the contract.
If negotiation is unsuccessful, the investor considers and decides to cancel the previous bidding result and selects the next-ranked contractor for award, inviting them for negotiation; in this case, the contractor must be requested to extend the validity of their bid proposal and bid security if necessary.

CHAPTER 6. MANAGEMENT OF OCCUPATIONAL SAFETY AND CONSTRUCTION ENVIRONMENT

1. Management of occupational safety, construction environment

1.1. Rights and obligations of the construction work investor

1.1.1. Rights and obligations of the construction work investor

TCVN 5308-91 Technical regulations for safety in construction stipulate:
- Construction is not permitted without construction engineering design and execution design documents.
- These documents must include measures to ensure occupational safety, labor hygiene, and fire prevention.
Must ensure the quality, progress, safety of the work, human life and property, fire and explosion prevention, and environmental sanitation in construction activities (Construction Law);
The content of construction project management includes management of quality, quantity, progress, occupational safety, and the construction environment (Construction Law)
A construction work may only be commenced when there are measures to ensure safety and environmental sanitation during the construction process (Construction Law);
Stop the construction of the work and request remediation of consequences when the construction contractor violates regulations on work quality, safety, and environmental sanitation (Construction Law);
Inspect measures to ensure safety and environmental sanitation in the construction of the work (Construction Law);
The demolition of works must be carried out according to an approved demolition plan, ensuring safety and environmental sanitation (Construction Law);
Construction supervision must be carried out to monitor and check the quality, quantity, progress, occupational safety, and environmental sanitation of the construction work (Construction Law);

1.1.2. Responsibilities and obligations of the construction contractor

Conditions for construction: When operating, the construction contractor must have construction equipment that meets the requirements for safety and work quality (Construction Law);
During the construction process, the construction contractor has the responsibility (Construction Law):
- To implement measures to ensure safety for people, machinery, equipment, property, the work under construction, underground structures, and adjacent works; machinery and equipment used for construction must be safety inspected before use;
- To implement separate technical safety measures for work items or tasks with strict safety requirements;
- To implement necessary measures to limit damage to people and property when a safety incident occurs during construction.
The construction contractor has the following obligations (Construction Law):
- To construct according to the design and construction standards, ensuring quality, progress, safety, and environmental sanitation;
- To compensate for damages when breaching the contract, constructing without ensuring quality, or causing environmental pollution;
During the construction process, the construction contractor has the responsibility (Construction Law):
- To have measures to ensure environmental sanitation during construction, including air quality, water quality, solid waste, noise, and other environmental sanitation requirements;
- To compensate for damages due to environmental sanitation violations caused by them during construction and transportation of construction materials;
- To comply with other legal regulations on environmental protection.
Contractors relocating works must implement measures to ensure occupational safety, safety for the relocated work and adjacent works, and ensure environmental sanitation (Construction Law).
The person assigned to organize the demolition of a work must be responsible for ensuring safety and environmental sanitation.
Managing occupational safety on the construction site:
- a) The construction contractor must establish safety measures for people and the work on the site
  - If safety measures involve multiple parties, they must be agreed upon by all parties
- b) Safety measures and safety rules must be publicly displayed on the site; dangerous locations must have guides and warnings to prevent accidents
- c) The construction contractor, investor, and related parties must regularly inspect and supervise occupational safety on the site
  - If an occupational safety violation is detected, construction must be suspended
  - The person responsible for the occupational safety violation within their scope of management shall be held accountable before the law
- d) The construction contractor is responsible for training, guiding, and disseminating occupational safety regulations
  - For jobs with strict occupational safety requirements, workers must have an occupational safety training certificate
  - It is strictly forbidden to use workers who have not been trained and instructed in occupational safety
- e) The construction contractor is responsible for providing complete personal protective equipment and safety gear to workers as required when employing labor on site
- f) When an occupational safety incident occurs, the construction contractor and related parties are responsible for:
  - Organizing a response and reporting to the state management agency for occupational safety as prescribed;
  - Being responsible for remedying and compensating for damages caused by the contractor’s failure to ensure occupational safety

1.2 Occupational safety and construction environment management plan

1.2.1 Management of occupational safety on the construction site

a) The construction contractor must establish safety measures for people and the work on the construction site. If safety measures involve multiple parties, they must be agreed upon by all parties.

b) Safety measures and safety rules must be publicly displayed on the construction site for everyone to know and comply with; dangerous locations on the site must have guides and warnings to prevent accidents.

c) The construction contractor, investor, and related parties must regularly inspect and supervise occupational safety on the site. If an occupational safety violation is detected, construction must be suspended. The person responsible for the occupational safety violation within their scope of management shall be held accountable before the law.

d) The construction contractor is responsible for training, guiding, and disseminating occupational safety regulations. For some jobs with strict occupational safety requirements, workers must have an occupational safety training certificate. It is strictly forbidden to use workers who have not been trained and instructed in occupational safety.

e) The construction contractor is responsible for providing complete personal protective equipment and safety gear to workers as required when employing labor on site.

g) When an occupational safety incident occurs, the construction contractor and related parties are responsible for organizing a response and reporting to the state management agency for occupational safety as prescribed; and are also responsible for remedying and compensating for damages caused by the contractor’s failure to ensure occupational safety.

1.2.2. Management of the construction environment

a) The construction contractor must implement environmental protection measures for workers on the site and protect the surrounding environment, including measures against dust, noise, waste treatment, and site cleanup. For construction works in urban areas, measures for enclosure and waste collection and disposal at designated locations must be implemented.

b) During the transportation of construction materials, covering measures must be implemented to ensure safety and environmental sanitation.

c) The construction contractor and the investor are responsible for inspecting and supervising the implementation of construction environment measures, and are subject to inspection and supervision by the state management agency for the environment. If the construction contractor fails to comply with environmental protection regulations, the investor or the state management agency for the environment has the right to suspend construction and require the contractor to implement the correct environmental protection measures.

d) The person responsible for acts that harm the environment during the construction process shall be held accountable before the law and must compensate for damages caused by their fault.

1.3 Control and assurance measures for occupational safety and the construction environment

1.3.1 General requirements

a) Implement construction codes and standards related to occupational safety and construction environmental protection, (such as TCVN -2287-78 Occupational safety standards system. Basic regulations; TCVN 296-2004 Scaffolding – Safety requirements; TCVN 2290:1978 Production equipment – General safety requirements; TCVN 5308:1991 Technical regulations for safety in construction; TCVN 4431:1987 Safety railings – Technical conditions; TCVN 3254 : 1989 Fire safety – General requirements; TCVN 3255:1986 Explosion safety – General requirements; TCVN 2291 : 1978 Personal protective equipment – Classification; TCVN 2288:1978 Dangerous and harmful factors in production – Classification; TCVN : 1978 Production equipment – General safety requirements;…)

b) Organize an occupational safety and construction environmental protection management department within the investor’s project management apparatus and the contractor’s site management team;

c) Organize training, guidance, and dissemination of occupational safety regulations. Educate workers on the importance of occupational safety and environmental protection;

d) Equip workers with personal protective equipment, safety gear, and provide periodic health checks as required when employing labor on site;

e) Establish and implement safety measures for people and the work on the construction site and ensure environmental sanitation for workers on site and protect the surrounding environment: Integrate technical measures, quality control measures, and occupational safety measures into a unified system
Arrange the construction sequence in the schedule to ensure adequate safe working space;
The design of the site layout or the provision of construction services must incorporate an occupational safety perspective
Warn of safety hazards and environmental pollution on site
Establish measures to prevent accidents during construction surveys, measures against mechanical impact, against falling from heights, against landslides, collapses, subsidence, rock/soil slides, measures to ensure scaffold and ladder safety, safety in assembling structural components

1.3.2 Measures for some specific areas

a) Safety in earthworks and working at depth, in tunnels:

Preventing excavation collapse causing accidents
Preventing machinery from overturning and people from falling into excavations
Preventing collapse and cave-ins during tunnel construction
Preventing poisoning from toxic gases when working in deep tunnels
Escape and rescue solutions in case of incidents in deep pits or tunnels, …

b) Safety for working at height:

Protective netting, stable and sturdy scaffolding systems and work platforms
Personal protective equipment for each individual
Selection of appropriate tools and work procedures for human strength when working at height, …

c) Safety in using construction machinery and equipment:

Check and ensure the technical condition of construction machinery and equipment before use on site
Check balance and stability when the machine is under load
Guards, barriers for hazardous areas when machinery is operating
Ensure adequate lighting conditions for people and machines to work
Remind workers to adhere to operating procedures and occupational safety regulations in production tasks related to machinery and equipment
Properly implement regular machine maintenance and check the technical condition of machinery and equipment at the beginning of each work shift, …

d) Safety in structural assembly, equipment installation.

Safety of lifting equipment
Safety of auxiliary equipment for assembly
Safety of the technological process for component gathering and assembly
Safety for workers during assembly operations

e) Loading and unloading operations at yards

Transport safety
Safety in loading and unloading goods

f) Traffic safety and transportation on site

* Traffic safety:

Plan convenient, economical, and safe road types
Design roads according to regulations (load capacity, slope, turning radius, …)

* Transport safety on site (horizontal, flat):

Safety of transport equipment
Safety of transport operations
Covering, lashing goods according to regulations

g) Electrical safety on site

Need for electricity in construction:

High electricity consumption
Use of many different voltages interspersed at many locations on site, very easy to cause safety hazards in production

Electrical safety in construction

Electrical safety in the construction process
- Motive power
- Production power
- Lighting for production
Electrical safety at auxiliary workshops, at yards
Safety of power lines and lighting, domestic electricity

Measures to ensure electrical safety, include:

Protection against electric shock
Protection against thermal effects
Overcurrent protection
Protection against electricity leakage
Protection against voltage disturbances

h) Lightning protection system

General lightning protection on site
At locations dangerous for lightning strikes: important warehouse locations; high-altitude work locations; tall cranes; …

i) Fire and explosion prevention

Fire prevention system for the entire site
Water and firefighting equipment
- Firefighting water
- Firefighting equipment
Strictly follow regulations on the storage and use of explosives on site
Determine explosives storage locations, procedures for storage, transport, and detonation in construction

k) Construction safety in the overall construction progress design

Zoning for construction and production safety when deploying horizontally:
- Clarify construction direction, production operation routes to avoid conflicts on the layout
- Check safety when production activities are on different vertical levels
Zoning by floor when deploying production vertically:
- Check safety when arranging production activities on different vertical levels
- Coordination of production deployment by contractors on site and in each production area

l) Construction safety in the site layout design

Construction safety when preparing the site layout for the entire site

General safety sign system on site and at dangerous locations
General fire prevention and firefighting system

Safety solutions for each item

Safety in placing and operating construction machinery

Safety at auxiliary production workshops

Safety at yards on site

m) Safety for equipment or work with strict occupational safety requirements

Safety in using pressure equipment: pressure boilers; compressed air receivers; liquefied gas containers;
Safety in using lifting equipment
Hand-held drills, breakers; pressurized air blowers; construction material production equipment (mixers, cutters, aggregate processing machines, …)
Safety in processing, installing, repairing, cleaning glass doors; …

Require the investor and contractors to regularly inspect and supervise the implementation of regulations on occupational safety and construction environmental protection

CHAPTER 7: System of technical regulations, standards, and technical conditions for construction and acceptance

I. Overview of the system of Technical Regulations and Standards of Vietnam and International.

1. Concept of construction regulations.

Technical regulation: is a regulation on the limit levels of technical characteristics and management requirements that products, goods, services, processes, environments, and other objects in socio-economic activities must comply with to ensure safety, hygiene, human health; protect animals, plants, the environment; protect national interests and security, consumer rights, and other essential requirements.

Construction Regulation (Building Code): is a technical legal document that stipulates the minimum mandatory requirements to be complied with for all activities related to basic construction and the health status of occupants in a construction work.

According to the Construction Law, Construction Regulations are mandatory regulations applied in “construction activities”(*) issued by competent state management agencies for construction.

(*) includes: construction planning, establishing construction investment projects, construction engineers, construction work design, construction skill standards, construction supervision, construction investment project management, contractor selection in construction activities, and other activities related to construction works.

Standard: is a regulation on technical characteristics and management requirements used as a benchmark for classifying and evaluating products, goods, services, environments, and other objects in socio-economic activities to improve the quality and efficiency of these objects.

Construction Standard: are regulations on principles, general principles, economic-technical norms, specific technical-economic guidelines related to construction activities; including unified regulations implemented for comparison, presented in the form of a technical legal document, in a certain format, in a certain context, to achieve a level to be used as a basis for evaluation for a specific or potential economic-technical issue in construction.

According to the Construction Law, Construction Standards are regulations on technical norms, economic-technical norms, procedures for performing technical tasks, criteria, technical indicators, and natural indicators issued or recognized by competent agencies or organizations for application in construction activities.

2. Classification of construction regulations

Vietnam’s system of technical regulations includes:
- National technical regulations, symbol QCVN;
- Local technical regulations, symbol QCDP.
Construction regulations have two basic forms:
- Objective-based regulations: are general basic guiding regulations, establishing minimum requirements towards the performance to be achieved.
- Specific regulations: are regulations built based on objectives, including specific requirements, and where necessary, clear detailed instructions to minimize misunderstandings when applying the regulations.
Currently issued Regulations include:
- Vietnam Construction Regulations (3 volumes)
  - Vietnam Construction Regulation Volume 1 – 1996
  - Vietnam Construction Regulation Volume 2 – 1997
  - Vietnam Construction Regulation Volume 3 – 1997
- Water Supply and Drainage Regulation for Construction Works – 1999
- Construction Regulation Ensuring Access for People with Disabilities – 2002
- Regulation on Efficient Use of Energy – 2005

Vietnam Construction Regulation (issued with Decision No. 682/BXD dated December 14, 2006).

- The Vietnam Construction Regulation (3 volumes) was issued to address mandatory requirements in the construction of industrial and civil works, from survey, design, construction, to acceptance.
- The Regulation on Water Supply and Drainage Systems in Houses and Works was issued to address mandatory requirements for surveying, designing, constructing, and accepting water supply and drainage systems in houses and works.
- The Construction Regulation to Ensure Access for People with Disabilities was issued to address mandatory requirements for constructing public works to ensure easy access for people with disabilities.
- The Construction Regulation for Energy-Efficient Construction Works was issued to stipulate mandatory requirements for energy saving in construction.
Based on the review of the 3-volume Regulation set issued in 1996 – 1997, it is expected that in the following years the Ministry of Construction will issue the following Regulations:
- Regulation on construction planning
- Regulation on construction of houses and works
- Regulation on natural conditions in construction
- Regulation on construction of urban technical infrastructure works
- Regulation on safety, fire prevention for construction works
- Regulation on construction of transport works
- Regulation on construction of irrigation works
- Regulation on construction of industrial works
Vietnam’s standards system includes:
- National standards: TCVN.
- Construction standards: TCXD.
- Sectoral standards: TCN.
Construction standards are regulated in two application forms:
- Mandatory application (full or partial mandatory).
- Voluntary application.
Vietnam construction standards: are formed according to 11 main content branches, covering fully and comprehensively the construction process technology, including:

1- General issues: addresses issues such as terminology, quantities, data, dimensions, principles, safety..v.v

2- Planning, construction survey: includes standards addressing types of planning, surveying methods.

3- Work design: design standards for housing, public, industrial, agricultural, transport, irrigation, and oil and gas works.

4- Construction structures: standards addressing earthworks, foundations, types of structures such as: brick, stone, concrete, metal, wood…v.v.

5- Construction technology and equipment: standards addressing construction and acceptance of various types of structures, works, and some construction equipment.

6- Construction materials: includes standards on technical requirements for various construction material products such as cement, ceramics, bricks, tiles, concrete, wood…v.v.

7- Technical equipment systems for construction works: includes standards for water supply and drainage equipment, lighting, air conditioning, ventilation, heating, gas.

8- Test methods: includes standards for testing various construction materials, climate indicators, environment…v.v.

9- Economics, planning, organization, management: standards for management, work maintenance, valuation, estimation, bidding, contracts..v.v

10- Transportation: standards for bridge, road, tunnel construction..v.v

11- Irrigation construction: construction standards for survey, planning, foundation, calculation, structure, materials…v.v. The number of current construction standards related to the 11 content branches above is more than 950 standards (TCVN and TCXDVN). In general, these standards have largely met the technical management requirements in construction.

In the program to build the system of Regulations and Standards, the Ministry of Construction is focusing on reviewing and completing so that by 2010 there will be about 16 Regulations and 1300 standards covering all construction technical management activities.
The structure of Vietnam’s construction regulation has 3 levels:
- Objectives.
- Technical requirements.
- Accepted technical solutions.

3. Structure of the Vietnam Construction Regulation.

Objectives of the construction regulation:

To create a technical legal corridor,
To ensure the construction development process achieves efficiency in all aspects,
To limit harmful impacts and ensure the following minimum requirements:
- Protect the interests of the entire society, including: safety, health protection, living environment, landscape, rational use of resources, and ensuring security and national defense.
- Ensure benefits for the investors and users of the work, including: safety, comfort, health protection.

Technical requirements of the construction regulation:

Minimum technical requirements:

Because the construction regulation applies generally to all capital sources and forms of construction, it only controls the minimum requirements to be met and the maximum requirements not to be exceeded.

Feasibility requirement:
- As a legal document, when the construction regulation is issued, its provisions can be fully implemented nationwide.
- Must inherit the current technical and standards system and to be suitable for technical and economic progress, it must be reviewed and revised every 4 to 5 years to be appropriate.

Accepted technical solutions:

Solutions stated in the construction regulation
- These solutions are based on some current Vietnam Standards.
- When any of these standards are replaced, the replacement standard will automatically be accepted in the construction regulation (e.g., TCVN 5592:1991 and TCXDVN 391:2007;…)
- When there is a difference between the construction regulation and the Standard, the construction regulation must be followed.
Or solutions not stated in the construction regulation but appraised by competent authorities as meeting the Regulation’s requirements (international standards, foreign standards).
Typical designs of components, details, construction parts issued by the Ministry of Construction.

4. Distinguishing between construction regulations and standards.

The basic point to distinguish in management between Regulations & Standards is:

Regarding issuing authority:

Construction Regulations are issued by the Minister of Construction.
Construction Standards:
- Vietnam Construction Standards (TCXDVN) are issued by the Minister of Construction;
- Construction Standards related to specialized sectors (Health, Transport, Education and Training…v.v) may be issued by other Ministries or Sectors after agreement with the Ministry of Construction.

Regarding content and application form:

Regulations are technical legal documents that stipulate minimum requirements, thresholds, and mandatory levels to be complied with in all construction activities nationwide.
Standards are technical documents in which the content must not contradict the Regulation; Most standards are issued for voluntary application, a few are classified as mandatory; The scope of application of standards depends on the choice of the investor for the construction works.

In summary:

Construction Regulations specify the requirements that must be met, which can be minimum or maximum depending on the specific work.
Construction Standards guide how to achieve the requirements of the Construction Regulations.

5. Relationship between construction regulations and standards.

6. Some Laws, Regulations, and Construction Standards of some countries.

Japan:

The Building Standard Law of Japan
Building Standard Law
Building Standard Law Enforcement Order
Building Standard Law Regulations
Fire Service Law
Water Supply Law
Public Sewerage Law
Electric Utility Industry Law
Gas Industry Law, …

European Community (Euro):

ECE compendium of model provisions for Building regulations ECE Eurocode 2- Eurocode 9.

USA:

Uniform Building Code 1991
The BOCA National Building Code 1990(1)
Standard Building Code 1988(2)

Canada:

National Building Code of Canada 1990
National Fire Code of Canada 1990
Canadian Plumbing Code 1990
Canadian farm Building Code 1990Canadian Housing Code 1990

Australia:

Building code of Australia (1990)
National plumbing and drainage code
Housing Code

New Zealand: The Building Regulations 1992

Malaysia: Uniform Building By-Law 1984

Philippines: National Building code of the Philippines

Singapore:

Building control Act
Planning Act

India: National Building code of India 1983

Thailand: TIS
Indonesia: SNI
Malaysia: MS
Singapore: SS, CP
Philippines: PNS
China: GB,GBJ,JG
Japan: JS
Russia: SNP, GOST, GOSTR, SN, SP, RSD, VSN
UK: BS, CP
USA: ACI, AISC, ASCE, NIST
France: NF, ĐTU
Germany: DIM
Euro: EN, EUROCODES
TCVN,TCXD.
ISO (INTERNATIONAL ORGANIZATION FOR STANDARDIZATION);
IEC (International Electrotechnical Commission).
ASTM (American Society for Testing and Materials);
ANSI (American National Standards Institute);
JIS (Japanese Industrial Standard);
SSPC (Steel Structures Painting Council).
- Encourage the application of foreign standards and progressive scientific solutions.
- When applying foreign standards, it is essential to ensure the consistency and systematic nature of the standards, ensuring the safety objectives set by the regulation (except for mandatory standards).

7. Vietnam’s standards system.

1- Standards for quality management and construction organization: TCXDVN 371: 2006 – Acceptance of construction work quality.

2- Standards for surveying and investigation: TCXDVN 351: 2005 – Technical process for monitoring horizontal displacement of buildings and structures

3- Standards for pile and foundation construction: TCXDVN 326: 2004 – Bored piles. Construction and acceptance standards.

4- Standards for masonry construction: TCVN 4085: 1985 – Masonry structures. Code of practice for construction and acceptance.

5- Standards for concrete and reinforced concrete construction:

TCVN 4453: 1995 – Cast-in-situ reinforced concrete structures. Code of practice for construction and acceptance.
TCXDVN 305: 2004 – Mass concrete. Code of practice for construction and acceptance.

6- Standards for steel and metal structure construction:

TCXDVN 330: 2004 – Profiled aluminum alloys for construction – Technical requirements and product quality inspection methods

7- Standards for equipment and technical system installation:

TCVN 7447-5-51: 2004 – Electrical installations of buildings. Part 5-51: Selection and erection of electrical equipment. General rules

8- Standards for high-rise building construction:

TCXD 194: 2006 – High-rise buildings. Geotechnical investigation
TCXD VN 296: 2004 – Scaffolding – Safety requirements

9- Standards for finishing and work protection:

TCXD VN 303: 2004 – Finishing works in construction – Execution and acceptance. Finishing and acceptance part
TCXD VN 303: 2006 – Finishing works in construction – Execution and acceptance. Finishing and acceptance part

II. Regulations on selection and application of QC & TC in Construction.

1. Legal status and scope of application.

The Construction Law is the highest legal document for management in the construction industry. Legal normative documents (Decrees, Decisions, Circulars) are subordinate legislation, specifying administrative procedures, specific policies, costs, and conditions for application during the implementation of construction activities.
Technical regulations are issued by competent state agencies in written form for mandatory application.
Construction regulations are legal documents stating the minimum mandatory technical requirements for construction, which are mandatory in all construction activities (planning, investment, all capital sources, all forms of construction (Legal – mandatory)):
- They are the technical basis for preparing investment projects; Design; Appraising and approving projects on planning, measurement, and technical design of construction works.
- They are the code for inspecting the construction implementation process and for acceptance, allowing the work to be used for its correct function, features, and safety regulations.

Standards are applied on a voluntary basis. All or part of a specific standard becomes mandatory when referenced in a legal normative document or technical regulation.
Basic standards are applied within the management scope of the organization that announced the standard.
The voluntary application of technical standards here does not mean “at will” but voluntarily selecting a standard (which could be a foreign standard) to register, announce in production, and sign contracts.
Construction standards (encouraged – voluntary): Decided by the investor based on the project consultant’s draft proposal.
- They are the basis for preparing, verifying, and approving the detailed design of the construction work.
- They are the basis for inspecting, supervising, and accepting, allowing the work to continue construction when transferring or putting into use to ensure the work is safe in terms of structural stability and safety in use.
International standards and foreign standards can be applied in surveying, designing, and constructing works in Vietnam, provided these standards meet the technical requirements and regulations in the construction regulation.
Note: When selecting a standard for a project, it must be applied consistently from design, fabrication, erection, to maintenance.

2. Fields requiring application of TCXDVN

The contents belonging to the following 8 fields have been issued as Regulations by the Ministry of Construction, and some standards not yet issued as standards are also considered: “Mandatory application”:

- Construction climate data.
- Hydrogeological data.
- Seismic zoning.
- Fire and explosion prevention.
- Lightning protection.
- Environmental protection.
- Work safety under local climate impacts.
- Occupational safety.

Mandatory application can be specified for all or part of a construction standard.
If a construction standard is mandatory, it will be stated at the beginning: This standard is mandatory (TCXDVN296:2004, TCVN 5308:1991…). If partially mandatory, that part will state: (mandatory application) in parentheses (TCVN 4453:1995,…).
For mandatory construction standard content, all construction works in Vietnam must apply it during survey, planning, design, construction, and acceptance.
For content in mandatory fields that do not yet have a Vietnam standard, foreign standards may be applied, but must be suitable for Vietnam’s conditions (Circular No. 40/2009/TT-BXD). Other similar foreign construction technical standards may also be applied, but must have a technical and safety level equal to or higher than Vietnam’s construction standards.

Construction standards not in mandatory fields are considered voluntary. The Ministry of Construction encourages the application of voluntary construction standards.
Vietnam construction standards for construction materials are strongly encouraged for application. If there are no domestic construction standards in this field, foreign standards may be applied, but must be approved.

3. Application of foreign TCXDV

Principles for applying foreign TCXDV (Circular No. 40/2009/TT-BXD).

Ensure the creation of construction works and products that are:
- Safe for users, the work, and adjacent works;
- Meet Vietnam’s regulations on ecological safety and environmental protection;
- Achieve technical and economic efficiency.
Ensure consistency and feasibility in the construction process from design, construction, to acceptance for the work and within the overall project.
Must use input data related to Vietnam’s specific conditions as regulated in Vietnamese QCXDVN in the following fields:
- Natural and climatic conditions;
- Geological and hydrological conditions;
- Seismic zoning, earthquake levels;
The applied foreign TCXD must meet the requirements and regulations of the current QCXDVN.
- Conditions for selecting foreign TCXDN for application.
- Ensure the principles of application;
- Must be current TCXD;
- The regulations must meet current QCXDVN;
- Must be considered, selected, and decided upon by the investor before preparing the basic design dossier;
- For works using state budget capital, if there is a relevant Vietnamese TCXDVN, Vietnam’s standard must be used. In special cases, applying a foreign TCXDV requires approval from the Ministry of Construction or the Ministry managing the TCXD. Approval authority.
- The investment decider: considers and has the authority to decide on the application of foreign construction standards.

III. Technical conditions for construction and acceptance

1- Along with Decree No. 15/2012/NĐ-CP on construction work quality management, the technical conditions for construction and acceptance TCXDVN – 371 – 2006 “Standard for acceptance of construction work quality” were issued as an effective basis for quality management in the market economy and integration era.

2- In the technical standard for construction and acceptance, the method of accepting construction work quality has followed the basic principles of quality management by dividing acceptance into parts from simple to complex, from small to large scale, from specific to general: acceptance of tasks, acceptance of parts, and acceptance of items.

3- A work item consists of many work parts, and a work part is the result of completing many specific construction tasks. This certainty ensures the technical conditions of the output of every construction process meet requirements, meaning the input for every subsequent construction process has a basis for quality assurance. Each task meeting technical requirements must be accepted, so that each part meets the requirements, leading to the work item and the entire work meeting requirements.

4 – During the construction process, the engineer and the supervision unit must perform the following acceptance steps:

Acceptance of materials, equipment, and prefabricated products before use in the work.
Acceptance of each construction task;
Acceptance of construction work parts, construction phases;
Acceptance of completed construction work items, construction works for handover and use…”

But it does not clearly define the concepts of work item, work part, and construction task.

A work item is understood as a specific construction work that is eligible for independent construction and can operate independently when construction is complete. For example, a road section, a house (or several houses) with corresponding infrastructure… can be an item. A construction work may have only one item or many items.
A work part is understood as parts of a work item, classified by function, by construction technology…

5 – This classification of parts and tasks for civil and industrial works is very rudimentary, whereas the classification according to the Chinese standard GB 50300 – 2001 is quite detailed and specific.

6 – Construction and acceptance of construction results is a regular occurrence during the construction process. If the acceptance process is reasonably divided, it will create close coordination between the parties involved in construction, especially promoting the contractor’s proactiveness in ensuring their own construction quality, and the investor’s supervision responsibility, consistent with general requirements and construction progress and quality.

7 – In all acceptance steps, records and documents need to be checked. Usually, there are many records. Without specific regulations, it can lead to a situation where records are checked repeatedly by many people, many times. Or conversely, when the contractor has too much to check, it’s done superficially. Therefore, a table clearly stating the content to be checked for each type of record in each acceptance step is needed.

8 – In acceptance, the construction side and the evaluation side do not always agree. There may be details, places where the construction side did it correctly but was incorrectly assessed as failing. The construction side has the right to take responsibility and not correct it. Conversely, there may be details, places where the construction was done incorrectly but not detected in time, and was still accepted. This limit and not being affected by such objective discrepancies also need attention and a defined handling procedure.

IV. Assessment of construction work quality conformity

Assessment of construction work conformity is the evaluation and confirmation that the work or item, part of the work is designed and constructed in accordance with technical regulations, standards, and technical requirements applicable to the work, and this activity is called inspection and certification of construction work quality conformity.
The assessment and confirmation of conformity have the following forms:

- First-party assessment: the contractor must always self-affirm the quality of materials and equipment they supply, the quality of construction tasks, work items, and construction works they perform. The contractor self-assesses their construction product through internal acceptance minutes.
- Second-party assessment: the investor, the user conducts the assessment, their agreement or disagreement is the evaluation of the construction work, the result of this activity will be their acceptance.
- Third-party assessment: To ensure objectivity, an intermediate organization is needed to conduct quality assessment, inspection, testing, certification, or recognition. The results of these processes are the main basis for the investor and the assessed objects.

General principles for quality conformity inspection:

The certification organization is responsible for preparing an outline for implementing the quality conformity inspection and assessment within the scope and content of certification for the investor’s agreement.
The inspection scope focuses on the work, work item, or part of the work being certified.
The inspection content must be consistent with the certification content, and may include checking design quality and construction quality through the as-built records and documents.
During the inspection, if there is doubt, the certification organization shall request the investor and related contractors to clarify. If necessary, re-inspection or verification; control testing, or monitoring may be performed.
After each inspection, the certification organization must promptly issue a written notice of the inspection results to the investor and related parties.

Capacity requirements for the organization performing quality conformity certification of construction works:

Ensure sufficient capacity according to legal regulations suitable for the type and grade of the certified work and the certification content;
No violations in construction activities in the last 3 years.
Ensure independence and objectivity in performing quality conformity certification.
- Not participate in surveying, designing, constructing, supplying materials, equipment, project management, or construction supervision for the certified object;
- Organizational and financial independence: not having shares or capital contribution of more than 50% in each other with the investor, and not having shares or capital contribution of more than 30% in each other with the survey, design, construction, construction supervision, and project management consultants.

The certificate includes:

Name of the certification organization;
Bases for performing the quality conformity certification;
Name of the work, work item, or part of the work certified for quality conformity;
Scope and content of certification;
Conclusion of quality conformity;
Signature and seal of the legal representative of the certification organization.
Managers of planning, investment, and construction permitting must always clearly state the construction regulation and which contents have been inspected, appraised, and the quality of the construction products concluded.
Design consultants, supervision consultants, construction managers, project owners, and work owners must understand at least the important points of the construction regulation, and depending on the specific task, must use construction standards as the specific technical basis for calculating, checking, and testing the quality of design consulting, testing, and construction management.

Note: The certificate must be agreed to have a term according to the work maintenance period, and for work maintenance, it must be re-certified before using the work.

V. Application of QC and TC in construction and acceptance

Managers of planning, investment, and construction permitting must always carefully study the construction regulation and use it to inspect, appraise, and conclude on the quality of construction products.
Design consultants, supervision consultants, construction managers, project owners, and work owners must understand the important points of the construction regulation, and depending on the specific task, must use construction standards as the specific technical basis for calculating, checking, and testing the quality of design consulting, testing, and construction management.

VI. Standard for acceptance of construction work quality

1. Some concepts.

1- Quality of construction work.

2- Construction of work.

3- Acceptance.

4- Internal acceptance.

5- Testing.

6- Test sample.

7- Repair.

8- Rework.

9- As-built drawings.

2. Standard for acceptance of construction work quality.

1. Construction quality.

Is the synthesis of all characteristics reflecting that the constructed work meets the requirements in the design, the regulations of standards, construction codes, and relevant technical acceptance, and the terms agreed in the contract regarding aesthetics, durability, functionality, and environmental protection, whether expressed externally or concealed within each structure or part of the work.

2. Construction of work

Are the construction and equipment installation tasks for new construction, repair, renovation, relocation, restoration, rehabilitation; demolition of works; warranty, maintenance of works.

3. Acceptance

Is the inspection, review, and evaluation to conclude on the quality of the completed construction work compared to the design, standards, and relevant technical codes.

4. Internal acceptance

Is the acceptance within the contractor’s organization for the completed object before sending an acceptance request form to the investor.

5. Testing

Is the measurement, testing of the characteristic properties and features for the quality of the object to be accepted;

6. Test sample.

Is a sample taken directly from the acceptance object for testing. The test results of these samples are the basis for evaluating and concluding on the quality of the acceptance object.

7. Repair.

Is the fixing, adjusting, re-finishing of construction tasks, machinery, equipment when minor defects or errors are found that do not comply with the provisions of standards, designs.

8. Rework.

Is the re-fabrication, re-construction, replacement of construction tasks, machinery, equipment that must be dismantled, removed when major errors are found that do not comply with the provisions of standards, designs.

9. As-built drawings.

As-built drawings are drawings of the completed part of the work or construction work, showing the actual dimensions compared to the design dimensions, prepared based on the approved construction design drawings. All modifications compared to the approved design must be shown on the as-built drawings. If the actual construction dimensions and parameters of the work part or construction work match the dimensions and parameters of the construction drawing design, then that design drawing is the as-built drawing.

CHAPTER 8: LABOR LAW AND LABOR CONTRACTS

1. Labor Law

Labor is the most important human activity, creating material wealth and spiritual values for society. Labor with high productivity, quality, and efficiency is the decisive factor for the country’s development.

Labor law stipulates the rights and obligations of employees and employers, labor standards, and principles for using and managing labor, contributing to promoting production. Therefore, it holds an important position in social life and in the national legal system.

Inheriting and developing our country’s labor laws since the August Revolution of 1945, the Labor Code institutionalizes the renewal policy of the Communist Party of Vietnam and specifies the 1992 Constitution of the Socialist Republic of Vietnam’s provisions on labor, and the use and management of labor.

The Labor Code protects the right to work, interests, and other rights of employees, while also protecting the legitimate rights and interests of employers, creating conditions for harmonious and stable labor relations, helping to promote the creativity and talents of intellectual and manual laborers, and labor managers, to achieve productivity, quality, and social progress in labor, production, services, and efficiency in the use and management of labor, contributing to the industrialization and modernization of the country for the cause of a prosperous people, a strong country, and a fair and civilized society.

1.1. Scope of Regulation and Subjects of Application of Labor Law

The Labor Code regulates the labor relationship between salaried employees and employers, and social relationships directly related to the labor relationship.

The Labor Code applies to all employees, all organizations, and individuals employing labor under labor contracts, belonging to all economic sectors and forms of ownership.

This Code also applies to apprentices, domestic helpers, and some other types of labor specified in this Code.

Vietnamese citizens working in foreign-invested enterprises in Vietnam, in foreign or international agencies and organizations located in Vietnam, and foreigners working in Vietnamese enterprises, organizations, and for individuals in the territory of Vietnam are all subject to this Code and other provisions of Vietnamese law, unless otherwise provided by an international treaty to which the Socialist Republic of Vietnam is a signatory or has acceded.

The labor regime for state civil servants and public employees, persons holding elected or appointed positions, members of the armed forces (people’s army, people’s police), members of people’s associations, other political and social organizations, and cooperative members is regulated by other legal documents, but depending on the subject, some provisions of this Code may apply.

1.2. Structure of the Labor Code

The Labor Code, amended in 2002, with 17 chapters and 198 articles, specifically regulates labor relations and social relations directly related to the labor relationship between employees and employers.

1.3. Rights of the Employer

a) To recruit, arrange, and manage labor according to production and business needs; to reward and handle violations of labor discipline according to the provisions of labor law.

b) To appoint representatives to negotiate and sign collective labor agreements within the enterprise or sectoral collective labor agreements; to be responsible for collaborating with the trade union to discuss issues concerning labor relations and improving the material and spiritual life of employees.

c) To request competent agencies or organizations to resolve labor disputes.

d) To recruit labor directly or through employment service organizations.

e) To increase or decrease labor in accordance with production and business needs as prescribed by law.

1.4. Obligations of the Employer

a) To implement labor contracts, collective labor agreements, and other agreements with employees.

b) To respect the honor and dignity and treat employees properly.

1.5. Responsibilities of the Employer

a) In cases where employees who have worked regularly for the enterprise for one year or more lose their jobs due to structural or technological changes, the employer is responsible for retraining them for continued employment in new positions; if new employment cannot be provided and the employee must be terminated, the employer must pay a job loss allowance, equivalent to one month’s salary for each year of service, but at least equal to two months’ salary.

b) When it is necessary to terminate many employees under point a of this clause, the employer must publish a list, based on the enterprise’s needs and the seniority, skills, family situation, and other factors of each person, to terminate them sequentially, after consulting and agreeing with the enterprise’s grassroots Trade Union Executive Committee according to the procedures specified in Clause 2, Article 38 of the Labor Code. Terminations may only proceed after notifying the local labor agency.

c) Enterprises must establish a severance allowance reserve fund as stipulated by the Government to promptly provide allowances to employees in the enterprise who lose their jobs.

d) The enterprise is responsible for organizing professional development for employees and retraining them before transferring them to other jobs within the enterprise.

2. Labor Contracts

A labor contract is an agreement between an employee and an employer regarding paid employment, working conditions, and the rights and obligations of each party in the labor relationship.

2.1. Types of Contracts

2.1.1. Indefinite-term labor contract

An indefinite-term labor contract is one in which the two parties do not specify the term or the time of termination.

2.1.2. Definite-term labor contract

A definite-term labor contract is one in which the two parties specify the term and the time of termination within a period of 12 months to 36 months.

2.1.3. Seasonal or specific-job labor contract with a term of less than 12 months

When a labor contract specified in points b and c, clause 1 of this Article expires, and the employee continues to work, the two parties must sign a new labor contract within 30 days from the expiry date; if a new contract is not signed, the concluded contract becomes an indefinite-term labor contract. If the two parties sign a new definite-term labor contract, it can only be for one more term, after which if the employee continues to work, an indefinite-term labor contract must be signed. (Clause 2 – Article 27 – Labor Law).

It is not allowed to conclude seasonal or specific-job labor contracts with a term of less than 12 months for jobs that are regular in nature (12 months or more), except for temporary replacements for employees performing military service, on maternity leave, or other temporary leave. (Clause 3 – Article 27 – Labor Law).

2.2. Contract Content (Article 29)

A labor contract must have the following main contents:

The work to be done, working hours
Rest periods
Work location
Salary
Contract term
Conditions on occupational safety and hygiene
Social insurance for the employee

If part or all of the labor contract content provides for employee benefits lower than the level stipulated in labor laws, collective labor agreements, or internal labor regulations applicable in the enterprise, or restricts other rights of the employee, that part or all of that content must be amended or supplemented.

If a labor contract is found to have content specified in Clause 2 of this Article, the Labor Inspectorate shall guide and request the parties to amend and supplement it accordingly. If the parties fail to amend or supplement, the Labor Inspectorate has the right to compel the cancellation of that content; the rights, obligations, and interests of the parties shall be resolved according to the provisions of the law.

2.3. Signing Labor Contracts

a) Labor contracts must be concluded in writing and made in two copies, one for each party. For some temporary jobs lasting less than three months or for domestic helpers, the parties may conclude an oral contract. In the case of an oral contract, the parties must naturally comply with the provisions of labor law.

b) The labor contract is concluded directly between the employee and the employer.

c) The labor contract may be signed between the employer and a legally authorized person representing a group of employees; in this case, the contract is as valid as if signed with each individual.

d) An employee may conclude one or more labor contracts with one or more employers, but must ensure full implementation of all concluded contracts.

e) The work under the labor contract must be performed by the person who concluded it and cannot be assigned to another person without the employer’s consent.

f) In the event of a merger, division of the enterprise, transfer of ownership, management rights, or use of the enterprise’s assets, the succeeding employer is responsible for continuing to implement the labor contract with the employee until the two parties agree to amend, terminate the labor contract, or conclude a new one.

2.4. Validity and Change of Contract Content (Article 33 – Labor Code)

A labor contract takes effect from the date of signing or from a date agreed upon by both parties or from the date the employee starts working.

During the implementation of the labor contract, if either party requests a change in the contract content, they must notify the other party at least seven days in advance. Changes to the labor contract content are made by amending, supplementing the concluded contract, or concluding a new contract. If the two parties cannot agree on the amendment, supplement, or conclusion of a new contract, they shall continue to implement the concluded labor contract or terminate it according to the provisions of Clause 3, Article 36 of this Code.

2.5. Probation for Employees

The employer and the employee may agree on a probation period, the duration of probation, and the rights and obligations of both parties. The employee’s salary during the probation period must be at least 70% of the salary grade for that job. The probation period shall not exceed 60 days for highly skilled technical work and 30 days for other types of work.

During the probation period, either party has the right to cancel the probation agreement without prior notice and without compensation if the probation does not meet the requirements agreed upon by both parties. When the probation meets the requirements, the employer must officially hire the employee as agreed.

2.6. Employer’s Right to Temporarily Transfer Employee to Other Work (Article 34 – Labor Code)

When facing sudden difficulties or due to production or business needs, the employer has the right to temporarily transfer the employee to another job different from their profession, but not exceeding 60 days in a year.

When temporarily transferring an employee to another job, the employer must notify the employee at least seven days in advance, clearly stating the temporary period, and must arrange work suitable for the employee’s health and gender.

An employee temporarily doing other work as stipulated in Clause 1 of this Article shall be paid according to the new job; if the new job’s salary is lower than the old salary, the old salary level shall be retained for 30 working days. The salary for the new job must be at least 70% of the old salary but not lower than the minimum wage prescribed by the State.

2.6. Suspension of Labor Contract

a) The implementation of a labor contract is suspended in the following cases:

The employee performs military service or other civic duties as prescribed by law;
The employee is temporarily detained or imprisoned;
Other cases as agreed by both parties.

b) At the end of the suspension period for the cases specified in point a, except for temporary detention or imprisonment; the employer must reinstate the employee.

c) The reinstatement of an employee who was temporarily detained or imprisoned after the suspension period ends shall be regulated by the Government.

2.7. Employee’s Right to Unilaterally Terminate the Labor Contract (Article 37 – Labor Code)

An employee working under a definite-term labor contract from 12 months to 36 months, or a seasonal or specific-job contract with a term of less than 12 months, has the right to unilaterally terminate the contract before its expiry in the following cases:

a) Not being assigned the correct job, workplace, or not being guaranteed the working conditions as agreed in the contract;

b) Not being paid fully or on time as agreed in the contract;

c) Being maltreated; being forced to work;

d) The employee or their family faces genuine difficulties making it impossible to continue implementing the contract;

đ) Being elected to a full-time position in a people-elected body or appointed to a position in the state apparatus;

e) A female employee is pregnant and must take leave as prescribed by a physician;

g) The employee is sick or injured and has received treatment for three consecutive months (for contracts from 12 to 36 months) or one-quarter of the contract term (for seasonal or specific-job contracts under 12 months) without recovery of work capacity.

When unilaterally terminating the labor contract under Clause 1 of this Article, the employee must notify the employer in advance:

a) For cases specified in points a, b, c, and g: at least three days;

b) For cases specified in points d and đ: at least 30 days for contracts from 12 to 36 months; at least three days for seasonal or specific-job contracts under 12 months;

c) For the case specified in point e: according to the period stipulated in Article 112 of this Code.

An employee working under an indefinite-term labor contract has the right to unilaterally terminate the labor contract but must notify the employer at least 45 days in advance; an employee who has been sick or injured and received treatment for six consecutive months must notify at least three days in advance.”

2.8. Employer’s Right to Unilaterally Terminate the Labor Contract (Article 38 – Labor Code)

The employer has the right to unilaterally terminate the labor contract in the following cases:

a) The employee frequently fails to complete the work according to the contract;

b) The employee is disciplined by dismissal as stipulated in Article 85 of this Code;

c) An employee under an indefinite-term contract has been sick and treated for 12 consecutive months, an employee under a definite-term contract (12 to 36 months) has been sick and treated for six consecutive months, and an employee under a seasonal or specific-job contract (under 12 months) has been sick and treated for more than half the contract term, without recovery of work capacity. When the employee’s health recovers, they shall be considered for concluding a new labor contract;

d) Due to natural disasters, fire, or other force majeure reasons as stipulated by the Government, where the employer has sought all remedial measures but is still forced to scale down production and reduce jobs;

đ) The enterprise, agency, or organization ceases operation.

Before unilaterally terminating a labor contract under points a, b, and c, Clause 1 of this Article, the employer must consult and agree with the grassroots Trade Union Executive Committee. If an agreement cannot be reached, both parties must report to the competent agency or organization. Only after 30 days from the date of notifying the local state labor management agency does the employer have the right to decide and must be responsible for their decision. If the grassroots TradeUnion Executive Committee and the employee disagree with the employer’s decision, they have the right to request labor dispute resolution according to the procedures prescribed by law.

When unilaterally terminating a labor contract, except for the case specified in point b, Clause 1 of this Article, the employer must notify the employee in advance:

a) At least 45 days for an indefinite-term labor contract

b) At least 30 days for a definite-term labor contract from 12 months to 36 months

c) At least three days for a seasonal or specific-job labor contract with a term of less than 12 months.

2.9. Cases of Contract Termination Without Prior Notice (Article 36 – Labor Code)

The contract expires;
The work under the contract has been completed;
Both parties agree to terminate the contract;
The employee is sentenced to imprisonment or prohibited from doing the old job by a court decision;
The employee dies; is declared missing by a court.

2.10. Severance Allowance (Article 42 – Labor Code)

When terminating a labor contract with an employee who has worked regularly for the enterprise, agency, or organization for one year or more, the employer is responsible for paying a severance allowance, equivalent to half a month’s salary, plus salary allowances (if any), for each year of service.

In cases where an employee is disciplined by dismissal for theft, embezzlement, disclosure of technology or business secrets, or other acts causing serious damage to the enterprise’s property or interests, or an employee disciplined by transfer to another job re-offends during the disciplinary period, they will not receive a severance allowance.

2.11. Unlawful Termination of Labor Contract (Article 41 – Labor Code)

2.11.1 The employer unilaterally terminates the labor contract unlawfully

They must reinstate the employee to the job under the signed contract and must pay compensation equivalent to the salary and salary allowances (if any) for the days the employee was not allowed to work, plus at least two months’ salary and salary allowances (if any).

If the employee does not wish to return to work, in addition to the compensation stipulated in paragraph 1 of this clause, the employee also receives an allowance according to Article 42 of this Code.

If the employer does not want to reinstate the employee and the employee agrees, in addition to the compensation stipulated in paragraph 1 of this clause and the allowance stipulated in Article 42 of this Code, the two parties shall agree on additional compensation for the employee to terminate the labor contract.

2.11.2. The employee unilaterally terminates the labor contract unlawfully

They shall not receive a severance allowance and must compensate the employer half a month’s salary and salary allowances (if any).

If the employee unilaterally terminates the labor contract unlawfully, they must reimburse training costs (if any) as stipulated by the Government.

In case of unilateral termination, if the prior notice period is violated, the violating party must compensate the other party an amount equivalent to the employee’s salary for the days not notified.

2.12. Responsibilities of Employee and Employer upon Termination of Labor Contract (Article 41 – Labor Code)

Within seven days from the date of termination of the labor contract, the two parties are responsible for fully settling all payments related to the interests of each party; in special cases, this period may be extended but not exceeding 30 days.

If the enterprise goes bankrupt, the payments related to the employee’s interests shall be settled according to the provisions of the Law on Enterprise Bankruptcy.

The employer must record the reason for terminating the labor contract in the labor book and is responsible for returning the book to the employee. Apart from the provisions in the labor book, the employer is not allowed to add any other comments that could hinder the employee from finding a new job.