Building and Organizing the Implementation of Strategies, Planning, Schemes, and Policies for Basic Construction Investment Using the State Budget at the District Level


According to the decentralization (district-level specialized agencies in charge of construction management) are responsible for presiding over the appraisal organization. After appraising the investment project, if the project meets the basic requirements on appraisal content and has high feasibility, the competent authority will issue a decision to approve the investment project.

- Selection of contractors in construction activities: Selection of contractors in construction activities must comply with current legal provisions such as Bidding Law No. 43/2013/QH13 dated November 26, 2013, Decree No. 63/2014/ND-CP dated June 26, 2014 of the Government detailing the implementation of a number of articles of the Bidding Law on contractor selection.

- Construction permit: Before starting construction, the investor must have a construction permit issued by a competent state agency in accordance with the provisions of the Construction Law. The Provincial People's Committee issues construction permits for level I and level II construction works; religious works. The Provincial People's Committee is authorized to delegate authority to the Department of Construction to issue construction permits within the scope of management and functions of this agency. The District People's Committee issues construction permits for individual housing projects built in urban areas, commune cluster centers, in conservation areas, etc.

- Construction management :

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+ Construction quality management

+ Construction progress management

Building and Organizing the Implementation of Strategies, Planning, Schemes, and Policies for Basic Construction Investment Using the State Budget at the District Level

+ Construction volume management

+ Labor safety management at construction site

+ Management of construction investment project costs

- Payment of construction investment capital: Payment of investment capital is when the investor pays the contractor when the completed work volume is accepted. Payment of investment capital can be paid weekly, that is, after a period of construction, the investor will pay the contractor a


The amount of money; can be paid according to the conventional stages or reasonable technical stops; can be paid according to the completed basic construction volume or paid according to the completed works and construction items. The choice of payment method depends on the actual conditions of each stage and the capital capacity of the investor and contractor.

- Final settlement of construction investment capital: Final settlement of investment capital or final settlement of completed project of a project is to summarize and synthesize the revenue and expenditure to clarify the project implementation status. In essence, final settlement of investment capital of a project, construction, construction item is to determine the value of that project, construction, construction item or to determine the settled investment capital.

- Acceptance of the project into operation and use: The project is put into operation when it has been completed according to the approved design, operated in accordance with technical requirements and accepted to meet quality requirements. After receiving the handover of the construction project or construction investment project, the investor or the organization assigned to manage and use the construction project is responsible for operating and exploiting it to ensure the effectiveness of the project or work in accordance with the approved purpose and economic and technical indicators.

1.2.4.2. Develop and organize the implementation of strategies, plans, projects, and policies for basic construction investment using the state budget at the district level.

The development of planning and the organization of planning implementation at the district level are important issues in state management of basic construction investment using the state budget. The development of programs, plans and planning has a particularly large impact on the effectiveness of basic construction investment activities: Without planning, there will be inefficiency and waste; if the planning is wrong, it will lead to waste of investment resources; and scattered planning will reduce investment efficiency.


Approval of construction projects must comply with and be consistent with the overall socio-economic development plan, sectoral development plan, land use plan; ensure national defense and security, not adversely affect the environment, create momentum for socio-economic development; ensure publicity, transparency and harmonious combination of national, community and individual interests. Organize and arrange territorial space on the basis of rational exploitation and use of natural resources, land and resources in accordance with natural conditions, historical, cultural, socio-economic characteristics, scientific and technological level in each stage of development.

The process of state management of basic construction investment using the state budget is carried out sequentially through the steps of investment planning; project appraisal and approval; investment capital payment; investment capital settlement and inspection and supervision of basic construction investment.

1.2.4.3. Organizing the state management apparatus for basic construction investment using the state budget at the district level

The organization of the apparatus and management mechanism have a great impact on the process of state management of investment and construction. It directly impacts this process from the stage of planning policy mechanisms to manage basic construction; establishing and deciding on construction planning; the stage of appraising and approving investment projects; the stage of appraising and approving bidding plans and organizing bidding for investment projects; the stage of organizing project management; the stage of supervising the investment process.

The state management apparatus for basic construction investment using the state budget includes entities with functions, tasks, powers and relationships between entities. The management apparatus for basic construction investment using the state budget includes the district-level People's Committee and related specialized departments. The quality of human resources in the management apparatus has a direct impact on the effectiveness of basic construction investment management using the state budget.


state

Investor

Contractor

At the district level, the state management apparatus for basic construction investment using the state budget includes: District People's Council, District People's Committee, Department of Finance and Planning, Department of Infrastructure Economics in coordination with entities such as the District Construction Investment Project Management Board, District State Treasury, investors and contractors. Specifically:


Specialized departments (Finance and Planning Department, Infrastructure Economic Department, Project Management Board)

district construction investment

Funding agency

(State Treasury)

Person with authority to decide on investment

(District People's Council, People's Committees at all levels)



Figure 1.1. Diagram of the state management apparatus for basic construction investment using the state budget at the district level

According to the above diagram, state management of basic construction investment using the district-level state budget is carried out at the following agencies:

- The person with the authority to decide on investment is the legal representative of the organization, state agency or enterprise depending on the source.

Investment capital. According to current regulations, the competent authority to decide on investment using state budget capital at the district level includes: District People's Council, People's Committee and Chairman of People's Committee at all levels.

- State agencies perform state management in


District level according to assigned functions and tasks directly or indirectly related to state management of basic construction investment using state budget such as: Department of Finance and Planning, Department of Economic Infrastructure, District Construction Investment Project Management Board.

- The funding agency provides funding at the request of the investor and makes direct payments to the contractor. Currently, the funding agency in the district is the District State Treasury.

- The investor is the capital owner, the borrower or the person assigned the direct responsibility of managing and using capital to carry out investment according to the provisions of law. The investor is an administrative agency or public service unit.

- The contractor is the one who sells products to the investor. A project can have one or more contractors such as a consulting contractor providing the investor with consulting services such as project planning, design, construction quality supervision, project management, a contractor supplying machinery and equipment; a construction contractor performing the construction work.

1.2.4.4. Decentralization of state management of basic construction investment using state budget at district level

Decentralization of management is the assignment of functions, tasks and powers to each administrative level to make management more convenient and effective. Decentralization of management between the provincial and district levels is the transfer of certain tasks and powers that the superior administrative agency is holding and performing to the subordinate to perform regularly and continuously by issuing legal documents or by transferring tasks and powers to the subordinate to perform by specific decisions.

At the district level, the state management apparatus for basic construction investment using the state budget includes: District People's Council, People's Committee.


District People's Committee, the Department of Finance and Planning coordinates with entities such as the Construction Investment Project Management Board, the State Treasury and investors. Specifically:

- The People's Council at the district level issues investment policy decisions for investment programs using the entire district budget balance capital, capital from retained revenue for investment but not yet included in the district budget balance. Group B projects and key group C projects are managed by the district level, using the district budget balance capital, capital from retained revenue for investment but not yet included in the district budget balance.

- The People's Committee at the district level decides on investment policies: Group C projects (excluding key Group C projects) use district budget balance capital, capital from revenue sources left for investment but not yet included in the district budget balance.

- Department of Finance and Planning: manages the capital planning allocation, manages, operates capital sources and settles investment capital. Specifically, presides over the appraisal of capital sources and the ability to balance capital for programs and projects under the management of the district: programs and projects using district budget balance capital, capital from revenue sources left for investment but not yet included in the district budget balance, and loans from the district budget for investment. In case the program or project has capital partly supported by the central budget or provincial budget, the Department of Finance and Planning presides over the appraisal of capital sources and the ability to balance capital before submitting it to the District People's Committee to send to the Department of Planning and Investment for appraisal.

- Construction investment project management board: Carry out procedures for land handover, apply for construction permits, prepare construction sites and other works serving the construction of works; prepare design documents, estimates, total construction estimates for the investor to organize appraisal and approval according to regulations; prepare bidding documents, organize contractor selection; negotiate and sign contracts with contractors under the authorization of the investor; perform


Perform the task of supervising the construction of works when having sufficient capacity; accept, pay, and settle the volume of projects implemented according to the signed contract; manage the quality, volume, progress, construction costs, safety and environmental sanitation of construction works; organize acceptance, handover and put the works into operation; prepare annual investment capital implementation reports, and investment capital settlement reports when the project is completed and put into operation.

- District State Treasury: manages, controls payments, accounts, and settles capital accounts for basic construction investment using the state budget.

- The investor has the function of managing and using capital according to the correct principles, purposes and norms.

1.2.4.5. Inspection, examination and supervision of the implementation of basic construction investment using the state budget

Inspection and supervision is an important step in the state management cycle of basic construction investment using the state budget. Inspection and supervision aim to find out the advantages and positive aspects to promote; at the same time, prevent, detect and handle violations in the process of performing assigned tasks.

On the other hand, inspection and examination for the right purpose of assessing the actual situation of basic construction investment management of investors, competent agencies need to conduct comprehensive inspections throughout the entire investment process from the investment preparation stage, investment implementation and investment completion; focus on inspecting all works and projects implemented by investors in a certain period. Develop a specific and detailed inspection plan, closely following the regulations of the Central and local governments to evaluate and correctly conclude the advantages, but the shortcomings, violations of regulations and regimes in basic construction investment using the state budget in a comprehensive manner; promptly correct and promptly overcome shortcomings and violations in management. Strictly handle


Violations in the management of basic construction investment using the state budget.

1.2.5. Factors affecting state management of basic construction investment using state budget at district level

1.2.5.1. Subjective factors

* Planning and scheduling work in basic construction investment

Planning work has a great and long-term impact on the efficiency of using investment capital within the sector and territory. It is both the content and the tool for managing investment activities. It is important for the efficiency of investment projects using the state budget. To improve the efficiency of using the state budget in basic construction investment, planning work must be one step ahead and must originate from the needs of sustainable local socio-economic development. Construction planning must be consistent with socio-economic development planning and sectoral development planning. Along with planning, investment planning work is also a factor that greatly affects the efficiency of using basic construction investment capital. In conditions of limited resources, the quality of planning work is even more important. Developing a scientific medium- and long-term investment plan to proactively develop a capital mobilization plan and allocate investment capital reasonably in the medium- and short-term will increase the efficiency of investment capital use and limit waste in basic construction investment.

* Management capacity of leaders and professional qualifications of staff in state management of basic construction investment.

Management capacity of the leader of the state management apparatus in basic construction investment, including the following contents: capacity to develop strategies in investment activities; to propose reasonable and clear work implementation plans; to create a reasonable and effective organizational structure with clear distinction

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