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Investor Directly Manages Project Implementation


+ Acceptance of each construction work during the construction process;

+ Acceptance of construction components and construction stages;

+ Acceptance of completed construction items and construction works to put into use.

Completed construction items and completed construction works may only be put into use after being accepted by the investor.

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The construction project will only be handed over to the investor when it is completed according to the approved design, operates according to technical requirements and is accepted to meet quality requirements (including completion of interior and exterior of the project and cleaning of the site).

Depending on the specific conditions of each project, during the specific construction process, temporary handover of each part of the work, construction item of the project or component project will be carried out to exploit the creation of capital to promote the completion of the entire project.

Investor Directly Manages Project Implementation

When handing over the entire project, the project completion documents, documents on issues related to the project being handed over, instructions on use, management, and maintenance of the project must be handed over.

- Construction contractors and construction equipment suppliers are responsible for:

+ Organize to fix immediately after receiving request from investor, owner or manager of construction works and damaged equipment when not caused by the Contractor's fault or the investor violates construction laws and is forced by competent state agencies to disassemble or use construction equipment in violation of operating procedures.

+ The construction contractor must organize the acceptance of construction works, especially hidden works and parts; construction parts; construction items and works, before requesting the investor to accept them. For works and construction stages that are transferred to another contractor after acceptance, they must be confirmed and accepted by that contractor.


After the project has been accepted, handed over and put into use, the units

The relevant parties must prepare project settlement records for submission to relevant levels for approval and disbursement.

* Carry out the completion of construction activities

Construction activities are completed when the project is completely handed over to the investor.

After handing over the project, the Construction Contractor must liquidate or move all of its assets out of the construction area and return the borrowed or temporarily rented land to serve the construction according to the provisions of the contract, and be responsible for monitoring and repairing damage to the project until the end of the construction warranty period.

The construction contract is only terminated completely and payment is settled.

all when the construction warranty period expires.

After the construction project is accepted and handed over, the investor must register the property according to the provisions of law. The property registration file is the minutes of the general acceptance and handover of the project.

* Instructions for using and operating the project

After receiving the handover of the project, the investor is responsible for exploiting and using the project's capacity, synchronizing production and service organization, perfecting the organization and management methods to fully promote the economic and technical criteria set out in the project.

The investor or organization assigned to manage and use the project is responsible for maintaining the project.

* Payment of investment capital

Payment of investment capital for works, groups of works or all works of project preparation, survey, design, construction, supervision and other construction activities must be based on the value of actual completed volume and the content of payment method in the signed contract.

Construction investment projects using foreign capital or organizational bidding packages

International bidding shall be carried out in accordance with the Agreement signed with the Government of Vietnam.


For projects using state budget capital, in the year of completion of construction or the year of putting the project into use, the investor must pay the Contractor the entire value of the completed work minus the amount retained as prescribed for project warranty.

Within 10 working days from the date the Contractor submits a valid payment dossier as prescribed, the investor must pay the value of the work volume performed to the Contractor. For projects using state budget capital, within 3 working days from the date of receiving a complete and valid payment request dossier from the Contractor, the investor must complete the procedures and forward the disbursement request to the capital allocation and lending agency. Within 7 working days from the date of receiving a complete and valid dossier, the capital allocation and lending agency is responsible for payment.

The agency allocating and lending capital must be responsible for compensating for damages caused by late payment due to its own fault. During the project implementation, if the investor is late in paying for the completed work volume, it must pay interest at the bank interest rate agreed upon by the parties and stated in the contract to the Contractor for the volume of late payment.

* Completed project settlement

The investor is responsible for making final settlement of construction investment capital immediately after the project is completed and put into operation according to the requirements of the investment decision maker.

The settled investment capital is all legal costs that have been implemented during the investment process to put the project into operation and use. Legal costs are costs that are implemented in accordance with the approved design and estimate, ensuring the correct norms, unit prices, financial and accounting regimes, signed economic contracts and other relevant State regulations. For projects using state budget capital, the settled investment capital must be within the total investment limit approved by the competent authority.

The person with authority to approve the investment capital settlement uses the functional unit under the management authority to directly examine the project investment capital settlement.


Complete or re-examine projects that hire investment audits before

approve and be legally responsible for their decisions.

The investor is responsible for preparing the project investment capital settlement dossier to submit to the competent authority for approval no later than 12 months for important national projects, group A projects, 9 months for group B projects and 6 months for group C projects from the date the project is completed and put into operation and use.

* Construction warranty

The warranty period is calculated from the date the investor signs the acceptance report of the construction project items, the completed construction project is put into use and is stipulated as follows:

+ Not less than 24 months for all types of special and grade 1 works;

+ Not less than 12 months for remaining works. Construction warranty level:

+ Construction contractors and construction equipment suppliers are responsible for paying warranty money into the investor's account at the rates of 3% or 5% of the contract value for the construction project or construction item and paying 3 to 5 days before the contract signing date.

Construction contractors and equipment suppliers will only be refunded the construction warranty money after the warranty period ends and the investor confirms that the warranty work has been completed;

c) Construction warranty and construction equipment warranty are calculated according to the bank interest rate agreed upon by both parties. The construction contractor shall construct the construction with a bank guarantee of equivalent value.

* Construction maintenance

After being accepted and put into use, the construction must be maintained for long-term operation and exploitation. Construction maintenance work is carried out at the following levels: Maintenance level; minor repair level; medium repair level; repair level.


large. The content and methods of construction maintenance of maintenance levels are implemented according to maintenance regulations.

A project is considered effective when the acceptance and confirmation of completed work must be done quickly, promptly, in accordance with procedures, accurately in specifications, and sufficiently in quantity.

To successfully complete the investment closing stage, it is necessary to pay attention to the following influencing factors:

- Human factor: Need to have competent, impartial and objective staff.

objective, scientific and accurate.

- Must use modern equipment to test the quality of materials, equipment, construction stability, and compliance with technical standards for equipment.

- There must be synchronous coordination between the construction unit, supervisor, investor, superior agency, and payment agency to carry out the acceptance and handover work on schedule.

2.4 Forms of investment project management organization

There are two forms of management for investment and construction projects. Based on the capacity of the organization or individual, the decision maker chooses one of the following forms of management for investment and construction projects:

- The investor of the construction project hires a consulting organization to manage construction investment projects.

project

- The investor directly manages the construction investment project.

2.4.1 The investor directly manages the project implementation.

Obtaining a good product, high quality, ensuring aesthetics, promoting efficiency at a reasonable price is the problem for investors. To do this, the role of project management cannot be denied, so investors need to consider choosing the appropriate form of project management.

The investor directly manages the project in the form of the investor using its own agency or unit to directly organize and manage the project implementation or assign it to another person.


The project management board was established by me to organize and manage the project implementation with two parts.

following model:

- Model 1: The investor does not establish a Project Management Board but uses its existing apparatus to directly organize and manage project implementation. This model is applied to small-scale projects with a total investment of less than 7 billion VND, when the investor's apparatus is concurrently responsible for project management and implementation.

- Model 2: The investor establishes a Project Management Board to help him directly organize.

Project implementation management. With this form, the following principles must be ensured:

+ The Project Management Board is established by the Investor and is a unit directly under the Investor. Rights

The term and tasks of the Project Management Board are assigned by the Investor.

+ The Project Management Board has legal status or uses the legal entity of the Investor to organize and manage project implementation.

+ The organizational structure of the Project Management Board includes the director, deputy directors, and professional and technical staff. The organizational structure must be appropriate to the assigned tasks and ensure that the project is implemented on schedule, with quality and cost savings. The members of the Project Management Board work full-time or part-time.

+ The Project Management Board operates according to regulations issued by the Investor and is responsible for:

Responsible to the Investor and the law according to assigned duties and powers.

+ The investor must appoint a responsible person to direct, urge and inspect. The Project Management Board exercises its authority and duties to ensure that the project is implemented in accordance with the approved content and schedule.

2.4.2 The investor hires a consultant to manage and implement the project.

Project Management Consulting is a form in which the Investor signs a contract to hire another legal entity to act as a Project Management Consultant. In this case, the Investor must appoint a responsible officer and assign tasks to units under its apparatus to perform the duties and powers of the Investor and manage the contract implementation of the Project Management Consultant.


+ The investor hires a consultant. In case the investor hires a consulting organization to manage and operate the project, that consulting organization must establish an organization with sufficient capacity to organize and manage the project in accordance with the scale and nature of the project. The responsibilities and powers of the project management consultant are implemented according to the contract agreed upon by both parties. The project management consultant may hire organizations or individuals to participate in management, but must be approved by the investor and in accordance with the contract signed with the investor.

2.5 Some basic characteristics of projects using ODA capital from WB

The important legal document of the Government applied in the management and use of ODA capital in Vietnam today is Decree 131/2006/ND-CP issued on November 9, 2006 (Decree 131/CP). This Decree replaces Decree 17/2001/ND-CP dated May 4, 2001. Decree 131/CP consists of 7 Chapters and 46 provisions regulating the procedures for mobilizing, preparing and implementing ODA projects and programs, including capital funded by the World Bank in Vietnam. This Decree is the basis for: 1) Circular 03/2007/TT-BKH dated March 12, 2007 guiding the functions, tasks and organizational structure of the ODA Program and Project Management Board; 2) Circular 04/2007/TT-BKH dated July 30, 2007 guiding the implementation of Decree 131/CP; 3) Decision 803/2007/QD-BKH dated July 30, 2007 on the reporting regime on the implementation of ODA programs and projects; 4) Circular 108/2007/TT-BTC guiding the financial management mechanism for ODA programs and projects; and 5) Circular 01/2008/TT-BNG dated February 4, 2008 guiding the order and procedures for signing and implementing ODA international treaties.

In addition, ODA projects must also comply with relevant decrees such as: Decree 16/2005/ND-CP, Decree 112/2006/ND-CP for construction investment projects, Decree 52/1999/ND-CP and additional decrees for other investment projects (non-construction) and many other implementing circulars.

Priority areas for mobilizing and using ODA: (i) Agricultural and rural development (including agriculture, irrigation, forestry, and fisheries) combined with hunger eradication and poverty reduction; (ii) Building synchronous economic infrastructure in a modern direction; (iii) Building


Building social infrastructure (healthcare, education and training, population and development and some other fields; (iv) Protecting the environment and natural resources; (v) Strengthening institutional capacity and developing human resources; transferring technology, improving research and development capacity; (vi) Some other fields as decided by the Prime Minister.

2.5.1 Government ODA project procedures

The Government's procedures on ODA management and use stated in Article 4, Decree 131/CP include 4 basic stages.

Phase 1: Develop a list of programs and projects requiring ODA funding.

each donor - known as the ODA Funding Request List ;

Phase 2: Prepare programs and projects, including appraisal, approval and signing of Agreements and agreements related to programs and projects;

Phase 3: Implement programs and projects and monitor and evaluate during the implementation phase;

Phase 4: Completion acceptance, final settlement, handover and putting into use and post-project evaluation.

2.5.2 World Bank ODA project procedures

The activities in the World Bank project cycle are usually carried out in parallel with the Government, namely: identification, preparation, appraisal and approval and implementation of development projects. This process is divided into 8 steps in parallel with the above procedures of the Government: 1) Agreeing with the Government on the National Cooperation Strategy; 2) Project identification; 3) Project preparation; 4) Appraisal; 5) Approval, 6) Implementation and monitoring; 7) Completion; and 8) Post-project evaluation. These steps are shown in the Figure below.

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