(Chinhphu.vn) – For projects with a total investment of less than VND 15 billions, the investor directly signs a project management consultancy contract with a specialized project management unit that is qualified for implementation without signing a project management entrustment contract is appropriate.

Ms. Pham Thi Kim Chung (the Project Management and Land Fund Development Tam Nong District, Dong Thap Province) would like to ask authorities to answer some of the following contents:

Projects of investors with total investment of less than VND 15 billions (VND 400 millions, VND 1 billion and VND 4 billions), projects using State budget capital and programs on national target of rural construction,  new investors are districts and communal People's Committees, so for projects with total investment of less than VND 15 billions, investors can directly sign project management consultancy contracts with project management units. Is it correct that a specialized project without a project management trust contract?

In the above case, if the project management entrustment contract is not signed, when the payment at the State Treasury is contrary to the provisions of Article 12 of the Circular 16/2016 / TT-BXD of June 30, 2016 and the Official Dispatch No. 3711 / KBNN-KSC dated July 7, 2017 of the State Treasury?

When submitting documents to competent authorities for approval by investors to entrust project management to specialized project management units, investors shall present at the right time (when the projects are ready to invest well after the contractor approved plan of contractor selection).

The Ministry of Construction answered this issue as follows:

Regarding the implementation of project management contracts for specialized project management units., In Clause 8, Article 1 of the Decree No. 42/2017 / ND-CP dated April 5, 2017 of the Government stipulates “The investor uses his legal status and the attached professional apparatus which satisfies the conditions and capacity to directly manage the construction investment project with total investment of less than VND 15 billion; In case of failure to meet the conditions for implementation, investors may hire organizations and individuals that meet the capability conditions prescribed in this Decree for implementation. "

In Clause 5, Article 17 of the Decree No. 59/2015 / ND-CP dated June 18, 2015 of the Government stipulates  “The field-based PMU or the area-based PMU may provide project management consultancy for other projects provided that it ensures the fulfillment of the assigned project management and qualified for management of such projects”.

Thus, for projects with a total investment of less than VND 15 billions, the investor directly signs a project management consultancy contract with a qualified project management unit with sufficient capacity to perform without signing. Project management entrustment contract is appropriate.

Accordingly, it is not contrary to the regulations and guidelines on project management entrustment in the Circular No. 16/2016 / TT-BXD on June 30, 2016 of the Ministry of Construction and Official Letter No. 3711 / KBNN-KSC dated 7/7/2017 of the State Treasury.

Regarding the time of implementing the project management entrustment contract, the investor shall perform project management entrustment according to the order in Clause 2, Article 12 of the Circular No. 16/2016 / TT-BXD of June 30 / 2016 of the Ministry of Construction when the project prepare for  investment