Draft Construction Law shortens construction permission consideration time

In order to save time and costs for enterprises, and accelerate the implementation of construction projects, the Ministry of Construction has proposed reducing the time limit for grant of construction permits to fewer than seven working days, down from current 15-20 days.

The Ministry of Construction (MOC) is currently seeking public comments on the draft revised Construction Law, proposing shortening the time required to grant construction permits and increasing groups of construction works eligible for licensing exemption.

Single procedure per project

As per the draft, new construction works as well as projects involving work repair, renovation or relocation would remain subject to construction licensing, except those falling into seven groups of works eligible for licensing exemption. However, the licensing process would be simplified in order to facilitate compliance by enterprises and individuals.

Accordingly, each construction work or project would undergo a single administrative procedure, covering the entire process, from the preparatory stage to the commencement of construction. This procedure may be carried out online, with results notified electronically.

The time limit for grant of a construction permit would be reduced to seven working days, from current 15-20 days (for project appraisal, design approval and licensing). Design consultants would bear responsibility for ensuring work safety while licensing agencies would supervise consultants’ implementation.

The draft specifies three types of construction permits, namely permits for new construction; permits for construction work repair, renovation or relocation; and permits for works built for a limited existence duration. To qualify for a permit, a project must comply with urban, rural or sectoral master plans, and its design must ensure structural safety and comply with regulations on environmental and fire protection.

Draft Construction Law

Seven groups of works to be exempt from construction permits

The draft enumerates seven groups of works that would not be subject to construction licensing.

(i) Works involving state secrets, works constructed under emergency orders, works under special public investment projects or projects subject to special investment procedures, and makeshift works.

(ii) Works located in two or more provincial-level administrative units, and works constructed along routes outside urban areas in conformity with approved urban, rural or technical master plans.

(iii) Offshore construction works, airport works, and aviation safety works located outside airport areas.

(iv) Advertising works not subject to construction licensing under the Law on Advertising, and passive telecommunications infrastructure facilities as specified in the Law on Telecommunications.

(v) Works under investment projects with feasibility study reports or construction designs appraised in accordance with law and approved by investment decision-makers.

(vi) Detached residential buildings within housing development projects or urban development projects governed by detailed urban or rural master plans, or by regulations on urban design or architectural management.

(vii) Grade-IV construction works and detached houses of fewer than seven stories, to be built in rural or mountainous areas or on islands.

Although exempt from licensing, project owners and homeowners would be required to notify competent local construction authorities of the date of construction commencement and submit complete dossiers for management.

By VLLF

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