ANALYSIS OF DEVELOPER’S MISTAKES IN APPRAISAL, APPROVAL AND PERMIT ISSUANCE OF THE CONSTRUCTION INVESTMENT PROJECT IN HO CHI MINH CITY

By

Nguyen Thi Thu Nga

Abstract

             

For construction investment projects, the investment project time of performance directly affects the investment efficiency. However, in the recent years, in Vietnam, the management and the control of “the time of performing construction investment project in Vietnam” has not been interested in and strictly managed, thus leading to many projects delayed in a long time, badly affecting the economic development and social living, especially as for projects using State budgets. Accordingly, the time of performing the procedures of submitting and approving investment project documents and asking for the permit of constructing the project is always troubling the heads of investors and spends so much time. Thus, it seems challenge for project management consultant, the owner, especially to the foreign investors!

On PMC aspect, how to ensure reducing the time for doing project procedures is one of the critical points that I focus to study. My research is based on surveys about the normal problems on approvals and permit phase of the construction project. This assessment is studied together with theory application for the process, procedure of the construction investing project approval and construction permit, the regulation compliance in the construction; What to be prepared, done shall be systemized as a well being prepared for future projects and a contribution to improve overall the quality of the construction project document through approval and permit phase.

Executive summary

Rationale of research

This research has been conducted to identify mistakes in investment project document for approval.

Objectives of study

To study, and find the appropriate investment project document without errors to get approval, identify difficulties, mistakes and causes in different stages to suggest recommendation for getting approval of construction investment project.

Methodology  

The exploratory method is used to review the literature and analyze the survey difficulties and mistakes happened in project approval document.

Findings and conclusion

Through this research, we can identify faults discovered during the appraising process of  the construction investment project document and document asking for construction permits

The common mistakes in investment project document are follows:

·    Procedure for adjusting the total investment quotation in the designing process

·    The manner and the form of capital contribution

·    Fees of evaluating the working drawing design and the cost estimations

·    Procedure for approving and re-adjusting the project

·    Estimation about the whole investment quotation

·    Constructive criteria and norms for the emergency

·    Constructive criteria and norms for disable people

·    Conformity of the connection with the technical infrastructure of the area

·    Design for the basement

·    Concerning the anti-shaking

·    Design for traffic inside the building

·    Concerning the project of total height > 45m

·    Designing ventilating height of the rooms

·    Designing the size of the public community hall

·    Not conforming to Design /Construction Standards & Construction Rules

·    Demonstrating wrongly or not clearly the road limits of the lanes adjacent to the site proposed for construction, leading to a wrong indentation of the project.

·    Lacking or not conforming to detailed planning legality

·    Lacking ideas of one or several relevant authorities about the proposed project

·         Lacking land legality

Recommendation

For Project Planning Consultant

·    Paying more attention for frequent mistakes and often review design before submitting document for approving.

·    Collecting and carefully considering all codes and standards usually used in design/construction activity in order to appropriately applying with each function of building.

·    Clear descriptions of using size and sort of functions have been showed on design document

·    Doing well the survey of the current technical infrastructure before designing the technical infrastructural system of the project

Project-planning stage:

·    The project-planning work is clearly carried out for the whole project in all stages.

·    Conduct socio-economic survey in detail, using the survey information from independent survey sources.

·    Research and offer all technical arguments to justify the selection of the site of developing the project.

·    Analyze and calculate intangible elements affecting the project such as the inflation element, spiraling price; new guidelines and new policies of the Government directly affecting the project.

For Owner

·    Together with consultants well preparing all procedure for defining deliverable, evaluation, report, assessment. (Quality assurance system)

·    Choosing a potential, experienced and prestige design consultancy unit in the designing work;

·    The more detailed the economic contract contains, the easier the faults are handled once faults caused during the stage of making and evaluating the project appraisal

·    Should use the model design of several social infrastructure works such as apartment buildings, schools, head offices of commune-level people's committees and health clinics to reduce the cost of design consultancy

·    Prepare reality design management program for obtaining target expected (containing time for review, revising, approval)

·    Verify scope signed in contracts for anticipating gap in the approving work and asking for permit.

·    Monitor designs and project works to be integrated with operators closely.

For Government

·  Encourage an architectural design contest for the projects financed by the State budget in addition to compulsory projects for pre-qualification in order to exclude the less capable units. Therefore, the design quality will be assured.

·  All of detailed plans in the territory of Ho Chi Minh City completed as soon as possible.

·  Build the mechanism of transparency in the field of investment planning.

·  It is to further speed up administrative reforms, reducing troubles in fields as granting building licenses and granting investment licenses. . 

·  The implementation of strict sanctions against violation of rules