Decree 46/2015/ND-CP on the Quality Management and Maintenance of Construction Works

 On May 12th 2015, the Government issued Decree 46/2015/ND-CP on the quality management and maintenance of construction works, which entered into force on July 1st 2015. The Decree stipulates that construction contractors and equipment supply contractors must be responsible to investors on warranty for the part of jobs they have done.

For construction items, new construction work or renovation, upgrading, the minimum warranty period is 24 months from the date of acceptance (for the construction works, construction items belong to special level and level I); not less than 12 months for the construction works and construction items belong to the remaining levels. As for housing, the warranty period shall comply with the provisions of the law on housing, namely, not less than 60 months for condominiums from 9 floors or more and other types of housing that are built by the State budget; not less than 36 months for apartment from 4 – 8 floors and minimum of 24 months with the remaining houses.

In addition, the Decree also stipulates about the minimum amount of guarantee for works using State capital. Accordingly, for the construction works belong to special level and level I, the minimum guarantee amount will equal to 3% of the contract value; with construction works belong to the remaining levels, the minimum guarantee amount will at least equal to 5% of the contract value. For construction works that use other sources of capital, we can refer to the above minimum amount of guarantee to apply.

Also under this Decree, the owner or manager using construction works must check frequently, regularly and irregularly to timely detect signs of deterioration and damage of the works, equipment installed in works as basis for the maintenance of works; the maintenance must be carried out under an annual maintenance plan and the maintenance procedure should be approved…