President of HoREA: Construction Law should only be a specialized law on construction field

Real estate businesses are facing many difficulties that need to be removed.


HoREA President Le Hoang Chau. Photo: Thanh Nguyen.


On September 15, the Ho Chi Minh City Real Estate Association (HoREA) and the National Assembly's Committee for Science and Technology Environment will jointly organize a workshop to gather comments on the draft amendment and supplement project. supplement some articles of the Construction Law, with the theme: "Improve the business environment and legal procedures in the field of construction and real estate today".


Real Estate Investment Newspaper would like to summarize the article of Mr. Le Hoang Chau, President of HoREA related to the current Construction Law.


In my opinion, the Construction Law should only be a specialized law on the field of construction.


Specific evidence, the content of the Construction Law 2014 has Chapter II with 36 articles on construction planning (from Article 13 to Article 48). Therefore, it is not necessary to have regulations on construction planning in the Construction Law.


The content of "Chapter II Construction Planning" of the Construction Law if it is added to the Urban Planning Law and amended the name "Construction - Urban Planning Law" is more appropriate. But because the adjustment cannot be amended at the present time, the Association proposed to consider revising at an appropriate time.


An urban area is being developed in Phu Yen. Photo: Thanh Nguyen.


Regarding the process of granting construction permits, in my opinion, should be included in the process of appraising basic design, technical design, but under current construction law, it is divided into 03 processes including: basic design evaluation process; process of technical design evaluation; construction permit process.


Therefore, I propose to amend and supplement Clause 5, Article 78; Clause 3, Article 82; Clause 4, Article 91 of the 2014 Law on Construction aims to integrate "the process of granting construction permits" concurrently with the basic design evaluation. Decentralizing and delegating authority to construction authorities (Department of Construction) to appraise basic designs and grant construction permits in the area, except for special-grade works and linear construction works or works related to the two provinces, or works affecting safety, community benefits.


In case the construction specialized agency (Department of Construction) requests it, the Ministry of Construction shall appraise the basic design of construction works (in order to support a number of provincial Departments of Construction that do not meet the required appraisal capacity construction plans of level I, or complex technical works...).


In the long term, I propose to socialize the basic design appraisal.


In addition, the Ministry of Construction is requested to be responsible for promulgating construction standards, design standards and performing post-inspection work, in order to improve the role, effectiveness and efficiency of the state management of construction industry; The Ministry of Construction only appraises basic designs for special works or affects safety and community benefits.


Regarding the project implementation story of enterprises, there are still many procedural obstacles, leading to the situation that the project duration is extended.


Specifically, commercial housing projects usually take about 5 years to launch products, in which, it takes about 3 years to receive transfer of land use rights, project clearance. The project has about 2 years left to set up investment preparation procedures.


In addition, the investor also takes about 3 years to implement the project, construction of works in the project. During this period, the investor had to pay huge costs but had no revenue, because it was not eligible to sell houses formed in the future.


Therefore, the 2014 Construction Law stipulates the granting of construction permits and construction commencement of works in housing projects, which do not require conditions that investors must fulfill financial obligations (land use fees) with The State (enterprises are under financial pressure);


In addition, the Law on Real Estate Business stipulates that conditions for selling houses formed in the future are that investors must fulfill financial obligations; The Land Law stipulates conditions for granting project land use right certificates, so investors must fulfill their financial obligations to the State.


Many projects have been implemented slowly in part due to institutional constraints. Photo: Thanh Nguyen.


Currently, if the commercial housing projects have decided to recognize the investor, have a clean land fund; be appraised basic design, technical design; be granted a construction permit (or exempt from a construction permit) and meet the conditions for commencement of construction of works as prescribed in Clause 1, Article 107 of the Law on Construction, but the investors are not allowed to start the construction of works, but having to wait for "Decision on land acquisition, change of land use purpose, land allocation", it will cause great difficulties for project investors.


I think that this is an inadequate understanding of the content of Clause 1, Article 108 of the Construction Law: "Land acquisition, land allocation, land lease, compensation and ground clearance comply with the provisions of law on land "in the process of enforcing construction laws.


Therefore, we should amend and supplement Clause 5 (new) to Article 108 of the Construction Law providing for "preparation of construction ground".


Specifically, the investor has transferred the land use right and has been approved by a competent state agency with a detailed planning of 1/500 scale (or a drawing of the total ground); recognition of project investor; evaluation of basic designs and technical designs; construction permit", it is considered to have completed the work of" preparing the construction ground "and commenced the construction of works of the project, in the spirit of being given priority to apply the specialized law, the Construction Law.


In addition, the project owner must comply with the provisions of the relevant laws, including the Land Law, the Housing Law, the Real Estate Business Law.


According to Le Hoang Chau, President of HoREA