Forms of organization and construction investment project management

Construction investment project management is a field that plays an important role in implementing effective construction projects. Choosing the appropriate form of management organization will directly affect the progress, quality and effectiveness of the project. This article will provide customers with necessary information about organizational forms of construction investment project management. This will help customers choose the right solution for their project.

The role of project management in the construction sector

Project management in the construction industry is not just about coordinating activities and managing resources, but also about ensuring that the project is delivered on target, to quality, and to budget. In general, the role of project management includes:

• Make a plan
• Coordination
• Quality control
• Risk management
• Ensure compliance with legal regulations.

The success of a construction project depends heavily on the project manager’s ability to coordinate and resolve emerging problems effectively. Thanks to effective project management, projects can be completed on schedule, ensuring quality and optimal use of resources. Project management also helps investors control risks and ensure safety during project construction and operation.

Summary of investment project management forms

According to Article 62 of the Law on Construction Law 2014, amended by Clause 19, Article 1 of the Law on Amended Construction 2020, there are the following forms of construction investment project management organization:

Specialized construction investment project management board, regional construction investment project management board;

Specialized construction investment project management boards and regional construction investment project management boards are applicable to projects using public investment capital. This form applies when the investment decider assigns management to concurrently or continuously implement projects in the same industry or in the same area.

This is a popular form for large-scale projects involving many participating entities. The project management board will be responsible for the overall project, ensuring coordination between parties.

Investment project management board builds a project

A project’s investment project management board is a form of management suitable for small and medium-sized projects, directly managed by an investor. The project management board will be responsible for the entire project implementation process. Pursuant to the provisions of Article 22 of Decree 15/2021/ND-CP, the application of this form must comply with the following principles:

• For construction investment projects that do not fall into the cases specified in Point a, Clause 1, Article 20 of Decree 15/2021/ND-CP or projects with specific and separate nature, according to the content of the approval decision. Approving a construction investment project, the Investor establishes a Construction Investment Project Management Board to organize and manage one or several construction investment projects under its management authority.
• The construction investment project management board of a project is an organization directly under the investor, is allowed to use its own seal, and is allowed to open an account at the state treasury or commercial bank according to regulations to perform its tasks. Project management services assigned by the investor; Be responsible before the law and the investor for your project management activities.
• The project management director of the construction investment project management board of a project must have sufficient capacity as prescribed in Article 73 of Decree 15/2021/ND-CP; Individuals in charge of specialized fields must have a practice certificate in construction supervision and construction valuation with a rank appropriate to the project group, project level and work undertaken.

The investor uses an affiliated professional apparatus

According to Article 23 of Decree 15/2021/ND-CP, the investor implementing project management is regulated as follows:

• The investor uses his/her legal status and affiliated professional apparatus with sufficient conditions and capacity to organize and manage construction investment projects. In case the implementation conditions are not met, the investor may hire an organization or individual with full capacity conditions as prescribed in this Decree to participate in project management.
• The project management director must have sufficient qualifications as prescribed in Article 73 of this Decree, except in the case of managing a construction investment project that requires the preparation of an initial economic-technical report. construction investment.
• Individuals participating in project management work on a full-time or part-time basis according to the investor’s decision and must have professional expertise appropriate to the job requirements.

Project management consulting organization

This is a form in which the investor hires a project management consulting organization to support project implementation. This organization is responsible for the planning, implementation, monitoring and control stages of the project. Pursuant to Article 24 of Decree 15/2021/ND-CP, project management consulting organizations are regulated as follows:

• Project management consulting organizations can undertake partial or complete implementation of project management contents according to the contract signed with the investor.
• The selected project management consulting organization must send a written notice of the duties and powers of the representative and the direct project management apparatus to the investor and relevant contractors.
• The investor is responsible for monitoring the implementation of the project management consulting contract, handling related issues between the project management consulting organization, contractors and local authorities during the implementation process. present project.

The selection of construction investment project management consulting contractors must comply with the provisions of the law on bidding for projects within the scope of the law on bidding.

Content of construction investment project management

Specifically, Article 66 of the Law on Construction 2014 stipulates the content of construction investment project management including management of:

• Scope and work plan;
• Workload;
• Construction quality;
• Implementation progress;
• Construction investment costs;
• Safety in construction;
• Environmental protection in construction;
• Selecting contractors and construction contracts;
• Risk management;
• Management of the construction information system and other necessary contents are carried out in accordance with the provisions of this Law and other relevant laws.

Note when choosing a form of investment project management organization

When choosing a form of construction investment project management organization, you need to consider the following factors:

1. Scale and nature of the project:

• For large-scale, technically and technologically complex projects, the form of specialized project management board or regional project management board is often more appropriate. These forms can gather many experts and manage coordination between participating parties well.
• For small and medium-sized projects, the form of a Project Management Board for a project or the investor using an affiliated professional apparatus may respond better.

1. Investor’s resources:

• If the investor has sufficient capacity (in finance, human resources, and technique), he or she can choose to use an affiliated professional apparatus.
• If the investor has limited resources, they can choose to hire a project management consulting organization for support.

1. Progress and quality requirements:

• With urgent progress requirements and strict management required, the form of Project Management Board will be more appropriate.
• If high quality is required and the participation of experts is needed, hiring a project management consulting organization may be a good choice.

Project management consulting services in the construction field

Our team of experts has many years of experience in the field of construction project management. We will assist you in the following tasks:

1. Analyze and evaluate the scale and nature of the project:

• Identify key factors such as technology, progress, and quality to choose the appropriate management form.
• Evaluate the investor’s capacity and resources to propose effective management plans.

1. Project management planning:

• Develop financial, human resources, progress and quality plans for the project.
• Make a risk management plan and develop contingency plans.

1. Organizing and supervising project implementation:

• Support the establishment of a Project Management Board or selection of a project management consulting organization.
• Monitor progress and quality of work and propose corrective measures when necessary.

1. Evaluate effectiveness and complete legal documents:

• Evaluate project effectiveness and propose improvement solutions.
• Complete legal documents, ensure compliance with regulations of the Construction Law 2014.

Construction investment project management is an important step in ensuring progress, quality and efficiency of construction projects. Choosing the appropriate form of management organization will directly affect the results of the project. Please contact Long Phan at hotline 0906735386 for advice on effective construction investment project management solutions, ensuring compliance with legal regulations. We are ready to support you throughout the project implementation process.