Rights and obligations of project construction investors

Article overview

Construction investors play an essential role in managing and supervising projects. Understanding your rights and obligations not only helps protect economic interests but also promotes construction progress and ensures labor safety. In addition, understanding relevant legal regulations is essential to avoid risks and errors during project implementation. Knowing that, the following article Long Phan will provide customers with regulations on the rights and obligations of construction investors.

Rights and obligations of project construction investors
Rights and obligations of project construction investors

Who is the construction investor?

According to the provisions of Clause 9, Article 3 of the Law on Construction 2014, amended and supplemented in 2020, construction investors can be agencies, organizations, or individuals using their own capital, borrowed capital, or assigned capital to carry out construction projects.

The investor has the main responsibility in the entire process from planning, organizing contractor selection, construction supervision, acceptance and project finalization. Each step in this process requires the investor to comply with strict legal regulations to ensure that the project is implemented on schedule, with quality and efficiency.

Types of construction investors include:

  • State agencies: In public investment projects, investors are agencies assigned to manage and use state capital.
  • Private enterprise: The investor is an enterprise implementing private investment projects.
  • Individuals or groups of individuals: Investors are individuals who invest in construction projects for business or personal use.

Thus, the construction investor plays a decisive role in the entire construction investment process, ensuring the success of the project from planning to completion.

Who is the construction investor?
Who is the construction investor?

Rights of investors in construction works

Construction investors have many important rights, specified in Clause 1, Article 112 of the Law on Construction 2014, amended and supplemented in 2020. These rights allow investors to control and ensure quality. Construction from contractor selection to project supervision and acceptance.

  • Do it yourself or choose a contractor: The investor has the right to do the construction themselves if they have enough capacity; If not, they can choose a contractor through a public bidding process or direct contractor selection.
  • Negotiate and sign contracts: The investor has the right to negotiate and sign contracts with the contractor, ensuring that the terms of progress and quality are transparently agreed upon.
  • Supervising contract implementation: The investor has the right to monitor the progress and quality of construction, requiring the contractor to comply with contract terms, including approving construction methods and safety plans.
  • Suspension or termination of the contract: If the contractor violates quality or safety regulations, the investor has the right to suspend construction or terminate the contract.
  • Stop construction when detecting violations: The investor has the right to request a stop of construction if it is discovered that the contractor does not comply with technical requirements, to protect labor safety and the environment.
  • Claim compensation for damages: If the contractor causes damage due to failure to comply with quality, the investor has the right to claim compensation.

These rights not only protect the interests of the investor but also ensure that the construction process takes place effectively and according to plan.

Obligations of project construction investors

Besides rights, construction investors also have many obligations that must be fulfilled throughout the project implementation process. Specifically, the above obligations are stipulated in Clause 2, Article 112 of the Law on Construction 2014, amended and supplemented in 2020, as follows:

  • Selection of qualified contractors: The investor is responsible for selecting contractors with the appropriate capacity for the type and level of construction, to ensure that the contractor is capable of performing the work according to the project requirements.
  • Coordination of compensation and site clearance: Investors must coordinate with People’s Committees at all levels to carry out compensation for damages and site clearance, helping to hand over the site to contractors in a timely and effective manner.
  • Supervision and quality management: The investor has the obligation to supervise and manage construction quality, thereby ensuring that the project meets progress and quality standards to serve future use needs.
  • Check construction measures: The investor needs to check the construction and safety measures offered by the contractor to protect the safety of workers and ensure a safe working environment.
  • Organizing acceptance and payment: The investor is responsible for organizing acceptance, payment and settlement of the project, ensuring this process is carried out transparently to protect the interests of both parties involved.
  • Hire a consulting organization: When necessary, the investor can hire a qualified consulting organization to inspect the quality of the project, thereby helping to maintain quality standards throughout the construction process.
  • Review design proposals: The investor must review and decide on the contractor’s design proposals during the construction process, this is to ensure that the changes are consistent with the requirements and goals of the project.
  • Archiving construction records: The investor is responsible for archiving construction records to ensure transparency, facilitating future inspection and testing requirements.
  • Responsible for materials: The investor is responsible for the quality and origin of the materials they provide, helping to ensure that the materials used in the project meet the necessary standards.
  • Compensation for damages: The investor must compensate for damages if it violates the contract or causes other violations, thereby protecting the contractor’s legal rights and maintaining a good cooperative relationship.
  • Other obligations: Finally, the investor must also perform other obligations according to the law, thereby ensuring the legality and contributing to the success of the project.

In summary, the obligations of construction investors are very important to ensure the construction process is carried out in accordance with regulations, progress and quality of the project. Fulfilling these obligations well will help investors avoid legal and financial risks, while ensuring the reputation and benefits of the project.

Select the investor to construct the project
Select the investor to construct the project

Consulting services on the rights and obligations of construction investors in Long Phan

With a team of experienced experts and legal knowledge in the field of construction, Long Phan provides in-depth legal consulting services on the rights and obligations of construction investors. Long Phan’s consulting services include:

  • Consulting on legal regulations related to construction activities.
  • Guide investors on the process and criteria for selecting contractors according to legal regulations.
  • Consulting on drafting and reviewing construction contracts, ensuring terms comply with regulations.
  • Consulting on supervision and guidance on measures to monitor quality and labor safety during construction, in accordance with current standards and regulations.
  • Consulting and support in organizing project acceptance, payment and settlement in accordance with legal regulations.
  • Consulting on claims for damages in case the contractor violates the contract or causes damage to the project.
  • Consulting on resolving disputes between investors and contractors, helping to find amicable solutions or representing the investor if necessary.

Understanding the rights and obligations of construction investors is a key factor in ensuring the success of the project. Using consulting services will support investors in exercising their rights and obligations effectively and legally, contributing to the success of construction projects. If you need legal advice or support on issues related to construction, please contact the hotline: 0906735386 for timely support.