HCMC – The Ministry of Construction has ordered tighter control over the entire construction investment process to prevent cost overruns, delays, and waste, and improve the efficiency of capital use.
The order was issued under Directive No. 4, which strengthens discipline in construction investment and in the management, operation, and maintenance of infrastructure works.
The ministry noted that many projects remain fragmented, face slow capital allocation, and have investment estimates that do not reflect actual conditions. Other problems include cost overruns, delayed land clearance, weak contractor capacity, prolonged timelines, and low operational efficiency after completion.
The directive requires all project stakeholders to strictly control each stage, from project preparation and design to contractor selection and capital disbursement.
Project proposals and approvals must follow proper procedures and authority. Project owners must clearly define objectives, scale, funding sources, and capital allocation aligned with implementation schedules. Authorities are prohibited from inflating investment cost estimates, approving projects without formal authorization, or making adjustments beyond approved plans.
Cost estimates must reflect technical requirements, construction conditions, and market prices to prevent additional expenses.
The ministry also called for improved survey and design quality. Project documentation must include sufficient data on terrain, geology, material sources, and disposal sites, and comply with technical standards while ensuring economic and technical efficiency.
The directive bans collusion, falsification of survey results, inflated volumes or unit prices, and improper specification of material sources or equipment origin.
For delayed projects, project owners must identify causes and take corrective action. Contractors that violate regulations will be subject to penalties. Project schedules must be realistic and aligned with land clearance, material supply, weather conditions, and resource availability.
In contractor selection, project owners must prepare bidding plans suitable for each project and divide contract packages appropriately. The bidding process must ensure fair competition and select qualified contractors. Bid rigging, restrictions on competition, information disclosure, and illegal subcontract transfers are prohibited.
The ministry also required funding allocation to match project timelines. Project owners must accelerate inspections, payments, and recovery of advance funds to avoid concentrating disbursement at year-end and improve public investment efficiency.
