Tag: construction quality; construction warranty

In the construction industry, quality of projects and the warranty of construction works are two critical factors that every contractor must ensure to protect the rights of investors, end-users, and other stakeholders. These responsibilities not only help maintain the contractor’s reputation but also have a significant impact on the safety and efficiency of the project throughout its operation. This article will analyze in detail the contractor’s responsibilities concerning the quality of construction and the warranty of building projects.

1. Contractor’s responsibilities for construction quality

Construction quality is a vital factor in ensuring the safety, sustainability, and longevity of building projects. Contractors bear direct responsibility for guaranteeing the quality of construction throughout the stages of design, perform, and project completion.

According to Clause 2, Article 113 of the Construction Law 2014, contractors are responsible for construction quality as follows:

• Adhering to approved designs and technical standards: Contractors must perform construction works in compliance with the approved designs, applicable standards, technical regulations, and ensure quality.

• Quality management and documentation: Contractors must establish an appropriate quality management system and prepare quality management documentation for the project as required by law.

• Responsible for materials and equipment: Contractors are accountable for the quality and origin of materials, supplies, equipment, and construction products they provide and use in the project.

• Compensation for damages in case of violations: If contractors use incorrect materials or fail to meet quality standards during construction, they must compensate for damages and take responsibility for the violations.

• Responsible for subcontractors’ work: The main contractor is responsible for the quality of the entire project, including work performed by subcontractors. Subcontractors are accountable to the main contractor and the law for their specific works.

For design contractors, their responsibilities regarding construction projects are outlined in Clause 2, Article 114, and Article 86 of the Construction Law 2014. The construction contractor is responsible for the quality of their design products, including accuracy, safety, and compliance with current standards and technical regulations. If a subcontractor is involved in the design, the main contractor remains responsible for the quality of the subcontractor’s design products. At the same time, the subcontractor is responsible for their designs to the main contractor and the law.

2. Contractor’s responsibility for the construction warranty

The construction warranty is the contractor’s responsibility to ensure that the construction will be repaired if any issues or technical faults occur during the warranty period. The contractor’s warranty obligations are carried out according to the terms agreed upon with the investor in the contract.

• Warranty for the quality of the construction: According to Article 29 of Decree 06/2021/ND-CP, the construction contractor and the equipment supplier are responsible for providing a warranty for the work they have performed, repairing any defects that arise during the warranty period, and covering all related costs. The contractor has the right to refuse warranty if the damage is not caused by their fault or due to force majeure as stipulated in the contract. If the contractor fails to perform the warranty when there is a fault, the investor is entitled to use the warranty money to hire another unit for repairs. At the same time, the investor and the project manager must comply with the regulations on the operation and maintenance of the construction during its operation.

• Warranty period: The warranty period is agreed upon by the parties in the contract.

For projects using public investment or state capital, the warranty period is specifically regulated as follows:

– For special-grade and grade I projects, the warranty period is no less than 24 months.
– For all other project grades, the warranty period is no less than 12 months.

3. Legal consequences when the contractor fails to fulfill responsibilities

If the contractor fails to fulfill their responsibilities regarding the quality of the construction or the construction warranty, they will be liable according to applicable laws. The sanctions may include:

a. With violations on construction quality

Administrative sanction: According to Article 17 of Decree No. 16/2022/ND-CP on administrative sanction in the construction sector, violators may be fined from 80,000,000 VND to 100,000,000 VND for non-compliance with regulations on building materials, especially non-fired bricks.

Criminal liablity: The non-compliance with the design or using materials that do not comply with regulations is a violation and may be subject to criminal liability. Depending on the severity, nature, and position of the violator, they may be prosecuted for the crime of “embezzlement” (Article 353 of the Criminal Code 2015, amended and supplemented in 2017), with a sentence of up to 20 years in prison, life imprisonment, or the death penalty, or the crime of “negligence that results in serious consequences” (Article 360 of the Criminal code 2015), with sentence of up to 12 years in prison. Additionally, the violator may be fined from VND 30,000,000 to VND 100,000,000, banned from holding certain positions or doing certain jobs for 1 to 5 years, or have their property confiscated.

b. With violations of Construction Warranty

According to Clauses 1 and 3, Article 38 of Decree No. 16/2022/ND-CP, failing to submit a report on the completion of construction warranty to the investor will result in a fine ranging from VND 20,000,000 to VND 30,000,000. In the case of failure to fulfill the warranty responsibilities as required, the fine will range from VND 40,000,000 to VND 60,000,000.

The contractor plays an extremely important role in ensuring the quality of the construction and carrying out the construction warranty. This responsibility not only helps protect the interests of the investor and the users of the construction but also ensures the safety and sustainability of the project throughout its usage. Therefore, strictly adhering to the requirements for quality and warranty is not only a legal obligation but also a commitment by the contractor to the success of the construction project.

Above is the article by TNTP lawyers on the topic: ” The Contractor’s responsibilities for construction quality and warranty of building projects.” We hope this article provides value to the readers.

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