Inspectorate to point out a lot of violations at three projects of tan hoang minh group

Inspector Board of Ministry of Construction has just announced the inspection conclusion of three projects of Tan Hoang Minh Group.

These include CT1 apartment building project in Hoang Cau, O Cho Dua ward, Dong Da district (Hoang Cau project); Housing project in the east of Nghia Do lake, Nguyen Van Huyen Street, Cau Giay district (Nguyen Van Huyen project); the project of public service, commercial, nursery and apartment building complex project at No. 2, Dang Thai Mai, Quang An ward, Tay Ho district (Quang An project).

The inspection conclusion of Ministry of Construction said that in terms of quality management of construction works, some individuals have not qualified to practice building, inexperience in construction activities.

At the two projects of Hoang Cau and Quang An, the appraisal of investors on construction drawing design and the construction cost estimate in has not been in line with the prescribed form prior to approval. Some construction packages, minutes of work acceptance based on the basis of invalid construction standards are not in compliance with the regulations.

For Nguyen Van Huyen project alone, there has not minutes on the construction acceptance, laboratory inspection in the quality control dossier; there is also no certificate of inspection of construction equipment in 2 bidding packages; not fully implement the provisions of Clause 4, Article 24 and Clause 5 of Article 29 of Decree No. 15/2013/ND-CP.

Regarding the insurance cover as stated in regulations, the inspection concluded that 11 construction contractors did not purchase insurance as committed in the contract. In particular, Hoang Cau has two contractors, Nguyen Van Huyen has 8 contractors and Quang An has one contractor did not do that.

Regarding the acceptance for payment basing on work load, the owner also violated the law in all three projects under inspection.

Specifically, at Hoang Cau project, the construction package of foundation and basement carried out by Bac Ha Development Investment JSC had a number of work items which are calculated wrongly on the value of the construction method in technical proposal compared with financial proposal, resulting in payment difference of 105 million.

At Nguyen Van Huyen project, the package for design, management and construction supervision of the project was not completed fully by Meinhardt Construction Consulting Co., Ltd (Vietnam). The contractor does not carry out project management and construction supervision so the contract value is reduced to USD 910,000.

At Quang An project, there also incorrect calculation on volume, difference between the construction method in the technical proposal compared with the financial proposal leading to the wrong payment compared with actual construction value upon acceptance and payment.

“The wrong volume acceptance of owner compared with actual value is inconsistent with Article 33 of the Government’s Decree No. 59/2015/ND-CP dated June 18, 2015” said the inspection report.

Resolving the violations of Tan Hoang Minh Group, the Ministry of Construction Inspectorate has requested Hanoi People’s Committee to direct the departments of Finance, Construction, Natural Resources and Environment and Taxation to check and review the execution of financial obligation of Tan Hoang Minh Group due to the increase of floor area of apartment  and business floor area in Nguyen Van Huyen project (increase 3,191 m2 for apartment floor area and 527m2 of area for kindergarten service business).

ForTan Hoang Minh Group, the Inspectorate of the Ministry of Construction requested to reduce the total estimated cost of Hoang Cau project by VND 503 million due to the failure to carry out the appraisal of the construction design, construction estimates cost of the structural and mechanical parts as prescribed.

In term of economy, the conclusion stated clearly that Hoang Cau project had to be deduced 105 million dong before finalizing the package of foundation and basement construction constructed by Bac Ha Company; Nguyen Van Huyen project must be reduced by USD 910,000 before finalizing with Meinhardt Company; Quang An project must be reduced by VND 11.2 billion before settling with Delta Company and reduced by VND 2.9 billion before settling with Delta- V Company.

~~>>Update on new information on the real estate news in Vietnam here: Vietnam real estate news

The Inspectorate of the Ministry of Construction has also promulgated sanctioning decisions against Tan Hoang Minh in accordance with the law.

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