What is the penalty for a construction project that is completed without a permit?

1. What is construction work?

According to Clause 10, Article 3 Construction Law 2014 (modified by Construction Law 2020) explains that a construction work is a product built according to design, created by human labor, construction materials, equipment installed in the work, linked and positioned with the land, which may include underground parts, above ground parts, underwater parts and above water parts.

2. What projects require a building permit?

Pursuant to Article 89 Construction Law 2014 (modified by Construction Law 2020) regulations on granting construction permits for construction works requiring construction permits granted by competent state agencies to investors according to regulations, except for the cases specified in Clause 2, Article 89 Construction Law 2014 as follows:

- Cases exempted from construction permits include:

+ State secret projects; emergency construction projects;

+ Works belonging to projects using public investment capital are decided for investment and construction by the Prime Minister, heads of central agencies of political organizations, the Supreme People's Procuracy, the Supreme People's Court, the State Audit, the Office of the President, the Office of the National Assembly, ministries, ministerial-level agencies, agencies under the Government, central agencies of the Vietnam Fatherland Front and socio-political organizations, and Chairmen of People's Committees at all levels.

+ Temporary construction works as prescribed in Article 131 Construction Law 2014.

+ Repair and renovation works inside the building or repair and renovation works on the exterior that are not adjacent to urban roads have architectural management requirements according to regulations of competent state agencies; the repair and renovation content does not change the function of use, does not affect the safety of the load-bearing structure of the building, is in accordance with the construction planning approved by competent state agencies, requirements on fire and explosion prevention and fighting safety and environmental protection.

+ Advertising works not subject to construction permits as prescribed by law on advertising; passive telecommunications infrastructure works as prescribed by the Government.

+ Construction works located in two or more provincial-level administrative units, construction works along extra-urban routes in accordance with construction planning or technical and specialized planning approved by competent state agencies.

+ Construction works have been notified by a specialized construction agency of the results of construction design appraisal to be implemented after the basic design meets the conditions for construction design approval and meets the conditions for granting construction permits according to the provisions of this Law;

+ Individual houses with a scale of less than 07 floors belonging to urban area construction investment projects, housing construction investment projects with detailed planning 1/500 approved by competent state agencies.

+ Grade IV construction works, individual houses in rural areas with a scale of less than 07 floors and located in areas without urban planning, functional area construction planning or detailed planning for rural residential areas approved by competent state agencies; Grade IV construction works, individual houses in mountainous areas, islands in areas without urban planning, functional area construction planning; except for works, individual houses built in conservation areas, historical - cultural relic areas.

+ Investors in construction works specified in points b, e, g, h and i of this clause, except for individual houses specified in point i of this clause, are responsible for sending notices of construction commencement time and construction design documents as prescribed to the local state management agency for construction for management.

- Construction permit includes:

+ New construction permit.

+ Repair and renovation permit.

+ Construction relocation permit.

+ Construction permit has a term.

3. Fines for construction without a permit

Pursuant to Clause 7, Article 16 Decree 16/2022/ND-CP Prescribes the level of fines for violations of construction order regulations for organizations constructing works without a construction permit that are required to have a construction permit as follows:

- Fine from 60,000,000 VND to 80,000,000 VND for construction of individual houses;

- A fine of VND 80,000,000 to VND 100,000,000 for building individual houses in conservation areas, historical - cultural relic sites or other construction works;

- A fine of VND 120,000,000 to VND 140,000,000 shall be imposed on construction works requiring a construction investment feasibility study report or works requiring a construction investment economic-technical report.

In addition, forced demolition of illegal construction works and parts of construction works.

4. Is a permit issued if the project has been completed?

Specifically, for the acts specified in Clause 7, Article 16 Decree 16/2022/ND-CP In addition to being fined according to regulations, construction works must also comply with the procedures prescribed in Article 81 of Decree 16/2022/ND-CP.

In cases where the conditions for granting a construction permit or adjusting a construction permit or adjusting a construction design are met while construction is in progress, the following shall be handled:

The competent authority is responsible for drawing up a record of administrative violations and requesting the violating organization or individual to stop construction.

Within 90 days for construction investment projects and 30 days for individual houses from the date of issuance of the decision on administrative sanctions, the organization or individual committing the violation must complete the application file to the competent authority to issue a construction permit.

Or an adjusted construction permit or adjusted construction design and a building permit or an adjusted construction permit or adjusted construction design.

The application for a construction permit or an adjusted construction permit or an adjusted construction design shall be made in accordance with the provisions of law on licensing, appraisal and additional documents proving the completion of payment of administrative fines.

The competent state agency is responsible for issuing construction permits or adjusted construction permits, and the specialized construction agency is responsible for appraising the adjusted construction design according to the provisions of law.

Thus, in case a construction project is not exempted from a construction permit but has been completed without a permit, it will be fined from 60 million VND to 140 million VND. In addition, it can be demolished if there is a violation, but the project will continue to be maintained if it is not technically in violation.