REGULATION OF PMU

VIETNAM INTERNATIONAL TOWNSHIP DEVELOPMENT JSC
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No.: ……….....
SOCIALIST REPUBLIC OF VIETNAM
Independence-Freedom-Happiness
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Hanoi, Date Month Year 2010


REGULATIONS ON ORGANIZATION AND OPERATION OF PROJECT MANAGEMENT UNIT
(Issued with Decision No. /VIDC/DA dated July 2010 by Vietnam International Township Development JSC)

Chapter I
General Principles

Article 1: Functions of Project Management Unit
Project Management Unit (hereafter referred to as PMU for short), established by Vietnam International Township Development JSC (VIDC), has the function of representing VIDC to implement management of investment and construction of ParkCity Hanoi Project. PMU has responsibility to co-orperate with VIDC’s departments and State’s relevant authorities for mission fulfilment.

Article 2: Duration of Operation
Duration of operation of PMU depends on progress of the ParkCity Hanoi investment and construction project as decided by General Director (GD) of VIDC on basis of the Report approved by Chairlady of Board of Management (BOM).

Chapter II
Rights and Responsibilities

Article 3: PMU has following rights:
1. To realize functions and missions as assigned by VIDC in terms of management of project implementation, during preparation and approval until hand-over to bring into use.
2. To proactively co-ordinate with relevant authorities, related organizations and individuals for project implementation.
3. To manage resources of human, equipment, property and technology supplied by VIDC to serve project implementation and management.
4. To implement procedures for land hand-over and receiving, application for construction permit, preparation of construction site and other works which serve project construction;
5. To prepare design document, cost estimate, overall estimate for construction for VIDC to organize verification and approval in accordance with stipulations; To review design document of technical construction and other reports related to project implementation.
6. To prepare tender document, organize appointment of contractor to submit to VIDC for decision and approval;
7. To negotiate, sign contract with contractor in case of being authorized by VIDC.
8. To supervise quality of work done by contractor, engineer to ensure catching up with the progress.
9. To supervise construction works;
10. To inspect, pay and balance in accordance with signed contract and then submit to VIDC for decision;
11. To control quality, quantity, progress, cost of construction, safety and environmental sanitation of the construction site;
12. To inspect and hand-over the project;
13. To prepare annual report on invested capital use, report on balance when the project is completed and is brought into use, and to submit to VIDC for review and approval.
14. Other missions as assigned by VIDC.
Article 4: Responsibilities of PMU
1. To be responsible to Board of Directors (BOD) and legally in terms of fulfillment of missions and rights as stipulated at Article 3 of this paper.
2. To be only capable of signing receipt related to internal activities of PMU. Other activities related to finance must be prepared in the form of report which will be submitted to BOD for review and approval.
3. To be only capable of carrying out works as assigned or authorized by VIDC, to be responsible for their implemented works beyond authorized competence.
4. To opportunely discover mistakes in project management, ask for advice from VIDC’s leaders to find the solution.
5. To ensure that the project is implemented meeting planned quality and progress.

Article 5: Compensation
PMU shall hold full legal responsibility to VIDC for any work implementation beyond authorized rights and responsibilities and must compensate for all losses if causing any damage to VIDC.

Chapter III
Organization

Article 6: Framework of Organization includes:
- Project Management Director
- Project Management Deputy Directors
- Functional Departments

Article 7: Principles of Operation
PMU shall operate in accordance with leader-based system. Director shall be the one who leads and manages all activities of PMU, and holds direct responsibility to General Director and BOM.
Director of PMU shall hold responsibility for assigning missions to Deputy Directors and professional departments. Deputy Directors have right to decide on works assigned and shall be responsible to Director for their decisions. Issues which are important, complicated or related to various fields shall be exposed for discussion to find agreement among leaders of PMU. In case there are many different ideas, Director shall give the final decision.

Article 8: Director of PMU
1. Director of PMU shall be appointed or dismissed by General Director of VIDC on basis of Report approved by BOM.
2. Criteria of appointment of PMU Director:
a) To have a sound lifestyle, to be honest;
b) To be regularly trained in Vietnam or abroad about the professional field that he is in charge of and shall be at least a Bachelor or Engineer Graduate;
c) To be influent in English use, ability to use other foreign languages is a plus. To be able to use office computing;
d) To be capable of being independent, proactive and creative in dealing with works.
e) To be capable of working directly with foreign specialists to deal with work within the scope of assigned rights and responsibilities.
f) To have good communication skill, to have good relationships and to court support from internal PMU as well as relevant authorities.
g) To have at least 10 years of experience in working in the field of project management or project implementation.
h) To have good health.

Article 9: Rights and Responsibilities of Director of PMU
Director of PMU shall generally direct activities of PMU in project management and implementation.
1. Stage of investment preparation
a) To prepare procedures of appointment of contractor and consultant;
b) Site preparation: To proactively work with relevant authorities to obtain master plan, landmark, survey, land application, etc.

2. During Stage of construction preparation
a) On basis of Decision on land hand-over by relevant authorities, Director of PMU proactively co-operates with related parties to clear land in accordance with current legal procedures, and opportunely reports to General Director (GD)/Deputy General Director (DGD) on arising problems during implementation to find opportune solution;
b) To proactively co-operate with relevant authorities to implement removal of underground/aboveground sites from project area before construction;
c) To proactively co-operate with relevant authorities to implement traffic arrangement to serve construction project;
d) To proactively co-operate with advisory departments to direct and supervise design consultant in phases: survey, design, estimate, preparation of short-list/tender document.

3. During Stage of Construction
a) To direct Engineeer and contractor to implement works in accordance with terms and conditions in signed contract, especially in terms of progress, specifications, rights and responsibilities of related parties;
b) To check, hand over, ensure construction site as requested construction progress;
c) To proactively co-operate with contractor for removal of technical works to ensure safety for technical works and construction site;
d) To proactively co-operate with relevant authorities to implement method of traffic arrangement to ensure project implementation;
e) To check, confirm quantity (including additional quantity as well) to serve inspection, payment for contractor within the project scope.

4. During project completion
Director of PMU shall proactively co-operate with advisory departments to direct Engineer and contractor to complete as-built documents, balance and preparation for hand-over.

5. During project maintenance
Director of PMU shall proactively co-operate with advisory departments to direct, check Engineer and contractor, to supervise and discover opportunately breakdowns to find solutions.

Article 10: Responsibilities of Director of PMU
1. To fulfil all rights and responsibilities as stipulated at Article 9;
2. To check, supervise, speed up the whole PMU to complete functions and responsibilities of PMU;
3. To periodically report to GD/BOM progress of project implementation; breakdowns, violations to opportunately have solution. Report regulations can be found at Article 20 of this paper.
4. To hold independent legal responsibility and to compensate for VIDC if implementing work beyond rights and responsibilities stipulated at Article 9 and Decisions on other assignments and attorneys.

Article 11: Deputy Directors of PMU
1. Deputy Directors of PMU who are assistants to Director shall be responsible for works assigned by Director and hold responsibility to Director of PMU and BOD for those assigned works.
2. Deputy Directors of PMU shall be appointed or dismissed as requested by PMU Director.

Article 12: Functional Departments
1. PMU includes following functional departments:
- Assistant-Secretary
- Finance
- Administration-Human Resource
- Quality Control
- Cost, Contract
- Land Clearance
- Construction Supervision
2. During project implementation, depending on work requirement, Director of PMU has the right to request GD/BOM to change or add staffs if necessary.
3. Staffs of departments of PMU are employed and transferred as required by BOD of VIDC.

Article 13: Rights and Responsibilities of Department of Assistant and Secretary
1. Secretarial and Assisting works for PMU’s Board of Directors (PMU’s BOD):
a. To build and manage work program and plan of PMU’s BOD; supervise, speed up and check departments belonging to VIDC in implementation of program, plan and responsibilities assigned by PMU’s BOD; Arrange weekly and monthly work program of PMU’s BOD;
b. To advise PMU’s BOD on review, selection and decision on issues regarding policy, framework of organization of PMU’s BOD;
c. To issue letter informing directing ideas from PMU’s BOD;
d. To hold meetings, conferences, working sections and appointments of PMU’s BOD;
e. To fulfill secretarial and assistance works for PMU’s BOD; Take meeting minutes for meetings of PMU’s BOD;
2. Legal works:
a. To advise on legal issues for PMU’s BOD regarding organization, direction and implementation in accordance with law;
b. To supervise issuance of letters by PMU’s BOD, review on draft letters regarding management, direction of project implementation, regulations, professional procedures, civil and business contracts to ensure legality of letters which are signed by PMU’s BOD and issued;
c. To regularly update policy, regime, related stipulations by State, and VIDC; to opportunely propagate and instruct departments belonging to PMU.
d. To be key of managing letter regarding policy, regime, stipulations by State, VIDC and other relevant authorities related to professional competence of departments of PMU.
e. To support and preside complaint, query, dispute related to project organization, management and implementation.
f. To implement consultancy works on legal issues as requested by departments of PMU.
g. To preside over legal consultancy ideas to Law and VIDC.

Article 14: Rights and responsibilities of Department of Administration and Human Resource
1. Management of Human Resource:
a. To implement procedures of recruitment and human training to serve the project;
b. To implement organization and coordination with other departments in assessment of work done by project staffs;
c. To pay salary, bonus and benefits;
d. To supervise and manage project staffs.
2. Administration works:
a. Reception, logistics for conferences and meetings;
b. To anticipate, purchase, manage and provide stationery every month;
c. To carry out administrative services (such as photocopy, translation,etc.) serving PMU’s BOD and other departments;
d. To file and maintain documents related to project.
3. Information technology works:
To manage, operate and maintain computer network system of departments of PMU. To implement computalization and application of information technology in project management and operation.
4. Security and Guard works :
a. To ensure security and safety works for project construction;
b. To guard equipment and property of PMU.

Article 15: Rights and responsibilities of Department of Quality Control
a. To be member of Board of tenter assessment for construction package of PMU;
b. To verify technical methods for project construction;
c. To implement and to technically preside over all construction works of PMU.
d. To propose, apply new technical methods in actual construction;
e. To be responsible for management and supervision of design consultant until completion and hand over of design product.
f. To be responsible for verifying technical design document prepared by design consultant.
g. To file inspection document.
f. To carry out other works as assigned by PMU’s BOD.

Article 16: Rights and Responsibilities of Department of Cost and Contract
1. Project Development Works:
a. To prepare or co-ordinate with consultants to prepare report on development of project, investment report;
b. To implement management of investment project;
c. To co-operate with functional departments to develop the investment project of PMU.
2. Management and Planning Works:
a. To supervise, synthetize procedures for investment project implementation to advise Director of PMU on direction of the whole investment works;
a. To proactively check, co-ordinate and solve entanglements during project implementation among internal and external departments;
b. To participate in inspection for construction works, checking cost estimate before submitting to PMU’s BOD for review and approval, supervising payment and balance in accordance with stipulations on construction;
c. To organize, participate in conference, meeting, training, press, etc. related to study works and project development.
d. To preside with functional departments over preparing plan for provision of materials, equipment and arrangement of human resources for project construction.
e. To co-operate with relevant authorities to verify design document prepared by design consultant.
f. To prepare and report work schedule of PMU to relevant authorities.

Article 17: Rights and Responsibilities of Department of Accounting and Finance
1. Accounting :
a. To check payment sheet before submission to PMU’s BOD for approval;
b. To preside over balance works of project, to prepare balance reports and fiscal reports;
c. To preside over working with audit units (independent unit and state one), finance check team;
d. To balance capital source to prepare annual expense plan for PMU, to manage expenses for PMU activities.
2. Finance management :
a. To implement procedures of payment, capital funding for related units in accordance with direction and approval of PMU leaders;
b. To ensure source of capital for PMU’s project annually: Preparation of annual report, Submission for approval, advice for equability, plan transfer;
c. To manage financially PMU’s property, property taken back from project, property invested from project to other units (To note in Book of Property, to assess property value and enter in the accounts increase/decrease in capital source).

Article 18: Deparment of Land Clearance
1. Land clearance works :
a. To preaper plan and schedule for land clearance;
b. To prepare documents related to land clearance works;
c. To co-ordinate for inventory with local Board of land clearance;
d. To prepare plan for land compensation, submit for approval and co-ordinate in payment works.
2. Land clearance supervision works :
a. To preside over supervising work contents of teams of local Board of land clearance;
b. To preside over and participate in check and verification works when there are petitions of local people.
3. Propaganda and mobilization works:
To organize propaganda and mobilization and participate in these works to mobilize people serving land clearance works. These works shall be done in accordance with lines and policies of State, local authority and direction of PMU.

Article 19: Deparment of construction supervision
a. To preside over supervision of contractor, Engineer, design consultant who are carrying out works at site during construction, to ensure quality, standards, and procedures;
b. To control and speed up progress schedule of construction units as proposed plan.
c. To instruct contractor to prepare inspection procedures, payment and balance, and as-build documents as stipultations by State.
d. To define actual complete quantity, submit payment and balance for project item or the whole project;
e. To co-operate with related parties to decide on variations of quantity increase or decrease, site items.
f. To complete other missions as assigned by PMU’s BOD.

Article 20. Report regime
a. Staffs, departments implement report regime as generally stipulated by VIDC and particularly stipulated by PMU.
b. Director of PMU presides over direct periodical report to VIDC’s BOD at no later than 4:00 PM, every Friday afternoon. Beside periodical report, PMU’s Director must also report whenever requested by VIDC’s BOD.

Chương V
Terms on Execution
Article 21: Effectiveness of execution
1. This paper includes 5 Chapters, 21 Articles and is effective since date of Decision of Issuance being signed by GD of VIDC. Director of PMU presides over deployment, supervision, speeding up of implementing this Regulation within the whole PMU. During implementation, when necessary, Director of PMU requests VIDC’s BOD to have appropriate adjustment.