law on construction
TRANSCRIPT
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Lao Peoples Democratic Republic
Peace Independence Democracy Unity Prosperity
***************
National Assembly No. 05/NA
Vientiane Capital, dated 26th
November 2009
Law on Construction
Chapter I
General Provision
Article 01. ObjectivesThe objectives of the law on construction are determine the principles,
regulations and measures on the management, the approval, the controlling, the
following up, the inspection, the running business transaction on construction all type
of construction and characters for ensuring the construction to be well qualified,
safety, economized, convenient, transparency, in accordance with the urban planning,
socio-economic development plan, in accordance with law for aiming at the
promotional construction by using technique technology that is modern, equitable
with standard, cooperate among the idea, construction material within domestic and
foreign, to keep the national characteristic, to protect the scenery, the beauty of city,
to contribute in the national socio-economic development.
Article 02. ConstructionConstruction is the procedures for the implementation of the constructive
activities, constructing and repairing by starting the feasibility, survey, design
constructive project, fitting and installation to completing construction.
Article 3 Definitions
The definitions for the words and expressions used in this law are as
follows:
1. The construction activity process refers to the assessment of the investmentproject, the undertaking of the construction work and the determination on thegeneral plans such as: The survey, the designing, the construction, the reparation,the rehabilitation, the restoration, the enlargement, the modification, theexpansion, the dismantlement, the management, the inspection and supervision of
the construction work;2. The construction project refers to all activities to be undertaken on various
categories of the construction work by laying out the scope, the goal, and specificconditions, with proper designation of liabilities, labor and/or construction
company, the budget, the working plans, the setting of the commencement andcompletion dates;
3. The construction buildings refer to all products from laboring, matters,machineries and construction materials, to include other equipments and
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installing devices which are closely associated with the soil, the soil surface, theunderground, the underwater and water surface, built in accord with the designs
for individual benefits, as the socio-technical infrastructure system;4. The technical infrastructure system refers to the irrigation system, the
transportation system, the traffic system, the telecommunication network system,the energy supply system, the electricity system, the public lighting system, thewater supply system, the recycle system of dirty and contaminated water, theurban drainage system, the waste disposal and storage system and the likes;
5. The social infrastructure system refers to the infrastructures on public health,culture, education, sports, commerce, housing, public servicing and parks;
6. The special construction activity refers to the irregular implementativeactivities such as: The national stability activities, the construction under theurgent order of the GOL;
7. The construction standards refer to all technical principles and regulations inrelation to the framework and various components for the constructiondetermined by the concerned sector (s);
8. The project owner (proprietor) refers to the funds owner and/or his nomineewho is authorized to use such a fund into the construction process;9. The contracting company refers to any juristic entity who enters into theagreement for the repair or construction with the project owner;
10.The bidders refer to any domestic and foreign juristic entities possessing properqualifications conditional to the selection and the bidding in either form asdefined by the project owner;
11.The preliminary designing refers to the data collection, the drawings andexplanation illustrating the designing points with adequate fundamental proof forarranging the total funding level, and as the basic reference for further designingprocess;
12.The basic designing refers to the designing, which composes of the project siteand the general drawings, displaying the characteristics and descriptions of all
structures within the construction project vicinity;13.The specific designing refers to the full complete designing, which composes of
the architectural drawings, the engineering drawings and the enlargement printsin need for clarity, to include the plans for the application of constructionmaterials and the installation of various equipments;
14.The architectural drawings refer to the blueprints showing off the nature, form,dimension, shape, supplies, frame level, area and the use of various parts of theconstruction project;
15.The engineering drawings refer to the blueprints displaying the dimension,quantity, and volume of the technical structure form of the construction project
together with some necessary enlargement sheets;16.The construction supervision refers to the technical monitoring and checking
regularly made during the construction by any architect or engineer, aimed atensuring the buildings to be in high quality, in conformity with the design, the
technical standards; timing up the work and strictly placing funds onto each workas well as checking the safety, and making the environment protection;
17.The construction follow-up and inspection refer to the progress checking of theproject work at each period from the commencement to the completion date;
18.The correctness certification under the construction project refers to theissuance of certificates to the completed project work, proving to be correct andconformable to the designed drawings, the economic-technical designation on theconstruction materials, and the construction standards.
19.The construction project land area refers to the total land area of theconstruction project, to include the land area to be furnished under the adopted
investment project.
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20.The construction unit price refers to the expense on any work or the cost ofvarious category construction activities, calculated by using the measurement unit
such as: In square meter, in cubic meter, in distance meter, kilometer or the likes;21.The building, the creation and installation refers to the newly-built
construction, to include the provision of equipments such as: The transmissionline, machines associated with the construction work;
22.The repair refers to the improvement, modification, the solution of the brokenand deteriorated part(s) of the buildings.
23.The expansion refers to the enlargement of the area and the volume of thebuildings.
24.The rehabilitation/restoration refers to the reconstruction so as to make thematter or the cultural, historic, scenic, natural buildings are in their usual natureand character.
Article 4. The Policy on the Construction
The State encourages all domestic and foreign economic sectors to
place their investment into the construction, the repair, the protection-conservation, and the use of all buildings in pursuant to the laws.
The State urges all types of construction to be processed in conformity
with the laws, the technical designation, the technical standards, the
construction unit price; to be of high quality, efficiency, economization,
the safety, the beauty, the safeguarding of the special national
characteristic and the environment conservation, as well as the
promotion for the use of domestic-produced construction materials.
The State urges and encourages all domestic constructionentrepreneurs to have access to the fund sources for strengthening their
own capacity, developing their workmanship and being able to compete
with those of the foreign countries. This is to ensure the construction
activities be developed and broadened as the contribution into the socio-
economic development.
Article 5. The Principles on the Construction
The construction undertaking must be made in pursuant to the
following principles:
1. To ensure the conformity with the national socio-economic development plans,the development master plans of each sector, the urbanization plans, the projectconstruction drawings, the technical designation and standards, and theconstruction unit price.
2. To guaranty the quality, the safety, and not to emit negative impacts in excess ofthe standard limit designated for the protection of the citizens livelihood, the
infrastructure, the natural scenery, the environment; and not to cause theexcessive disturbance to the people who live near the construction site.
3. To promote the development in parallel to the conservation and protection of thecultural, historic and natural heritage as well as the national characteristic.
4. To ensure the sustainability and high yield to the society and economy, byproviding facilities to the disabled and elders, especially the construction of
buildings, roads, and other public sites;
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5. The domestic architects and engineers must have access to the participation in themajor foreign-invested construction activities;
6. To make the assessment on the impacts against the natural environment and thesociety, primarily the health of the citizens.
Article 6 The Obligations of the citizens on the Construction
Lao citizens, aliens, foreigners and apatrids residing in the Lao PDR
are all obliged to respect and act in accordance with the law pertaining to
the construction, to give their comments on the construction activities,
and to take part in the conservation and protection of various existed
buildings which are the socio-technical infrastructure system, to include
the cultural, historic and natural heritage.
Article 7 The Scope for the use of this Law
This law is applicable to all infrastructural construction activities,high-cost construction and repair activities of any individuals, any state
and private organizations in the urban, rural areas and special economic
zones throughout the nation, mainly related to the transportation system,
the irrigation system, the embankment system, the telecommunication
system, the housing system, the electricity system, the construction
system related to mining and the likes.
This law is not allowed to be used with the special construction
activities, which shall be governed by specific regulations.
Article 8 The International Co-operation
The State widely opens and promotes the sub-regional, regional,
foreign and international relations and co operations in the construction
fields by means of exchanging scientific, technical, technological
experience, data, and information; building, culturing, upgrading technical
subjects to its employees; striving for the assistance, the investment
collaboration and taking part in the implementation of agreements,
treaties, in which the Lao PDR has been the partnership.
CHAPTER II
THE CONSTRUCTION ACTIVITIESSECTOR 1
CATEGORY, NATURE, AND SIZE OF THE CONSTRUCTION
Article 9 The Construction Categories
The construction categories are sectorally classified as follows:1. The public Work and Transportation Sector:
- Transportation system: Road-bridge, railways, river ports, tunnels,navigation canals and airports;
- Housing system: Houses, buildings, hospitals, schools, temples, plants,factories, petroleum depots, petroleum and gas pipeline, fuel pumps,stadiums, parks, transport stations;
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- Water supply and sanitation systems: Pump stations, water plants,transmission and distribution lines, ditches, waste and contaminated water
drainage pipes and/or culverts;- Telecommunication system: Satellite stations, radio frequency trans-
receiving stations;- Embankment and anti-flood protection systems.
2. The Agriculture and Forestry Sector:- Irrigation system: Irrigation canals, channels, spillways, catchment basins;
3. Energy and Mine Sector:- Electricity system: Hydro-power dams, power plants, power receiving and
distributing stations, transmission line system;- The construction system related to mining.
Article 10 The Construction Characters:
The construction characters are as follows:1. The construction, the building-up and installation;2. The repair;3. The expansion;4. The rehabilitation and restoration and the likes.
Article 11 Construction Scale
Each category of the construction can be classified into scales as
follows:1. Large scale;2. Medium scale;3. Small scale.
The relevant sector is delegated to determine the scale of the construction for
each category, which is under its management by referring to the cost, the site, theproject technical significance. As to the construction work in the state-funded
project, the assessment must be made in line with the provisions of the law pertainingto the state investment.
Article 12 The Designation of the Techniques, the Standards and the Unit Price of the
Construction
The technical designation, the technical standards, and the construction unit priceare the ceiling base, the comparative and indicative construction standards to be used
as the reference for budgeting, monitoring, inspecting and assessing the output of theconstruction.
The Ministry of Public Work and Transport has to work in conjunction with otherrelevant sectors to make a research and study the technical designation, the overalltechnical standards, and the construction unit price and submit them for adoption bythe Government. Furthermore, the concerned sector has to make the research andissue out the technical designation, specific technical standards and the unit prices forits own construction.
Article 13 The Construction Activities
Here are the main activities of the construction:1. The feasibility study on the construction project;
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2. The survey, the design of the construction project and the determination on theconstruction material to be used;
3. The construction permit;4. The provision of land area for the construction project;5. The devisal and implementation of projects construction work;6. The construction supervision;7. The protection and use of the buildings.
SECTION 2
THE FEASIBILITY STUDY ON THE CONSTRUCTION PROJECT
Article 14 The feasibility study on the construction project
The feasibility study on the construction project is the socio-economic,technique-technology, financial, technical and/or construction laboring study; theassessment of the environmental, socio-cultural impacts, the actions of which shall
display the investment effectiveness by basing on the construction category, nature,
and scale.
For all large and medium construction projects with complicated techniques andthe use of extravagant funds, the prior feasibility study should be made in order togain more options for further precise study.
As to the small-scale construction activities with no complicated techniques andlow cost, the concerned sector has to formulate its own specific managementregulations.
Article 15 The Summary on the Feasibility Study of the Construction Project
The summary on the feasibility study of the construction project is the economicand technical commentary report on the project, i.e., the assessment to see if such a
project is effective and efficient, the technique-technology study in relation to theconstruction, to include the impacts over the natural environment and society.
Article 16 The Estimates from Making the Feasibility Study of the Construction
Project
The feasibility study of the construction project must display the followingestimates:
1. The extreme benefit and the beneficiaries from such a construction project;2. The value, the servicing term of such a construction project;3. The economic-technical effects, the natural environment and society;4. The measures for reducing the negative impacts over the natural environment and
society, the citizen health, occurred from such a construction project;5. The working plans and the methods to be used in the construction
implementation.
Article 17 The Content of the Summary on the Feasibility Study of the
Construction Project
The summary on the feasibility study of the Construction project must
compose of the following:
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1. Policy lines: To make a study on the policy lines and the national socio-economic development plans associated with the construction project;
2. Finance and the investment benefits: To estimate the total value of theconstruction project, the demand of fund at each period, the sources of funds and
the output to be acquired from such an investment, to include the direct andindirect beneficiaries from such a construction project;
3. Techniques: To make a study on the scale of the construction project, thetechniques and technologies to match with the exact geographical, socio-economic circumstance in each locality in the current and future period, togetherwith the management, the work process and the safeguarding for thesustainability of the construction project;
4. Resources: To make a study on the need of materials, equipments, labour, thepersonnel training and the likes;
5. The organization and management of the construction project: To make a studyon the currently existed organization, the necessity and the effectiveness for theestablishment of specific project management team to coordinate with the devisal
and implementation of such a construction project;
6.
Culture-Society: To make the study on the citizens residential evacuation, thebeneficial targeted groups from the construction project, specially the generationof income, the setting of employment to the citizens, to include making the studyon the affects against the residential evacuation program, the resettlement, thesafeguarding of their customary tradition, culture, which are the most valuableheritage of the ethnical people;
7. The Environment: To make the study on the impacts over the naturalenvironment and the society, the health of the citizens such as: The biodiversity,natural water sources, climate and the likes, and simultaneously place appropriatemeasures for the prevention of such an environmental impacts.
Article 18 The Adoption of the Summary on the Feasibility Study of the Construction
Project
After checking and assessing the correctness in pursuant to the provisionsstipulated in Article 16 of this law, the relevant state sector will make the adoption ofthe summary on the feasibility study of the construction project.
As to the impacts on the natural environment and society, they must be assessedand adopted by the Water Resources and Environment Division.
SECTION 3
THE SURVEY, THE DESIGN OF THE CONSTRUCTION PROJECT
AND THE DESIGNATION OF APPLICABLE CONSTRUCTION MATERIALS
Article 19 The Survey and Design of the Construction Project
The survey of the construction project is the collection of precise data necessaryfor making the economic-technical feasibility study by assessing the economic-technical effects and the impacts over the natural environment and the society, beavailable and ready for the designing.
The design of the construction project is the precise formulation of drawings inaccordance with the technical standards, on the basis of analyzing all data acquired
from the survey; the action of which is composed of the complete technical,engineering, and architectural drawings, the designation of techniques, the value
assessment, and the lay-out of the construction schedule.
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There must be the survey, the designing, the assessment of the construction costfor each construction project, except for the small-scale construction project with
non-complicated techniques and low value, for which the relevant sector has to workout its own specific regulations.
Article 20 Steps for Making the Survey and Designing the Construction Project
The survey and designing of the construction project have to be made incompliance with the following steps:
1. Making the survey, the collection and analysis of all data;2. Working out the preliminary designing, and making the average value
assessment;3. Making the basic designing;4. Formulating the precise design, evaluating the construction project cost;5. Preparing the bidding documents for the construction project.
Article 21 Estimates to be Acquired from the Survey, the Designing of theConstruction Project
The survey and designing of the construction project must display the followingestimates:
1. They must be in pursuant to the objective of the construction project. Providingthe project is for the housing construction, it must possess the national
architectural character mixed up with the extreme modern style, the environmentand the natural scenery;
2. They must meet with the technical designation and the technical standards foreach construction category; and simultaneously the use of domestic construction
materials should be promoted;3. They must ensure the existence of socio-cultural and economic effects; and the
benefits of the citizens;4. They must ensure the preservation, the protection of the social and natural
environment, the public properties, and the safety to the lives and properties ofthe people.
Article 22 The Adoption of Documents Related to the Survey and Designing of
the Construction Project
The documents related to the survey and designing of the
construction project compose of the complete sets of the technical,engineering, architectural drawings, the designation of techniques and
construction materials, the value assessment together with the
construction working plans.
Any of the surveyed and designed construction projects which is
deemed to have the socio-economic effects and have no impacts over the
natural environment and the society shall be adopted by the relevant
state sector by referring to the category, scale, and level of such a
construction project.
Article 23 The Designation of the Applicable Construction Materials
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The Ministry of Public Work and Transport is responsible for
surveying and managing the construction material sources, primarily the
borrow pits of laterite, black soil, red soil, sand, gravel, macadam, basalt,
lime stone, earth, and other typical rock for the construction from the
surveyed site approved by the GOL. Also, it has to make the designationfor the use of such construction materials, to include bricks, roofing tiles,
timber, steel bars, sectional steel and other construction materials.
The Science and Technology Agency shall make the consideration for
adopting the construction material standard proposed by the Ministry of
Public Work and Transport or by the concerned sector.
The Ministry of Industry and Commerce shall be liable to control the
construction material production and distribution to be in pursuant to the
standards laid out by the Science and Technology Agency.
SECTION 4
THE CONSTRUCTION APPROVAL
Article 24 The Request for the Construction Approval
Any individual and/or organization wishing to make various
constructions such as: The structural building, the construction, the
installation, the repair, the expansion, the rehabilitation-restoration, the
modification and/or the dismantlement, has to submit the request for
approval to relevant state sector.
Article 25 The Construction Approval
Upon receiving the request for the construction approval from any
individual and/or organization, the relevant state sector shall place it into
consideration as stated in the procedures. In case such a request for the
construction approval meets with the provisions, the concerned sector
will issue out the construction approval permit in pursuant to the
proposed nature of the construction within the due time as prescribed
forth in the laws and regulations.
Article 26 Terms set forth for the individual requesting for the Construction
Approval
Any individual and/or organization requesting for the construction
approval must possess the following complete terms:
1. To properly submit the documents requesting for the construction approval;2. To obtain the ownership certificate or the permit for land use on the land area
where the construction is being taken place, in conformity with the provisions of
the land law and other concerned regulations;3. To possess the documents on the survey and designing, properly adopted by
relevant state sector as having stipulated in Article 19, Clause 3 of this law.
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4. To have the proper permit for earth excavation or refill at such an approvedconstruction site.
Article 27 The Responsibilities of the project Owner
The project owner has the following responsibilities:1. To submit a notice on the commencement date of the exact construction to the
sector which has issued out the approval.2. To install a billboard indicating the project basic data at the site.3. To proceed the construction in pursuant to the approval.4. To supply data, information or submit concerned documents to the construction
control agency to effectively make the monitoring and inspection.5. To submit the construction control agency a notice after the completion of the
construction so that the inspection can be made in accordance with theagreement, to include the complete sets of technical drawings and otherconcerned documents.
SECTION 5
THE ALLOCATI9ON OF LAND AREA TO THE CONSTRUCTION PROJECT
Article 28 Conditions set for allocating the land area to the construction project
The following conditions must be ensured in the allocation of
land area to the construction project:
1. To strictly and completely lay out the program for the compensation of thedamage which possesses proper reference proofs. There must be the decision-making process with the participation of the affected people or organizations togive comments on the land allocation to the construction project before thecommencement of the construction;
2. The damage compensation, the residential evacuation and the removal of allobstacles should be completely made prior to the hand-over of the allocated landarea to the construction project;
3. The demarcation of the allocated land area must be made in accordance with thenational, regional, provincial, district land allocation plans; the adopted overalldrawings of the construction project and/or the investment project.
4. The time limit for allocating the land area to the construction project must be inconsistent with the schedule set up for the implementation of the adoptedinvestment project and/or in pursuant to the decision of relevant state sector.
Article 29 The Damage Compensation
The compensation of the damage arises from the allocation of
land area to the construction project must be made as follows:1. To ensure the overall benefits of the nation, the individual and/or the
organization;2. To ensure that those who are subject to the residential evacuation to have
dwellings and their living not less than the level existed before the evacuation;3. To ensure the legitimacy, equality, transparency, and compliance with the laws and
regulations.4. To legally make the payment of the damage compensation.
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Article 30 The Application of the construction project land area
The application of land area under the construction project must
ensure the main overall benefits, the legitimate rights and benefits of the
individual and/or organization as well as the safety, the conservation and
protection of the environment; the natural, historic, and cultural heritagesby acting in conformity with the national socio-economic development
plans, the district plans, and the master plan of relevant sector.
SECTION 6
THE IMPLEMENTATION OF THE CONSTRUCTION PROJECT
Article 31 Conditions set forth prior to the Implementation of the Construction
Project
Prior to the implementation of the construction project, the project
owner and the contractor must possess the following conditions:1. To obtain the construction approval as stipulated in Article 24 of this law;2. To have the contract agreement of all scales and the supervision contract for large
and medium scale construction and/or for the construction with technicalcomplication through the appropriate bidding process; such agreement/ contract
must be properly registered;3. To have the precise project construction processing plans for each work;4. To have laid out the measures for maintaining the safety and the protection of the
environment during the construction.5. To place a billboard with the projects data such as: Name of the project, the
owner of the project, the donor, the designer, number of the construction permit,
the constructer, the supervisor of the construction, its value, dates ofcommencement and completion.
In case ancient objects which represent the historic and cultural trace
are found during the construction of the project, a notification to the
relevant authority should be immediately made.
Article 32 The Change of Construction Land Area under the Project
The change of land area under the construction project from one sit to
another must be appropriately made by ensuring that such a construction
is in lines with the adopted drawings, consistent with the environmentsurrounding; and ensuring that the existed structures remain under their
former shape, nature, and quality, the citizens receive their legitimate
benefits, the safety, and causing no negative impacts to the environment.
Here are the primary causes for the change of construction land area
under the project:
1. To provide the overall benefits of the state;2. The land condition is inappropriate for the construction project;3. Once there is a discovery of ancient objects or high-valued mineral ore at the
allocated sites during the construction processing.
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The land area change under the construction project must get the
approval from relevant sector who has formerly made the adoption for
such a construction project.
Article 33 The Structural Dismantlement
The structures to be dismantled must be under the below-listed
conditions:1. Any broken and deteriorated structures which may cause negative
detrimental effect to the society and the environment;2. Any structures which are non-standardized, non-conformed to the approved
drawings and/or non-consistent with the construction permit;
3. Any structures with no legal permit and non-consistent with the adoptedurbanization plan;
4. Any temporary structures built up during the construction processing and notnecessary for use after the completion of the construction work.
The project owner or the owner of the structure shall be liable to all
expenses for such a dismantlement. Provided that the project owner or
the owner of the structure does not act upon his/her liability, the relevant
sector shall perform such a pull-down or dismantlement, and make the
removal or disposal, the action of which shall be charged as the expense
of the project owner or the structure owner.
Article 34 The Safety Maintenance
Generally, the maintenance of the safety should use the measures in
pursuant to the regulations issued out by relevant sector; primarily thedanger warning signs, the fencing of the construction site, the protective
equipments such as: Safety helmets, boots, gloves, anti-ray glasses.
In case any of the force majeure occurs during the construction such
as: Flood, tornado, fire, earthquake, land slide or other form of disasters,
which cause the affects the construction processing, the contractor must
place the protective measures for immediate and timely solution as
follows:1. To give the safety signal within the construction site;2. To place the construction under the provisional cessation and timely use
appropriate solving measures so as to guaranty the safety of all workers and toprotect the properties of the construction project;
3. To urgently report such an incident to the project owner, the relevant authority,the local administration so that they can put in place the solving measures.
SECTION 7
THE CONSTRUCTION SUPERVISION
Article 35 The Construction Supervision
The supervision of the construction must be implemented as follows:1. To supervise and make the construction in consistent with adopted drawings,
technical standards, designation of techniques and construction materials.
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2. To maintain continual and regular supervision. In case the supervisor of theconstruction finds any default(s) during the construction processing, he must
notify the project owner on such a matter and place the solving measures byusing appropriate methods as fast as possible.
3. To properly make the records or reports on the precise result of theconstruction supervision and safely keep such document and/or data.
The project owner has to nominate or employ any competent
individual and/or consultant company full of experience propitious to the
work, category, scale, and level of the project for making the follow-up,
inspection, and control the construction, except for the small-scale
construction project with low-value and non-complicated techniques.
Article 36 The Conformity Certification on the Structure
Every construction project is subject to the inspection from the
Construction Management Agency upon the completion of theconstruction work. When such a construction is deemed to have properly
and fully implemented in accordance with the drawings, the technical
standards, the designation of techniques and construction materials, and
other concerned documents as stipulated in the contract agreement for
the construction, the Construction Management Agency will issue out the
conformity certificate on such a structure to the project owner.
Article 37 The Hand-over of the Construction Project
After the completion of work under the construction project and
having made the inspection for conformity certification of such a
structure, the project owner and the contractor are to prepare a legal
hand-over document in compliance with the law and regulations and to
organize the hand-over of each work under the construction project
within the maximum period of not more than three months
As to the security term and value on each category of work under the
construction project, they are prescribed forth in the specific regulations
of each sector.
Article 38 Rights and Obligations of the project Owner
In undertaking the construction project, the project owner has
the following primary rights and obligations:1. To select, organize the bidding the enter into agreement with the company of the
contractor for the construction processing and with the consultant company forthe construction supervision;
2. To modify the drawings, in case of technical-economic necessity and reasonablyadjust the construction value in an economical manner upon the proposal of the
contractor company or the consultant company;3. To make the payment of the construction cost to the contractor company as well
as the construction supervision cost to the consultant company for each work inaccordance with the agreed provisions under the agreement;
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4. To make the monitoring and inspection on the work performance of thecontractor and consultant companies in the matter of safety and the
environmental protection and conservation;5. To notify, suggest, temporary suspend or order the project work to a permanent
cessation in case the contractor and/or the consultant companies do not act inconformity with the agreement provisions or do not act as directed.
6. To keep and file all documents related to the technical-economic feasibilitystudy, the soil and construction material test results, the important piece of thestructure, the drawings adopted prior to the commencement of the construction,the exact construction drawings and other related documents.
Article 39 Rights and Obligations of the Company Making the Survey, the
Designing, and the Construction material Analysis
Here are the primary rights and obligations of the company
making the survey, the designing, and the construction material
analysis:1. To collect, to fully analyze data and necessary construction materials for each
category of construction work so as to be used as the basic reference for the
designing;2. To design the drawings, to design-calculate the engineering framework, to draw
the precise cross-section of the framework;3. To designate the construction materials to be used, to estimate the construction
cost, and formulate the working plans in detail;
4. To consider the modification of the drawings, any part of which is deemedinappropriate as proposed by the project owner;
5. To take the liability under the laws on the results in relation to its own survey,designing, and analysis of the construction materials.
Article 40. Rights and Obligations of the Contractor Company
The contractor company has the following principal rights and obligations:
1. To lay out the working plans from the commencement to the completion date andthen submit them to the project owner and the consultant company for adoption;
2. To undertake the construction in pursuant to the drawings, the technicalstandards, the designation of techniques and construction materials as stated inthe contract agreement;
3. For the purpose of exact monitoring and inspection, to notify the consultantcompany in advance prior to performing any important construction work;4. To manage the construction site, to enforce the regulations on the safety so as tocreate the appropriateness to the category, scale, and nature of the constructionproject, to ensure the order maintenance by means of not causing any impactsagainst the surrounding residents and any structures existed within theconstruction vicinity;
5. To provide necessary data and documents to the project owner and/or theconstruction inspection agency as shown in the agreed schedule;
6. To make the proposal for reasonably modifying the drawings and the projectcost;
7. To be liable to the compensation of the damage occurred from the infringementof the agreement, the work performance not in consistent with the drawings, the
technical standards for the construction, the application of construction materialsas having mutually agreed, or from the negligence in the work performance;
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8. To keep and hand-over the technical-economic feasibility study, the test results,the exact construction drawings, the documents related to the construction
modification, memos, reports, and other related documents to the project owner;9. To receive the construction cost at the value as stipulated on the contract
agreement.
Article 41 Rights and Obligation of the Consultant
The primary rights and obligations of the consultant company are as follows:1. To , make the arrangement on the bidding documents, to draft the contract
agreement and the likes to be used in the construction;
2. To edit the plans, to supervise the construction and to give directions for properimplementation by the contractor so as to make the construction be proceeded in
conformity with the drawings, the designations and the technical standards for theconstruction;
3. To follow up, inspect, and summarize in detail the volume and quantity of workdone at each period as the proper substantiation for the payment of the
construction cost;4. To periodically make the reports on the work progress, conveniences, difficulties,
and other problems of the construction project to the project owner;5. To make the technical decision whether to or not to adopt any work which is non-
standardized in pursuant to the techniques, and then report to the project owner;6. To make the collection of the technical-economic feasibility study, the soil test
results, the construction material analysis results, any important part of theframework, the initially adopted drawings, the exact construction drawings, the
contract agreements on the construction, the bills of quotation, memos, thereports on the work progress at each period from the starting to the completiondate of the construction and submit them to the project owner;
7. To receive the payment on the construction supervision as per the sum valueagreed within the agreement.
SECTION 8
THE PROTECTION AND USE OF STRUCTURES
Article 42 The Protection of Structures
Any individual and/or organization who is the owner or the possessor
of the structure has to manage, protect, rehabilitate, repair his/its own
structure to be in a solid, safe, clean and nice condition, and be capable of
using for a long time.
Article 43 The Use of Structures
Any individual and/or organization who is the owner or the possessor
of the structure must properly use such a structure in accordance with
the approved goal and must place the protective safety measures over the
health, lives, properties of the citizens, and must not cause any impacts
against the environment.
Once there is the need for changing the usage goal, he must submit a
request for prior approval on such a change from the relevantconstruction management agency.
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CHAPTER III
BUSINESS RELATED TO THE CONSTRUCTION
Article 44 Forms of Investment on the Construction Business
The forms of investment on the construction business compose of
private enterprises, joint venture enterprises, and companies as
prescribed forth in Article 10 of the law pertaining to the enterprises.
Article 45 The Approval Request for the Investment on the Construction
Business
Any individual and/or organization wishing to place the investment in
undertaking the construction business must submit a request to relevant
sector for making the consideration upon the steps as having defined in
the laws pertaining to the enterprises and the investment promotion.
Article 46. The Scales of the Construction Business
The construction business is classified into three scales as follows:1. Large scale;2. Medium scale;3. Small scale.
The construction business of each scale shall be determined by relevant sector.
Article 47. The Categories of the Construction Business
There are four categories of the construction business as follows:1. The survey and design;2. The analysis of construction materials;3. The consultation;4. The construction contract.
Each of the above construction categories maybe classified into various
levels, dependent on the size, the value, the requirement in techniques,
technology, construction materials, and the length of use, which the
relevant sector shall make the research and work out specific regulations.
CHAPTER IV
THE CONSTRUCTION AGREEMENT
Article 48 The Agreement on the Survey/Designing, the Construction
Supervision
The project owner must enter into agreement on the
survey/designing, the construction supervision with the consultant
company, the architect, the engineer, depending on each project work, in
accordance with the provisions stipulated in the law pertaining to theprovisioned and non-provisioned obligations so that the technical follow-
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up and inspection can be regularly made during the construction
processing. This is aimed at making the construction project be of high
quality and consistent with the designing.
Article 49 The Contents of the Agreement on the Survey/Designing, the
Construction Supervision
The following primary contents must be included in the
agreement on the Survey/Designing, the construction supervision:1. List of work items to be done in the survey/designing, the monitoring, the
inspection and supervision of the construction;2. Expenses and mode of payment to the surveyor/designer, and the construction
supervisor;3. Term and plans for surveying, designing, supervising each work of the
construction project;4. Reports on the outputs of the monitoring, inspection and supervision of the
construction;5. Fine charge in case there is the agreement infringement and/or the non-performance of its obligations in pursuant to the schedule;
6. The modification, the revocation or termination of agreement;7. The settlement of disputes;8. The language used in the agreement.
Article 50 The Bidding and the Conditions Set forth for the Survey/Design
Companies, the Consultant Companies on Construction Work to enter into the
Bidding
In general, the selection of the companies for making thesurvey/designing work, or of the consultant company for the construction
must be make through the bidding, and made in accordance with the law
pertaining to the state investment, particularly the projects funded by the
state.
The survey/designing companies, the construction consultant
companies applying for the bidding must possess the complete conditions
as follows:1. To be legally established;2. To have architects and engineers with good knowledge, competence, high
qualifications and experience in surveying/designing work, supervising theconstruction, propitious to the scale and nature of each construction projectcategory;
3. To possess standardized financial status, to regularly and fully pay off obligatoryduty and taxes;
4. To meet with other conditions as defined in the bidding document.Article 51 The Contract Agreement
After the completion of the survey/designing and before undertaking
the construction, both the project owner and the contractor for the
construction have to enter into the contract agreement as stipulated inthe law pertaining to the provisioned and non-provisioned obligations.
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Article 52 The Contents of the Contract Agreement
The following are the primary contents in the contract
agreement:
1. Goals, list of work items of the construction project;2. Value and mode of payment on the construction cost3. Period of time and schedule for processing the work of the construction
project;
4. The provision of construction materials;5. The inspection, the adoption, and the hand-over of the construction project;6. The fine in case of agreement infringement and/or the non-performance of
the obligations in pursuant to the schedule;7. The security term and value on the structure, in conformity with the laws and
regulations;8. The modification, the revocation or termination of the agreement;9. The settlement of disputes;10.The language used in the agreement;11.The designation of techniques and the technical standards for the
construction.
Article 53 The Bidding and Conditions set forth for the Entrance into the Bidding
of the Contractor Companies
Generally, the construction contract has to be made through the
bidding by implementing in accordance with the law pertaining to the
state investment, specifically the project funded by the state.
The entrance into the bidding of the contractor companies must be
with the following complete conditions:1. To be legally established;2. To possess the actual experience and achievements propitious to the category, the
scale, the level of the construction project;3. To have good financial status with the certification from the bank;4. To have architects and engineers with good knowledge, competence,
qualifications and experience appropriate to the scale and level of each project
category;5. To adequately possess vehicles, tools, and construction equipments with high
quality;6. To regularly fulfill the obligations on the duty and tax payment7. To have other conditions as defined in the bidding document.
CHAPTER V
THE VOCATINAL CONSTRUCTION ASSOCIATION
Article 54 The Vocational Construction Association
The vocational construction association is a social organization acting
as the center to gather architects, engineers, technicians, and the business
entrepreneurs on the construction.
Such a vocational association must be established in accordance withthe laws and regulations.
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Article 55 The Standing and Role of the Vocational Construction Association
The vocational construction association is a social organization
attached to the Public Work and Transport Division. Its role is to
integrate the harmony, the wisdom of all construction professionals andthe business entrepreneurs on the construction so as to make the
operations be under the constitution, laws and regulations, and their own
ethics so as to protect, promote, develop their professions as the
contribution for creating the benefaction to the society and the
development of the nation.
Article 56 Rights and Duties of the Vocational Construction Association
Here are the principal rights and duties of the vocational
construction association:1. To announce, disseminate the policies, laws and regulations, and the state
socio-economic development plans in relation to the construction; to take partin the implementation;
2. To assist, build, and encourage its members in the work performance like tomake their career undertaking move forwards to the effective progress;
3. To manage and protect the legitimate rights and benefits of its members bybasing on the policies and regulations;
4. To act as the master in making the study and research on how to preserve,promote the special characteristic of the architecture and structures which arethe heritage of the nation;
5. To introduce the modern scientific techniques-technology into theconstruction;
6. To swap lessons, varieties of experience related to the construction in orderto continually upgrade the knowledge and experience to its members;
7. To enhance the harmony, the unanimity among the constructionprofessionals, and to contact and cooperate with other domestic and foreignvocational associations.
8. To regularly summarize and report the output of its own work performance tothe Public Work and Transport Division and to other relevant sectors.
Article 57 Architects
Architects are the technicians who possess the knowledge and
competence in architectural designing and decorations.
Architects have the duties and roles in determining ideas in relation to
models, forms, shapes, framework; making the technical-economic
designation; designating the construction materials to be used; making a
follow-up, checking the correctness upon the architectural design or the
technical standards; and directing and materializing the construction.
Article 58 Civil Engineers
Civil engineers are the technicians who possess the scientific-technicalknowledge and competence related to the construction work.
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Civil engineers have the duties and roles in making the analysis, the
computerization of engineering design, the direction, the inspection, and
the control on the construction quality in pursuant to the design.
CHAPTER VIPHOHIBITIONS
Article 59 General Prohibitions
All individuals and/or organizations are prohibited to:1. Carry out the construction operations without proper permits from the
relevant sectors;2. Conduct the construction in the areas not permitted by laws such as: The
military strategic zones, the archeological sites, the historic standing areas,the cultural heritage areas, the conservation forest areas, the restricted zones
of the highways, of the railways; the swamps, natural ponds, rivers, paddyfields, the irrigation systems, the hydropower dams, the airfield zonestogether with the vicinity associated with the aviational safety, the protectivezones of the bank erosion and the likes;
3. Make the survey, construction, supervise the state or private constructionproject by the same person;
4. Scatteredly make the construction, repair, expansion, and/or modification ofthe design without permission; not in consistent with the socio-economic
development plans, the infrastructure and the urbanization plan;5. Make the earth excavation, piling or refilling without proper permission from
relevant sectors;6. Cut down small trees for frame supporters without authorization;7. Move the construction materials such as earth, gravel, mountainous rock, and
sand, the action if which is dirtying the road surface, the public facilities, orthe others areas without permission from relevant sectors;
8. Unreasonably hinder, not offer conveniences or cooperation to theconstruction processing;
9. Make the conspiracy in offering or receiving bribes in relation to theconstruction processing;
10.Commit other acts which are against the laws and regulations.Article 60 Prohibitions for Relevant Officials and Authorities
All relevant officials and authorities are forbidden to commit thefollowing:
1. To undertake the business by acting as the consultant or the technician to thecontractor company of the construction project, which has the relation to
his/her responsibility;2. To reveal any data on the bidding;3. To accept bribes in relation to the construction for private or group benefit;4. To ignore his own liability, to delay the documentation of the construction or
of the structure building, and to take negligence on any impropercommitment of the contractor;
5. To issue out the permits for the construction of hotels, pub houses, and/orentertaining places near the temples, hospitals, and schools;
6. To commit other acts which are subject to the law violation.
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Article 61 Prohibitions for the Project Owners
The project owners are prohibited to commit the following:1. To conspire with the officials, relevant authorities or the contractor, the
consultant company, the architects or engineers in making the certification
and adoption of any non-standardized structures;2. To accept any bribes concerning the construction from the contractor;3. To delay the cost payment on any completed structure(s), unless there has
been a separate agreement;4. To delay the contractor on the methods and measures for solving problems
occurred in the construction;5. To neglect in making the monitoring, the inspection of the construction work
performance made by the contractor;
6. To commit other acts which infringe the laws and regulations.Article 62 Prohibitions for the Construction Entrepreneurs
All construction entrepreneurs are forbidden to commit the
following:1. To undertake any construction work apart from the categories registered in
the Enterprise Registration and/or the Concession Registration;2. To conduct the construction not in consistent with the drawings, the
designated techniques, and the technical standards of the construction;3. To undertake the construction work without the safety protection measures
and/or the measures for the socio-natural environment protection;4. To sell or transfer the construction project to another individual and/or
organization without a prior approval from the project owner;5. To make the earth excavation, piling or refilling outside the designated areas
during the construction, except otherwise approved by relevant sectors;6. To ignore the work or the construction project which (s)he has entered into
agreement with the project owner;7. To cut down trees as the frame supporters without permission;8. To make any commitments which deem to violate the laws.
Article 63 Prohibitions for the Consultant Companies, the Architects and Civil
Engineers
The consultant companies, architects and civil engineers are
prohibited from committing the following:
1. To copy any architectural and engineering drawings of another party forcommercial self-benefits;2. To disclose the data related to the fixed floor price of the construction project for
the bidding open;3. To conspire with the project owner or the contractor so as to seek for private
benefits from the construction project;4. To behave against its own ethical professional principles;5. To make any infringement against the laws.
CHAPTER VII
THE SETTLEMENT OF DISPUTES
Article 64 Forms for the Dispute settlement
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The dispute settlement may be proceeded in the following forms:1. The conciliation and/or the mutual compromise;2. The administrative solution;3. The solution through the Committee for Economic Dispute Arbitration;4.
The court judgment.
Article 65 The conciliation and/or the mutual compromise
In case any disputes occurred during the undertaking of business in
relation to the construction, both parties are able to settle the matter
through the negotiation, the conciliation and/or mutual compromise.
Article 66 The Administrative Solution
Providing that such disputes cannot be solved through the mutual
compromise, either of the parties has the right to submit the case torelevant sector, which it received the approval, for making the solution.
Article 67 The Solution through the Committee for Economic Dispute Arbitration
In the event that the relevant sector is unable to make the conciliation
for solving such a matter, either of the parties has the right to submit the
case to the Committee for Economic Dispute Arbitration for further
consideration in pursuant to the laws and regulations.
Article 68 The Court Judgment
For any disputes regarding the construction occurred during the
business undertaking, and unable to reach the final agreement through
the conciliation or compromise, or the administrative solution, or the
solution through the Committee for Economic Dispute Arbitration, either
of the parties has the right to submit the petition to the court for final
decision in conformity with the laws and regulations.
CHAPTER VIII
THE MANAGEMENT AND INSPECTION OF THE CONSTRUCTION WORK
SECTION 1THE MANAGEMENT OF THE CONSTRUCTION WORK
Article 69 The Construction Management Agencies
The Government shall integratedly and consensually manage the
construction work throughout the country, by delegating the Ministry of
Public Work and Transport to act as the coordinating center with other
relevant sectors, primarily the energy and mine sector, the agriculture
and forestry sector, the industry and commerce sector, the science and
technology agency and relevant local administrations, each of its own
jurisdiction, to make the management.
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The Construction Management Agencies compose of:1. The Ministry of Public Work and Transport, other relevant sectors;2. The Provincial and Capital Services of Public Work and Transport, other
relevant services within the province or the capital;3. The District, Municipality Office of Public Work and Transport, other
relevant offices within the district or municipality.
Article 70 Rights and Duties of the Ministry of Public Work and Transport, other
Relevant Sectors
In managing the construction work, the Ministry of Public Work
and Transport, other relevant sectors have the following rights and
duties:1. To make a research on the policies, the strategic plans, laws and regulations
on the construction work under its own sector and submit them for
consideration by the Government;
2.
To develop the Governments policies, strategic plans, and decisions relatedto the construction work into precise plans, working plans, and projects of itsown sectors;
3. To announce and disseminate the policies, the strategic plans, laws andregulations to create the common sense among the citizens so that they willparticipate in its own sectors construction work throughout the nation;
4. To direct and make the monitoring on the implementation of the policies, thestrategic plans, the development, the enlargement of the infrastructuralsystem within its own sectors;
5. To research on the designation and the construction technical standards; tostudy and select the appropriate technologies as well as to work out theinstructions for the implementation;
6. Under its own jurisdiction, to make the consideration on issuing the approvalfor the major construction;7. To make a research and give commentaries on the investment, the
enlargement, the suspension, and the revocation of the construction project;
8. To build up, raise, and upgrade the knowledge to construction personnels;9. To coordinate with other related sectors and local administrations on the
construction work;10.To communicate and make foreign, regional, and international cooperation
on the construction work;11.To regularly summarize and report the output of the implementation on the
construction work to the government.
Article 71 Rights and Duties of the Provincial, Capital Services of Public Workand Transport, other Relevant Services within the Province and the
Capital
In the management of the construction work, the Provincial and
Capital Services of Public Work and Transport, other Relevant
Services have the following rights and duties:1. To develop the policies, the strategic plans and the construction development
plans within their own sectors;2. To announce and disseminate the policies, the strategic plans, laws and
regulations in relation to the construction work of its own sectors throughout the
province and/or capital;3. To direct and follow-up the construction implementation within its own region;
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4. To make the survey, data and statistic collection on the construction work withinits own region;
5. With its own jurisdiction, to make the consideration on issuing out the approvalfor the medium-scale construction;
6. To research and comment on the investment, the enlargement, the suspension,and the cancellation of the construction projects within the province and/orcapital;
7. To make the management on the business transaction, the survey, the designing,the construction, and the consultant companies within its own region;
8. To collect data and statistics on the construction of various sectors within its ownregion;
9. To communicate and make foreign, regional, and international cooperation inrelation to the construction as being assigned by the high ranking;
10.To regularly summarize and report the output of the construction implementationto its own relevant higher body and to the provincial or capital administrations.
Article 72 Rights and Duties of the Office of Public Work and Transport, other
Relevant Sectors within the District and/or municipality
In the construction management, the Office of Public Work and
Transport and other relevant sectors within the district and
municipality have their principal rights and duties as follows:1. To organize and implement the plans, the projects, the procedures and the
instructions issued out by the provincial/ Capital Service of Public Work and
Transport, all of which are related to the construction work;2. To disseminate the laws and regulations on the construction work within its own
district and/or municipality;3. To study and give comments in relation to the construction activities within the
district, the development-focusing zones, and the rural areas and propose forfurther consideration by the Provincial/Capital Service of Public Work andTransport;
4. Under its own jurisdiction, to make a consideration on issuing the approval to thesmall-scale constructions.
5. To coordinate with other related sectors, and simultaneously make a follow-up onthe implementation of the construction projects within its own district and/ormunicipality;
6. To regularly summarize and report the output of the construction implementationto its own relevant service and to the district/municipality administration.
Article 73. Rights and Duties of the Village Administration
In the construction management, the Village Administration has the followingprincipal rights and duties:
1. To disseminate and organize the enforcement of laws and regulations on theconstruction work, and the implementation of the instructions from the PublicWork and Transport and other sectors in relation to the construction work withinits own village;
2. To encourage the citizens to participate in giving their comments and to take partin the construction and in the protection of structures such as: The evacuation ofthe citizens and the removal of hindrances from the area of construction, repair,rehabilitation, restoration of structures, which are the public facilities within itsown village vicinity;
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3. To report the law infringement circumstances with respect to the constructionwithin its own village vicinity to the Office of Public Work and Transport and
other relevant offices within the district or municipality.
SECTION 2
THE INSPECTION OF THE CONSTRUCTION WORK
Article 74. The Construction Inspection Agencies
There are two types of construction Inspection agencies:1. The internal inspection agency is a part of the construction inspection agency
as having defined in Article 69 of this law;2. The external inspection agencies are:
- The National Assembly as prescribed forth in the law pertaining to themonitoring and inspection of the National Assembly;
- The State Inspectorate Authority as stipulated in the law pertaining to thestate inspection;
- The State Audit Authority and the Independent Audit Team as defined inthe law pertaining to the audit;
- The Lao Front for National Construction, the Public Organizations, thecitizens and the Mass Media.
The external inspection affairs are to inspect the duty performance of
the construction inspection and management agency so as to make it have
the strength, transparency, justice and effectiveness.
Article 75. Rights and Duties of the Inspection Agency
In inspecting the construction work, the inspection agency has the rights andduties to be performed in accordance with the contents and forms as stipulated
in Articles 76 and 77 of this law.
Article 76. The Contents of the Inspection
The principal contents for the construction inspection are as follows:1. To inspect the implementation of strategic plans, policies, laws and
regulations, investment plans, plans for the development and rehabilitation ofthe infrastructure within its own sector;
2. To inspect the implementation on the technical standards in the constructionprocess, to include the construction equipments, and the installation of theinfrastructural system of its own sector;
3. To inspect the implementation on the safety standards and the social welfarepolicies to the workers on the construction processing;
4. To inspect the protective measures, the impact solution, and the damagecompensation to the loss of life, health, the properties of the citizens, thepublic and the environment occurred during the construction;
5. To inspect the bidding, the contract agreement, the construction supervisionagreement, and the agreement on the infrastructural installation of its ownsector;
6. To inspect the progress on the construction performance in pursuant to thescope prescribed forth in the construction agreement.
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In addition to this, the inspection also has to be made in conformity
with the inspection contents as stipulated in the law pertaining to the
state investment.
Article 77. The Inspection Forms
The inspection of the construction must be systematically and regularly made,with a prior notice and/or in the form of immediate inspection.
In making the construction inspection, the inspecting officers must strictly and
properly abide in pursuant to the laws and regulations.
Chapter IXPolicies Towards Persons with Outstanding Achievements
and Measures Against Violators of this law
Article 78. Policies Towards Persons with Outstanding AchievementAny person, individual or organization with outstanding achievements of this law
will be awarded or receive other policies in accordance with regulations.
Article 79. Measures Against ViolatorsAny individual or legal entity that violates this law shall be re-educated, warned,
regulated, fined, including having to compensate for civil damage or brought to
court proceeding based on the nature of the offence.
Article 80. Re-Education Measures
Any person, individual or organization that violates law on construction such asthe light forbidden that is not the penal offence will be re-educated and warned.
Article 81. Disciplinary MeasuresAny civil servant or state employee managed construction work that violate law
on construction such as the light forbidden that is not penal offence, cause not a lot
damage and do not faithful to report their offence, or escape from their offence will be
disciplinary such as verbal warning, postpone the promotion or be dismissed.
Article 82. Fine MeasuresAny person, individual or organization that violate law on construction that cause
damage with the component of penal offence shall be fined owing to the key activities asfollowing:
1. Run business transaction without the approval;2. Construct and install material without the approval;3. Do not implement in accordance with the standard of construction and safety;4. Do not implement the measures in construction, repairing that affect to the
environment.
For the rate of fining will be defined the specific regulation.
Article 83. Civil MeasuresIndividuals, organizations or enterprises who violated law on construction caused
damage to the property of the State, person, individuals or organization shall be liable topay the compensation equal to the damage caused.
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Article 84. Penal MeasuresIndividuals, who violated law on construction that is the penal offence shall be
liable to conduct the case as stipulate in the Penal Law
Article 85. Implementation
The government of the Lao People's Democratic Republic is to implement this law.
Article 86. Effectiveness
This law shall enter into force after one hundred twenty days from the date of
promulgation decree from the President of the Lao People Democratic Republic
Any provisions that contradict this law are repealed.
President of the National Assembly