Fine up to 20 million VND if construction causes cracks in neighboring houses
This level applies to construction works that require the preparation of an economic-technical report on construction works or the preparation of a construction investment project.
The Ministry of Construction has just issued Circular 02/2014 detailing and guiding the implementation of a number of articles of Decree No. 121/2013/ND-CP dated October 10, 2013 of the Government stipulating administrative sanctions for violations in construction activities; real estate business; exploitation, production and trading of construction materials; management of technical infrastructure works; management of housing and office development.
Accordingly, the penalty for the act of organizing construction works that violate construction regulations causing subsidence, cracks, or damage to neighboring works or technical infrastructure works will be fined from 15 to 20 million VND if the construction work is in a case where it is required to prepare an economic-technical report on construction works or prepare an investment project for construction works.
The same violation will result in a fine of 3 to 5 million VND when constructing individual houses in urban areas; or a warning or a fine of 500,000 VND to 1 million VND when constructing individual houses in rural areas.
Along with the above fine, a fine of stopping construction will be applied to compensate for damages. Regarding the compensation procedure, after the administrative violation record is made, if the violating party and the damaged party cannot reach an agreement and one party has a request, the Chairman of the Commune People's Committee will preside over the agreement on the level of compensation for damages between the violating party and the damaged party.
In case the two parties fail to reach an agreement, the two parties agree to invite an independent organization with legal status to determine the extent of damage as a basis for compensation. Within 7 days if the two parties cannot agree on inviting an organization for appraisal, the Chairman of the Commune People's Committee shall decide to invite an organization for appraisal, the cost of which shall be paid by the violating party;
Within 7 days, if one of the parties does not agree with the results provided by the appraisal organization, that party has the right to invite another organization and pay the costs themselves. This appraisal result is the basis for determining the compensation level. In case the other party does not agree with the second result, the Chairman of the People's Committee at the commune level decides the compensation level based on the average of the first and second appraisal results;
After 30 days, if the appraisal organization fails to provide appraisal results, the Chairman of the Commune People's Committee shall decide to use the initial appraisal results as the basis for determining compensation for damages. The party causing the damage shall be responsible for opening a deposit account at the bank and transferring the full amount of compensation according to the appraisal results into that account. After the party causing the damage has transferred the full amount into the bank account, the Chairman of the Commune People's Committee shall decide to allow the construction of the project to continue.
In case the damaged party does not agree with the compensation level, they have the right to file a lawsuit in Court.
Also according to the provisions of Circular 02, in case a construction work is at risk of collapsing or causing the collapse of neighboring works, the Investor is responsible for supporting the cost of moving and renting temporary accommodation for the damaged party during the settlement period./.
According to Vov
