Gamuda Land handed over A5 Apartment Complex to residents when conditions were not met?

Công LuậnCông Luận12/06/2023


Apartment complex A5 still exists and needs to be fixed

Speaking with the Journalist and Public Opinion Newspaper, some residents who bought houses at the A5 Apartment Complex in the Tan Thang Sports and Residential Complex (Celadon City project, Son Ky ward, Tan Phu district, Ho Chi Minh City) of the investor Gamuda Land Joint Stock Company (Gamuda Land) said that after many requests to prove that the project is qualified for handover to residents, the investor issued Document 516/GD-ATXD/GT dated May 10, 2023 of the State Appraisal Department on Construction Quality - Ministry of Construction (Appraisal Department) to answer customers' questions.

According to the conclusion in this document, the A5 apartment building project has been constructed in accordance with the approved design. The management of construction quality and acceptance of completed construction works are in accordance with the regulations on management of construction quality.

Gamuda Land hands over apartments to customers without approval from authorities, picture 1

Diamond Alnata Subdivision - one of the buildings in A5 Apartment Complex.

The Appraisal Department requested Gamuda Land to continue to address the shortcomings in the report submitted by the investor on May 4, 2023 and report the results to the Appraisal Department. The investor must also be responsible for controlling, ensuring safety, environmental sanitation, and fire and explosion prevention during the process of completing the installation of equipment inside the apartment. Ensure the provision of adequate technical infrastructure and social infrastructure to serve the needs of users in accordance with the approved project content. At the same time, Gamuda Land must maintain the fire prevention and fighting conditions of the project in accordance with the provisions of law.

However, upon investigation, the above document of the Appraisal Department does not contain any content confirming that the project has been approved for acceptance to be put into use. This is the content shown in the notice of the Appraisal Department for projects within the scope of management, when the project has met the conditions to be put into use. After this notice, the investor can hand over the apartment to the customer.

For example, the Appraisal Department once issued Notice No. 112/GD-GDD1/HT on the results of the inspection of the acceptance of the completion of the construction project with Apartment Complex A1, also at the Celadon City project. In this notice, the Appraisal Department also clearly stated the content "Accepting the acceptance results of the Investor - Gamuda Land HCMC Joint Stock Company to put into use for blocks A, B, C, D, E, F, basement area, landscape and technical infrastructure of Apartment Complex A1...".

Gamuda Land hands over apartments to customers without approval from authorities, picture 2

Content of approval to put the project into use by the Appraisal Department with Apartment Complex A1 - Celadon City.

Due to the lack of the above content, many customers of Gamuda Land did not accept the investor's feedback that the A5 Apartment Complex project had been approved for use. At the same time, they continued to request that this investor clarify and provide full legal documents, showing that this project was qualified to be handed over to residents.

Is it necessary to confirm that the project is eligible for use?

Responding to the Journalist and Public Opinion Newspaper about the above question, Lawyer Nguyen Van Tuan - Director, TGS Law Company Limited (Hanoi Bar Association) said that the regulations on handover of construction items are stipulated in Clause 1, Article 124, Construction Law 2014 (supplemented by Point a, Clause 46, Article 1 of the 2020 amended Construction Law), specifically the handover of construction works must comply with the following regulations:

Construction works have been accepted in accordance with construction law;

Ensure safety in operation and exploitation when putting the project into use;

Gamuda Land hands over apartments to customers without approval from authorities, picture 3

Lawyer Nguyen Van Tuan - Director, TGS Law Firm LLC (Hanoi Bar Association).

For urban construction investment projects, all or some of the works of the project can be handed over for use, but before handover, investment and construction must be completed to ensure synchronization of technical infrastructure and social infrastructure according to approved investment phases and construction designs, ensuring connection with the common technical infrastructure of the area, in accordance with the project content and approved planning.

At the same time, Clause 3, Article 124 above also stipulates that when handing over a construction project, the construction contractor must deliver to the investor documents including completion drawings, operating instructions, construction maintenance procedures, list of equipment, spare parts, replacement reserve materials and other necessary related documents.

“Therefore, when the apartment project is completed and complies with all the above regulations, the investor will be able to hand over the apartment in accordance with the construction law. Simply put, if the apartment is to be handed over, it must be completed in accordance with the regulations. Thus, the investor who wants to hand over the apartment must have a certificate from the State Appraisal Department on the quality of the project,” said Lawyer Nguyen Van Tuan.

Next, based on Article 12 of Circular No. 03/2011/TT-BXD of the Ministry of Construction guiding the activities of inspection, appraisal and certification of eligibility to ensure load-bearing safety, certification of conformity to the quality of construction works. The certification organization shall issue certificates to investors and owners within the time limit specified in the contract. The contents of the certificate include:

Name of the certification organization; Basis for certification; Name of the certified construction work and construction items; Certification content; Conclusion, assessment; Signature and seal of the legal representative of the certification organization.

"Therefore, in the certificate of the State Appraisal Department on construction quality, the conclusion must include confirmation that the construction is eligible to be put into use," said Lawyer Nguyen Van Tuan.

To clarify the above content, the Journalist and Public Opinion Newspaper will continue to seek answers at the State Appraisal Department of Construction Quality - Ministry of Construction and inform readers as soon as possible.

It is known that Gamuda Land had previously sent a notice requesting the completion of financial obligations to customers from the end of January 2023 to proceed with the handover of the house. However, up to this point, Gamuda Land has been late in handing over compared to the time specified in the sales contract. From there, a penalty clause of 18%/year on the amount the customer has paid, calculated on the time of late handover arises. At the same time, customers have the right to unilaterally terminate the contract and request Gamuda Land to pay an additional 30% on the amount paid according to the terms of the contract. Also from this point, many disputes have occurred between the investor Gamuda Land and customers who have bought houses at Apartment Complex A5.

Regarding the A5 apartment complex, on April 13, the Ho Chi Minh City People's Committee issued a decision to fine Gamuda Land for violations occurring at the Celadon City urban area project. This investor violated the law when signing a contract to buy and sell apartments at the A5 apartment complex of this project without a document from the Department of Construction notifying that it is eligible to sell and lease future housing according to the law.

Pursuant to Clause 4, Article 58 of Decree 16/2022 of the Government, Ho Chi Minh City People's Committee decided to fine Gamuda Land VND 900 million for illegal capital mobilization.

In addition, the company must also take remedial measures, which are to return the capital mobilized in violation of regulations. The time limit for implementing remedial measures is 10 days from the date of receipt of the decision. All costs for organizing the implementation of remedial measures shall be borne by the company.



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