Contents
CHAPTER I: General Regulations
Article 2 Building Survey-Design Businesses
Article 3 Building Survey-Design Business Operation
Article 5 Conditions for a BSDC
Article 6 Approval of Licenses
CHAPTER III: Principles for Operation of BSDCs
Article 9 Scope of Business Operations
Article 10 Bidding for Projects
Article 11 Implementation of Obligations
CHAPTER IV: Awards for Good Performance and Measures against Violators
Article 12 Awards for Good Performance
Article 13 Education Measures and Fines
Article 14 Suspension of Business
Article 15 Withdrawal of Business License
Lao People’s Democratic Republic
Peace Independence Democracy Unity Prosperity
--------------------------
Ministry of Communications, Transport | No.: 08908/MCTPC |
Post and Construction |
on
Business Licenses for the Incorporation and
Operation of Building Survey-Design Businesses
- Pursuant to the Law on Business, No. 03/94/NA, dated 18 July 1994;
- Pursuant to the Law on the Promotion of Domestic Investment No. 03/95, dated 8 March 1995;
- Pursuant to the Law on the Promotion and Management of Foreign Investment in the Lao PDR No. 01/94, dated 4 March 1994;
- Pursuant to the Prime Minister’s Decree No. 66/PM, dated 20 May 1999 on the Organization and Operation of the Minister of Communications, Transport, Post and Construction.
The Minister of Communications, Transport, Post, and Construction hereby issues a Regulation:
General Regulations
This Regulation defines regulations on permission for the incorporation and operation of building survey-design businesses and the management and promotion of those business units to operate their businesses in accordance with the policy of the Lao People’s Revolutionary Party and state laws and regulations in order to actively contribute to national socio-economic development.
Article 2 Building Survey-Design Businesses
“Building survey-design business” refers to a service business which includes survey-research of soil and construction materials, architectural and structural design, interior-exterior design, and management and inspection of housing and building service production businesses. Those services are collectively referred to as a “Building Survey-Design Company” and hereinafter referred to as a “BSDC.”
Article 3 Building Survey-Design Business Operation
- A soil and construction material survey-research company is only allowed to conduct surveys of and research into areas, soil, and material sources, and to examine, test, and issue qualification certificates for soil and construction material;
- A building design-decoration company is only allowed to carry out area surveys, architectural design, structure design-plans, interior-exterior design-decoration, and evaluation and monitoring of construction;
- A building construction consultancy company is only allowed to carry out project studies, listing of documents, drawing up of technical standards for design and construction, preparation of bidding documents, drafting contracts, construction management (supervision and monitoring of construction), inspection, and issuance of qualitative certificates for the structure and other components of a building.
Regulations on the Issuance of Licenses for Incorporation and
Operation of Building Survey-Design Businesses
Article 5 Conditions for a BSDC
1. Financial conditions:
Each type of BSDC must have a stable and sufficient financial position for its operations. Total capital must be based upon a total value of fixed assets and existing working capital or based upon the balance sheet of the company as audited by a competent authority or independent auditor licensed to conduct auditing work under applicable laws and regulations.
2. Technical conditions:
- An applicant, who is a director of the company, must be a specialist with building construction knowledge at vocational education level or above;
- The BSDC must be ready in terms of personnel with at least two persons being specialists with building construction knowledge at vocational education level and firsthand working experience; provided that those personnel are not civil servants or specialists of other companies, and have never been ordered by a court to cease working in this field;
- The BSDC must have vehicles, machines, and tools to service the survey-design, management, and inspection of construction in accordance with the list and numbers stipulated for its type of business.
3. Legal conditions:
- The BSDC must be registered with the commerce and tourism authority and have its articles of association and enterprise registration certificate licensing the company to conduct the survey and research of construction materials or building design-decoration or construction consultancy. For foreign investment in the business, an investment license is also required;
- A company or a person applying for a license must not fall within the list of persons or companies ordered by a court or a competent authority to cease or suspend their business operations;
- After the Association of Lao Architects and Civil Engineers has been officially incorporated and is in operation, a director and a specialist must be members of the association.
- The BSDC must have a permanent office with the enterprise name sign (whether a sole trader enterprise or a company), enterprise registration, and contact number. In case of office address change, a new office address must be notified to the relevant authorities;
- The detailed financial and technical conditions and office equipment for each type of BSDC is enclosed herewith in Appendix 1.
Article 6 Approval of Licenses
Principles for Operation of BSDCs
Article 9 Scope of Business Operations
Article 10 Bidding for Projects
Article 11 Implementation of Obligations
Awards for Good Performance and Measures against Violators
Article 12 Awards for Good Performance
Article 13 Education Measures and Fines
Article 14 Suspension of Business
The provincial, capital, and special administrative area Divisions of Communication, Transport, Post, and Construction may suspend the building survey-design activity of any BSDC under their supervision when the BSDC is found to have violated this Regulation on consecutive occasions, has been subject to education measures and fines, but still continues violating this Regulation.
Article 15 Withdrawal of Business License
1. The provincial, capital, and special administrative area Divisions of Communications, Transport, Post, and Construction may withdraw the building survey-design business license of any BSDC under their supervision when it is found that:
- There is a request to cease business operations due to personal reasons or the death of the owner;
- The BSDC suspends its business without permission for more than one valid period;
- The BSDC is ordered to cease its business operations due to serious violation of state laws and regulations or due to operations that violate policies of the Lao People’s Revolutionary Party.
2. Prior to the withdrawal of the business license of any BSDC, the Communications, Transport, Post, and Construction Authority must thoroughly and reasonably review the case, and after withdrawing the business license, it must notify a commerce authority to withdraw the BSDC’s enterprise registration certificate.
3. A person whose business license is withdrawn may apply for a new business license after a period of three years.
Final Provisions
This Regulation is effective from the date of signature until it is amended. All provisions, regulations, and decisions of the Ministry and the Divisions of Communication, Transport, Post, and Construction that contradict with this Regulation shall be canceled.
Vientiane, date 24 May 2002
Minister of Communication, Transport, Post, and Construction
[Signature and seal]
Bouathong VONGLOKHAM
Detailed Financial and Technical Conditions of BSDCs
No. |
Description |
Unit |
Survey-research |
Survey-design |
Construction consultancy |
Remark |
I |
|
|
|
|
|
|
1 |
Minimum registered capital |
LAK |
200 million |
50 million |
100 million |
|
2 |
Fee for issuance of a license |
LAK |
100,000 |
100,000 |
100,000 |
|
II |
Personnel |
|
|
|
|
|
1 |
Minimum employees |
Person |
10 |
5 |
7 |
|
2 |
Specialist with vocational education |
Person |
2 |
2 |
2 |
For design, an architect is required |
3 |
Other employees or specialists |
Person |
8 |
3 |
5 |
|
4 |
Experience of specialists |
Year |
5 |
5 |
10 |
At least |
III |
Vehicles, machines, and tools |
|
|
|
|
|
1 |
Cars or pickup truck |
Car |
1 |
1 |
1 |
|
2 |
Soil survey-test vehicle |
Vehicle |
1 |
|
|
|
3 |
Surveyor’s telescope |
Unit |
1 |
1 |
|
|
4 |
Theodolite |
Unit |
1 |
1 |
|
|
5 |
Soil testing device |
Set |
1 |
|
|
|
6 |
Concrete testing device |
Set |
1 |
|
|
|
7 |
Cement testing device |
Set |
1 |
|
|
|
8 |
Steel testing device/other materials |
Set |
1 |
|
|
|
9 |
Concrete qualitative test device |
Set |
1 |
|
|
|
10 |
Computer with design-assessment program |
Device |
1 |
|
|
|
11 |
Printer for drawings |
Device |
1 |
|
|
At least A3 paper printable |
|
|
|
|
|
|
|
IV |
Office stationery |
|
|
|
|
Should have |
1 |
Tea for guests |
Set |
1 |
1 |
1 |
|
2 |
Typewriter or computer + printer |
Set |
1 |
1 |
1 |
|
3 |
Table-chair for office/drawing |
Set |
3 |
3 |
3 |
|
4 |
Table-chair for meeting |
Set |
1 |
1 |
1 |
|
5 |
Telephone |
Unit |
1 |
1 |
1 |
Except where there is no telephone connection |
Name | Description | Status |
---|---|---|
Capital requirement | The business must have sufficient capital according to the type of its business operation. | Active |
Enterprise registration requirement | The business must obtain an Enterprise Registration Certificate | Active |
Enterprise registration requirement | The business must register an enterprise with the Ministry of Industry and Commerce and obtain an Enterprise Registration Certificate | Active |
Minimum registered capital requirement | Minimum registered capital is LAK 100,000,000 for construction consultancy business | Active |
Minimum registered capital requirement | Minimum registered capital is LAK 200,000,000 for survey and analysis business | Active |
Minimum registered capital requirement | Minimum registered capital is LAK 50,000,000 for the survey and design business | Active |
Requirement to be a member of professional association | The business must be a member of The Association of Lao Architects and Civil Engineers | Active |
Requirement to obtain the authorization to establish and operate the housing survey-design business | The establishment and operation of the housing survey-design businesses must obtain authorization from Department of Communication Transport Post and Construction (now Department of Public Works and Transport) of the province or Vientiane Capital. | Active |
Requirement to renew the business operation license | The business operation license is valid for 12 months and must be renewed with 30 days before its expiration. | Active |
Technical requirements | A director of the company must hold at least a diploma degree in construction-architecture; Have at least two technical staff with at least a diploma degree in construction-architecture and have working experience; Have vehicles, machines and equipment to serve the survey-design, management and inspection of the construction. | Active |