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Law No. 72 Of 29 December 1969 On The Organization, Planning And Execution Of Investment

Original Language Title:  LEGE nr. 72 din 29 decembrie 1969 privind organizarea, planificarea şi executarea investiţiilor

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LEGE no. 72 72 of 29 December 1969 on organisation, planning and execution of investments
ISSUER GREAT NATIONAL ASSEMBLY
Published in OFFICIAL BULLETIN no. 154 154 of 29 December 1969



EXPLANATORY MEMORANDUM The development of the national economy in ever increasing rhythms and proportions requires the realization of an increasing volume of investments for the construction of new fixed assets leading to the increase of material production and the further lifting of the standard of living of our society. The realization of the large investment program provided for in the coming years demands special efforts from all the people, for which the party and state leadership has drawn attention in numerous rows on the need to use investments with maximum efficiency, as well as on the responsibility of all the factors contributing to the performance of this programme. In the activity of the bodies and organizations that contribute to the realization of investments there are some shortcomings, which lead to the extension of the duration of execution of some works, to the postponement of the respective capacities, to the use non-economic constructive and technological solutions, the execution of inadequate quality works, as well as the achievement of a low efficiency. The shortcomings are mainly due to the insufficient substantiation of some proposed investments, the early non-preparation of the works-delays in the elaboration of the technical-economic documentation, the obtaining and the treatment of offers, the contracting of machinery, in clarifying the problems resulting from the agreements of the interested bodies in making and exploiting -the non-recovery of the supplies of machinery and technological installations in the country and from import with the realization of construction-assembly works, the execution of improper quality works, etc. These shortcomings are also determined by the failure to specify and delineate the duties of the factors that compete in the realization of investments as well as the application to a reduced extent of the regulations providing for sanctions for failure to perform these duties. In order to strengthen the liability in the activity of planning, carrying out and receiving investment works, it was necessary to delineate the duties and responsibilities of all the contributing factors. To this end, the adjoining law was adopted, which specifies the duties of ministries and economic synthesis bodies, industrial plants, enterprises, design and construction-assembly organizations, machinery suppliers and equipment suppliers. materials, as well as other factors. At the same time, it was stipulated the obligation for the heads of the investment titulation bodies to establish concrete responsibilities on collective and individuals. The law also provided for disciplinary, material, civil, administrative or criminal liability for employees who do not fulfill their duties, as well as for those who do not take the appropriate measures in case of misconduct. The Great National Assembly of the Socialist Republic of Romania adopts this law. + Article 1 The economic and social uninterrupted progress of the country is determined in the decisive measure by the realization of a high rate of accumulation, by the volume of investments for the enlarged socialist reproduction, the objective requirement of modern society under the conditions Contemporary technical-scientific revolution, in order to ensure the increasing extent of the material and spiritual needs of the people. + Article 2 The investment plan is based on the country's economic and social development directives, in perspective and annually, approved by the party and the state. + Article 3 The Great National Assembly approves the investment program through the perspective and annual plans. + Article 4 The Council of Ministers shall draw up the investment plan and shall respond to it. + Article 5 The introduction of investments is based on a rigorous economic foundation, the analysis of domestic needs and export possibilities, with the aim of achieving high-efficiency capacities. On the approval of the introduction of investments, the graphs for their realization will also be presented. The preparation and execution of investments must ensure the implementation of the objectives at the planned deadlines and the realization, in a short period, of the entire physical production, labor productivity, specific consumptions, costs of production, profitability, accruals and net currency contribution provided for in the projects. + Article 6 The State Planning Committee shall have the following duties and responsibilities: a) coordinate the entire planning and elaboration of proposals on investment plans, current and perspective, taking into account the development, proportional, balanced and efficient development of the national economy and its branches, the superior exploitation of natural resources, the needs of the country's economic and social development and the conjunctural trends of the external market b) ensures through the material balances, according to the consumer norms established by the annual plans, the materials and equipment for investments, which are centralized, the investment and foreign exchange funds correlated with the annual needs of execution and time-limits for the commissioning of capacities; c) elaborates, together with the ministries and other central bodies, norms and regulations on the indicators of efficient use of investment funds; d) pursue the investment plan; e) exercise state inspection in design, construction and assembly. + Article 7 Ministries and other central bodies through their colleges and committees, as well as the executive committees of the county folk councils and the city of Bucharest, have the following duties and responsibilities: a) development and implementation of the investment plan; b) substantiating the economic efficiency of investments; c) elaboration of studies and programs of development in the perspective of their branches of activity; d) drawing up together with the industrial plants, the combined and the other units in subordination, the projects of the five-year and annual investment plans; the distribution of funds allocated annually in accordance with the schedule of instalments investment and time-limits for commissioning; e) the preparation of investments, to be nominated in the five-year plan, on the basis of coordinating graphs drawn up for each new objective, so that each activity is carried out normally, a sustained pace of execution and putting into service as short as possible; f) controls and takes measures to comply with the deadlines for the commissioning of the capacities provided for in the plan, and the fulfilment of approved technical-economic indicators; g) ensuring the contracting of machinery and facilities in the country, as well as licenses, technological processes, complex imported machinery and installations with delivery times correlated with the investment staggered graphs and with the deadlines of Commissioning of capacities in the area; h) carrying out the task of coordinator on the industrial platforms on which objectives are carried out belonging to several investment holders and to which this duty lies, in order to achieve effectively, through cooperation, the works of common interest, correlated with the needs for the commissioning of capacities; i) organization, functioning of technical-scientific councils, framing them with competent staff and attracting highly qualified specialists; j) organization of the design activity in order to prepare in time the technical-economic documentation, correlated with the deadlines for starting the works and with the commissioning of the investment objectives; k) ensuring the execution of construction-assembly works through own units or through other organizations; l) rational use of the capacity of design and construction-assembly organizations in subordination. + Article 8 Boards, steering committees or management collectives of industrial plants, plants, industrial groups, enterprises and other investment beneficiary units have their entire business activity as a whole. realization of investments from the economic motivation of their necessity design, execution, reception and commissioning, including the full realization of approved technical-economic indicators. For investments in their approval competence, they shall be responsible for: a) the economic foundation of productive investments based on the analysis of internal needs, possibilities and prospects for the external market, full and efficient use of existing capacities; the opportunity of social-cultural works; b) the construction of new capacities on the basis of safe resources of raw materials, the superior valorisation of raw materials in the country and, in the case of imports, their purchase on favorable terms; first of all, through long-term contracts; c) ensuring a high efficiency of investment; d) substantiating the proposals made on the location of new investments; at the choice of which to take into account the necessary labour insurance, the transport distances of the raw material and the finished products that must be as reduced, by the need to reduce the cost of investment by using utilities in the area; e) the technology adopted and the technical level of the intended machinery, aiming to be executed as far as possible in the country, and in the case of imports of complex machinery they should be carried out in the first place by cooperation; f) the use of licences and patents purchased from import, the assimilation into short terms of products and technologies, as well as the reduction of the integration period in the case of products that are carried out with sub-assemblies and imported parts: g) the economics of constructive solutions; h) ensuring the realization of utility works, ancillary and service objects through cooperation between the beneficiaries in the same area, as well as their execution correlated with the commissioning deadlines; i) approval of the design theme and the technical-economic study; j) contracting and procuring of special equipment and materials in the country and from import, with delivery times correlated with the schedule of staggered investment and with the term of commissioning of capacities, so that no stagnation is created in the activity of erection units or larger stocks than necessary; k) reception at suppliers of the machinery, on the main stages of manufacture and on delivery, according to the conditions established at the contracting; l) keeping and maintaining the machinery and materials it supplies; m) contracting in time with the organizations for the execution of construction-assembly works with execution deadlines correlated with those in the investment staggered schedule or execution in directing for some developments, modernizations and capital repairs; n) the handover of the free sites of any task, obtaining the authorization for the execution of works, opening the financing at the deadline provided in the schedule of staggering the investment and ensuring the uninterrupted financing of o) ensuring the technical-economic documentation, from the theme to the execution projects, to deadlines correlated with the schedule of staggered investment; p) verification of execution projects in terms of classification in the provisions of technical-economic studies and in the approved investment value, compliance with prices and legal tariffs, aiming to eliminate non-economic expenses; approval of the execution documentation; r) compliance with the destination of investment funds allocated and verifying the reality and legality of the expenses and works accepted for settlement; s) meeting the technical conditions and obligations provided in the contracts concluded with the units in the country or with external suppliers; t) training of skilled workers, foremen, technicians and specialization of engineers in order to ensure the necessary personnel for the normal exploitation of the objectives; they will participate in the installation of technological equipment, and the fruitfulness and commissioning of the investment objectives; u) to carry out measures to carry out technological evidence and ensure the timely commissioning of capacities; v) realization of the investments put into operation of physical production, labor productivity, specific consumption, production costs, net contribution in foreign currency, as well as other technical and economic indicators approved at the deadlines and levels provided in the schedule of their realization; ensuring the qualitative level of production and its undoing. + Article 9 For investments whose indicators are approved by the Council of Ministers, as well as for investments in their approval competence, ministries, other central bodies, executive committees of the county folk councils and the municipality Bucharest, as investment holders, have the duties and responsibilities provided in art. 8 the letters. + Article 10 Industrial plants, plants and groups of plants and enterprises can set up their own design organizations, to which the ministries will transfer groups of specialists from design institutes or other subordinate units. + Article 11 The ministries, the other central bodies, the executive committees of the county folk councils and the city of Bucharest, will organize and guide the activity of designing units in subordination, in order to ensure timely documentation technical-economic necessary to carry out the investment plan + Article 12 The design organisation is responsible for: a) elaboration of technical-economic documentation on the basis of the order and theme received from the investment beneficiary; upon receipt of the theme the designer has the right and obligation to propose, as the case may be, the beneficiary b) technical, functional, constructive and architectural solutions adopted, the introduction of technological processes and technological equipment and installations with superior characteristics, the level of approved technical-economic indicators; for the main objects within the investment objectives, the constructive solutions and the special implementing technologies will be established together with the interested building-building organizations; c) the correct establishment of the value of the investment and the value of the construction-assembly works, the observance of the legal prices and tariffs, the accuracy of d) obtaining prior agreements, respecting them and introducing in projects the conditions given by the approval and approval bodies; e) dimensioning of resistance elements, technological installations and utility networks, aiming at ensuring the stability and resistance of constructions, reducing the cost of construction works by making objects with surfaces and volumes in strict compliance with the real necessities, the elimination of architectural excesses, the reduction to the bare essentials of occupied land; the outdoor installation of machinery and installations that can operate under these conditions and reduction to the bare essentials of built surfaces; increasing the degree of industrialization of execution, the use of high prefabrication solutions and other effective measures to lead, first of all, to the reduction of consumer norms and the increase of labor productivity in construction; f) compliance with technical prescriptions, design directives, as well as saving poor materials; g) compliance with the contractual deadlines for the teaching of the documentation, established in accordance with the schedule of the investment; h) control, on execution phases, of compliance with the provisions of projects and specifications; insurance on the basis of contract of technical assistance, until the realization of approved technical-economic indicators; i) attainment of approved technical-economic indicators, at the deadlines provided in the approved documentation. For the problems entered in the letters a-d and i the design organizations respond jointly with the body that approved the documentation. + Article 13 For important investment objectives, the leadership of ministries and other organs that have design organizations in subordination, will appoint the project head and the project collective, ensuring their stability, in order to have continuity in design activity; they will be responsible for the entire design activity until the entry into production and the achievement of approved indicators. For these objectives the construction ministries will ensure the stability of the construction site, and the titular ministries will appoint and ensure the stability of the staff responsible for carrying out the investment works. + Article 14 The Ministry of Industrial Construction, the other ministries and central bodies, the executive committees of the county folk councils and the city of Bucharest, which have in subordination building-assembly organizations, will organize and guide the activity to them, with a view to the optimal use of labor forces, construction machinery, materials, rigorous management of all means of production and money funds, shortening of execution durations, obtaining quality works and teaching of works on the deadlines set out in the schedule of instalments investments. + Article 15 The construction-assembly organization is responsible for: a) the organization, execution and quality of construction works and montages, in compliance with the provisions of the documentation, technical prescriptions and specifications. Both in the examination of execution projects and during execution, the builder has the right and obligation, when he finds, to propose to the designer the improvement of constructive systems, the removal of non-economic or wrong solutions; b) compliance with the order of execution of the objects and the deadlines provided for in the contract, corresponding to the schedule of investment staggerings; c) execution within the contractual terms of all construction-assembly works, including mechanical samples and mechanical fruitfulness, in order to ensure the conditions of commencement to the established deadlines of technological evidence and commissioning; d) rational organization of execution, reduction of specific consumptions by rigorous elimination of waste of materials, good management of them and rational use of labor and construction machinery; preservation and preservation corresponding to technological and material machinery until the handover of works performed to the beneficiaries; the use of industrial processes, the mechanization of the execution of construction works and the lifting of the qualification of the execution personnel the aim of increasing labour productivity e) judicious use of funds allocated for the organization of the site; f) preparation of payment documents on the basis of which the settlement of construction works is made; g) the commencement of the execution of works only on the basis of approved technical-economic documentation and compliance with the other legal provisions in force on h) the organization of the elaboration, by own design groups, of the documentation for the execution of construction-assembly works for some objects or parts of objects agreed with the beneficiary and the designer. To this end, the ministries and other bodies that have in-law enforcement organizations will receive and share their corresponding plan indicators. + Article 16 The ministries, the other central and local bodies, the units under them, as well as the design organizations, are responsible for the use with priority and the expansion of the elaboration and improvement of the type and reusable projects and sections, in to provide documentation of construction sites, increase the prefabrication and cheaper cost of design. It is forbidden to develop unique projects to the works for which there are projects and type sections. + Article 17 The State Planning Committee and the Ministry of Finance jointly draw up the single opinion on the necessity, opportunity and economic efficiency of investments whose technical and economic indicators are approved by the Council of Ministers and respond for the content of the opinion and the deadline for issuing it. + Article 18 The Ministry of Finance and the financing banks have the following duties and responsibilities: a) finances and credits investments under the provisions of the plan, approved documentation, aims to carry out the investment plan, as well as to respect the destination of the allocated funds; b) to investments within the competence of approval of ministries and other central bodies, the central financing banks will endorse the indicators of economic efficiency, before their approval; c) to investments within the competence of approval of the executive committees of the county and county councils of Bucharest, industrial plants, plants, enterprises and other economic and budgetary units, units of banks financing, before the approval of the investment, the indicators of economic efficiency, aiming at the compliance with the normal indicators and the improvement of the economic activity of the unit to which the respective investment will be executed; d) verify the use of investment funds, the legality of prices, tariffs, the savings of expenses provided in the documentation and the reality of the expenses presented for settlement The financing banks have the right to refuse the settlement of expenses in cases when the legal provisions are violated; e) the financing banks and the units subordinated to them are responsible for the content of the given opinion, the time limit for issuing it and follow the procedure of the measures set out in the opinions following the checks made in the construction units; f) divergences between financing banks and investment beneficiaries are solved by the higher hierarchical bodies. + Article 19 The construction and assembly materials shall be responsible for the quality of the materials and for compliance with the delivery time limits laid down in the contracts concluded with the construction or assembly organisations. the beneficiaries, in accordance with the time-limits for commissioning. + Article 20 The supplier of complex machinery, equipment and installations in the country is responsible for their quality and evaluation and for the delivery to the contractual terms established in accordance with the provisions of the investment staggered chart, as well as for their operation to the parameters set out in the contract and in the specifications. At the request of the beneficiaries the machinery suppliers will grant, on a contract basis, technical assistance. + Article 21 The Ministry of Foreign Trade, economic ministries, plants and enterprises importing licenses, technological processes, complex installations, machinery, materials, documentation and equipment, are responsible for: a) contracting them to the deadlines agreed with the beneficiary, the designer and the builder of the investment, so that the implementation of the works in the annual plan will be ensured the delivery to terms correlated with those provided in the graphs of the staggered investment and the time-limits for commissioning; b) ensuring deliveries at the time limits stipulated in contracts concluded with external suppliers; c) obtaining prices, guarantees and contractual clauses as advantageous as possible; tracking the observance of these clauses by external suppliers, as well as the recovery of any damages; d) the technical level of the machinery; e) organization of the reception of machinery on the main stages of manufacture and delivery, according to the conditions established by contracts. For the duties of letters c), d) and e) the liability is in solidarity with the beneficiary of the investment. The concrete obligations of foreign trade enterprises importing complex installations, machinery, equipment, materials and documentation will be entered into economic contracts concluded with the respective investment beneficiaries. + Article 22 Central and local bodies that during the elaboration of technical-economic documentation for investments issue prior agreements, according to the regulations in force, as well as the bodies interested in the realization or exploitation of new capacities or for which they arise and serve in connection with the implementation of those investments, they shall be responsible for complying with the terms of issue of the agreements and their content and of complying with their obligations. + Article 23 Ministries, other central bodies and executive committees of popular councils, as well as industrial plants, plants, businesses and other economic and budgetary units applying for a production, performance or work to which subsequently waive, in whole or in part, and for which investment funds have been spent, they are responsible for not using the capacities and spending those funds. Also, the investment beneficiaries who will purchase from the country or import machinery, installations and appliances that are not necessary for the realization of the investment objective for which they were purchased the spending of those investment and foreign exchange funds. + Article 24 The Ministry of Industrial Construction in collaboration with the National Council of Scientific Research, is responsible for coordinating the research activity in the construction branch and ensures, through its own units, the research into the problems that concern the whole branch of construction. The Ministry of Industrial Constructions and the State Committee for Economy and Local Government, together with the Ministries producing materials for construction, elaborates normative and directives in order to reduce consumer norms and the introduction of new, efficient materials to industrial and housing and social-cultural works. Ministries and other central bodies, which have in their subordination units of execution, are responsible for the organization and conduct of applied research in sector-specific constructions. + Article 25 Investment beneficiaries shall be responsible for the organisation in good conditions and timely reception of investment capacities and objectives. + Article 26 The reception of investment objectives regarding construction-assembly works, commissioning and realization of technical-economic indicators shall be carried out by the reception committee appointed by the Council of Ministers for investments whose indicators are approved by the Council of Ministers; by the colleges of ministries, the executive committees of the popular councils, the boards of directors of the plants and the steering committees of the enterprises, according to the powers of approval of investment subject to reception. In the composition of the reception committees will be included, as the case may be, scientists, university professors and other specialized staff. For the most important investments the chairman of the reception committee will be the deputy minister or other staff with leadership positions in the ministry. + Article 27 The appointed committees shall make the investment reception as follows: a) the reception of construction-assembly works along the way, at the end of them and after the expiry of the warranty period, following the compliance with the conditions provided for in the approved documentation and b) the reception of the production capacities at the end of the technological tests, verifying the existence of the conditions for normal operation at the full capacity of the plants and machinery, so that the quality products according to the project, the other approved indicators, as well as other conditions provided by the normative acts in force; c) final reception of the investment objective after the realization of the approved parameters. The minutes of final reception will be subject to the approval of the same organs that approved the constitution of the reception committees. The reception committees shall be responsible for carrying out the reception and its quality. + Article 28 The heads of ministries, other central and local bodies, as well as the heads of the units under them, will determine-according to the powers they have-the concrete duties of the collectives and persons competing in the achievement of each investment objective, as well as the deadlines for their fulfilment. The ministers, heads of the other central and local bodies, investment titleholders or their deputies will directly respond to the objectives of special importance. + Article 29 The violation of the duties provided for in this law entails the disciplinary, material, civil, administrative or criminal liability of the employees due to which the damage occurred. If the act attracts criminal liability, the provisions of art. 248 or 249 of the penal code, if the act does not constitute a more serious crime. + Article 30 When the violation of the duties provided for in this law occurred a significant disorder of the good gait of an organization from those provided in art. 145 of the criminal code, the criminal action is set in motion upon the complaint of the body or organization in which this disorder occurred. + Article 31 The decision of the Council of Ministers will determine the facts that constitute contraventions to the provisions of this law, as well as the corresponding sanctions. + Article 32 In order to increase the efficiency of investments, the reduction of their cost, the realization of technical and economic indicators superior to those approved, the shortening of the deadlines for their realization and the commissioning of investments, through decisions of The Council of Ministers will set out the conditions and criteria for stimulating and cointering the factors that compete in the realization of investments. + Article 33 The Council of Ministers will take the necessary measures that within 3 months from the date of publication of this law, the normative acts in force in the field of investments and constructions will be made in accordance with the provisions of this law. ----------------