CONSTRUCTION WORKS, FOUNDATION DIGGING, HOUSE BUILDING, CAUSING WALL CRACKS, DAMAGED NEIGHBORS’ HOUSES, DO I HAVE TO BE COMPENSATED?

Question: Recently, someone next to my house dug the foundation to build a house, causing many cracks in my house, making me extremely insecure and not daring to live in that house anymore. So let me ask, when the construction work, digging the foundation, building a house, causing cracks in the wall, damaging my house, does the neighbor have to compensate? What is the responsibility for compensation when building a house causing damage, violating construction regulations?

Advise:

According to the provisions of Article 174 of the 2015 Civil Code on the obligation to respect construction rules as follows:

“ Article 174. Obligation to respect building regulations

When constructing a structure, the owner of or a subject having other rights with respect to property must comply with the law on construction and [must] ensure safety. It may not build beyond the height and distance provided by the law on construction or infringe the legal rights and interests of the owners of or subjects having other rights with respect to adjoining and neighbouring immoveable properties.”

Simultaneously, Article 605 of the 2015 Civil Code stipulates compensation for damage caused by houses and other construction works as follows:

“Article 605. Compensation for loss and damage caused by houses and other construction works [or buildings]

An owner or possessor of, or a person assigned to manage a house or construction works [or building] must compensate for loss and damage caused by such house or construction works [or building] to another person.

Where a person executing construction is at fault by allowing other houses or construction works to cause loss and damage, such person must jointly compensate [for the loss and damage].”

In addition, Clause 5, Article 16 of Decree 16/2022/ND-CP stipulates administrative sanctions for violations in construction.

“5. Impose penalties for organizing construction in a manner violating regulations on construction quality assurance thereby causing depression, crack, or damage to technical infrastructure or neighboring structure or causing or potentially causing neighboring structure to collapse without causing damage to health or lives of other people as follows:

a) A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed in case of detached houses;

b) A fine ranging from VND 50.000.000 to VND 60.000.000 shall be imposed on construction of detached houses in sanctuaries, historical – cultural heritages, or other structures;

c) A fine ranging from VND 80.000.000 to VND 100.000.000 shall be imposed on construction of structures that require feasibility study of construction investment or economic – technical report on construction investment.”

Thus, in case of fault, compensation will be made by the owner, possessor, or person assigned to manage or use the house that caused the damage. If during the construction process there is a fault on the part of the construction unit, they must be jointly responsible.