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MINISTRY OF
CONSTRUCTION
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THE SOCIALIST REPUBLIC OF VIETNAM
Independence– Freedom – Happiness
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No.: 04/2010/TT-BXD
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Hanoi, May 26, 2010
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CIRCULAR
GUIDING
FORMULATION AND MANAGEMENT OF COSTS OF INVESTMENT IN WORK CONSTRUCTION
Pursuant to the Decree No.17/2008/ND-CP dated
04/02/2008 of the Government stipulating the functions, tasks, powers and
organizational structure of the Ministry of Construction;
Pursuant to the Decree No.112/2009/ND-CP
dated 14/12/2009 of the Government on management of costs of investment in work
construction,
Ministry of Construction
guides some contents of Decree No.112/2009/ND-CP dated 14/12/2009 of the Government on
management of costs of investment in work construction (hereinafter referred to as Decree No.112/2009/ND-CP) as follows:
Chapter I
GENERAL
PROVISIONS
Article 1. Scope of
governing
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2. For projects using ODA capital, if the
international treaties of which Vietnam is a member providing for management of
work construction investment costs other than the provisions hereof shall
comply with the provisions in such treaties.
Article 2. Subjects
of application
1. The organizations and individuals involved
in the formulation and management of the work construction investment cost,
inspection, examination, auditing and payment of work construction investment
capital of the projects funded with 30% of state capital or more.
2. To encourage the organizations and
individuals involved in the formulation and management of the work construction
investment costs of the projects using less than 30% of state capital to apply
this Circular.
Article 3. Principles
for formulation and management of work construction investment cost
Principles of formulation and management of
work construction investment costs are defined in Article 3 of Decree
No.112/2009/ND-CP, in which the implementation of Clause 6 of this Article for
inspection, examination and auditing of work construction investment costs must
ensure the unity in principle, method and specific contents of the formulation
and management of the total investment, work cost estimates, work construction
norms, the price of work construction which have been decided on selection by
the person who decides on investment, investor according to the provisions of
Decree No.112/2009/ND-CP and the specific contents of this Circular.
Chapter II
FORMULATION
OF INVESTMENT COSTS OF WORK CONSTRUCTION
Item 1. FORMULATION
OF TOTAL INVESTMENT
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1. Total investment is the estimated costs to
implement investment projects of work construction, is calculated and
determined during the phase of formulation of investment project of work
construction in accordance with the content of the project and basic design;
the cases where only making economic - technical report, the total investment,
at the same time is the work construction cost estimate shall be determined in
accordance with the contents of the economic - technical report and design of
construction drawing.
2. Total investment is one of the bases for
evaluating economic efficiency and selection of investment method; as a basis
for investor to plan and manage capital as the implementation of work
construction investment.
3. The specific contents of the cost items in
total investment prescribed in clause 3 of Article 4 of Decree
No.112/2009/ND-CP as follows:
3.1. Construction costs include the cost of
destruction and dismantling of work construction; construction premises
leveling cost; construction cost of works, major works, temporary works,
ancillary works for construction; costs for temporary housing at the site for
staying and construction administration.
3.2. Equipment costs include the cost of
purchasing technology equipment (including equipment and technology necessary
to produce, process); training costs and transfer of technology, cost of
installation, test, and calibration of equipment; costs of transportation,
equipment insurance, taxes, fees and other related costs.
3.3. The cost of compensation, support and
resettlement including compensation cost for homes, structures, crops and other
compensation costs; the subsidies when the state recover land; costs for
implementation of resettlement related to compensation for the clearance of the
project; costs for organizing compensation, and resettlement assistance; and
costs for land use during construction; the costs for technical infrastructure
invested.
3.4. Costs of project management: are the
necessary costs for the investors to organize management of the performance of
project managements from project preparation, project implementation to
completion, acceptance and handing over, putting the project into use,
including:
- Cost for making investment reports, the
cost for making investment projects or economic - technical reports;
- Cost for recruitment and selection of
architectural design or selection of architectural design project;
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- Cost for appraisal of investment projects
or economic - technical reports;
- Cost for the formulation, evaluation or
verification and approval of engineering design, drawings design of
construction, work cost estimate;
- Cost for contractor selection in
construction activity;
- Cost for management of quality, volume,
schedule, and construction costs;
- Cost for assurance of safety and
environmental hygiene of the work;
- Cost for setting up norms and unit prices
of work construction;
- Cost for materials quality control, work
quality inspection at the request of the investor;
- Cost for inspection and certification of
eligible load-bearing safe assurance and certification of conformity on quality
of the work;
- Cost for acceptance, payment, and
settlement of agreement; payment and settlement of work construction investment
capital;
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- Cost for acceptance testing and handover of
the work;
- Cost for commencement, inauguration,
advertising propaganda;
- Cost for implementation of other
managements.
3.5. Costs for construction investment
consultancy include:
- Cost for making the task of construction
survey;
- Cost for construction survey;
- Cost for making investment reports,
project, or economic - technical reports;
- Cost for verifying the effectiveness and
feasibility of the project;
- Costs for recruitment and selection of
architectural design;
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- Cost for verification of engineering
design, construction drawings design, the cost for verifying the total
investment, work cost estimates;
- Cost for making request dossier, dossier
for inviting preliminary selection and tender dossier and cost for analysis,
assessment of proposal dossier, dossier of preliminary selection, bidding
dossier for contractor selection in construction activity;
- Cost for construction survey supervision,
construction supervision, equipment installation supervision;
- Cost for making report of environmental
impact assessment;
- Cost for setting up to the construction
norms, work construction unit prices;
- Cost for controlling work construction
investment costs;
- Cost for management of work construction
investment costs: the total investment, work cost estimates, construction
norms, the unit price of work construction, contracts in construction activity,
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- Cost for project management consultancy (in
case of hiring consultants);
- Cost for specialized testing;
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- Cost for inspection and certification of
eligible load-bearing safe assurance and certification of conformity on quality
of the work;
- Costs for monitoring and evaluation of
investment projects for work construction (in case of hiring consultants);
- The cost of conversion of work construction
investment costs to the time of handover, putting into use;
- The cost for implementing other
consultancies.
3.6. Other costs: are the costs not belonging
to the contents specified at points 3.1, 3.2, 3.3, 3.4, 3.5 above but necessary
to carry out work construction investment projects, including:
- Cost for demining mines, bombs, explosives;
- cost for the work insurance;
- Cost for moving construction equipment and
labor force to the construction site;
- Cost for international quality
registration, work deformation observation;
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- Cost for reimbursement of infrastructure
affected by construction;
- Cost of audit, verification, and approval
of the settlement of investment capital;
- The cost of scientific and technological
research related to project; the initial working capital for construction
investment projects aimed at business, interest during construction; costs for
the loading and idle trial run according to technology procedure before the
handover other than the value of products recovered;
- The fees and charges as prescribed;
- Some other cost items.
3.7. Reserve costs include: reserve costs for
the arising workload factors not yet anticipated as making the project and
reserve costs for the drift of prices during the project implementation.
- Reserve costs for the arising workload
factors are calculated by percentage (%) on the total construction costs,
equipment cost, and costs of compensation, support, and resettlement, cost of
project management, cost of construction investment consultancy, and other
costs.
- Reserve costs for the drift of prices are
calculated by the project implementation period (in year), schedule of annual
capital allocation of the project and the construction price index.
4. For ODA-funded projects, in addition to
the contents calculated in total investment as mentioned above, they are also
added other necessary cost items to suit the nature and characteristics of the
type of construction investment project funded by such capital source according
to the concerned current legal documents.
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1. The methods of making the total investment
specified in clause 1 of Article 5 of Decree No.112/2009/ND-CP are specifically
instructed in Appendix 1 to this Circular. Investors, consultants making the
work construction investment project are responsible for selecting the method
of making total investment in accordance with the characteristics and
requirements of the project.
2. If the investor has not got enough
evidence to determine the cost of project management because of insufficient
conditions to determine the total investment, but it needs to implement the
preparatory works for the project, the investor makes cost estimate for this
work to estimate the costs and implementation of work. The above cost would be
included in the cost of the project management of the total investment.
3. Some cost items of cost for project
management; cost of construction investment consultancy, and other costs of the
project if it has not yet specified or not yet calculated immediately, is
allowed to add and estimated to take into the total investment.
4. Construction price index used to calculate
reserve cost for the drift of prices in the total investment is determined by
calculating the average of construction price indexes of at least 3 latest
years, consistent with the type of work, according to the construction area and
the possibility of fluctuations of the cost factors, the regional and
international price.
Item 2. FORMULATION
OF WORK COST ESTIMATE
Article 6. Contents
of work cost estimate
1. Work cost estimate is calculated and determined
by the specific construction work, on the basis of the volume of work,
engineering design, or construction drawings design, the work’s tasks required
to perform, work items and the system of work construction norms.
2. Work cost estimate is the basis for
determining the bidding package price, work construction price, as a basis for
negotiation, contracting, payments to the contractor in case of appointment.
3. Specific content of cost items in work
cost estimates specified in clause 3 of Article 8 of Decree No.112/2009/ND-CP
as follows:
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Costs of temporary housing on the site for
dwelling and construction administration are the costs for building temporary
housing on the site or rending house or traveling for the dwelling and the
construction administration of the contractor during the work construction.
Construction costs include direct costs,
general costs; taxable income advance calculated and value added tax.
3.1.1. Direct costs include the cost of
materials (including materials provided by the investor), labor costs, costs of
construction machines and other direct costs. Other direct costs are the costs
for the necessary works for constructing directly the work such as costs for
moving the workforce within the construction site, occupational safety,
environmental protection for laborers and surrounding environment, materials
testing of the contractor and the irregular costs of pumping, dredging sludge
and unable to be determined volume from the design.
3.1.2. General costs include the costs of
enterprise’s management, production administration on site, costs for workers,
the cost for construction on site, and some other costs.
3.1.3. Taxable income advance calculated:
is the profit of construction enterprise calculated advance in the work
construction cost estimate.
3.1.4. Value Added Tax: is a tax payable
under the provisions of the state and is calculated on the total value of the
cost items in sections 3.1.1, 3.1.2 and 3.1.3 as mentioned above.
3.2. Equipment costs calculated for the work,
work items include the cost of procurement of technological equipment
(including technological equipment needed for production, processing); costs of
training and technology transfer; cost of installation, testing and calibration
of equipment and other concerned costs. Cost of procurement of equipment
includes the purchasing price (including design costs and manufacturing
supervision), transport costs from the port or place of purchase to the work,
costs of storing, wharfing, storing containers at the ports of Vietnam (for
imported equipment), costs for preservation and maintenance in storage at the
site, tax and the premium for construction equipment.
3.3. Project management costs include the
cost items as specified at point 3.4, clause 3, Article 4 of this Circular.
3.4. Cost of construction investment
consultancy includes cost items as specified in point 3.5 clause 3 of Article 4
of this Circular.
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3.5. Other costs include cost items as
specified in point 3.6 clause 3 of Article 4 of this Circular.
For the projects with many works, the other
costs of work cost estimate do not include the cost of demining bombs, mines,
explosives, cost of audit, verification and approval of the settlement of
investment capital, costs for scientific and technological research related to
the project; the initial working capital for construction investment projects
aimed at business, interest during the construction; costs for the loading and
idle trial run according to the technological process before handover (excluding
the value of products recovered), the fees and charges.
3.6. Reserve costs include reserve costs for
arising workload factors not yet anticipated and reserve costs for the drift of
price during the work construction.
4. For the projects with many construction
works, investor can determine the total cost estimate of the project to serve
for the management of costs. The total cost estimate of project is determined
by adding the cost estimates of the works and the related costs of the project.
5. For projects using ODA capital, work cost
estimate can be determined by estimating the international bidding packages,
estimating the domestic bidding packages and estimating the parts of work not
organized bidding. Depending on the requirements and scope of the bidding, the
cost estimates of the bidding package only include construction costs or
including construction costs, equipment costs and other costs allocated to each
bidding package as content in clause 1, clause 5, Article 7, clause 3, Article
16, clause 1, Article 17 and Appendix 6 of this Circular.
Article 7. Method of
making work cost estimates
1. Determination of the construction costs
Construction costs can be determined
according content of cost or synthesis of the contents of cost by one of the
methods referred to in points 1.1, 1.2, 1.3, 1.4 below.
Consultant to make cost estimate of the
project is responsible for selecting the method in accordance with the
characteristics and requirements of the work and taking responsiblility before
the investor on the reasonableness and accuracy of the method of making the
work cost estimate chosen by them. Investor based on the characteristics,
nature, and specific conditions of the work to decide on the method of making
estimate.
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1.1.1. Costs of materials, laborers,
construction machinery in direct costs are determined by volume and work
construction unit price or general construction price of the work. The volume
of construction work shall be determined from engineering design drawings or
construction drawing design, the work’s duties required to perform, work items
in accordance with the list and the content of construction in the work
construction unit price, general construction price of the work.
Work construction unit price and general
construction price of the work is specified in Article 10 of this Circular.
Other direct costs are calculated in
percentage (%) on the total material cost, labor costs, cost of construction
machines depending on the characteristics and nature of each type of work as
described in Table 3.7 Appendix 3 of this Circular.
For the works using ODA capital in
international bidding, other direct costs shall be made in a separate item of
construction costs and is determined by estimation or percentage, depending on
the specific characteristics of each work and the requirements of the
organization of international bidding.
1.1.2. General costs are calculated in
percentage (%) on direct costs or by percentage (%) on labor costs in the
estimates in accordance with provisions for each type of work as instructed in
Table 3.8 Appendix 3 of this Circular.
If necessary, construction contractors must
organize by themselves to exploit and produce materials of sand and rocks to
serve the construction of works, general costs included in the price of
materials is equal to 2.5% on labor costs and construction machines.
For the projects using ODA capital in
international bidding, the general cost is determined by the percentage or by
estimation or under international rules.
1.1.3. Advance calculated taxable income is
calculated in percentage (%) on direct costs and general costs under the
provisions for each type of work as instructed in Table 3.8 of Appendix 3 of
this Circular.
If it is necessary to self-organize to
exploit and produce materials of sand and rocks to serve the construction of
works, the taxable income advance calculated in the material price is equal to
the rate of 3% on direct costs and general costs.
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1.1.5. Cost of temporary housing on site for
dwelling and construction administration is calculated by the rate of 2% on the
total direct costs, general costs, advance calculated taxable income for the
works by routes such as the electricity transmission lines, postal
communication lines, traffic roads, canals, pipelines, other line forms
construction works and equal to 1% for the remaining works.
For the special cases (such as large-scale
and complex works, works outside the island, the ODA-funded works in
international bidding) if the cost item of temporary housing on construction
site for dwelling and construction administration calculated by the above is
not consistent, the investor bases on the real conditions for elaborating and
approving this cost.
In case of the bid, the cost item must be
included in the bidding package price, the tender price.
1.2. By volume of waste of materials, labor,
construction machines, and table of price respectively.
1.2.1. Cost of materials, labor, construction
machine in direct costs can be determined by volume of waste of materials,
labor, construction machines, and table of price respectively. The total volume
of waste of materials, labor, and construction machines shall be determined on
the basis of waste of materials, labor, construction machines for each volume
of the construction of work, work items.
Guidelines to determine the respective price
table on the price of materials, labor, construction machines is in Article 11
of this Circular.
1.2.2. The method to determine other direct
costs, general costs, advance calculated taxable income, value added tax,
the cost of temporary housing on site for dwelling and construction
administration is as guided at point 1.1 of this Article.
1.3. By the basis of works with the similar
economic – technical criteria which was and is implemented.
Construction costs of the ancillary works,
temporary works for construction, common and simple works can be determined
based on construction costs of the works with the similar economic – technical
criteria which was and is implemented and converted the cost items under
construction location and time of making estimation.
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1.4. By the ration of construction costs in
the ration of work construction investment capital.
Construction cost for the works mentioned in
point 1.3 above can also be determined on the basis of the area or capacity of
use and ration of construction costs in the ration of work construction
investment capital.
The methods of determining the construction
cost in points 1.1, 1.2, 1.3 and 1.4 mentioned above are guided specifically in
Appendix 3 of this Circular. For auxiliary works, temporary works for
construction, temporary housing on site for dwelling and construction
administration, the other simple, common works, the costs of the construction
of the above works may be determined by the ratio cost norm.
2. Determination of equipment costs
2.1. Costs for purchase of equipment are
determined by one of the following methods:
- For the equipment which can be determined
its price can be calculated by the number and kind of each type of equipment or
the whole technological line and price per ton, or piece or the entire of
respective equipment line.
- For the equipment which has not been
determined its price can be estimated according to quotation of the suppliers,
manufacturers, or prices of similar devices on the market at the time of
calculation or of the work with similar devices which was and is made.
For technological equipment required to be
manufactured, processed, then this cost is determined on the basis of the
volume of equipment required to be manufactured, processed and the price of
production, processing per one ton (or one calculation unit) in accordance with
the nature and type of equipment under the production, processing contract
which has been signed or based on the quotation of processing product of the
manufacturer selected by the investor or the price of producing and processing
similar equipment of the work which was and is made.
2.2. The cost of training and technology
transfer is determined by making cost estimate or estimation beforehand,
depending on the specific requirements of each work.
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Where the equipment has been selected through
bidding, equipment costs, including bidding price and the costs according to
the contents above shall be stated in the contract.
3. Determination of the project management
costs
Project management costs are determined on
the basis of reference of ratio cost norm published by the Construction
Ministry or by making cost estimate.
4. Determination of the cost of construction
investment consultancy
The cost of construction investment consultancy
is determined on the basis of reference of ratio cost norm published by the
Construction Ministry or by making cost estimate under the guidance of the
Ministry of Construction.
In case of works of the project required to
hire foreign consultants to perform some works, the consultancy costs are
estimated according to current regulations in accordance with the requirements
of using consultants for the work or the value of the consultancy contract has
been signed to record into the estimate.
5. Determination of other costs
Other costs are determined by making cost
estimate or by ratio cost norm under the guidance of the Ministry of
Construction and other concerned ministries, branches.
For some specialized construction works
having the specific cost factors, ODA-funded works, if having any other
concerned costs, they shall be added these costs. Investor decides on and takes
responsibility for their decisions.
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6. Determination of reserve costs
- Reserve costs for the arising workload
factor is calculated by percentage (%) on the total construction costs,
equipment cost, cost of project management, cost of construction investment
consultancy, and other costs.
- Reserve costs for drift of price is
calculated by the work construction time (in months, quarters, years) and the
construction price index in accordance with type of work, by each construction
region.
Construction price index used to calculate
reserve costs for drift of price in the work cost estimate is determined as
specified in clause 4 of Article 5 of this Circular.
The method of determining the cost of
equipment, project management cost, cost of construction investment consultancy
and other costs, reserve costs referred to in clauses 2, 3, 4, 5, 6 of this
Article and synthesis of work construction cost estimates are guided
specifically in Appendix 2 of this Circular.
Item 3. FORMULATION
OF CONSTRUCTION NORMS AND WORK CONSTRUCTION PRICES
Article 8. System of
construction norms
1. Construction norms include the economic -
technical norms and ratio cost norms.
2. The economic - technical norms are the
necessary waste level on materials, labor and construction machines to complete
a unit of construction volume.
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3. The ratio cost norm used to determine the
cost of some types of works in the construction activities include the norm of
project management cost, cost of construction investment consultancy, general
costs and advance calculated taxable income, the cost of temporary housing on
site for dwelling and construction administration and some other ratio cost
norms.
Article 9. The method
of making construction norms
1. Economic – technical norms are established
in the following order:
- Making a list of construction or structure
of the work, showing the technical requirements, conditions, and primary
construction methods and determining the appropriate calculation unit.
- Determining the work components from the
commencement to the completion, in accordance with technical requirements,
conditions, construction methods, and scope to implement the work.
- Calculating the waste of materials, labor,
and construction machines.
- Making the norms on the basis of the sum of
waste of materials, labor, and construction machines.
The method of making the economic - technical
norms is guided specifically in Appendix 5 of this Circular.
2. The ratio cost norm is done under the
guidance of the Ministry of Construction.
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1. Work construction price system includes
work construction unit prices and general construction price is used to set up,
adjust the cost of construction in total investment, and work estimate.
2. Work construction unit price is the
general economic – technical norm, including all direct costs of materials,
labor and construction machines to complete a unit of volume of construction
work of the specific construction work.
3. General construction price is economic –
technical norm including all necessary costs to complete a group of type of
construction, a structural unit, part of the work.
4. Construction price index is a norm
reflecting the volatility of construction price over time and is the basis for
the determination and adjustment of the total investment, work cost estimate,
construction contract price, and management of work construction investment
costs.
Price index of construction includes price
index of work construction, the construction price index by the cost structure
(including the construction price index, price index of equipment, the price
index of other costs), the construction price index by cost factors (including
price index of work construction materials, price index of work construction
labors, price index of work construction machines) and the price index of type
of major construction materials.
Article 11. The
method of making work construction price
1. The method of making the unit price of
work construction
1.1. Work construction unit prices are made
on the basis of selection from the price level of the types of common
construction formed on the regional market where the work is constructed; from
the reference of work construction unit price system which has been published;
from the construction unit price of the works which were and are built; from
the norm system of work construction estimate and involved cost factors.
1.2. The method of making work construction
unit prices based on the system of the norm system of work construction
estimate and involved cost factors by market price is guided in Appendix 6 of
this Circular.
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2.1. General work construction price shall be
made in groups of type of construction, structural units, or parts of the work
on the basis of work construction unit prices which were determined according
to the guidance in clause 1 of this Article.
2.2. The method of setting up general work
construction price is guided in Appendix 6 of this Circular.
3. Method of determining construction price
index is done under the guidance of the Ministry of Construction.
Chapter 3
MANAGEMENT
OF WORK CONSTRUCTION INVESTMENT COSTS
Item 1. MANAGEMENT OF
TOTAL INVESTMENT
Article 12. Appraisal
and approval of total investment of work construction
1. When setting up work construction
investment project or economic - technical report for the cases not required
setting up the project, the investor must determine the total investment to
calculate the effectiveness of construction investment. Total investment
recorded in the investment decision approved by the person who decides on
investment is the maximum cost that the investor is allowed to use for work
construction investment and is a basis for planning and capital management when
performing work construction investment.
2. Contents and competence to appraise the
total investment is specified in Article 6 of Decree No.112/2009/ND-CP.
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3. In case of hiring consulting organizations
and individuals who are sufficient capacity, professional experience to
appraise the total investment, the content of verification is as the content of
appraisal; verification cost is determined on the basis the ratio cost norm or
by making cost estimate under the guidance of the Ministry of Construction.
4. Results of the appraisal or verification
of total investment is under the guidance in Appendix 7 of this Circular.
Article 13.
Adjustment of the total investment
1. Total investment is adjusted for one of
the following cases:
- The effects of earthquakes, hurricanes,
floods, tsunamis, fires, enemy-inflicts destruction or other force majeure
events;
- Appearance of factors which may bring
greater efficiency to the project;
- As the construction plan changes directly
affecting the location, size and objectives of the project;
2. Content and competence of appraisal,
approval of the total investment of adjustment are specified in clauses 2 and 3
of Article 7 of Decree No.112/2009/ND-CP.
In case of changing the structure of the cost
item in total investment, including the use of reserve costs to adjust without
exceeding the total approved investment, the investor is the right to decide on
the adjustment; in case of exceeding the total approved investment, the
investor reports to the person who decides the investment for review and
decision.
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Item 2. WORK COST
ESTIMATE MANAGEMENT
Article 14. Appraisal
and approval of work estimates
1. Content of appraisal and competence to
decide and approve the work cost estimate are provided for in Article 10 of
Decree No.112/2009/ND-CP.
2. Investor shall hold the appraisal of work
cost estimate. In case of hiring organizations and individuals that are
eligible consulting capacity, professional experience to verify work cost
estimate, the content of verification is like content of appraisal of the
investor; verification cost is determined on the basis of the ratio cost norms
or by making cost estimate under the guidance of the Ministry of Construction.
3. Results of the appraisal or verification
of the work cost estimate is under the guidance in Appendix 7 of this Circular.
Article 15.
Adjustment of work cost estimate
1. Work cost estimate is adjusted for one of
the following cases:
- The cases prescribed in Clause 1 of Article
13 of this Circular;
- The cases which are allowed to change and
supplement design not contrary to the basic design or change structure in cost
estimates, but not exceeding the total approved investment, including reserve
costs.
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3. The investor is responsible for organizing
the appraisal or verification and approval of adjusted work cost estimate.
4. Adjusted work cost estimate is the basis
for adjusting contract price, bidding package price, and adjusting the total
investment.
Method of determining the additional work
cost estimate is guided in Appendix 4 of this Circular.
Item 3. CONSTRUCTION
NORM MANAGEMENT AND WORK CONSTRUCTION PRICE
Article 16.
Management of construction norms
1. The Ministry of Construction
Ministry of Construction makes the unified
state management of work construction investment cost, publicizes work
construction norms for concerned agencies, organizations, and individuals to
consult and use in making and managing cost of work construction investment.
2. The ministries and provincial-level
People's Committees
The ministries and provincial-level People's
Committees based on the method of setting norms under the guidance in Appendix
5 of this Circular to organize the formulation and publication of norm for the
particular construction of the Ministry, localities where have not got the
system of construction norm published by the Construction Ministry and annually
send to the Ministry of Construction for monitoring and management.
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3.1. Investors, contractors and consulting
organizations based on the method of setting norms under the guidance in
Appendix 5 of this Circular to organize the adjustment for the norms which have
been announced but not appropriate with measures, construction conditions,
technical requirements of the work, set the norms which are not yet had in the
system of norms published in clause 1 of this Article or apply similar norms
which were and are used in other works to apply for the work.
3.2. The investor can hire consulting
organization that is eligible capacity, professional experience to make,
adjust, and verify the above-mentioned construction norms and the consulting
organization is responsible for the reasonableness and accuracy of the norms
which have made.
3.3. The investor decides the application of
construction norms publicized or to adjust, set up newly for formulation and
management of the work construction investment cost.
3.4. In case of using the above norms to be
adjusted or newly set as above mentioned to make the construction unit prices
in the bidding package using the state budget applying the form bidding
appointment, the investor informs the person who decides on the
investment for review and decision. In particularly, the construction
works of the investment project decided by the Prime Minister shall be decided
by the Minister of branch management, Chairmen of Provincial-level People's
Committees. Dossier to submit for approval of norms which were adjusted or
newly set is under the guidance in Appendix 8 of this Circular.
For the bidding packages using ODA capital in
international bidding, if it is used applied norms of foreign countries for a
number of specific construction to make unit price and work construction
cost estimate, the these norms must conform to technical requirements, methods
of construction, the construction conditions of the work and accepted in
advance by the investor.
Article 17.
Management of work construction price
1. Ministry of Construction
Ministry of Construction guides the
construction methods and announces the construction price index, capital of
work construction investment for the concerned agencies, organizations, and
individuals to consult and use in the formulation and management of work
construction investment costs.
2. Provincial-level People's Committees
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3. The investor and consulting organization
Investor and consulting organization based on
technical requirements, construction conditions and measures for specific
construction of the work and the method of making unit price of work
construction, general construction price under the guidance of Appendix 6 of
this Circular to organize the formulation of work construction unit price,
general construction price for use as a basis for determining the total
investment, work cost estimate.
The investor may hire consulting organizations
and individuals that are eligible capabilities and professional experience to
perform the works or part of the work involved in setting up or verifying work
construction unit prices and general construction price, work construction
price index under the method of setting up price index published by the
Construction Ministry. The consulting organizations and individuals are
responsible before the investor and the law in ensuring the reasonableness and
accuracy of the work construction unit prices, general construction price and
construction price index made by them.
For the construction unit prices in the
estimate of international bidding package, the investor is responsible for
examining or hiring a consultant that is eligible capability and professional
experience to verify the reasonableness and accuracy of the construction unit
price before use.
4. Construction contractors
Construction contractors manage work
construction price as defined in Article 27 of Decree No.112/2009/ND-CP.
Chapter 4
IMPLEMENTATION
PROVISIONS
Article 18.
Transitional handling
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Article 19. Effect
1. This Circular takes effect from 15/07/2010
and replaces Circular No.05/2007/TT-BXD on 25/7/2007 the Ministry of
Construction guiding the formulation and management of work construction
investment costs, Circular No.18/2008/TT-BXD dated 06/10/2008 of Ministry of
Construction guiding some additional methods of determining the construction
cost in work construction estimate into the Circular guiding formulation and
management of the work construction investment costs No.05/2007/TT-BXD dated
25/07/2007 the Ministry of Construction.
2. During the implementation process if any
problems arise, organizations and individuals send their opinions to the
Ministry of Construction for review and settlement.
FOR MINISTER
DEPUTY MINISTER
Tran Van Son
APPENDIX 1
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Total investment
calculated and determined in the phase of making the project pf work
construction investment (feasibility report) or the technical and economic
report is by one of the following methods:
1. Method of
determination by the basic design of the project
Total investment in
the work construction project is calculated as follows:
V = GXD
+ GTB + GBT, TDC + GQLDA
+ GTV + GK + GDP (1.1)
In particular:
- V: total investment
of the project of work construction investment;
- GXD: construction costs;
- GTB: equipment costs;
- GBT, TDC:
costs for compensation and resettlement assistance;
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- GTV:
the cost of construction investment consultancy;
- GK:
other costs;
- GDP: the reserve cost.
1.1. Determination of
the construction costs
Construction costs of
the project (GXD) equal to the total
construction cost of the works, work items under the project are determined by
the following formula:
GXD
= GXDCT1 + GXDCT2 + … + GXDCTn (1.2)
In particular:
- n: number of works,
work items under the project.
Construction cost of
the work, work items defined by the following formula:
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In particular:
- QXDj: workload of major
construction or jth major structural parts of the work, work items
under the project (j = 1¸m) ;
- Zj: unit prices of
major construction or unit prices by the jth major structural parts
of the work. Unit price may be the complete unit price of work construction or
complete general construction price (including direct costs and general costs,
advance calculated taxable income). Where Zj is the incomplete unit price of
work, the construction costs of work, work items are synthesized in Table 3.1
of Appendix 3 to this Circular;
- GQXDK: construction costs
of other jobs or the other remaining structural parts of work, work items are estimated
in percentage (%) on the total construction cost of the major construction or
total construction cost of the major structural parts of the work, work items.
Depending on each
type of construction work, it is estimated the percentage (%) of the construction
costs of other jobs or the other remaining structural parts of work, work
items.
- TGTGT_XD: tax rate of value
added tax provided for construction.
1.2. Determination of
equipment costs
Based on the specific
conditions of the project and sources of information and obtained data, it may
be able to use one of the following methods to determine the equipment costs of
the project:
1.2.1. Where the
projects have sources of information, detailed data on the technological line,
number, type, and value of each device or the value of entire line of
technology and price per ton, per piece or entire respective equipment line,
the equipment costs of the project (GTB) is equal to the total cost of
equipment of the works under the project.
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1.2.2.Where the
projects have information on synchronous offerring prices of equipment,
technological line (including the costs referred to in point 3.2, clause 3,
Article 4 of this Circular) of the manufacturers or equipment suppliers,
equipment costs (GTB) of the project can
be obtained directly from the quotation or the offering price of synchronous
equipment.
1.2.3. Where a
project has only information, general data on capacity, technical
characteristics of the line of technology and equipment, the equipment costs
can be determined by capacity factor of cost, equipment calculated for a
capacity unit or the service capacity of the works, and is determined by the
formula (1.8) in Item 2 of this Appendix or estimated according to quotation of
the suppliers, manufacturers or price of the similar equipment on the market at
the time of calculation or of the works with similar devices which were and are
made.
1.3. Determination of
the cost of compensation, resettlement support
The cost of
compensation, support of resettlement (GBT, TDC) is determined by
volume required to pay compensation and of resettlement of the project and the
current regulations of the state on price of compensation and resettlement in
the locality where the construction site locates, which has been approved or
issued by the competent authority.
1.4. Determination of
project management cost, construction investment consultancy cost and other
costs
Project management
cost (GQLDA), the cost of construction investment
consultancy (GTV) and other costs (GK) is determined by
estimation or by the ratio cost norm like items 3, 4 , 5 of Appendix 2 of
this Circular. Total these costs (excluding interest during project
implementation and initial working capital) can also be estimated from 10¸ 15% of total construction costs and
equipment cost of the project.
Depending on specific
conditions, progress of implementation and plan of capital allocation of each
project to determine initial working capital (VLD) (for the projects of production and business) and
interest in the project implementation period (LVay) (for the projects using loans).
1.5. Determination of
reserve costs
Reserve costs (GDP) are determined by the sum
of reserve costs for arising workload factors (GDP1) and reserve costs due to the drift of price (GDP2) by the formula:
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Reserve costs for
arising workload factors GDP1
are determined by the following formula:
GDP1=
(GXD + GTB + GBT, TDC + GQLDA + GTV
+ GK) x Kps (1.5)
In particular:
- Kps: reserve coefficient for
the arising workload is 10%.
Particularly in case
of only making economic - technical report, the reserve coefficient for the
arising workload Kps = 5%.
When calculating the
reserve costs due to drift of price (GDP2),
it should be based on the duration of project implementation and progress of
capital allocation, the change of price on the market during the project
implementation and construction price index for each type of work and
construction area. Reserve costs due to drift of price (GDP2) is determined by the following formula:
(1.6)
In particular:
- T: the duration of
work construction project implementation (year);
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- Vt: investment
capital expected to make in the tth year;
- LVayt:
interest cost of investment capital expected to make in the tth
year.
- IXDCTbq: the average level
of drift of price based on the average price index of work construction by type
of work of at least 3 latest years compared to the time of calculation (not
counting the time of irregular fluctuation on price of raw materials, fuel and
building materials);
: Volatility forecast level of the
cost factors, the regional and international price compared with the annual
average drift of price calculated.
2. The method of
calculation by the area or production capacity, service capacity of the work
and general construction cost, work construction investment capital ratio.
In case of
determining the total investment by the area or production capacity, service
capacity of the work, it may use the ratio norm of construction cost (SXD) and the ratio of
equipment cost (STB) or price of general construction to calculate
the construction investment cost for each work under the project and the total
investment is determined by the formula (1.1) in Item 1 of this Appendix.
2.1. Determination of
the construction costs
Construction costs of
the project (GXD) by the total
construction cost of the works, work items under the project are determined by
the formula (1.2) in Item 1 of this Appendix. Construction cost of the work,
work items (GXDCT) is determined by
the following formula:
GXDCT =
SXD x N + CCT-SXD (1.7)
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- SXD: the ration of
construction cost calculated for a unit of production capacity, service
capacity or general construction unit price calculated for a unit of area of the
work, work items under the project;
- CCT-SXD: the cost items not
included in the ration of construction cost or not included in the general
construction unit price calculated for a unit of area or a unit of capacity,
service capacity of the work, work items under the project;
- N: area or
production capacity, service capacity of the work, work items under the
project.
2.2. Determination of
equipment costs
Equipment cost of the
project (GTB) is equal to the total costs of equipment of the works
under the project. Equipment costs of the work (GTBCT) are determined by
the following formula:
GTB = STB
x N + CCT-STB (1.8)
In particular:
- STB:
Equipment cost ratio calculated for a unit of area or a unit of capacity,
service capacity of the work under the project;
- CCT-STB:
the cost items not included in the Equipment cost ratio of the work under the
project.
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Other costs include
the cost of compensation and resettlement assistance, project management cost,
construction investment consultancy costs, other costs and reserve cost are
determined as guided at point 1.3, 1.4 and 1.5 of Item 1 of this Appendix.
3. Method of
determination by data of the project with the construction work which has
similar economic – technical norms which have been made.
The construction
works which have similar economic – technical norms are the construction works
of the same type and level of work, size, and the similar capacity of the line
of technology (for the work of production).
Depending on the
nature and characteristics of the construction works having similar economic –
technical norms which have been made and the level of information source and
data of the work can use one of the following methods to determine the total
investment:
3.1. In case of
having sufficient information and data on work construction investment costs,
construction work items having similar economic – technical norms which have
been made, the total investment is determined by the following formula:
(1.9)
In particular:
- n: number of
similar works which have been made;
- i: number of
similar works which have been made;
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- Ht: the
coefficient of conversion to the time to set up work construction investment
project;
- Hkv:
coefficient of conversion to the construction site of project;
- CCT-CTTTi: the costs are not
included or have been included in construction investment costs of work and Ith
made similar work items.
Where adding (+GCT-CTTTi) the necessary costs
of the project which are calculated but not included in the construction
investment costs of work, work items of the similar project. In case of
reduction (-GCT-CTTTi) the costs
calculated in the construction investment costs of work, work items of the
similar project but inappropriate or unnecessary for the project which is
calculated.
3.2. Where the source
of data on construction investment costs of work, work items having similar
economic – technical norms which have been made can only be determined the cost
of construction and equipment cost of the works, it should converse these costs
to the time of the project formulation. On the bsis of such construction cost
and equipment cost which were conversed, the costs of compensation and
resettlement assistance, project management cost, cost of construction
investment consultancy and other costs and reserve costs are determined similar
to the guidance at point 1.3, 1.4 and 1.5 of Item 1 of this Appendix.
4. Combining method
to determine the total investment
For the project with
many works, depending on conditions, the specific requirements of the project
and the obtained data sources can apply in combination with the above methods
to determine the total investment of project of work construction investment.
APPENDIX 2
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Work cost estimate is
determined on the basis of engineering design or construction drawing design.
Work cost estimate includes construction cost (GXD); equipment cost (GTB), project management
cost (GQLDA); cost of
construction investment consultancy (GTV); other costs (GK) and reserve cost (GDP).
Work cost
estimate is determined by the following formula:
GXDCT = GXD
+ GTB + GQLDA + GTV + GK + GDP
(2.1)
Work cost estimate is
synthesized in Table 2.1 of this Appendix.
1. Determination of
the construction costs (GXD)
Construction cost of
work, work items, parts, part of work, construction can be determined by each
cost content or general cost contents according to one of the methods guided in
Appendix No. 3 of this Circular.
2. Determination of
equipment costs (GTB)
Equipment costs
include the cost of purchasing technological equipment (including technological
equipment necessary to produce, process); training costs and technology
transfer; costs for equipment installation and testing and calibration are
determined by the following formula:
GTB
= GMS + GDT + GLD (2.2)
...
...
...
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- GMS: the
cost of purchasing technological equipment;
- GDT: the
cost of training and technology transfer;
- GLD: the
cost of equipment installation, testing, and calibration.
2.1. Cost of
purchasing technological equipment is determined by the following formula:
(2.3)
in particular:
- Qi: the volume or the
number of Ith equipment (equipment group) (i = 1 ¸n);
- Mi: price per a unit of
volume or a unit of the number of Ith equipment (equipment group) (i
= 1 ¸n), is determined by
the formula:
Mi
= Gg + Cvc + Clk + Cbq + T
...
...
...
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- Gg: equipment price at
the purchase place (place of manufacture, fabrication or supply of equipment in
Vietnam) or the price calculated to Vietnam port (for imported equipment) has
included the costs of design and fabrication supervision;
- Cvc: transportation cost
per a unit of volume or a unit of the number of equipment (equipment group)
from the place of purchase or from the port of Vietnam to the work;
- Clk: costs of storing
warehouse, wharf, containers per a unit volume or a unit of the number of
equipment (equipment group) in Vietnam's ports for imported equipment;
- Cbq: the cost of
preservation and maintenance per a unit volume or a unit of the number of
equipment (equipment group) in site;
- T: taxes and fees
of insurance, inspection of equipment (equipment group);
- TiGTGT-TB: tax rate of value
added tax provided for the type of Ith equipment (equipment group) (i = 1¸n).
For equipment not
determined its price, it may be estimated by the quotation of supplier,
manufacturer or price of similar equipment on the market at the time of the
calculation or of the work having similar equipment which was and is made.
For types of
technological equipment required to be manufactured, processed, then this cost
is determined on the basis of volume of equipment required to be manufactured,
processed and its price per one ton (or one calculation unit) consistent with
the nature and type of equipment under contract of manufacturing, processing
has been signed or based on quotation of processing the products of the
manufacturer selected by investor or the price of production, processing of the
similar equipment of the work which was and is done.
2.2. The costs of
training and technology transfer are calculated by making cost estimate
or advance calculation, depending on the specific characteristics of each
project.
...
...
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Equipment cost is
synthesized in Table 2.2 of this Appendix.
3. Determination of
the project management cost (GQLDA)
Project management
cost is determined by the following formula:
GQLDA =
T x (GXDtt + GTBtt) (2.5)
In particular:
- T: the ration norm
(%) for project management cost;
- GXDtt: pre-tax
construction cost;
- GTBtt: pre-tax the
equipment cost.
4.
Determination of the cost of construction investment consultancy (GTV)
...
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(2.6)
In particular:
- Ci: the ith
cost of construction investment consultancy based on the ratio norm (i=1¸n);
- Dj: the jth
cost of construction investment consultancy calculated by making cost
estimation (j=1¸m);
- TiGTGT-TV: tax rate of value added tax in accordance
with current provisions for ith cost items of construction
investment consultancy based on the ratio norm;
- TjGTGT-TV: tax rate of value
added tax in accordance with current provisions for jth cost items
of construction investment consultancy calculated by making cost estimation.
5. Determination of
other costs (GK)
Other costs are
determined by the following formula:
(2.7)
...
...
...
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- Ci: ith
other costs calculated by the ratio norm (i=1¸n) ;
- Dj: jth
other costs calculated by making cost estimate (j=1 ¸m) ;
- Ek: kth
concerned other costs (k=1¸l) ;
- TiGTGT-K: tax rate of value
added tax in accordance with current provisions for Ith other cost
items calculated by the ratio norm;
- TjGTGT-K: tax rate of value
added tax in accordance with current provisions for Jth other cost
items calculated by making cost estimation.
6. Determination of
reserve costs (GDP)
Reserve costs are
determined by two factors: reserve cost for arising workload element and
reserve cost for the drift of price.
Reserve costs are
determined by the following formula:
GDP = GDP1
+ GDP2 (2.8)
...
...
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- GDP1:
reserve cost for arising workload element is determined by the formula:
GDP1 = (GXD
+ GTB + GQLDA + GTV + GK) x Kps
(2.9)
Kps is a
reserve coefficient for the volume of arising workload as 5%.
- GDP2 :
reserve cost for the drift of price is determined as for reserve cost for the
drift of price in the total investment in the formula (1.6) of Appendix 1, in
which Vt is the work cost estimate level before reserve cost.
Time to calculate
reserve cost for the drift of price in the work cost estimate is the time to
construct work and is calculated by month, quarter, year.
Table 2.1. SYNTHESIS
OF COST ESTIMATES OF WORK
Date .........
month........... year ..........
Work:
...
...
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No.
CONTENTS OF COSTS
BEFORE TAX VALUE
VAT
AFTER TAX VALUE
[1]
[2]
[3]
[4]
...
...
...
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1
Construction cost
GXD
2
Equipment cost
...
...
...
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3
Project management cost
GQLDA
4
Construction
investment
cost
...
...
...
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4.1
Costs for recruitment examination,
selection of architecture design
4.2
Cost for work construction design
...
...
...
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…..
…………………………………….
5
Other costs
...
...
...
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5.1
Cost for demining mine, bomb, explosives
5.2
Cost for work insurance
...
...
...
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…..
……………………………………
6
Reserve costs (GDP1 + GDP2)
...
...
...
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6.1
Reserve costs for arising volume
factors
GDP1
6.2
Reserve costs for factors of drift
of prices
...
...
...
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TOTAL ( 1+ 2 + 3 + 4 +
5+ 6)
GXDCT
PREPARED BY
(Sign, full name)
PRESIDER
(Sign, full name)
Certificate of
controlling, evaluating prices of construction rank ....., No. .....
...
...
...
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Table 2.2.
SYNTHESIS OF EQUIPMENT COSTS
Date .........
month........... year ..........
Work:
Calculation unit:
dong
No.
CONTENTS OF COSTS
BEFORE TAX VALUE
VAT
AFTER TAX VALUE
...
...
...
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[2]
[3]
[4]
[5]
1
Costs for equipment procurement
...
...
...
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…..
1.2
…..
...
...
...
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Costs for training and technology
transfer
3
Costs for installing equipment and
testing, calibration
...
...
...
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TOTAL
GTB
PREPARED BY
(Sign, full name)
PRESIDER
(Sign, full name)
Certificate of
controlling, evaluating prices of construction rank ....., No. .....
...
...
...
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APPENDIX 3
METHOD
TO DETERMINE CONSTRUCTION COSTS
(Together with Circular No.04/2010/TT-BXD dated 26/5/2010 of Ministry of
Construction)
Construction cost is
determined to work, work items, parts, part of work, working parts of the work,
work items for the main works, ancillary works, temporary works for
construction, temporary housing for dwelling and construction administration by
one of the following methods:
1. The method of
calculation by the volume and price of work construction
1.1. Determination by
the volume and unit price of work construction
1.1.1. The volume of
constructions shall be determined from engineering design drawings or construction
drawings design, from requirements and tasks required to perform of the work,
work items in accordance with the list and contents of constructions in the work
construction unit price.
1.1.2. The work
construction unit price may be the incomplete one (including material costs,
labor costs, costs of construction machines) or the complete unit one (including
material costs, labor costs; cost of construction machines, other direct costs,
general expenses and advance calculated taxable income).
The method of forming
the work construction unit price is guided in Appendix 6 of this Circular.
1.2. Determination by
the volume and general construction price
...
...
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1.2.2. General construction
price is set corresponding to the list and contents of volume, group, type of
constructions, structural units or parts of the work.
General construction price
may be the incomplete one (including material costs, labor costs, costs of
construction machines) or the complete one (including material costs, labor
costs; cost of construction machines, other direct costs, general expenses and
advance calculated taxable income) established on the basis of unit prices of work
construction and synthesized according to Table 3.3 of this Appendix.
The method of making general
construction price is guided in Appendix 6 of this Circular.
* Construction cost calculated
by volume and incomplete work construction unit price and incomplete general
construction price is determined and synthesized according to Table 3.1 below.
Table 3.1. SYNTHESIS
OF ESTIMATE OF CONSTRUCTION COSTS CALCULATED BY INCOMPLETE WORK CONSTRUCTION
UNIT PRICE AND INCOMPLETE GENERAL CONSTRUCTION PRICE
Date ......... month...........
year ..........
The work:
Unit: VND
...
...
...
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CONTENT
OF COSTS
CALCULATION METHOD
VALUE
SIGNS
I
DIRECT COSTS
...
...
...
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Cost of materials
VL
2
Labor cost
NC
...
...
...
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Cost of
construction machines
M
4
Other direct costs
(VL+NC+M) x rate
TT
...
...
...
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Direct costs
VL+NC+M+TT
T
II
GENERAL COSTS
T x rate
C
...
...
...
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ADVANCE
CALCULATED TAXABLE INCOME
(T+C) x rate
TL
Before-tax
construction cost
(T+C+TL)
G
...
...
...
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VAT
G x TGTGT-XD
GTGT
After-tax
construction cost
G + GTGT
GXD
...
...
...
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Cost of temporary housing for
dwelling and construction administration
G x rate x (1+GTGT)
GXDNT
Total
GXD + GXDNT
...
...
...
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PREPARED BY
(Sign,full name)
PRESIDER
(Sign, full name)
Certificate of
controlling, evaluating prices of construction rank ....., No. .....
In particular:
+ Where the cost of
materials, labor, construction machines is determined by volume and incomplete
general construction price:
- Qj is
the volume of a group of works list or a structure unit, jth part of
the work;
- Djvl,
Djnc, Djm is the cost of materials,
labor, construction machines in general construction price of a group of works
list or a structure unit, jth part of the work;
+ Where the cost of
materials, labor, construction machines is determined on the basis of volume
and unit price of incomplete work construction:
...
...
...
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- Djvl,
Djnc, Djm is the cost of materials,
labor, construction machines in the work construction unit price of the jth
construction;
Cost of materials (Djvl),
labor cost (Djnc), the cost of construction machines (Djm)
in the incomplete work construction unit price and incomplete general construction
price is calculated and synthesized in Table 3.3 of this Appendix and is part
of the work cost estimates documents.
- CLVL: material
differences are calculated by method of direct material offset or by adjustment
coefficients;
- Knc, Kmtc:
adjustment coefficient of labor, construction machines (if any);
- The general cost ratio
norm and advance calculated taxable income are specified in Table 3.8 of this Appendix;
- G: costs of work
construction, construction items, parts, part of work, pre-tax works;
- TGTGT-XD:
the VAT rate prescribed for the construction;
- GXDNT: Cost of temporary housing
for dwelling and construction administration.
Where temporary
housing at sites for dwelling and construction administration is made separate cost
estimates by design, the construction cost estimates in Table 3.1 above does
not include the cost mentioned above (GXDNT = 0) and the general
cost norm, advance calculated taxable income is calculated according to civil
work.
...
...
...
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Table 3.2. SYNTHESIS
OF ESTIMATE OF CONSTRUCTION COSTS CALCULATED BY COMPLETE WORK CONSTRUCTION UNIT
PRICE AND COMPLETE GENERAL CONSTRUCTION PRICE
Calculation unit: …..
No.
COST
ITEMS
CALCULATION
METHOD
VALUE
SIGNS
1
...
...
...
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G
2
VAT
G x TGTGT-XD
GTGT
3
...
...
...
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G + GTGT
GXD
4
Cost for temporary housing at site for
dwelling and construction administration
G x rate x (1+ TGTGT-XD)
GXDNT
5
...
...
...
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GXD + GXDNT
PREPARED BY
(Sign, full name)
PRESIDER
(Sign, full name)
Certificate of
controlling, evaluating prices of construction rank ....., No. .....
In particular:
...
...
...
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- Qi is
the volume of a works group or a structural unit, ith part of the work
(i = 1 ¸ n);
- Di is
the complete general construction price (including direct costs, general costs,
and advance calculated taxable income) to implement a works group or a
structural unit, ith part of the work.
+ Where construction
cost is determined on the basis of volume and complete work construction unit
price:
- Qi is
the volume of ith construction missions of the work (i = 1 ¸ n);
- Di is
the complete work construction unit price (including direct costs, general costs,
and advance calculated taxable income) to perform ith constructions
of the work.
- G: before-tax work
construction cost;
- TGTGT-XD:
tax rate of VAT specified for the construction;
- GXD:
after-tax work construction cost;
- GXDNT: Cost
of temporary housing for dwelling and construction administration;
...
...
...
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(3.1)
In particular:
- gi: after-tax
construction cost of the ith parts, part of work, works of the
works, work items (i = 1 ¸ n).
* Based on the
synthesis level or detail of construction volumes determined under item 1.1 and
item 1.2 of this Appendix, it can combine the use of unit price of work construction
and general construction price to determine the construction cost in project estimate.
Table 3.3 SYNTHESIS OF WORK CONSTRUCTION PRICE
Work’s name: ...
I. UNIT PRICE OF WORK
CONSTRUCTION
No.. (Name of construction Work)
Calculation
unit : .......
...
...
...
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CODE of Materials.
Labor, machines
WASTE COMPONENTS
UNIT PRICE
VOLUME
UNIT PRICE
TOTAL
[1]
[2]
[3]
...
...
...
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[5]
[6]
[7]
DG.1
Materials cost
...
...
...
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Material.1
Material.2
...
...
...
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...
...
...
...
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Materials
Labor cost (by
average ranks of workmen)
work
...
...
...
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Cost of
construction machines
Machine.1
shift
...
...
...
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Machine.2
shift
...
...
...
...
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Total
...
...
...
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II. PRICE OF GENERAL
CONSTRUCTION
No. (Name of group of types of
construction, structure unit, parts of the work)
Calculation unit: ...
UNIT PRICE CODE
WORK COMPONENT
CALCULATION UNIT
VOLUME
COST COMPONENT
TOTAL
...
...
...
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LABOR
MACHINE
[1]
[2]
[3]
[4]
[5]
[6]
[7]
...
...
...
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UP.1
UP.2
...
...
...
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...
...
...
...
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Total
VL
...
...
...
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M
S
Notes:
- Unit price code
rates and codes of materials, labor, and construction machines can be in words
or in figures.
- In case of
determination of the complete general construction price, it is included other
direct costs, general costs, advance calculated taxable income.
2. The method of
calculation by the waste volume of materials, labor, construction machines and
the corresponding price table
Cost of materials,
labor, construction machines in construction costs can be determined on the
basis of the total waste volume of materials, labor, construction machines and
material prices table, labor price, the respective price of construction
machine.
2.1. Determination of
the total waste volume of materials, labor, construction machines
Total waste volume of
materials, labor, and construction machines shall be determined on the basis of
waste of materials, labor, construction machines for each volume of the
construction of the work, work items as follows:
...
...
...
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- Determine the
volume of materials, labor, construction machines corresponding to each volume
of construction under the engineering design or construction drawings design of
the work, work items through the waste level of materials, labor and
construction machines to complete a unit of construction volume on the basis of
the regulations, construction standards, technical regulations.
- Calculate total waste
volume of each type of material, labor, and construction machine for the work,
work items by synthesizing waste of all kinds of materials, labor, and the same
construction machine of different constructions.
It is necessary to
specify the number, units, types, and specifications for materials; number of working
days for each rank of worker; number of machine shift for each type of machine
and construction equipment according to the major technical parameters and
codes in the price table of construction machine shift of the work as
calculating.
2.2. Determination of
price table of materials, labor, construction machines
Prices of materials,
labor, construction machines are determined in accordance with construction
work and associated with construction sites under the guidance in Appendix 6 of
this Circular.
- Determine costs of
materials, labor, construction machines in direct costs on the basis of the
total waste volume of each type of material, labor, construction machine, and prices
of corresponding materials, labor, construction machines according to Table 3.4
and Table 3.5 of this Appendix.
Construction costs by
the total waste volume of materials, labor, and construction machines are determined
and synthesized according to Table 3.6 of this Appendix.
Table 3.4. WASTE OF MATERIALS, LABOR, CONSTRUCTION MACHINE FOR CONSTRUCTION
...
...
...
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Code
Work’s name
Unit
Volume
Waste level
Waste volume
Materials
Labor
Machine
...
...
...
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labor
machine
[1]
[2]
[3]
[4]
[5]
[6]
[7]
...
...
...
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[9]
[10]
[11]
001
DM.001
work No. 1
m3
...
...
...
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VL.001
Fine sand
m3
...
...
...
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VL.002
brick
brick
...
...
...
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…..
...
...
...
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NC.001
...
...
...
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labor
...
...
...
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labor 3,5/7
labor
...
...
...
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…..
...
...
...
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M.001
Mortar mixer 80 litre
shift
...
...
...
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M.002
lift 0,8T
shift
...
...
...
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…..
...
...
...
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002
DM.002
Work No. 2
...
...
...
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.....
...
...
...
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Table 3.5. SYNTHESIS
OF COSTS OF MATERIALS, LABOR, CONSTRUCTION MACHINES IN DIRECT COSTS
Calculation
unit: …
No.
...
...
...
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Content
Unit
Volume
Price
Total
[1]
[2]
[3]
[4]
...
...
...
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[6]
[7]=[5]x[6]
I
Materials
...
...
...
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VL.001
Fine sand
m3
I.2
VL.002
brick
...
...
...
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…
…
…
...
...
...
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Total
VL
II
...
...
...
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II.1
NC.001
Labor 3/7
labor
...
...
...
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II.2
NC.002
Labor
3,5/7
labor
…
...
...
...
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…
Total
...
...
...
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NC
III
Machine
...
...
...
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M.001
Mortar mixer 80 litre
shift
III.2
M.002
lift 0,8T
...
...
...
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…
…
…
...
...
...
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Total
M
Notes:
The demand for materials, labor, construction machines (column 5) is
synthesized from waste of the same materials, labor, construction machines of
all constructions of the work, work items (column 9, column 10, column 11 in
Table 3.4 of this Appendix).
TABLE 3.6. SYNTHESIS OF CONSTRUCTION COSTS BY WASTE VOLUME OF MATERIALS, LABOR
AND CONSTRUCTION MACHINES AND RESPECTIVE PRICE TABLE
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COST
CONTENTS
METHOD
VALUE
SIGNS
I
DIRECT COSTS
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Cost of materials
Taken from Table
3.5
VL
2
Cost of labor
Taken from Table 3.5
NC
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Cost of construction machines
Taken from Table 3.5
M
4
Other direct costs
(VL+NC+M) x
rate
TT
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Direct costs
VL+NC+M+TT
T
II
GENERAL COSTS
T x rate
C
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ADVANCE
CALCULATED TAXABLE INCOME
(T+C) x rate
TL
Before-tax
construction cost
(T+C+TL)
G
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VAT
G x TGTGT-XD
GTGT
After-tax construction cost
G + GTGT
GXD
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COST FOR TEMPORARY HOUSING AT SITE FOR
DWELLING AND CONSTRUCTION ADMINISTRATION
G x rate x (1+ TGTGT-XD)
GXDNT
TOTAL
GXD + GXDNT
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PREPARED BY
(Sign, full name)
PRESIDER
(Sign, full name)
Certificate of controlling,
evaluating prices of construction rank ....., No. .....
In particular:
- The general cost ratio
norm and the advance calculated taxable income according to Table 3.8 of this
Annex;
- G: construction costs
of work, work items before tax;
- TGTGT-XD:
tax rate of VAT specified for the construction;
- GXD: construction
costs of work, work items after tax;
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3. Method of
determining the construction cost by construction cost ratio in the investment capital
rate
For auxiliary works,
temporary works for construction, or common, simple works, construction costs
can be determined by area or production capacity, service capacity and construction
cost ratio in the investment capital rate of work construction.
Construction costs of
the work, work items (GXD) by this method are determined by the
following formula:
GXD = SXD
x N + CCT-SXD
(3.2)
In particular:
- SXD: is the
ratio of construction costs in the investment capital rate of the work construction
charged to a unit of production capacity, service capacity or charged to a area
unit of the work, work items;
- N: is the area or
production capacity, service capacity of the work, work items;
- CCT-SXD:
is total cost which is not included in the ratio of construction costs in the
investment capital rate of the work construction charged to a unit of
production capacity, service capacity or charged to an area unit of the work,
work items.
4. Method of
determining the construction cost on the basis of works with the same economic
- technical criteria which were and are implemented
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Construction costs of
the work, work items (GXD) by this method are determined by the following
formula:
(3.3)
In particular:
- GXDTT:
construction costs of the same work, work items carried out;
- HT: the
conversion coefficient to the time to make estimation;
- HKV: the
conversion coefficient according to construction sites;
- CTTCT-XDi:
ith expenses not included or included (i = 1 ¸ n) in construction costs of the same
work, work items which were and are performed.
Table 3.7. NORM OF OTHER DIRECT COSTS
Calculation unit: %
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TYPES OF WORKS
OTHER DIRECT COSTS
1
Civil works
In urban area
2,5
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2
2
Industrial works
2
Particularly, construction in the
pits, hydroelectricity pit
6,5
3
Transport works
2
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6,5
4
Irrigation works
2
5
Infrastructure works
In urban area
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Surrounding area
1,5
+ Other direct costs
are calculated in percentage (%) of the total materials cost, labor cost, cost
of construction machine and equipment.
For construction work
with multiple work items, the work items which functions are separate shall be
applied to the percentage of other direct costs by type of work accordingly.
+ For the works with
specific requirements on occupational safety such as a building with its height
from six floors or more, silo, chimney of industrial work or similar must set
up, design occupational safety measures, cost estimates and investor shall
approve to supplement the work construction cost estimate.
+ Other direct costs
of the construction in traffic tunnels, hydroelectricity tunnels, pits included
operating costs, regular repair costs of water supply, drainage, air supply,
power supply for construction in the tunnels without including the initial
investment cost for ventilation, lighting, electrical systems, water supply,
traffic for construction in the tunnel.
+ For the
construction work of hydroelectricity, irrigation, other direct costs do not
include the costs:
- The initial
investment cost of technical water system for construction;
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- Cost for excavation
pit pumping right right after the river block, flood control;
- Costs of moving the
construction forces to the work; costs of dismantling, transporting and
installing tower crane within the construction site; maintenance of the
transportation system for construction in the construction site; expenses of operating
power system from its point of connection to the last step-down station of the
work (the point to place meter to buy electricity);
- Cost of waste
water, waste treatment for temporary housing at construction sites;
- Increased testing costs
of construction testing of roller compacted concrete (RCC).
Table 3.8. NORM OF GENERAL COSTS, ADVANCE CALCULATED TAXABLE INCOME
Calculation unit: %
NO.
TYPE OF WORKS
GENERAL COSTS
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PER
DIRECT COST
PER
LABOR COST
1
Civil works
6,5
5,5
Particularly,
renovations, restoration of cultural, historic relics
10,0
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2
Industrial
works
5,5
6,0
Particularly,
construction works of tunnels, pits
7,0
3
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5,5
6,0
Particularly
for the maintenance and regular repair of roads Particularly, the regular
maintenance, repair of roads, railways, internal waterways, navigation
warning signal system and internal waterways
66,0
Particularly,
underground traffic works
7,0
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Irrigation
works
5,5
5,5
Particularly,
digging,
filling land of irrigation works by hand
51,0
5
Technical
infrastructure works
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5,5
6
The
installation contact of technological equipment in the construction works and
construction, installation of line, the experiment, calibration of power
lines and substation, the testing of materials, structures and building
structures
65,0
6,0
- Advance calculated
taxable income is calculated by percentage (%) on direct costs and general costs
in estimate of construction costs.
- For construction
works with multiple work items, the work items which functions are separate
shall be applied to the ratio of general costs and advance calculated taxable
income by type of work accordingly.
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APPENDIX
4
METHOD
OF DETERMINING ADDITIONAL WORK COST ESTIMATE
(Together with Circular No.04/2010/TT-BXD dated 26/5/2010 of Ministry of
Construction)
Adjusted work estimates
(
) is determined by the
work cost estimate approved (
) plus (or minus) with the additional work
cost estimate (
) by the following
formula:
= +
(4.1)
The additional work estimates
are determined for two factors of the volume arising and price variation. The
additional work estimates for the factor of the volume arising are formulated as
guided in Appendix 3 to this Circular. The additional work estimates for the
factor of price variation are determined by the following formula:
= 
(4.2)
In particular:
-
: Additional
construction costs;
-
: Costs for additional
equipment;
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-
: Costs for additional
construction investment consultancy.
-
: Other additional costs.
, ,, is determined as guided
in Item 3 of this Appendix.
1. Determination of
additional construction costs ()
1.1. Direct offset method
1.1.1. Determination
of materials cost (VL)
Cost of additional
materials (VL) is determined by the total additional cost of each jth
material (VLj
) by the following
formula:
VL = 
(j=1¸m)
(4.3)
Additional cost of type jth
material is
determined by the following formula:
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In particular:
- QJiVL: jth
material waste volume of the ith construction in the construction
volume required to adjust (i = 1 ¸
n);
- CLJVL: value of the
difference in price of the jth material at the time of adjustment compared
to price of construction materials in the approved estimates or in the sucessful
bid price but has not been signed the contract;
Prices of
construction materials at the time of adjustment is determined by price of construction
materials publicized by the competent state agency or by valid invoice,
documents in accordance with provisions of the Ministry of Finance, under the supply
contract or the list or documents written by hand with full names, addresses
and signatures of the materials provider in accordance with the price of the
market where the work is built.
1.1.2. Determination
of the labor cost (NC)
Additional labor
costs are determined by the following formula:
NC = 
(4.5)
In particular:
- QiNC: labor waste volume of
the ith construction in construction volume required to adjust (i =
1 ¸ n);
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Labor costs at the
time of adjustment are determined by current regulations.
1.1.3. Determination
of the cost of construction machines (MTC)
Additional cost of
construction machines (MTC) is determined by the total additional cost of each
type of jth construction machine (MTCj) by the following
formula:
MTC = 
(j=1¸m)
(4.6)
Additional cost of jth
construction machines (MTC) is determined by the following formula:
MTCj
= 
(4.7)
In particular:
- QJiMTC C: jth construction
machine waste volume of the jth construction in construction volume
required to adjust (i = 1 ¸
n);
- CLJMTC: different value of
the jth construction machine cost at time of adjustment for compared
to cost of construction machines in the approved estimates or the successful
bid price which has not been signed the contract (i = 1 ¸ n).
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Additional
construction costs are synthesized as Table 4.1 of this Appendix.
1.2. Adjustment coefficient
method
1.2.1. Determination
of the materials cost (VL)
Additional cost of
materials is determined by the following formula:
VL = GVL
x (KVL - 1) (4.8)
In particular:
- GVL: material costs in
the approved estimates or in the sucessful bid price which has not been signed
the contract of construction volume required to adjust;
- KVL: adjustment coefficient
of material cost at the time of adjustment.
KVL coefficient obtained
by publication or local guidelines where the work is constructed or calculation
of the investor.
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Additional labor cost
is determined by the following formula:
NC = GNC
x (KNC - 1) (4.9)
In particular:
- GNC: labor cost in the
approved estimate or in the successful bid price which has not been signed the
contract of construction volume required to adjust;
- KNC: adjustment
coefficient of labor cost at the time of adjustment.
KNC coefficient obtained
by publication or local guidelines where the work is constructed or calculation
of the investor.
1.2.3. Determination
of the cost of construction machines (MTC)
Additional cost of
construction machines is determined by the following formula:
MTC = GMTC
x (KMTC -
1)
(4.10)
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- GMTC: the cost of construction
machines in the approved estimate or in the sucessful bid price which has not
been signed the contract of construction volume required to adjust;
- KMTC: adjustment coefficient
of the cost of construction machines at the time of adjustment.
KMTC coefficients
obtained by publication or local guidelines where the work is constructed or
calculation of the investor.
Additional
construction costs are synthesized as Table 4.1 of this Appendix.
1.3. The method by construction
price index
1.3.1. In case of using
the price index for construction part
Additional
construction costs (
) is determined by the
following formula:
= 
x (IXD-1)
(4.11)
In particular:
...
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- IXD:
the construction price index calculated at the time of adjustment.
Price index of work construction
is calculated at the time of adjustment under the guidance of the Ministry of
Construction or publication of the localities where the work is constructed or
calculation of the investor.
1.3.2. In case of
using the construction price index by the cost factors (price index of work construction
materials, price index of work construction workers, and price index of work
construction machines) and index price of major construction materials.
1.3.2.1. Determination
of the materials cost (VL)
1.3.2.1.1. In case of
using the price index of construction materials
Additional cost of
materials is determined by the following formula:
VL
= GVL x PVL x KVL
(4.12)
In particular:
- GVL: material costs in
the approved estimate or in the successful bid price which has not been signed
the contract of construction volume required to adjust;
...
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- KVL: adjustment coefficient
of the cost of work construction material at the time of adjustment and is
determined by the following formula:
KVL
= 
(4.13)
In particular:
- I1VL:
price
index of construction materials at the time of adjustment;
- I0VL: price index of
construction materials at the time of the approved estimate or time of making
the successful bid.
Price index of work construction
materials is under the guidance of the Ministry of Construction or by
publication of the localities where the work is constructed or calculation of
the investor.
1.3.2.1.2. In case of
using the price index of major construction materials
Additional cost of
materials is determined by the following formula:
VL = 
(4.14)
...
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- GVL: material costs in the approved
estimate or in the successful bid price which has not been signed the contract
of construction volume required to adjust;
- 
: the ratio of cost of ith
major construction materials required to adjust on the cost of materials in
approved estimate or the successful bid price which has not been signed the
contract (i
= 1¸ n)
-
: adjustment coefficient of the
cost of ith major construction materials at the time of adjustment (i = 1¸n) and is determined by
the following formula:
= 
(4.15)
-
: Price index of ith
major construction materials at the time of adjustment;
-
: Price index of ith
major construction materials at the time of the approved estimate or the time
of making the successful bid.
Price index of major construction
materials is under the guidance of the Ministry of Construction or by
publication of the localities where the work is constructed or calculation of
the investor.
1.3.2.2. Determination
of the labor cost (NC)
Additional labor cost
is determined by the following formula:
NC = GNC
x KNC
(4.16)
In particular:
...
...
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- KNC: adjustment coefficient
of work construction labor cost at the time of adjustment and is determined by
the following formula:
KNC
= 
(4.17)
- I1NC: price index of work construction
labor at the time of adjustment;
- I0NC: price index of work
construction labor at the time of the approved estimate or time of making the successful
bid.
Price index of work
construction labor is under the guidance of the Ministry of Construction or by
publication of the localities where the work is constructed or calculation of
the investor.
1.3.2.3. Determination
of the cost of construction machines (MTC)
Additional cost of
construction machines is determined by the following formula:
MTC = GMTC
x KMTC (4.18)
In particular:
...
...
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- KMTC: adjustment coefficient
of cost of work construction machines at the time of adjustment and is
determined by the following formula:
KMTC
= 
(4.19)
- I1MTC: price index of work construction machines at
the time of adjustment;
- I0MTC: price index of work
construction machines at the time of the approved estimate or time of making
the successful bid.
Price index of
construction machines is under the guidance of the Ministry of Construction or by
publication of the localities where the work is constructed or calculation of
the investor.
Additional
construction cost is synthesized as Table 4.1 of this Appendix.
1.4. Methods of combination
Depending on the
specific conditions of each work can use a combination of the above methods to determine
the additional construction costs accordingly.
2. Determintion of additional
equipment costs
()
...
...
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2.1. Cost of
purchasing additional equipment (
)
Cost of purchasing
additional equipment is determined by the following formula:
= 
- 
(4.20)
In particular:
-: equipment cost in the
approved estimate or in the successful bid price which has not been signed the
contract;
-: equipment cost at the time
required to adjust.
2.2. The cost of
installing additional equipment and costs of testing additional equipment calibration
is determined as the cost of additional construction.
3. Determination of
the additional project management costs, additional construction investment
consulting costs, and other additional costs
For the estimate of
work which has not been yet held for bidding or has not been signed contract
shall not be governed by regulations.
...
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Table 4.1 TOTAL ESTIMATE OF ADDITIONAL CONSTRUCTION COST
Work’s name:
Calculation
unit: .........
NO.
COST ITEMS
METHOD OF
CALCULATION
SIGNS
I
DIRECT COSTS
...
...
...
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1
Cost of materials
VL
2
Cost of labor
NC
3
...
...
...
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MTC
4
Other direct costs
(VL+NC+MTC) x rate
TT
Direct costs
VL+NC+MTC+TT
...
...
...
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II
GENERAL COSTS
T x rate
C
III
ADVANCE
CALCULATED TAXABLE INCOME
(T+C) x rate
TL
...
...
...
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(T+C+TL)
GBS
IV
VAT
GBS x TGTGT-XD
GTGT
After-tax construction cost
GBS +
GTGT
...
...
...
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PREPARED BY
(Sign, full name)
PRESIDER
(Sign, full name)
Certificate of
controlling, evaluating prices of construction rank ....., No. .....
...
...
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METHOD
OF FORMULATING WORK CONSTRUCTION NORMS
(Together with Circular No.04/2010/TT-BXD dated 26/5/2010 of Ministry of
Construction)
1.
Method
of formulating new construction norm of the works
The new construction
norm of the works
is
formulated
in the following order:
Step 1. Making a list
of construction missions or new structures of the work that are not in the list
of published construction norms
Each list of the construction
missions or new structures must clearly reflect the calculation unit of volume
and technical requirements, conditions and major methods of construction of the
mission or structure.
Step 2. Determination
of work component
For work component,
it must be showed clearly the steps of the implementation of each stage according
to organizational design of construction technological line from the start till
the completion, in accordance with the conditions, construction methods, and
scope to conduct the works of mission or structure.
Step 3. Calculation
to determine the waste of materials, labor, construction machines
* The calculation
methods:
...
...
...
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+ Method 1.
Calculation by the specifications of the technological line
- Waste of materials:
determined by design and the conditions and methods of work construction or the
use norm of material to be announced.
- Waste of labor:
determined by labor organizations in the technological line in accordance with
the conditions and methods of construction of the works or calculated by the
labor norm to be announced.
- Waste of
construction machine: determined by the specifications of each machine in the
line or construction machine productivity norms publicized and taking into
account of productivity due to the coordination of the construction machine in
the chain.
+ Method 2.
Calculation by statistics – analysis data
Analysis and
calculation to determine the waste levels of materials, labor, construction
machines from the data of synthesis and statistics is as follows:
- From the amount of
waste on materials, labor, construction machines, to perform a workload by one
cycle or multiple cycles of the work which was ans is done.
- From waste of materials,
labor use, construction machine capacity calculated from the similar works.
- From the data
published by the experience of the experts or professional organizations.
...
...
...
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Calculations to
determine the waste levels from design documents, actual survey data of work (by
time, location, volume performed in one or multi cycles ...) and reference of norms
to use materials, labor, and machine productivity published.
- Waste of materials:
calculated by the actual survey data and compare it with the design, technical
standards, and regulations.
- Waste of labor: calculated
by number of labors of each stage in production line and total number of labors
in the whole line, refer to the regulations of using labor.
- Waste of
construction machines: calculated by survey data on the productivity of each
type of machine and coordination performance between the construction machines
in the same line, refer to the regulations on the technical capacity of the
machine.
* The contents of calculation
of the waste components
+ Calculation of the waste
norms of materials
Waste norms of
materials required to complete a workload unit or construction structures
including permissible losses of materials in the construction process, include:
- Principal (main) materials:
like sand, stone, cement, bricks, steel ,.... in concrete mission,
construction, reinforcing steel, structural production, ... are the materials
of high value and obtaining a large proportion in a unit of volume or
structure, the level in kind shall be specified and common units of measurement
shall be calculated.
- Other materials
(optional): as soap, lubricant, clout,... are the materials of small value,
difficult to quantify, obtaining low proportion in a unit volume or structure,
a percentage rate compared to the cost of the materials shall be specified.
...
...
...
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Calculation of major materials
waste
General formula for determining
the waste norm of materials (VL) in the construction norms is:
VL = QV x Khh + QV LC x KLC
x Ktđ (5.1)
In particular:
- QV: Number of materials
used for each component of work within the norms (except for circulated materials),
are calculated by one of three above methods;
For materials that
make up product by design, the amount of materials are determined from the
design standard, ... for example concrete based on mortar which macadam, sand,
cement and water calculated from the construction standards of Vietnam
(TCXDVN), or standard of the work, ...
For materials for
construction by the design on methods to organize the construction, it is
determined by the construction techniques and the number of circulated times
according to the material norm published or calculated for the cases not yet
had in material norm.
- QVLC: Number of circulated
materials (formwork, scaffolding, service bridge ...) used for each component
of work in the norm are calculated according to one of three above methods;
- Khh: The norm of
permissible material loss in construction:
...
...
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Ht/c: The norm of
material loss in construction in accordance with the provisions in norm of
published materials, survey, the fact of similar works, or the experience of
the experts or the professional organizations for materials having not had in
the norm.
Loss norms are
prescribed for the bulk materials, semi-finished materials (construction mortar,
concrete mortar) and structures (piles, precast beams).
- KLC: circulated
coefficient of the material required to be circulated prescribed in the norms of
the materials use. For materials not circulated, KLC = 1 and for the materials circulated, KLC <1.
Circulation coefficient
of the circulated materials is determined by the following formula:
(5.3)
In particular:
- h: Rate to be
offset loss from the 2nd time onwards;
- n: Number of circulated
materials uses (n> 1);
- Ktđ:
coefficient using the time due to schedule of work construction is a
coefficient reflecting the irregular or maximum mobilization of amount of
materials to complete construction in accordance with schedule. This
coefficient affects only the circulated materials, such as mobilization of
scaffolding, formwork, propping thing...When the construction methods used once
or several times, adding this coefficient to suit work construction conditions.
This coefficient is calculated according to schedule, construction method or
the experience of professional organizations.
...
...
...
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For other materials (sub-materials)
be determined by the percentage of the total cost of the quantitative main materials
in the construction norms and are determined by the type of work, according to
experience data of expert or norms in similar works.
+ Calculation of
waste norm on labor
Norms of labor waste
in the construction norms are determined on the basis labor norms
(construction) published or calculated by one of three above methods.
- Calculation unit of basic labor norms is work hour.
- Calculation unit of
labor norms in the construction norm is workday. The level of labor waste is
determined by the general formula:
NC = å (tgđm x Kcđđ)
x 1/8 (5.4)
In particular:
- tgđm:
Basis labor norm: is labor waste level directly building for a volume unit of
mission or specific construction structures;
- Kcđđ: Conversion coefficient of
the construction norms.
This coefficient is
calculated from the basis labor norms (construction) moved to the construction
norm or taken by the experience of experts.
...
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- 1/8: Conversion
coefficient from work hour norm to workday norm.
+ Calculation of
the waste norm of construction machines
The waste norm of
construction machines in the construction norms are determined on the basis of
the norm of construction machine productivity published or calculated by one of
three above methods.
Calculation unit of
productivity norms for construction machines is machine hours, machine shifts...
Calculation of the
main construction machines waste
General formula for
determining the waste norm of machine shift, construction equipment:
x Kcdd
x Kcs
(5.5)
In particular:
- QCM:
Norm of construction capacity of a machine shift determined by one of three above
methods.
...
...
...
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This coefficient is
calculated from the norm of the construction machine capacity transferred to construction
norms or taken by the experience of the experts or professional organizations.
This number depends
on the working group, type of single or mixed combination that it is given the
different coefficients depending on the type of work, technical requirements
and the specific construction conditions and usually in the range from 1, 05 ¸ 1.3.
- Kcs: coefficient
using capacity is a coefficient reflecting the effective use of the capacity of
machine combination in the conjugated chain; this coefficient is calculated according
to the construction machine capacity of the work steps and appropriate
adjustments as in the line having the use of a machine with the smallest capacity.
Calculation of
machine waste and other construction equipment
For types of auxiliary
construction machines and equipment are determined by percentage compared with
the total costs of the quantitive main machines in the construction norms and
is determined by the type of work, by the experience of experts or norms in
similar works.
+ Method 4. Combination
of the above methods
When using this
method, it can be used the method of calculation of one of three above methods
to determine the waste norm of materials, labor and construction machines for the
work not included in the system of published estimate norm.
Step 4. Formulation
of norm sections on the basis of the sum of waste of materials, labor, and
construction machines
A gathering of norm
sections on the basis of synthesis of waste items of materials, labor, and
construction machines.
...
...
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- Composition of
work: clearly specify, fully contents of the working steps by the order from
initial preparation to the completion of working or construction structure,
including the conditions and specific method of construction.
- The norm table of waste
items: describe clearly the names, types and standard of major materials in the
construction or construction structures, and other auxiliary materials; type of
workers; average grades of construction workers; name, type, capacity of major machines,
equipment and some other machines, equipment in the chain of construction
technology to complete the construction or construction structures.
In the norm table, waste of major materials are calculated in kind, the auxiliary
materials are calculated by percentage compared to the cost of major materials;
labor waste is calculated by workday without particular hierarchical division but
by the average grades of construction workers; waste of major machine and
equipment is calculated by number of machine shifts, other machines (auxiliary)
is calculated by percentage compared to the cost of the major machines,
equipment.
The sections of construction
norms are gathered in groups or types of the construction or construction
structure and implemented the unified encryption.
2. Adjustment of components
of waste of materials, labor, construction machines as applying construction
norms publicized
When applying the
construction norms announced, but due to construction conditions or
construction methods or technical requirements of the work or all three of
these factors having one or more parameters inconsistent with the provisions in
construction norms published, the waste components of concerned materials,
labor, and construction machines shall be adjusted so as suitable to the work.
2.1. Bases of
adjustment
- Conditions and
methods of construction of the work.
- Requirements on
technique and construction progress of the works ...
2.2. Method of
adjustment
...
...
...
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- For waste of materials
making up the product by design, based on regulations and design standards of
the work to calculate the adjustment.
- For material methods
of construction, it shall adjust the component elements in norms publicized by
waste calculation from the design of construction method or according to the
experience of experts or professional organizations.
2.2.2. Adjustment of
labor waste
Increase or decrease of
labor components in the publicized norms and calculation of waste under the
conditions on the construction organization or the experience of experts or professional
organizations
2.2.3. Adjustment of construction
machine waste
- In case of changes
due to construction conditions (topographical conditions, difficulty, ease,
fast, slow progress of the work,...) it shall be calculated the increase or
decrease of norm number according to the conditions to organize construction or
experience of experts or professional organizations.
- In case of change due
to increase or decrease of construction machine capacity, it shall be adjusted
according to the principle: the capacity increases, number shall be decreased
and vice versa.
APPENDIX
6
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Work construction price
includes the unit price of work construction and general construction price. Unit
price of work construction is economic - technical criteria, including all necessary
direct costs of materials, labor and construction machines to complete a unit
of construction workload. General construction price is economic - technical
criteria including all necessary costs to complete a group of type of constructions,
structural units, or parts of the work.
1. The method of formulating
the unit price of work construction based on estimate norm system of the work
construction and other related cost factors at market prices.
1.1. Bases for
formulating unit price of work construction
Bases for formulating
unit price of work construction:
- List of work constructions
required to establish the unit price;
- The construction
estimate norm by the list required to establish unit price;
- The prices of
materials (not including value added tax) to the construction site;
- The price of labor
of the work;
- Prices of machine
shifts and construction equipment of the work (or rental of machine and
construction equipment).
...
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1.2.1. Determination
of the cost of materials (VL)
Cost of materials is
determined by the formula:
(6.1)
In particular:
- Di: the ith
amount of material (i=1¸n)
calculated for a unit of construction volume in the norm of work construction
estimate;
- GVLi: price of a ith
unit of material (i=1¸n) is determined in
accordance with the standard, type and quality of materials used for construction
work on the market provided by a function organization, quotation of the
manufacturer, the price information of the supplier or the price of a material
with similar standard, quality which was and is used in other works and is calculated
to the field of the work;
Where prices of materials
not yet calculated to the field of the work, the prices of materials to the
field of the work are determined in accordance with guidance in Item 1.2.4 of
this Appendix.
- KVL: coefficient to
calculate cost of other materials compared to total major materials costs
determined in the norm of work construction estimates.
For the work using
ODA capital required to use the materials which have no in domestic market, the
prices of materials, imported construction products are determined at market
prices in accordance with quality standards and of origin.
...
...
...
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Labor cost is
determined by the formula:
NC = B x gNC
(6.2)
In particular:
- B: amount of labor
waste calculated by direct workday according to the average grade for a unit of
construction volume in the work construction cost estimates norm;
- gNC: the
workday unit price of workers directly constructing determined according to unit
price of the common labor market in each region, province or city.
Particularly for the work
using state budget capital made by the method of appointment, it can use the
method of determining the workday unit price of workers directly constructing (gNC)
based on region-based minimum wage, grade salary, and allowances; subsidiary
wages calculated by 12% of basic wage; and some expenses can be directly
assigned to the employees equal to 4% of basic wage; other allowances, if any.
For the work using
ODA capital which there are things required to use foreign labor (jobs that require
special techniques or other works required to have supervision, inspection),
the workday unit price is determined by labor wage with equivalent title in
other countries in the region or similar works which were and are done in
Vietnam.
1.2.3. Determination
of the cost of construction machines (MTC)
Cost of construction
machines is determined by the following formula:
...
...
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In particular:
- Mi: waste amount of
machine shift of ith main machines, construction equipment (i=1¸n) calculated for a
unit of volume of construction in the work construction cost estimate norm;
- giMTC: the price of machine
shift of ith main construction machines, equipment (i=1¸n) under the price table
of machine shift and construction equipment of the work or machines rental
determined under the guidance of the Ministry of Construction;
- KMTC: coefficient to
calculate the cost of other machines (if any) compared to total cost of major
construction machine, equipment determined in the work construction cost
estimate norm.
For the works using ODA capital required to
use special machines that have no in Vietnam, they should be temporarily
imported for work construction, the price of machine shift is determined by the
machine rental on regional market or the price of machine shift which was and
is done with similar nature in Vietnam.
Above unit price of work construction includes
only the costs of materials, labor, and construction machines called as
incomplete unit price of work construction.
Complete unit price of work construction
includes the costs of materials, labor, and construction machines, other direct
costs, general expenses and advance calculated taxable income.
1.2.4. Method of determining the prices of
materials to the field (Gvl)
Material price to the field shall be
determined by the formula:
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- Gcct: prices
of materials to the work;
- Cht: expenses
in the field include: loading and unloading, transporting within the work, losses
in maintaining in storage in warehouse.
Material price to the
work is determined by the formula:
Gcct = Gg+
Cvc (6.5)
In particular:
- Gg:
original material prices;
- Cvc:
transportation costs to the work (including transition costs, if any).
1.2.4.1 Cost of
transportation to work
The cost of
transportation to the work can be determined under the plan, distance, and type
of vehicle and vehicle rental or calculated on the basis of norms for transport
and other means in accordance with actual conditions.
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The cost of
transportation to the work according to the freight is calculated by the
formula:
(6.6)
In particular:
- Li:
distance of the ith track;
- fi:
freight on the ith track;
- Cctc:
transition costs (if any);
- Cltk:
other traffic costs.
+ Freight can be
based on the announcement of the locality, market prices, quotation of
transport units ensuring the volume, the progress of the work;
+ Transition cost of
materials is calculated as having the changes in methods or means of transport,
including loading and unloading costs and transition losses. Cost of transition
losses is calculated based on percentage of the price of the original materials
on the basis of the materials norm published by the Ministry of Construction;
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The cost of
transportation to the work calculated by freight using Table 6.1
1.2.4.1.2 Transport
cost calculated on the basis of the norms of transport
Transport costs can
be calculated based on the use of appropriate transport norms in the work
construction estimates norm, prices of labor and machine shifts of the work, as
follows:
Cvc = (Mi:x
giMTC )+ Cttc + Cltk
(6.7)
In particular:
- Mi: amount
of machine shift waste of the machine used for transporting;
- giMTC:
the price of machine shift of the machine used for transporting;
- Cttc and
Cltk: as in item 1.2.4.1.1.
For example,
transportation costs can be determined by the level of transportation:
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- Waste of machine
shift within the first 1 km: 0.610 shift
- Waste of machine
shift for the next 6 km: 6 x 0.171 shift
- Waste of machine
shift for 43 km (other than 7 km): 43 x 0.106 shift
Total waste of
machine shift: 6.194 shift
Number of machine
shift multiplied with unit price of work machine shift (or machine shift price announced
by the localities) will be determined transport costs by tilting truck for a
distance of 50 km to the work.
Costs of machine
shift for transportation required to determine the right time to calculate,
when the fluctuation of prices, it should be adjusted accordingly. For example,
when machine shift price adjusted with coefficient 1.2, the cost could be
adjusted on the basis of this coefficient.
Machine shift price
of tilting car (after adjustment) is: 1,157,110 VND/shift
Transportation cost by car for 100 m3 of sand for a 50 km road section is:
6.194 shift x
1,157,110 VND/shift = 7,167,139 VND
Where the materials
are calculated by other calculation unit, it can use specific gravity to convert
the unit and apply the transportation norms appropriately.
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(6.8)
In particular:
- Gccti: price
of materials to the work from i source;
- Ti: volume
of materials purchased from i source.
1.2.4.1 Cost at field
(Cht)
Cost at field
includes the cost of loading and unloading (Cbx), transport cost
within the work (Cvcht), preservation loss costs (Chh)
and is determined by the following formula:
Cht = Cbx
+ Cvcht + Chh (6.9)
Cost of loading and
unloading calculated on the basis of labor norms of loading and unloading and unit
price of work labor; transport costs by rudimentary means within the work
calculated averagely within 300-meter scope on the basis of labor norms of transport
by rudimentary means and labor unit prices of work construction;
The cost of
preservation loss of materials in storage, warehouse of construction site is
calculated by percentage (%) compared to the price of materials to the field.
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Table
6.1. CALCULATION OF TRANSPORT COSTS
No.
Types
of materials
Calculation
unit
Source
of purchase
Means
of transportation
Distance
of track with the corresponding road grade
Freight
by road grade (VND/T.km)
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Distance
(km)
road
grade
[1]
[2]
[3]
[4]
[5]
[6]
[7]
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[9]
= å ( [6] x [8])
1
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2
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TABLE
6.2. CALCULATION OF PRICE OF MATERIALS TO FOOT OF THE WORK
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Types
of materials
Calculation
unit
Original
price
Cost
of transportation
Transition
cost (if any)
price
of materials to foot of the work
Loading
and unloading
Transition
loss
Sum
of transition cost
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total
[1]
[2]
[3]
[4]
[5]
[6]
[7]
[8]
= [4] x [7]
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[10]
= [4]+[5]+[9]
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Note:
- Column
[5]: taking by value of column [9] at Table 6.1;
- Column [6] = (norm of loading and unloading labor) x (unit
price of work construction labor).
Table
6.3. CALCULATION OF PRICE OF CONSTRUCTION MATERIALS TO THE FIELD OF THE WORK
No.
Types
of materials u
Calculation
unit
price
of materials to foot of the work
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Price
of materials to the field of the work
Cost
of loading and unloading
Cost of preservation loss
Cost
of transportwithin the work
Sum
of costs at the field
[1]
[2]
[3]
[4]
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[6]
= [4] x percentage
[7]
[8]
= [5]+[6]+[7]
[9]
= [4]+[8]
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Note:
- Column [4]: taking
by the results obtained by calculating from the column [10] in Table 6.2;
- Column
[5] = (labor norms of loading and unloading)
x (unit price of work construction labor);
- Column
[7] = (labor norms of transport within 300-meter scope) x (unit price of work construction labor).
2. The
method of formulating price of general construction of the work
2.1.
Bases to formulate price of general construction
- List of
construction group, types, structure units, and parts of the work;
- Unit
price of work construction corresponding to the construction groups, types,
structure unit, parts of the work.
2.2.
Formulation of the general construction price
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- Step 2.
Calculate the volume of construction (q) of each type of construction making up
the general construction price.
- Step 3.
Determine the cost of materials (VL), labor (NC), construction machines (M)
corresponding to the volume of construction (q) of each type of construction
making up the general construction price by the formula:
VL = q x
vl ; NC = q x nc ; M = q x m (6.10)
- Step 4.
Synthesis of results by each expense item in the general construction price according
to the formula:
(6.11)
In particular:
- VLi, NCi, Mi : is the costs of materials,
labor and construction machines of ith construction (i=1¸n) constituted in the general
construction price.
General construction price
can be made in the full price including the cost of materials, labor,
construction machines, and other direct costs, general expenses and advance
calculated taxable income.
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REPORT FORM ON RESULTS OF
APPRAISAL/VERIFICATION OF TOTAL INVESTMENT, COST ESTIMATES OF THE WORK
(Together with Circular No.04/2010/TT-BXD dated 26/5/2010 of Ministry of
Construction)
1. Report of the results of appraisal/verification
of total investment
Report
of the results of appraisal/verification of total investment is synthesized as Form
7.1 below.
Form 7.1. Report of the results
of appraisal/verification of total investment
APPRAISAL/VERIFICATION
UNIT
-------
THE SOCIALIST REPUBLIC OF VIETNAM
Independence– Freedom – Happiness
---------
(Document number)
For: appraisal/verification
of total investment
................................................
….., date
….. month ….. year …..
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Project:
.................................................................................
Location:
..................................................................................................
To: ………………………………………………
To perform the tasks assigned
(by the person deciding on the investment) (for contact-point unit to perform
the appraisal task) or at the request of (the person deciding on the
investment/investor) (for verification unit) on the appraisal/verification of
total investment (project’s name). After studying the dossier (name of the appraisal/verification
unit) has the following opinions:
1. An overview of the
project
- Name of project or
work; construction location, size,... work;
- The investor; survey
consultants, unit of making project,...;
- Process of
preparation of investment.
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- Construction Law;
- Decree on the
management of work construction investment projects;
- Decree on the
establishment and management of work construction investment costs;
- Circular on the establishment
and management of work construction investment costs;
- (The other relevant
documents of the state, the ministries, branches and localities ...).
3. Remark on dossier
quality of total investment
- Remark of method of
making total investment selected for calculations;
- Remark of the basis
to identify cost items in the total investment;
- Conclusion on
whether or not enough conditions for appraisal/verification.
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- On the suitability
of the method of determining the total investment with the characteristics and technical
nature and technological requirements of the investment project of work construction;
- On the completeness
and reasonableness and suitableness with actual market requirements of the
expense items in total capital;
- Regarding value of the
total investment.
5. Results of appraisal/verification
Based on the bases
and principles mentioned above, the total investment value (project’s name)
after appraisal/verification as follows:
No.
Content of costs
Request value
Verification value
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1
Cost of
construction
2
Cost of equipment
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3
Cost of compensation,
assistance and resettlement
4
Cost of project management
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5
Cost of construction
investment consultancy
6
Other costs
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7
Reserve cost
Total
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(With detailed Appendix attached)
Causes of increase,
decrease:
(Raise and analize causes of
increase, decrease for contents of major increase, decrease costs).
7. Conclusion and
proposal
APPRAISER/VERIFIER
- (Sign, full name)
- (Sign, full name)
- (Sign, full name)
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INSPECTOR
(Sign, full name)
Certificate of
controlling, evaluating prices of construction rank ....., No. .....
Recipents
-
-
-
- …
HEAD OF APPRAISAL/VERIFICATION
UNIT
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2. Report of the results
of appraisal/verification of work cost estimate
Report of the results of appraisal/verification
of work cost estimate is synthesized as Form 7.2 as follows.
Form 7.2. Report of the results
of appraisal/verification of work cost estimate
APPRAISAL/VERIFICATION
UNIT
-------
THE SOCIALIST REPUBLIC OF VIETNAM
Independence– Freedom – Happiness
---------
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For: appraisal/verification
of work cost estimate ................................................
…..,
date ….. month ….. year …..
REPORT OF THE RESULTS
OF APPRAISAL/VERIFICATION OF WORK COST ESTIMATE
The work:
.................................................................................
Location:
..................................................................................................
To: ………………………………………………
To perform the tasks
assigned (by the investor) (in case of seft-appraisal by investor) or at the
request of (the investor) or the economic contract (contract number) (for
verification consulting unit) on the appraisal/verification of work cost
estimate (project’s name). After studying the dossier (name of the
appraisal/verification unit) has the following opinions:
1. The bases for
the appraisal/verification
...
...
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- Decree on the
establishment and management of work construction investment costs;
- Circular on the
establishment and management of work construction investment costs;
- (The other relevant
documents of the state, the ministries, branches and localities,...).
2. General introduction
of the work
- Name of the work;
- Investor;
- Consultants, units
of making design and work cost estimate;
3. Remark on dossier
quality of work cost estimates
- Remark of design,
the estimate making method selected;
...
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- Conclusion on
whether or not enough conditions for appraisal/verification.
4. Principles of appraisal/verification
- On the conformity
between the principal volume of cost estimate with design volume;
- On the correctness
and reasonableness of the application, the use of work construction unit
prices, the ratio cost norm, cost estimates of consultancy and estimate of
other cost items in the work estimate;
- In the value of
work cost estimate.
5. Results of appraisal/verification
Based on the bases
and principles stated above, the value (work cost estimate) after appraisal/verification
as follows:
No.
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Request value
Verification value
Increase, decrease
1
Cost of
construction
2
...
...
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3
Cost of project management
4
...
...
...
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5
Other costs
6
...
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Total
(With detailed Appendix attached)
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(Raise and
analize causes of increase, decrease for contents of major increase,
decrease costs).
7. Conclusion and
proposal
APPRAISER/VERIFIER
- (Sign, full name)
- (Sign, full name)
- (Sign, full name)
- ...
INSPECTOR
(Sign, full name)
...
...
...
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Recipients
-
-
-
- …
HEAD OF
APPRAISAL/VERIFICATION UNIT
(Sign,
seal)
...
...
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APPENDIX
8
THE FORM OF SUBMISSION FOR APPROVING
ESTIMATE NORM OF SOME ADJUSTMENT CONSTRUCTIONS AND NEW CONSTRUCTION USED FOR
SETTING UP THE CONSTRUCTION UNIT PRICE IN THE BIDDING PACKAGE USING BUDGET
STATE CAPITAL APPLYING FORMS OF BIDDING APPOINTMENT UNDER THE PROVISIONS IN
CLAUSE 6 OF ARTICLE 13 OF DECREE NO.112/2009/ND-CP
(Together with Circular No.04/2010/TT-BXD dated 26/5/2010 of Ministry
of Construction)
(Investor)
-------
THE SOCIALIST REPUBLIC OF VIETNAM
Independence– Freedom – Happiness
---------
Document number
For: adjustment,
new construction of work construction cost estimate norm
….., date
….. month ….. year …..
...
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STATEMENT
ESTIMATE NORM OF SOME
CONSTRUCTION MISSIONS TO BE ADJUSTED,
NEWLY BUILT USED FOR MAKING UNIT PRICE
OF WORK CONSTRUCTION... ..
To: (THE PERSON
DECIDING ON THE INVESTMENT)
Based on the nature and characteristics of the construction works, based on the
norm system of work construction cost estimates has been publicized by the
competent agencies, to implement clause 6 of Article 13 of Decree No.112/2009/ND-CP
dated 14/12/2009 of the Government, (investor) respectfully submits cost
estimate norm for some constructions of the works ... including .... level,
which adjusts the work construction cost estimate norm which has been published
as ... level and newly set the the construction work cost estimate norm is ... level
as the Appendix attached to this Statement.
Proposes (the person deciding on the investment) to consider and decide for use
as a basis for the determination of work construction unit prices in accordance
with provisions.
To
- As above;
- Archive.
(INVESTOR)
(Sign, seal)
...
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APPENDIX
(Together the
Statement No. ….. dated …… of …..)
ESTIMATE NORM OF SOME
CONSTRUCTIONS TO BE ADJUSTED, NEWLY BUILT USED FOR MAKING UNIT PRICE OF WORK CONSTRUCTION …..
1. Estimate
norm of some constructions to be adjusted
1.1. Mission’s name:
……………………………………………………………….
- Working component:
- Norm table:
Calculation
unit: …
Code
...
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Waste components
Unit
Norms
Publicized
adjusted
Materials
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...
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Manpower
Grade …
...
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Construction machines
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1.2. Working’s name:
……………………………………………………………….……….…
2. Estimate norms of some newly added
constructions
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- Working component:
- Norm table:
Calculation unit: …
Code
Constructions
Waste components
Unit
norms
...
...
...
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Materials
...
...
...
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Manpower
grade …
Construction machines
...
...
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2.2. Working name: ……………………………………………………………….………………