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GOVERNMENT
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SOCIALIST
REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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No. 10/2021/ND-CP
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Hanoi, February
9, 2021
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DECREE
MANAGEMENT
OF CONSTRUCTION INVESTMENT COST
Pursuant to Law on Governmental Organization dated
June 19, 2015; Law on amendments to Law on Government Organization and Law on
Local Governmental Organization dated November 22, 2019;
Pursuant to Law on Construction dated June 18,
2014; Law on amendments to Law on Construction dated June 17, 2020;
Pursuant to Law on Investment dated June 17,
2020;
Pursuant to Law on Public Investment dated June
13, 2019;
Pursuant to Law on Investment in Public-Private
Partnerships dated June 18, 2020;
Pursuant to Law on Bidding dated November 26,
2013;
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The Government promulgates Decree on management
of construction investment cost.
Chapter I
GENERAL PROVISIONS
Article 1. Scope
1. This Decree prescribes
management of construction investment cost for projects utilizing public investment
funding, non-public investment state capital, investment projects in
public-private partnerships (hereinafter referred to as “PPP projects”),
including: preliminary total investment, total investment, construction
estimates, construction contract package values, construction norms,
construction prices, project management and construction consultancy cost;
payment for and finalization of construction contracts; reimbursement and
statement of construction costs; rights, obligations and responsibilities of
investment deciders, investors, building contractors, advisory contracts for
advisory contractors for management of construction investment cost.
2. Management of construction
investment cost for projects utilizing official development assistance (ODA),
concessional loans of foreign donors complying with international agreements;
agreements on ODA loans, concessional loans entered into effect; this Decree
and regulations on management and use of ODA loans and concessional loans of
foreign donors.
Article 2. Regulated entities
1. This Decree applies to
agencies, organizations and individuals involved in management of construction
investment cost for projects utilizing public investment funding, non-public
investment state capital and PPP projects.
2. Other organizations and
individuals shall refer to this Decree for management of construction
investment cost for projects other than those under Clause 1 of this Article.
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1. Management of construction
investment cost must comply with Article 132 of Law on Construction and Clause
50 Article 1 of Law on amendments to Law on Construction, and conform to each
type of funding source, investment form, implementation method, project
execution plans and relevant law provisions.
2. Specify and exercise rights
and responsibilities of regulatory agencies, individuals deciding to invest,
and agencies specialized in agencies; rights and obligations of project
developers, organizations and individuals related to management of construction
investment cost satisfactory to construction investment procedures under Clause
1 Article 50 of Law on Construction.
3. The Government shall
regulate, provide guidelines and inspect implementation of regulations and law
on management of construction investment cost; regulate affairs necessary to
enable project developers and relevant entities to adopt and refer to during
management of construction investment cost, including: construction norms,
construction prices, construction investment rates, output price indices;
construction material costs, construction machinery and equipment cost per
shift, construction personnel unit price; information and data on construction
costs of projects and constructions; methods of determining, managing
construction investment cost, construction quantity takeoff, and controlling
construction cost, norms, prices, investment rate and output price indices.
4. Specific projects and
constructions shall comply with Decree on elaborating to management of
construction investment and specific mechanisms prescribed by Government,
decisions of Prime Minister to determine and manage construction investment
cost.
5. For projects and
constructions serving national defense and security, entitlement, procedures
for appraising total investment cost in construction investment feasibility
reports, construction investment economic-technical reports, and entitlement,
procedures for approving and appraising construction estimates in construction
design implemented after fundamental design shall conform to regulations of
Minister of National Defense and Minister of Public Security.
6. Projects and constructions
under national target programs shall adopt principles and methods of
determining construction investment costs under this Decree and relevant law
provisions satisfactory to characteristics and conditions of construction under
national target programs.
7. Management of construction
investment cost of overseas projects and constructions shall conform to principles
under Decree elaborating to management of construction investment cost.
Chapter II
PRELIMINARY TOTAL
INVESTMENT, TOTAL CONSTRUCTION INVESTMENT
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1. Preliminary total investment
refers to estimated investment capital of projects in construction investment
pre-feasibility reports. Preliminary total investment includes: compensation,
assistance and relocation costs (if any); construction cost; equipment cost;
project management cost; construction investment and consultancy cost; other
costs; backup costs.
2. Preliminary total
investment is estimated on the basis of scale, capacity or capability according
to preliminary design of projects and construction investment rates or data on
costs of similar projects in terms of construction type, grade, scale, capacity
or capability, characteristics of implemented projects with analysis and
assessment to adjust shift in market price depending on building site and
including other necessary costs of projects.
3. Appraisal and approval of
total construction investment shall be performed simultaneously with appraisal
and approval of construction investment pre-feasibility reports according to
regulations and law on public investment, investment form of public-private
partnership, management and use of state capital in manufacturing and business
in enterprises and other relevant law provisions.
Article 5. Total construction
investment
1. Total construction
investment refers to total construction investment of projects identified and
satisfactory to fundamental design and other details under construction
investment feasibility reports.
2. Total investment includes:
compensation, assistance and relocation costs (if any); construction cost; equipment
cost; project management cost; construction investment and consultancy cost;
other costs; backup costs and is prescribed as follows:
a) Compensation, assistance and relocation costs
include: compensation costs for land, houses, constructions on land, assets
attached to land, assets on water and other compensation costs as per the law;
assistance costs when the government performs land appropriation; relocation
costs; costs for organizing compensation, assistance and relocation; land use
and rental costs during construction period (if any); costs for repositioning
and repaying technical infrastructure invested for construction serving land
clearance (if any) and other relevant costs;
b) Construction costs include: construction costs
for constructions and work items of projects; temporary and/or auxiliary
constructions and work items serving construction progress; deconstruction cost
for constructions beyond deconstruction scope serving land clearance affairs
identified under compensation, assistance and relocation costs;
c) Equipment costs include: cost for purchasing
construction and technology equipment; administrative cost for equipment
purchase (if any); cost for purchasing copyrights of software serving
construction and technology equipment (if any); training and technology
transfer costs (if any); costs for processing, manufacturing equipment to be
processed (if any); cost for installing, experimenting, calibrating; cost for
conducting test operation of equipment based on technical requirements (if any);
transportation costs; insurance; tax and fees; other relevant costs;
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dd) Construction investment consultancy costs refer
to costs necessary to perform construction investment consultancy affairs from
project preparation, project execution to conclusion of construction, bringing
project constructions into operation and settlement of construction investment
capital and are elaborated under Article 31 of this Decree;
e) Other costs include costs necessary to execute
construction investment projects, include: costs for clearing and disarming
mines, explosive ordnances; costs for moving specific construction machinery
and devices to and from construction sites; costs for guaranteeing traffic
safety during construction period; costs for returning technical infrastructure
damaged by construction period to its original state; costs for material
storage; costs for constructing sheltering structures for machine, machine
foundation, electrical and compressed air supply systems, on-site water supply
systems, installing and/or dismantling machines; construction insurance costs
during construction period; costs for registering international standards and
monitoring construction deformation processes; costs for accounting, inspection
and approval of investment capital settlement; costs for examining acceptance
inspection during construction period and at completion of constructions and
work items performed by agencies specialized in construction or councils
established by Prime Minister; conducting scientific and technology research,
applying and utilizing new materials related to projects; initial working
capital for construction investment for business purposes, loan interests
during construction period; costs for conducting unloaded and loaded test
operation for technology and manufacturing lines before transfer (other than
salvageable product value); costs for appraising construction investment
feasibility reports, construction investment economic-technical reports;
resource taxes, fees and charges as per the law and other necessary costs to
execute construction investment projects not specified under Points a, c, d,
and dd of this Article;
g) Backup costs include costs for additional work
load and inflation that occurs during project execution.
3. In case projects only
require preparation of construction investment economic-technical reports,
total construction investment shall include construction estimates according to
Article 11 of this Decree, compensation, assistance, relocation costs (if any)
and relevant costs of projects. Construction estimates are identified under
Article 12 of this Decree.
Article 6. Determination of
total construction investment
1. Total construction
investment is determined by using following methods:
a) Determination according to construction load
based on fundamental design and other requirements of projects;
b) Determination according to construction
investment rate;
c) Determination according to costs of similar
projects, constructions;
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2. Method specified under
Point a Clause 1 of this Article shall serve as the basic method for
determining total construction investment for projects, constructions with
fundamental design eligible for determining quantity of work, groups and type
of work, structural components, construction components and respective
construction costs.
3. Determine total construction
investment under Point a Clause 1 of this Article as follows:
a) Compensation, assistance and relocation costs
are determined on the basis of compensation, assistance and relocation
solutions of projects and relevant government policies;
b) Construction costs are determined on the basis
of work load and construction affairs; groups and type of construction affairs,
structural components, construction components, respective construction costs
and other relevant costs;
c) Equipment costs are determined on the basis of
quantity, amount, type of equipment or equipment systems according to
technology, technical solutions, selected equipment, equipment price conforming
to market price and other relevant costs;
d) Project management costs are determined under
Article 30 of this Decree;
dd) Construction investment consultancy costs are
determined under Article 31 of this Decree;
e) Other costs are determined by percentage or
preparation of estimates. Costs for clearing and disarming mines and explosive
ordnances according to regulations of Minister of National Defense;
g) Backup costs for additional work are determined
by percentage of costs under Points a, b, c, d, dd, and e of this Clause.
Percentage for backup costs for inflation is determined based on temporal
length of projects, project execution plans and output price indices suitable
for construction type taking into account domestic and international price
fluctuation.
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Total construction investment is determined on the
basis of quantity, area, capacity or capability according to publicized
fundamental design and respective construction investment rate conforming to
construction type and grade with assessment, conversion and calculations in
terms of date on which total construction investment is produced, project
location, addition of other necessary costs not included in construction
investment rates depending on specific conditions of projects, constructions.
5. Determine total
construction investment under Point c Clause 1 of this Article as follows:
Total construction investment is determined on the
basis of quantity, area, capacity or capability according to fundamental design
and data on costs of executed projects, constructions with similar type, grade,
scale or operational capability. Cost-related data must be converted,
calculated in terms of date on which total construction investment is produced,
project location and added with other necessary costs conforming to specific
conditions of projects and construction.
6. Based on level of detail of
fundamental design of projects, publicized construction investment rates, data
on costs of similar projects and constructions, utilize 2 or 3 methods under
Points a, b, and c Clause 1 of this Article to determine total construction
investment.
Article 7. Appraisal of total
construction investment
1. Appraisal of total
construction investment is a detail within construction investment feasibility
reports, construction investment economic-technical reports. Entitlement for
appraisal of total construction investment is implemented according to Law on
Construction and Decree on elaborating to management of construction investment
projects.
2. Details for appraisal of
total construction investment performed by agencies specialized in construction
under Point g Clause 2 Article 58 of Law on Construction and amendments thereto
under Clause 15 Article 1 of Law on amendments to Law on Construction are
follows:
a) Adequacy and legitimacy of application for
appraisal of total construction investment; legal basis for determining total
construction investment;
b) Conformance of total construction investment to
approved total preliminary investment; methods of determining total
construction investment;
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d) Compliance with regulations and law on application,
reference of construction norms systems, construction prices, other necessary
tools issued by regulatory authorities, and application, reference of
cost-related data of similar projects, constructions to determine total
construction investment.
3. Details for appraisal of
total construction investment performed by agencies, organizations or
individuals authorized by investment deciders under Point a Clause 3 Article 56
and Point d Clause 1 Article 57 of Law on Construction and amendments thereto
under Clauses 13 and 14 Article 1 of Law on amendments to Law on Construction
are as follows:
a) Adequacy and legitimacy of application for
appraisal of total construction investment; examination of inspection results
of total construction investment of consulting organizations (if any);
d) Results of finalization and revision of
application for appraisal of total construction investment based on
recommendations of agencies specialized in construction under Clause 2 of this
Article (if any) and explanations;
c) Conformance and adequacy of determination of
quantity or scale, capacity or capability serving calculation in total
construction investment compared with fundamental design of projects;
d) Determine total construction investment to
guarantee adequacy, legitimacy and conformance with design, construction
conditions, market price and project execution plans;
dd) Analyze reasons of increase, decrease and
assess investment effectiveness assurance of projects based on total
construction investment which is determined post-appraisal.
4. For projects utilizing
non-public investment state capital not specified under Points c Clause 1
Article 58 of Law on Construction and amendments thereto under Clause 14
Article 1 of Law on amendments to Law on Construction, investment deciders
shall appraise details under Clauses 2 and 3 of this Article.
5. For projects that require
only construction investment economic-technical reports, investment deciders
shall appraise details under Clauses 3 and 4 Article 13 of this Decree.
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7. Costs for organizations and
individuals participating in appraisal extracted from fees, charges for
appraising construction investment feasibility reports.
8. Ministry of Construction
shall regulate fees for appraising and examining construction investment
feasibility reports, construction investment economic-technical reports.
Ministry of Finance shall prescribe fees for appraising construction investment
projects.
Article 8. Approval of total
construction investment
1. Approval of total
construction investment is specified under decisions on construction
investment. Entitlement for deciding on construction investment shall conform
to Article 60 of Law on Construction and amendments thereto under Clause 17
Article 1 of Law on amendments to Law on Construction.
2. Approved total
constructions investment refers to the maximum cost for executing construction
investment projects.
Article 9. Revision of total
construction investment
1. Approved total construction
investment shall be revised according to Clause 5 Article 134 of Law on
Construction and Point dd Clause 18 Article 1 of Law on amendments to Law on
Construction.
2. Total construction
investment for revision includes revised total investment and unrevised total
investment. Details related to total construction investment for revision must
be appraised according to Article 7 of this Decree. Entitlement for appraisal
and approval of revised total construction investment shall conform to
regulations on entitlement for appraisal and approval of revised projects under
Decree on elaborating to regulations on management of construction investment
projects.
Article 10. Appraisal and
approval of costs for project preparation
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2. Agencies and organizations
assigned to prepare projects or project developers (if projects developers have
been identified) shall organize preparation and appraisal of project
preparation estimates under Clause 1 of this Article, except for cases under
Clauses 3 and 4 of this Article.
3. For national important
projects utilizing public investment capital, preparation, appraisal and
approval of project preparation estimates under Clause 1 of this Article shall
conform to regulations and law on public investment.
4. For estimates of costs for
hiring foreign consultants for affairs under Clause 1 of this Article,
entitlement for appraisal and approval of estimates shall conform to Clause 4
Article 32 of this Decree.
5. Project preparation
estimates under Clause 1 of this Article shall be included in total
construction investment after being approved.
Chapter III
CONSTRUCTION ESTIMATES
Section 1. CONSTRUCTION
ESTIMATES
Article 11. Details of
construction estimates
1. Construction estimates
refer to all expected costs necessary and identified according to construction
design implemented after fundamental design or technical drawing design in case
projects only require construction investment economic-technical reports.
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3. For projects with multiple
constructions, project developers shall determine total estimates to manage
construction investment when necessary. Total estimates include construction
estimates, consultancy costs, other costs, and backup costs for the whole
projects.
Article 12. Determination of
construction estimates
Construction estimates
are determined based on quantity calculated from construction design
implemented after fundamental design or technical drawing design in case
projects only require construction investment economic-technical reports,
technical guidelines, affair requirements, plans for implementation,
construction conditions, construction solutions, construction norms,
construction prices, output price indices and other relevant law provision
adopted depending on specific construction conditions. Costs within
construction estimates are determined according to Clauses 2, 3, 4, 5, 6, and 7
of this Article.
2. Construction costs include:
direct costs, indirect costs, pre-assessed taxable income and value-added tax
(VAT) and are determined as follows:
a) Direct costs (including: material costs,
personnel costs, construction machinery and equipment costs) are determined
according to specific construction quantity and unit price, and combined
construction prices, type of construction operations, structural or component
units of constructions.
In case direct costs are determined according to
specific construction quantity and unit price: quantity determined according to
construction affairs and operation; specific construction unit price is
determined according to Clause 2 Article 24 of this Decree.
In case direct costs are determined according to
construction quantity and combined prices of construction type, affairs,
constructions components or structures: quantity is determined depending on
construction type, structural or component units; prices of construction type,
affairs, construction components or structures are determined under Clause 3
Article 24 of this Decree.
b) Indirect costs include general costs, costs for
temporary structures for residence and construction coordination, and costs for
affairs with unidentifiable work quantity. Indirect costs are determined by
percentage as per the law;
c) Pre-assessed taxable income is determined by
percentage;
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3. Equipment costs are
determined as follows:
a) Equipment purchase costs are determined
according to quantity, type of equipment based on (technology, construction)
design, approved list of equipment in projects and respective purchase prices;
b) Costs for processing and manufacturing equipment
(if any) are determined by preparing estimates on the basis of quantity of
equipment to be processed, manufactured and respective unit prices for
processing, manufacturing; on the basis of processing, manufacturing contracts,
price notice of manufacturers, processors or prices for processing,
manufacturing similar equipment;
c) Remaining costs for equipment according to Point
c Clause 2 Article 5 of this Decree are determined by preparing estimates or on
the basis of cost norms prescribed by regulatory authorities.
4. Project management costs
are determined under Article 30 of this Decree.
5. Construction investment
consultancy costs are determined under Article 31 of this Decree.
6. Other costs are determined
on the basis of price prescribed by regulatory authorities or estimate
preparation.
7. Backup costs include backup
costs for work quantity, additional work and backup costs for inflation and are
determined by percentage of total costs under Clauses 2, 3, 4, 5, and 6 of this
Article. Percentage for backup costs for inflation is determined based on
temporal length constructions under project execution plans and output price
indices suitable for construction type taking into account domestic and
international price fluctuation.
Article 13. Examination and
appraisal of construction estimates
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2. Entitlement for appraisal
of construction estimates is implemented according to Law on Construction and
Decree on elaborating to management of construction investment projects.
3. Details for appraisal of
construction estimates performed by agencies specialized in construction under
Point d Clause 2 Article 83a of Law on Construction and amendments thereto
under Clause 26 Article 1 of Law on amendments to Law on Construction are
follows:
a) Adequacy and legitimacy of application for
appraisal of construction estimates; legal basis for determining construction
estimates;
b) Conformity of construction estimates with
approved total construction investment; methods of determining construction
estimates;
c) Conformity of construction estimate details
under Article 11 of this Decree with project contents and requirements;
d) Compliance with regulations and law on
application, reference of construction norms systems, construction prices,
other necessary tools issued by regulatory authorities; application, reference
of cost-related data of similar projects, constructions to determine
construction estimates;
dd) List of new estimate indicators, revised
estimate indicators (if any) and methods of determining; list of indicators to
be surveyed during construction process.
4. Details for appraisal of construction
estimates performed by project developers under Point c Clause 1 Article 83 of
Law on Construction and amendments thereto under Clause 25 Article 1 of Law on
amendments to Law on Construction are follows:
a) Adequacy of dossiers on construction estimates
for appraisal; inspecting examination results of construction estimates of
consulting organizations (if any);
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c) Conformity and adequacy of determining
construction work load, type and quantity of equipment in construction
estimates compared with design;
d) Determine construction estimates while
guaranteeing adequacy as per the law, conformity with total construction
investment, construction technical and technology requirements, construction
conditions, construction solution, construction progress and market price;
dd) Analyze and assess level, cause of increase,
decrease of costs compared with construction estimates applied for appraisal;
e) For projects utilizing non-public investment
state capital and not requiring appraisal of agencies specialized in
construction, project developers shall appraise details under Clause 3 of this
Article and Points a, b, c, d, and dd of this Clause.
5. Details for appraisal of
construction estimates for constructions under PPP projects.
a) For constructions under PPP projects utilizing
public investment: agencies specialized in construction shall appraise details
under Clause 3 of this Article; project developers shall appraise shall appraise
details under Clause 4 of this Article and details under PPP project contracts;
b) For constructions not utilizing public
investment capital under PPP projects: project developers shall appraise
details under Clauses 3 and 4 of this Article and details under PPP project
contracts.
6. Project developers shall
appraise estimates for preparation affairs to prepare construction design after
fundamental design and general costs for the whole projects. In case estimates
of these costs have been approved in total construction investment, project
developers shall consider recalibration when necessary. In case foreign
consultants are hired, entitlement for appraisal and approval of estimates for
costs of hiring foreign consultants shall conform to Clause 4 Article 32 of
this Decree.
7. Examination serving
appraisal of construction estimates shall conform to Decree on elaborating to
management of construction investment projects.
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9. Ministry of Construction
shall prescribe costs for appraisal of construction estimates. Ministry of
Finance shall prescribe fees for appraising construction estimates.
Article 14. Approval of
construction estimates
1. Entitlement for approval of
construction estimates shall conform to Article 82 of Law on Construction and
amendments thereto under Clauses 24 and 25 Article 1 of Law on amendments to
Law on Construction.
2. Project developers shall
approve estimates for preparation affairs to prepare construction design after
fundamental design and general costs for the whole projects.
3. Decisions on approval of
construction estimates and cost estimates under Clause 2 of this Article shall
be sent to project developers.
Article 15. Revision of
construction estimates
1. Approved construction
estimates shall be revised according to Clause4 Article 135 of Law on
Construction.
2. Construction estimates for
revision includes unrevised construction estimates and revised construction
estimates. Details related to revised construction estimates must be appraised
according to Article 13 of this Decree.
3. Entitlement for appraisal
and approval of revised construction estimates shall conform to regulations on
entitlement for appraisal and approval of revised construction design
implemented after fundamental design under Decree on elaborating to regulations
on management of construction investment projects.
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5. In case revised estimates
do not exceed approved estimates but alter structure of costs in total
construction investment, project developers shall organize revision, approval,
report to investment deciders and are responsible for revision results.
Section 2. CONSTRUCTION CONTRACT
PACKAGE ESTIMATES
Article 16. General
regulations on construction contract package estimates
1. Construction contract
package estimates (hereinafter referred to as “contract estimates”) are all
costs necessary for executing contract package, determined for each contract
package and satisfactory to contractor selection plans prior to organizing
contractor selection.
2. Contract estimates are
determined for following contract packages:
a) Construction contract package;
b) Equipment procurement contract package;
c) Equipment installation contract package;
d) Construction investment consultancy contract
package;
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Article 17. Determination of
contract estimates
1. Contract estimates are
determined on the basis of costs of each contract package and satisfactory to
design, scope, nature, characteristic and specific conditions of contract
package.
2. For front end engineering
design (FEED) projects for implementation of engineering, procurement and
construction (EPC) contracts, contract estimates are determined on the basis of
costs within contract package determined on the basis of FEED design.
3. For projects and
constructions permitted by investment deciders to implement construction design
after fundamental design according to each construction contract package and
each project execution phase, contract estimates are determined on the basis of
costs within scope of respective contract package and construction design.
Costs within contract estimates are determined similar to costs under construction
estimates under Article 12 of this Decree satisfactory to scope, nature,
characteristics and specific conditions of each contract package.
4. For projects with approved
construction estimates, project developers shall determine contract estimates on
the basis of costs within scope of contract package under approved construction
estimates if necessary.
5. Backup costs in contract
estimates conform to form of contracts in contract package specified under
contractor selection plans.
Article 18. Examination,
appraisal and approval of contract estimates
1. Examination and appraisal
of contract estimates under Clauses 2 and 3 Article 17 of this Decree shall be
implemented similar to construction estimates specified under Article 13 of
this Decree.
2. Project developers shall
approve contract estimates under Clauses 2, 3, and 4 Article 17 of this Decree
to replace contract package prices under contractor selection plans according
to bidding laws.
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4. Depending on characteristics
of contract package, revision of costs under contract estimates specified under
Clauses 2 and 3 Article 17 of this Decree shall be implemented similar to
revision of construction estimates under Article 15 of this Decree.
Article 19. Construction
contract package price
1. Construction contract
package price refers to price of construction contract package approved under
contractor selection plans serving as the basis for selecting contractors.
Contract package price includes all adequate costs necessary to execute
construction contracts, including backup costs, fees, charges, and taxes.
2. Contract package price
shall be updated on bid opening day according to bidding law if necessary.
Chapter IV
CONSTRUCTION NORMS,
CONSTRUCTION PRICES AND OUTPUT PRICE INDICES
Section 1. CONSTRUCTION NORMS
Article 20. Construction norm
system
1. Construction norm system
includes economic-technical norms and cost norms. Economic-technical norms
include basic norms and estimate norms.
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3. Estimate norms
a) Estimate norms are norms on necessary
depreciation of materials, human resources, construction machinery and
equipment conforming to technical requirements, construction conditions and
specific construction measures for completion of a unit of construction
quantity;
b) Estimate norms are adopted, consulted in order
to prepare construction estimates and serve as the basis for determining
construction prices, preparing and managing construction investment.
4. Cost norms include: norms expressed
in percentage and norms expressed in numeric values. Cost norms serve as the
basis for determining construction prices, cost estimates of affairs, costs in
construction investment namely indirect costs, pre-assessed taxable income,
project management costs, construction investment consultancy costs and other
costs.
5. Estimate norms for specific
construction operations of sectors, local administrative divisions are norms
for affairs not specified under construction norm system regulated by Ministry
of Construction and only occur in constructions under management of sectors or
local governments.
6. Ministry of Construction
shall organize construction, issue construction norms for general use on a
nationwide scale. Ministries having jurisdiction over specialized construction
works shall organize construction operations, issue estimate norms for specific
construction operations of sectors, People’s Committees of provinces shall
organize construction operations, issue estimate norms for specific construction
operations of local administrative divisions.
7. Ministries having
jurisdiction over specialized construction works, People’s Committees of
provinces shall prepare plans, organize development of estimate norms under
Clause 5 of this Article, send to Ministry of Construction and request for
feedback on methods and basis for developing norms, conformity of calculation
results of depreciation components prior to issuance.
8. Adoption and reference of
construction norm systems shall conform to Clause 3 Article 136 of Law on
Construction and amendments thereto under Clause 51 Article 1 of Law on
amendments to Law on Construction.
9. Construction norm system
under this Article shall be managed by code system according to Minister of
Construction.
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1. Determination of new
estimate norms for structures shall be implemented for construction operations
not specified elsewhere or construction operations that utilize new
construction technology, construction solutions, or construction conditions
that are not specified under construction norm systems issued by competent
authorities.
2. Revision of estimate norms
is implemented for construction operations specified under construction norm
system issued by competent authorities but not conforming to technical design,
requirements, construction conditions and/or construction solutions.
3. Determination of new estimate
norms and revision of estimate norms shall conform to regulations of Minister
of Construction.
4. During preparation of
construction estimates, determination and management of new estimate norms and
revised estimate norms under Clauses 1 and 2 of this Article shall be
implemented as follows:
a) Organizations and individuals preparing
construction estimates are responsible for preparing lists of new estimate
norms and estimate norms that require revision to meet specific structure
requirements and organizing determination of norm depreciation conforming to
technical design, requirements, construction conditions, expected construction
solutions to serve preparation of unit price and determination of construction
estimates;
b) Agencies specialized in construction shall
appraise relevant details under Point d Clause 3 Article 13 of this Decree;
c) Project developers shall consider and decide on
use of revise estimate norms and/or new estimate norms for structures as the
basis for determining construction prices.
5. During construction
process, project developers shall organize surveys to determine new estimate
norms and revised estimate norms under Clause 4 of this Article as follows:
a) Organize recalibration of contents of norms
(including applicable regulations, affair components, depreciation components,
unit of measurement, norm values) on the basis of surveys and data collection
in practical construction situations;
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6. In case project developers
request, Ministry of Construction shall provide guidelines and remarks for new
estimate norms whereas agencies which issue norms shall provide guidelines and
remarks for revised estimate norms under Clauses 4 and 5 of this Article.
7. Project developers may hire
capable cost management and consultancy organizations according to Decree
elaborating to regulations on management of construction investment projects to
determine and appraise norms under Clause 5 of this Article.
Article 22. Review and update
of construction norm system issued by competent regulatory agencies
1. Ministry of Construction,
ministries having jurisdiction over specialized construction works and People’s
Committees of provinces shall organize review and provide guidelines on
application and reference of construction norm systems issued and publicized
before effective date hereof following principles below:
a) Complete review, annul inappropriate norms and
issue norms that do not require revision before June 30, 2021;
b) Organize review, determine norms that require
revision and issue before December 31, 2021;
c) During the period of reviewing and revising
norms, Ministry of Construction, ministries having jurisdiction over
specialized construction works and People’s Committees of provinces are
responsible for guiding application and reference of norms that they have
issued within competence and other necessary affairs to prepare and manage
construction investment.
2. Construction norm systems
issued by Ministry of Construction, ministries having jurisdiction over
specialized construction works and People’s Committees of provinces must be
reviewed and updated every 3 years from the date on which the norms are issued
or earlier if necessary.
3. Ministry of Construction is
responsible for organizing, expediting review and update of construction norm
systems and issuing regulations, guidelines on implementing review and update
of construction norms.
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a) Determine annual lists, plans for reviewing
norms and send to Ministry of Construction for monitor and examination during
implementation;
b) Assign agencies specialized in construction
affiliated to organizations that review, hire organizations and individuals
capable for operating according to Decree on elaborating to regulations on
management of construction investment projects to review, determine new norms
and revised norms and request competent authorities to issue as per the law;
c) Decide on issuance of norms after consulting
Ministry of Construction according to Clause 7 Article 20 of this Decree and
send to Ministry of Construction for consolidation and update onto database.
5. Agencies specialized in construction
within their competence shall consolidate development results of norms under
Clauses 4 and 5 Article 21 of this Decree and norms under Clause 6 of this
Article and send to Ministry of Construction (in case of new estimate norms)
and agencies that issue norms (in case of revised estimate norms) to serve
review, consideration and decision on update norm systems.
6. Encourage organizations and
individuals to organize determination of new estimate norms and revised
estimate norms by themselves, and send results to agencies specialized in
construction to serve state management affairs.
Article 23. Expenditure on
review, update, development and revision of construction norms
1. Expenditure on review,
update of construction norms implemented by Ministry of Construction,
ministries having jurisdiction over specialized construction works and People’s
Committees of provinces: expenditure on plan preparation, review organization;
review, determination, appraisal; update of new norms and revised norms. Such
expenditure shall be allocated from annual budget.
2. Expenditure on developing
new norms and revising norms under Clauses 4 and 5 Article 21 of this Decree
shall be included in construction investment of projects.
Section 2. CONSTRUCTION PRICES
AND OUTPUT PRICE INDICES
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1. Construction prices include
specific construction unit price and mixed construction prices and serve as the
basis for determining total construction investment and construction estimates.
a) Specific construction unit price is determined
for construction operations;
b) Mixed construction prices are determined by
group, type of construction operations, structural or component units of
constructions.
2. Specific construction unit
price of constructions is determined on the basis of construction norms, prices
of construction materials, components, personnel, construction machinery and
equipment and other necessary cost factors satisfactory to price market of
construction sector at a definite point in time and other relevant law
provisions, on the basis of construction unit price issued by People’s
Committees of provinces or on the basis of market price or similar prices of
implemented constructions.
3. Mixed construction price is
determined on the basis of combining specific construction unit price of a unit
of measurement of operation, structural or component unit according to prices
issued by competent authorities, identified on the basis of market price or
similar prices in implemented constructions.
Article 25. Construction
investment rates
1. Construction investment
rates are costs necessary for a unit of measurement by area, volume, length,
capacity or capability of structures by design and serve as the basis for
determining preliminary total investment and total construction investment.
2. Construction investment
rates include: construction costs; equipment costs; project management costs;
construction investment consultancy costs; other costs and VAT for said costs.
Construction investment rates do not include backup costs and costs for several
affairs depending on separate requirements of projects and structures.
Article 26. Management of
construction prices and construction investment rates
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2. People’s Committees of
provinces shall publicize construction unit price of local administrative
divisions; decentralize and authorize Departments of Construction to publicize
construction price information in provinces according to Points a and b of this
Clause as follows:
a) Prices of construction materials and equipment:
publicize on a quarterly basis or earlier if necessary;
b) Unit price of construction personnel,
construction machinery and equipment per shift, construction machinery and
equipment rental: publicize on an annual basis or earlier if necessary.
3. Project developers shall
employ construction price systems under Clauses 1 and 2 of this Article as the
basis for determining total construction investment, construction estimates and
managing construction investment or organizing determination of construction
prices satisfactory to technical requirements, construction conditions,
constructions solutions and specific plans of constructions.
4. Project developers may hire
organizations and/or individuals that provide advice on management of
construction investment capable of operating according to Decree elaborating to
regulations on management of construction investment to perform tasks or parts
of tasks related to determination and appraisal of construction prices under
Clause 3 of this Article.
5. Expenditure on collecting
figures, determining and publicizing construction prices and information on
prices and construction investment rates under Clauses 1 and 2 of this Article
shall be allocated from annual budget.
Article 27. Output price
indices
1. Output price indices are
indicators reflecting volatility in construction prices, serving as the basis
for determining and revising preliminary total investment, total construction
investment, construction estimates, construction contract package value,
construction contract value, conversion of construction investment and
management of construction investment.
2. Output price indices
include construction prices by construction type and cost compositions
(including price index of construction works, price index of equipment, and
price index of other costs), cost factors (including price index of building
materials, price index of labor, price index of building equipment) and price
index of some major materials.
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a) Ministry of Construction shall provide
guidelines on determining output price indices; determine and publicize
national output price indices on a yearly basis;
b) Departments of Construction shall organize determining
output price indices in provinces using methods provided by Ministry of
Construction (including all price indices under Clause 2 of this Article) as
the basis for enabling People’s Committees of provinces to publicize or
decentralize, assign Departments of Construction to publicize on a quarterly
basis, annual basis or earlier if necessary and send to Ministry of
Construction.
4. In case output price
indices are utilized to revise construction contract value, for constructions
that are not specified under list of output price indices publicized by
Ministry of Construction or People’s Committees of provinces, project
developers shall organize determining output price indices using methods
provided by Ministry of Construction and send to Ministry of Construction (for
constructions implemented in at least 2 provincial administrative divisions) or
People’s Committees of provinces (for constructions implemented in provincial
administrative division) for remarks about conformity of method of determining
output price indices, adequacy and legitimacy of determination of output price
indices.
5. Project developers may hire
organizations and/or individuals that provide advice on cost management capable
of operating according to Decree elaborating to regulations on management of
construction investment to calculate output price indices under Clause 4 of
this Article.
6. Expenditure on collecting
data, determining and publicizing output price indices under Clause 3 of this
Article shall be allocated from annual budget.
Section 3. DATABASE ON
CONSTRUCTION NORMS, CONSTRUCTION PRICES AND OUTPUT PRICE INDICES
Article 28. Database on
construction norms, construction prices and output price indices
1. Database on construction
norms, construction prices and output price indices (hereinafter referred to as
“database”) is a part of information system and national database on
construction operation according to Law on Construction, including:
a) Information and data on construction norms,
construction prices, construction investment rates, output price indices issued
or publicized by competent authorities;
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c) Database on prices of construction services,
construction products, construction materials and equipment, and other relevant
information provided by organizations, individuals operating in construction
sector or via investigation, survey.
2. Ministry of Construction is
responsible for developing, managing and operating database on a nationwide
scale which serves as contact point for databases of specialized and local
ministries having jurisdiction over specialized construction works; providing
information and data in database for state management affair purposes and at
request of organizations, individuals to prepare and manage construction
investment as per the law.
3. Ministries having
jurisdiction over specialized construction works and People’s Committees of
provinces are responsible for developing, managing and operating database to
serve state management affairs regarding construction investment in sector and
local governments.
4. Principles of developing
and managing database:
a) Database must be synced and compliant with
regulations and law; serve state management affairs and meet socio-economic
development demands;
b) Information and data prior to being updated on
database must be examined, reviewed, assessed and classified accordingly;
c) Collection and addition of data, information
must prevent repetition of tasks; include close cooperation in collecting
information, data; maximize currently available information, data;
d) Information, data that has been examined,
processed and updated as per the law on database shall hold similar legitimacy
to physical documents;
dd) Agencies, organizations and individuals shall
be legally responsible for information and data that they provided for
database.
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1. Ministry of Construction is
responsible for developing, managing, operating and controlling database on a
nationwide scale:
a) Develop Regulations on managing, extracting and
utilizing database; issue and manage database login accounts; control contents
that are updated, revised and uploaded on database;
b) Provide guidelines on contents and methods of
developing database (including collecting, consolidating, processing, updating,
storing information and data);
c) Provide guidelines of extracting and utilizing
database;
d) Developing and finalizing system of codes,
software applications for management of database.
2. Ministries having
jurisdiction over specialized construction works are responsible for
consolidating and providing estimate norms on specialized construction
operations; construction prices, construction material prices, human resource
prices, specialized construction machinery and equipment and sending to
Ministry of Construction for update onto database.
3. People’s Committees of
provinces are responsible for consolidating and providing estimate norms on
specialized constructions of local administrative divisions; local construction
prices, construction material prices, human resource prices, specialized
construction machinery and equipment and sending to Ministry of Construction
for update onto database.
4. Investment deciders who
investment projects that utilize public investment, non-public state capital
are responsible for requesting project developers to send information, data
related to construction investment of projects under their management to
Ministry of Construction to update on database.
5. Expenditure on developing,
managing, operating database and collecting, consolidating, processing,
updating information shall be allocated from annual budget and other legally
mobilized funding sources.
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PROJECT MANAGEMENT COSTS
AND CONSTRUCTION INVESTMENT CONSULTANCY COSTS
Article 30. Project management
costs
1. Project management costs
shall be used for organizing implementation and performing following tasks:
a) Organize implementation of: supervising
construction survey; selecting construction designs or construction design
measures; compensating, assisting and relocating within responsibilities of
project developers; preparing and appraising construction feasibility reports
or construction economic-technical reports; preparing and appraising
construction design implemented after fundamental design and construction
estimates; selecting contractors in construction operations; controlling
quality, quantity, progress, construction prices and construction contracts;
managing construction information system; collecting and providing information
serving management of construction investment at request of competent
authorities; ensuring occupational safety and hygiene of structures;
determining new estimate norms, revising estimate norms; determining
construction prices, output price indices; examining quality of materials,
components, construction products, equipment installed in structures;
accrediting structure components, work items, structures and conducting
experiments specialized in construction sector at request; controlling
construction investment; preparing preliminary environmental impact assessment
reports, environmental impact assessment reports, surveying and monitoring
environment during construction progress according to regulations and law on
environmental protection; converting construction investment once structures
are completed, inspected for acceptance and transferred into use; inspecting
for acceptance, paying, setting contracts; paying and settling construction
investment; supervising and assessing investment; inspecting for acceptance and
transferring structures; initiating construction, inaugurating (if any),
advertising and organizing management of implementation of other necessary
tasks serving project management;
b) Perform following tasks: supervising, assessing
investment; appraising construction designs implemented after fundamental
design and appraising construction estimates; determining construction contract
package estimates (in case construction estimates have been approved) and
perform other necessary tasks within responsibilities of project developers.
2. Project management costs
include salaries of project managers; wages for workers under contracts;
allowances; bonuses; collective benefits; contributions (social insurance;
medical insurance; unemployment insurance; union fees; other contributions as
per the law for individuals eligible for receiving payments from projects);
science and technology application, training and improvement of project
managers; payment of public services; office supplies; information,
communication and publicity; organization of conferences related to projects;
working fees; hiring, repair, procurement of assets serving project management;
other costs and backup costs.
3. Project management costs
are maximum costs for managing projects depending on approved length, scope of
work of projects and determined on the basis of percentage or by preparing
estimates conforming to project management methods, project length, project
management scale and characteristics. Project management costs shall be managed
on the basis of estimates determined on an annual basis conforming to project
management tasks, affairs and relevant policies. Project management costs shall
only be revised when changes to project management scope, project execution
progress, or project revision occur.
4. In case project management
consultants are hired, project management consultancy costs shall be determined
by preparing estimates on the basis of project management contents, workload
agreed upon by project developers and consulting organizations under contracts
for project management consultancy.
5. In case general contractors
conclude EPC contracts for project management affairs under responsibilities of
project developers, general contractors shall partially benefit from project
management costs conforming to project management affairs, workload assigned by
project developers and agreed upon under EPC contracts.
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Article 31. Construction
investment consultancy costs
1. Construction investment
consultancy affairs include:
a) Developing missions, construction survey
solutions, design missions; executing construction surveys, supervising
construction surveys; producing construction investment pre-feasibility reports
(if any), investment guideline proposal (if any), construction investment
feasibility reports or construction investment economic-technical reports;
b) Appraising construction investment
pre-feasibility reports (if any), construction investment feasibility reports
or construction investment economic-technical reports; appraising technology design
of projects (if any); appraising compensation, assistance, relocation
solutions; proposing architecture solutions; designing construction; appraising
construction designs, construction estimates;
c) Producing, appraising EOI request,
prequalification document, bidding documents, soliciting documents assessing
said documents to select active construction contractors; appraising contractor
selection results in construction sector; supervising construction process and
equipment installation;
d) Developing, appraising construction norms,
construction prices, output price indices; appraising traffic safety; applying
BIM model;
dd) Providing project management consultancy (in
case consultants are hired); conducting experiments in construction sector; controlling
quality of materials, structural components, construction products, equipment
installed in structures at request of project developers (if any); controlling
quality of construction components, work items, structures (if any)l
supervising, assessing construction investment projects (in case consultants
are hired);
e) Producing preliminary environmental impact
assessment reports, environmental impact assessment reports, monitoring and
supervising environment during construction process according to regulations
and law on environmental protection;
g) Converting construction investment after
structures are completed, inspected for acceptance and transferred into use (if
any);
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2. Construction investment
consultancy costs include: costs for consultants (salaries, bonuses,
allowances, collective interest, social insurance, medical insurance, union
fees, other payments as per the law for individuals performing consulting
activities in projects); costs for science technology application, management
of construction information system; costs for public services, office supplies,
information, communication; costs for hiring, repairing, procuring assets
serving project consulting affairs (if any); management costs of consulting
organizations; other costs; pre-assessed taxable income; VAT and backup costs.
Costs for construction survey and experiments specialized in construction shall
include costs under Clause 2 Article 12 of this Decree and other relevant costs
(if any).
3. Construction investment
consultancy costs shall be determined by percentage issued by Ministry of
Construction or by preparing estimates on the basis of scope of consulting
affairs, workload to be implemented, execution plans of contract package and
regulations on policies of the government.
4. Approved construction
investment consultancy costs are maximum costs for consultancy affairs for
construction investment and only revised when changes to affairs, conditions,
or consulting progress occur. Construction investment consultancy costs shall
be managed via contracts for construction investment consultancy.
5. In case project developers,
boards for management of construction investment projects capable as per the
law executing consultancy affairs, may add costs for said affairs to project
management costs.
6. Costs for hiring foreign
consultants for consultancy affairs shall conform to Article 32 of this Decree.
Article 32. Costs for hiring
foreign consultants
1. Investment deciders shall
decide on hiring foreign consultants according to regulations and law on
bidding.
2. Costs for hiring foreign
consultants shall be determined depending on type of consultancy affairs on the
basis of number of experts, level of experts, working hours of experts,
salaries of experts by countries and other necessary costs for completion of
consultancy affairs.
3. Costs for hiring foreign
consultants are determined according to estimates or database on costs for hiring
foreign consultants of similar projects and structures in Vietnam; Cost
estimates for hiring foreign consultants are all costs necessary for completion
of construction consulting services, including: costs on experts, management
costs, other relevant costs, pre-assessed taxable income, backup costs and
payable taxes as per the law.
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5. Methods of determining
costs for hiring foreign consultants shall conform to regulations of Minister
of Construction.
Chapter VI
PAYMENT, SETTLEMENT OF
CONSTRUCTION CONTRACTS AND PAYMENT, SETTLEMENT OF CONSTRUCTION INVESTMENT
Article 33. Payment,
settlement of construction contracts
Payment and settlement of construction contracts
shall conform to Decree on elaborating to construction contracts.
Article 34. Payment of
construction investment
1. Payment of construction
investment and deadline therefor:
a) Projects utilizing public investment shall
conform to regulations and law on public investment;
b) Projects utilizing non-public investment state
capital and PPP projects shall conform to relevant regulations and law.
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3. Agencies paying
construction investment and project developers are prohibited from developing
regulations contradictory to regulations and law on payment of construction
investment.
Article 35. Settlement of
construction investment
1. Construction investment
projects must be settled in terms of construction investment after being
transferred into use or permanently suspended at written request of competent
authorities.
2. Investment capital for
settlement must be within total approved or revised investment as per the law.
3. Investment capital for
settlement refers to the entire legitimate cost required in construction
process to bring project structures into use. Legitimate costs are all costs
within the scope of approved projects, designs, estimates; construction
contracts signed as per the law, including approved amendments thereto. PPP
projects shall conform to regulations and law on investment in form of
public-private partnerships.
4. Contractors are responsible
for preparing documents on settlement of contracts signed with project
developers as per the law on construction contracts which serve as the basis for
settling investment capital.
5. Project developers are
responsible for settling construction investment within total approved
investment of projects; prepare documents on settlement of construction
investment and conversion of construction investment and request investment
deciders to approve within 9 months from the date on which acceptance records
of structures are signed and structures are transferred into use. For
independent work items or structures within projects with multiple structures
to be transferred into use, in case immediate settlement is required, project
developers shall report to investment deciders.
6. Agencies appraising and
approving settlement are responsible for appraising and approving settlement
within 9 months from the date on which adequate settlement documents are
received.
7. Project developers are
responsible for dealing with public debts and finalizing project accounts at
agencies paying investment capital within 6 months from the date on which
decisions on approval of settlement of capital of completed investment project
are issued. In case completed projects with approved settlement have not been
assigned with adequate capital, project developers shall report to investment
deciders and relevant agencies to deal with public debts and finalize project
accounts as per the law.
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9. Project developers that
fail to perform settlement in a timely manner according to Clause 5 of this
Article shall be met with penalties according to regulations and law on
imposing penalties against administrative violations in construction investment.
10. Entitlement to approval of
settlement of construction investment:
a) For national important projects and other
important projects in which investment is decided by the Prime Minister:
superior authorities of project developers shall approve cost statements of
component projects funded by public investment capital and component projects
funded by non-public investment state budget;
b) For remaining projects, individuals capable of
approving settlement of construction investment or authorizing approval of
settlement of construction investment of completed projects shall decide on
investment;
c) PPP projects shall conform to regulations and
law on investment in form of public-private partnerships.
Chapter VII
RIGHTS, OBLIGATIONS AND
RESPONSIBILITIES OF INVESTMENT DECIDERS, PROJECT DEVELOPERS AND CONSTRUCTION
CONTRACTORS IN MANAGEMENT OF CONSTRUCTION INVESTMENT
Article 36. Rights and
responsibilities of investment deciders
1. Complying with regulations
on rights and responsibilities of investment deciders under Article 72 of Law
on Construction and Clause 22 Article 1 of Law on amendments to Law on
Construction and entitlement under this Decree and relevant law provisions.
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Article 37. Rights and
obligations of project developers
1. Complying with regulations
and law on rights and obligations of project developers under Article 68 of Law
on Construction and entitlement under this Decree and other relevant law
provisions.
2. Accepting recommendations
in terms of changing materials, construction materials, construction solutions,
technical requirements at request of design consultants or construction contractors
while satisfying technical, aesthetic, quality, progress, safety, environmental
protection requirements according to signed construction contracts satisfactory
to regulations and law on construction contracts and project objectives.
3. Closely managing and using
funding sources of projects for the right purposes; preventing construction
investment from exceeding total construction investment, and guaranteeing
project progress and effectiveness.
4. Performing construction
investment consultancy affairs if capable as per the law.
5. Providing data of projects
at request of regulatory agencies; cooperating or organizing collection of cost
management information data at request of regulatory agencies.
6. Advancing, paying and
settling contracts according to contracts signed with contractors.
7. Purchasing structure
insurance for structures prescribed by law or authorizing contractors to
purchase insurance via construction contracts.
8. Paying fine from project
management funding sources if imposed with penalties for administrative
violations in construction investment.
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1. Consulting contractors
shall have rights and obligations prescribed under consulting contracts for
management construction investment under Decree on elaborating to management of
construction investment projects and other relevant law provisions.
2. Requesting project
developers to provide information and data related to assigned consultancy
tasks.
3. Being responsible for
contents, quality, progress of consultancy affairs under their charge;
providing project cost management information, data at request of regulatory
agencies and project developers.
4. Having their consultancy
protected by intellectual property rights as per the law.
5. Refusing requests of
project developers contradicting regulations and law
6. Paying damages for failure
to comply with regulations and law on management of construction investment and
contract infringement which damages project developers.
Article 39. Rights and
obligations of construction contractors
1. Construction contractors
shall have rights and obligations prescribed under construction contracts and
other relevant law provisions.
2. Deciding estimate norms,
construction prices and other relevant costs when determining bidding prices.
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4. Cooperating with projects
developers in organizing surveys to determine revised norms and new norms
during construction period (if any) according to Point a Clause 5 Article 21 of
this Decree.
5. Providing data of projects
at request of regulatory agencies; cooperating or organizing collection data
related to construction investment at request of regulatory agencies.
6. Paying damages for failure
to comply with regulations and law on management of construction investment and
contract infringement which damages project developers.
Chapter VIII
STATE MANAGEMENT FOR
CONSTRUCTION INVESTMENT COST
Article 40. Ministry of
Construction
1. Being responsible for unifying
state management regarding construction investment cost.
2. Providing guidelines on
contents, methods of determining, managing and controlling construction
investment cost, including: preliminary construction investment, total
construction investment cost, construction estimates, construction norms and
construction prices, construction investment rates, output price indices,
construction personnel unit price, construction machinery and equipment cost
per shift, construction quantity takeoff, conversion of construction
investment, construction investment consultancy costs.
3. Issuing construction norms; publicizing
construction investment rates, mixed construction prices, national construction
price indices, norms on depreciations and basic data to determine machinery
cost per shift. Organizing review on a regular basis, consolidating norm
review, revision results and issuing as per the law.
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5. Inspecting compliance with
regulations and law on management of construction investment.
Article 41. Ministry of
Planning and Investment
1. Taking charge and
cooperating with relevant entities in appraising origin and ability to allocate
capital for construction investment utilizing public investment capital;
consolidating and presenting mid-term and annual public investment plans to
Government, Prime Minister.
2. Organizing supervision and
assessment of investment, examining and inspecting projects utilizing public
investment capital as per the law.
Article 42. Ministry of
Finance
1. Regulating management and
use of revenues generated from project consultancy and management affairs of
project developers and boards for management of projects utilizing public
investment capital.
2. Inspecting payment and
settlement of construction investment cost and completed projects.
Article 43. Ministries having
jurisdiction over specialized construction works and People’s Committees of
provinces
1. Ministries having
jurisdiction over specialized construction works
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b) Periodically review construction norm system
that they have issued and send new constructions norms, revised construction
norms to Ministry of Construction.
2. Ministry of National Defence shall regulate
methods of determining cost norms on clearing and disarming mines, explosive
ordnances after consulting Ministry of Construction.
3. People’s Committees of
provinces
a) Provide guidelines on preparing and managing
construction investment; examine implementation of regulations on management of
construction management cost in local administrative divisions;
b) Based on methods of determining construction
norms prescribed by Ministry of Construction, organize development and issue
construction norms for specific construction operations of local administrative
divisions;
c) Periodically review construction norm system
that they have issued and send new constructions norms, revised construction
norms to Ministry of Construction;
d) Publicize construction unit price of local
administrative divisions; publicize or decentralize, authorize Departments of
Construction to publicize output price indices; decentralize, authorize
Departments of Construction to publicize construction materials, construction
equipment, construction personnel unit price, construction machinery and
equipment cost per shift, construction machinery and equipment rental;
dd) Allocate annual budget for developing, issuing,
publicizing information and data under Point b of this Clause.
Chapter IX
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Article 44. Transition clauses
1. For construction investment
presented for appraisal before January 1, 2021 according to Law on Construction
2014 without receiving appraisal results of total construction investment
before effective date hereof, appraisal affairs shall continue according to Law
on Construction 2014 and guiding documents; subsequent management of
construction investment cost shall conform to this Decree.
2. Construction investment
projects with appraisal results of total construction investment that have not been
approved before the effective date of this Decree shall not require another
instance of appraisal; subsequent management of construction investment shall
conform to this Decree
3. For construction investment
projects approved before the effective date of this Decree where none of the
tasks in execution phase have been implemented (for cases in which contractors
who have not issued bidding documents, requesting documents are required),
subsequent management of construction investment shall conform to this Decree.
4. For construction investment
projects approved before the effective date hereof where one or several tasks
in execution phase are being or have been implemented, subsequent management of
construction investment for tasks that have not been implemented is as follows:
a) Details for appraisal and entitlement for
appraisal and approval of construction investment shall conform to this Decree
and Decree on elaborating to management on construction investment;
b) Determination and management of construction
investment (other than those under Point a of this Clause) shall conform to
regulation and law on management of construction investment applicable to the
projects;
c) Transition of application and reference of
construction norms shall conform to Clause 5 of this Article.
5. Construction norms issued by competent agencies
shall continue to be applied to determine construction investment according to
regulations and law on management of construction investment applicable to
projects until norm systems under Points a and b Clause 1 Article 22 of this
Decree are issued by competent agencies and come into effect.
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7. Methods of determining
construction investment issued before the effective date hereof shall continue
to be applied to projects whose tasks in preparation phase are being
implemented and projects under Clauses 1, 2, and 3 of this Article until
methods under Clause 2 Article 40 of this Decree come into effect.
8. Update of construction
investment according to construction norms, construction prices, methods of
determining construction prices issued by competent agencies and coming into
effect according to this Decree shall be implemented as follows:
a) Total construction investment that has been
approved or appraised does not require other instances of appraisal or
approval. Project developers shall determine construction estimates according
to construction norms, construction prices, methods of determining construction
investment issued, publicized as per the law;
a) Construction estimates that have been approved
or appraised do not require other instances of appraisal or approval.
c) Contract packages that have not issued bidding
documents, requesting documents before the date on which construction norms,
construction prices, methods of determining construction investment are issued
and coming into effect: project developers shall update contract package
estimates to determine contract package values under approved plans for
selecting contracts to serve as the basis for selecting contractors as per
bidding laws;
d) For contract packages that have issued bidding
documents, requesting documents but have not closed the bidding, project
developers shall consider and decide on update of contract package estimates to
determine contract package values to serve as the basis for selecting
contractors as per bidding laws. In case bid is closed: Comply with bidding
documents, written request, bid envelop, written suggestion; do not update
price of contract packages;
dd) If necessary, investment deciders, project
developers shall decide on another instance of update, appraisal, approval of
total construction investment under Point a of this Clause; construction
estimates under Point b of this Clause within their competence;
e) In case another instance of update,
determination of total construction investment, construction estimates,
contract package value under Points c, d, and dd exceeds approved total
construction investment and/or construction estimates, appraisal and approval
of revised total construction investment, revised construction estimates shall
be implemented as per the law.
Article 45. Organization for
implementation
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2. Ministry of Construction
shall take charge and cooperate with relevant ministries in being responsible
for providing guidelines for implementation of this Decree.
Article 46. Entry into force
This Decree comes into effect from the date of
signing and replaces Decree No. 68/2019/ND-CP dated August 14, 2019 of the
Government on management of construction investment cost.
PP. GOVERNMENT
PRIME MINISTER
Nguyen Xuan Phuc