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MINISTRY OF
CONSTRUCTION
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SOCIALIST REPUBLIC
OF VIETNAM
Independence - Freedom - Happiness
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No. 11/2021/TT-BXD
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Hanoi, August 31,
2021
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CIRCULAR
INSTRUCTIONS
ABOUT SEVERAL REGULATIONS ON DETERMINATION AND MANAGEMENT OF CONSTRUCTION
INVESTMENT COSTS
Pursuant to the Law on Construction dated June
18, 2014; the Law on Amendments and Supplements to the Law on Construction
dated June 17, 2020;
Pursuant to the Government's Decree No.
81/2017/ND-CP dated July 17, 2017, defining the functions, tasks, powers and
organizational structure of the Ministry of Construction;
Pursuant to the Government’s Decree No.
10/2021/ND-CP dated February 9, 2021 on administration of investment and
construction costs and expenses;
Upon the request of the Director of the
Construction Economics Department;
The Minister of Construction herein promulgates
the Circular providing instructions about several regulations on determination
and management of construction investment costs.
Article 1. Scope
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Article 2. Subjects of
application
This Circular applies to the
subjects of application prescribed in Article 2 of the Government’s Decree No.
10/2021/ND-CP dated February 9, 2021 on management of construction investment costs
(hereinafter referred to as Decree No.10/2021/ND-CP).
Article 3. Preliminarily
estimated total investment, total investment in construction
1. Preliminarily estimated total
investment is determined under clause 1 and 2 of Article 4 in the Decree No. 10/2021/ND-CP
and the method under the instructions given in Section I of Appendix I herein.
In case where none of data on unit cost rate of investment in construction has
been announced, the preliminarily estimated total investment is calculated
based on data on costs of similar projects already completed, adjusted or
supplemented with other necessary costs and requires component costs to be
converted depending on the construction site, characteristics and property or
attribute of the project and time of determination.
2. Total investment is determined
under Article 6 in the Decree No. 10/2021/ND-CP and the method under the
instructions given in Section II of Appendix I herein and under several
specific regulations as follows:
a) Bases for determination of
total investment include conceptual or feasibility design, applicable
regulations for standards and standards, solutions related to main
technologies, techniques and equipment; solutions related to main architecture
and structures; solutions related to main construction activities and building
materials; conditions and plans for implementation of the project and other
necessary requirements of the project.
b) If there is none of regulations
or bases for calculation of several cost items included as components of
project management costs, construction investment consultancy costs or other
project costs, these cost items may be part of the estimate of total investment
in construction.
3. As regards any project using
the official development assistance capital (shortly called ODA), preferential
loans from foreign sponsors, in addition to the costs calculated in the
preliminary estimate of total investment, when calculating total investment in
construction, other necessary cost items may be added with the aim of ensuring
it matches property and characteristics or attributes of a construction
investment project using this capital source in accordance with the regulations
of treaties, ODA capital or preferential loan agreements already in effect and
other regulations of relevant laws.
4. As for investment projects
existing in the public-private partnership mode (hereinafter referred to as PPP
projects), in the calculation process, other necessary cost items prescribed in
laws on investment made in the public-private partnership mode are taken into
account.
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1. Construction cost estimate is
made under Article 12 in the Decree No. 10/2021/ND-CP and the method under the
instructions given in Section 1 of Appendix II herein. Cost items included in a
construction cost estimate include: Construction costs, equipment costs,
project management costs, construction investment consultancy costs, other
costs and contingency costs.
2. Construction costs included in
a construction cost estimate is determined under clause 2 of Article 12 in the
Decree No. 10/2021/ND-CP and the method under the instructions given in
Appendix III herein. Construction costs included in a construction cost
estimate include: Direct costs, indirect costs, pre-assessed taxable income and
value-added taxes. Direct costs are determined under point a of clause 2 of
Article 12 in the Decree No. 10/2021/ND-CP, the detailed instructions given in
Section I of Appendix III herein and several specific regulations as follows:
a) Quantities or volumes taken off
or calculated based on the engineering design put to use following the
conceptual design under the instructions of the Circular providing guidance on
methods of determination of economic and technical indicators and construction
quantity takeoff;
b) Detailed unit costs and total
cost that are determined under the instructions given in Appendix IV hereto.
3. Equipment costs included in a
construction cost estimate are determined under clause 3 of Article 12 in the
Decree No. 10/2021/ND-CP, the detailed instructions given in Section 1 of
Appendix II herein and several specific regulations as follows:
a) Equipment purchase costs are
determined according to the volume, quantity, category and purchase price of
the respective equipment. Volume, quantity or category of equipment is defined
on the basis of the design put to use following the conceptual design and the
approved list of equipment for use. Equipment purchase costs are calculated on
a par with the market price on the basis of information about equipment prices
available on the database of the competent regulatory authority; or the price
proposals provided by suppliers or manufacturers; or based on prices of
equipment with similar capacity, technologies and origins for use in completed
construction projects that have been converted over time to adapt to the
calculation period.
b) Costs of manufacturing of
equipment are calculated on the basis of volume, quantity of equipment to be
manufactured and unit manufacturing costs depending on the characteristics,
attributes, property and categories of equipment; or information about
manufacturing prices available in the price database of a competent regulatory
authority; or based on price proposals of manufacturers or suppliers; or based
on manufacturing prices of similar equipment of the completed construction
project which are converted over time to adapt to the calculation period.
c) Administrative costs of
equipment purchase (if any); costs of purchase of copyrights to software used
for construction equipment and technological equipment (if any); costs of
training and technology transfer (if any); transportation costs; insurance
costs; taxes and fees and other relevant costs, are determined based on the
cost estimate or based on regulations issued by competent regulatory
authorities.
d) Equipment installation costs
are estimated like construction costs under clause 2 of this Article.
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4. Project management costs
included in a construction cost estimate are determined under clause 4 of
Article 12 and 30 in the Decree No. 10/2021/ND-CP based on the norm in per cent
(%) which is taken into account when calculating total investment in
construction; or are estimated provided that they correspond to project
management costs included in the approved total investment. Project management
cost norms are stipulated under the Circular issuing construction cost norms.
5. Construction investment
consultancy costs included in a construction cost estimate are determined under
clause 5 of Article 12 in the Decree No. 10/2021/ND-CP and Article 13 herein.
Construction investment costs included in a construction cost estimate are
exclusive of consultancy costs of the entire project.
6. Other costs included in a
construction cost estimate are determined under clause 6 of Article 12 in the
Decree No. 10/2021/ND-CP and several specific regulations as follows:
a) Other costs included in the
construction cost estimate are determined based on norms in percent (%) under
the instructions of competent authorities; or based on cost estimates; or are
values of bids concluded in accordance with laws; or are estimated as part of
the construction cost estimate in line with the approved total investment in
construction if there are no grounds for calculation.
b) If costs of construction of
machinery sheds, foundations, power, compressed air or water supply systems in
place on site; costs of installation and demolition of cement concrete or
asphalt concrete mixer stations, gantry cranes, and other construction
equipment similar in characteristics, are separate from costs of the entire
project, they can be charged into other costs included in the construction cost
estimate. These costs are determined by using the estimate to ensure relevance
to design, construction method and particular conditions of the project.
c) Other costs included in the
construction cost estimate do not include costs incurred from payment of loan
interest during the construction period; expenses for demining of bombs, mines
and other explosive objects; audit; review and approval of investment capital
settlements; expenses for scientific and technological researches, application
and use of new materials related to the project; initial working capital
required for construction investment projects for commercial purposes; expenses
for the process of off-load or on-load commissioning of technology or
production lines according to the pre-transfer inspection processes; costs of
assessment of the feasibility study report for investment in construction and
the economic-technical investment report; resource-related taxes; fees, charges
and a number of other relevant cost items generally charged for the entire
project.
7. Contingency costs included in a
construction cost estimate are determined under clause 7 of Article 12 in the
Decree No. 10/2021/ND-CP, specifically as follows:
a) Contingency costs of quantity
or jobs involved are calculated by the ratio in percent (%) of these costs to
total of construction costs, equipment costs, project management costs,
construction investment consultancy costs and other costs.
b) The contingency costs offset against
inflation elements are determined on the basis of the proposed execution
duration and schedule (expressed in quarters or years) and the construction
price index appropriate for the type of construction project, taking into
account the possibilities of variation in domestic and international prices.
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9. Construction cost estimate can
be adjusted under the provisions of Article 15 in the Decree No. 10/2021/ND-CP
and the method under the instructions given in Section 4 of Appendix II hereto.
Article 5. Cost elements of the
bid cost estimate
1. The estimate of costs of a
construction bid is composed of several or all of the following cost
components: Construction costs, other associated costs and contingency costs of
the bid package.
2. The estimate of costs of an equipment purchase
contact is composed of several or all of the following cost components:
Costs of purchase of construction equipment and
technological equipment; costs of manufacturing of equipment; costs of
equipment purchase management; costs of purchase of copyrighted software for
equipment; costs of training, technology transfer; transportation costs; other
relevant costs and contingency costs of the bid.
3. The estimate of costs of an
installation contact is composed of several or all of the following cost
components: Costs of installation, testing or calibration; costs of trial
operation of equipment subject to technical requirements; other relevant costs
and contingency costs for the bid.
4. The estimate of costs of a
construction investment consultancy bid is composed of several or all of the
following cost components: Costs incurred from performing construction
investment consulting work; other costs and contingency costs of the bid.
5. Estimate of costs of the mixed
bid (including the estimate of the bid prescribed in clause 2 of Article 17 in
the Decree No. 10/2021/ND-CP): Depending on the specific extent, attributes and
conditions of the bid, the estimate of the mixed bid is composed of several or
all of cost components of the bid specified in clause 1, 2, 3 and 4 of this
Article.
Article 6.
Estimation of costs of the bid prescribed in clause 2 and 3 of Article 17 in
the Decree No. 10/2021/ND-CP
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a) Construction costs included in
the estimate of costs of the construction bid are determined according to
clause 2 of Article 4 herein.
b) Based on the specific
conditions of each bid, the estimate of costs of the construction bid may be
supplemented with one or a number of other relevant cost items for performing
the jobs falling within the scope of the bid, such as: Expenses for movement of
special-purpose machines and equipment to and out of the construction site;
expenses for ensuring traffic safety for construction activities; expenses for
restoration of technical infrastructure affected by construction activities; costs
of material storage facilities; expenses for construction of sheds or canopies
for machines, machine foundations, electricity, compressed air and water supply
systems at construction sites, installation and dismantlement of cement or
asphalt concrete mixing plants, gantry cranes, tower cranes, some other
building machines and equipment having similar characteristics, and several
cost items related to the bid.
c) Contingency costs included the
estimate of costs of the construction bid comprise provisions for quantities or
jobs and provisions against price slippage elements arising during the
construction period.
2. Estimate of costs of the
equipment procurement bid
a) Cost components included in the
estimate of costs of the equipment procurement bid are determined according to
point a, b and c of clause 3 of Article 4 herein.
b) Based on the specific
conditions of each bid, the estimate of costs of the equipment procurement bid
may be supplemented with one or a number of other relevant cost items for
performing the jobs falling within the scope of the bid.
c) Contingency costs included in
the estimate of costs of the equipment procurement bid comprise provisions for
quantities or jobs and provisions against price slippage elements arising
during the construction period.
3. c) Estimate of costs of
equipment installation bid:
a) Costs of installation, testing,
calibration and trial operation of equipment included in the estimate of costs
of the equipment installation bid are determined according to point d and dd of
clause 3 of Article 4 herein.
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c) Contingency costs included in
the estimate of costs of the equipment installation bid comprise provisions for
quantities or jobs and provisions against price slippage elements arising
during the construction period.
4. Estimate of costs of
construction investment consultancy bid:
a) Consultancy costs included in
the estimate of costs of the construction investment consultancy bid are
determined according to clause 5 of Article 4 herein.
b) Based on the specific
conditions of each bid, the estimate of costs of the construction investment
consultancy bid may be supplemented with one or a number of other relevant cost
items for performing the jobs falling within the scope of the bid.
c) Contingency costs included in the
estimate of costs of the construction investment consultancy bid comprise
provisions for quantities or jobs and provisions against price slippage
elements arising during the construction period.
5. Estimate of costs of the mixed
bid and estimate of costs of the bid prescribed in clause 2 of Article 17 in
the Decree No. 10/2021/ND-CP: Based on the specific substance and attributes or
property of each bid, the estimate of costs of the bid is composed of several
or all of cost items specified in clause 1, 2, 3 and 4 of this Article.
6. The estimates of costs of the
bids prescribed in clause 1, 2, 3 and 4 in this Article are made according to
the instructions given in Section 2 of Appendix II hereto.
Article 7.
Estimation of costs of the bid prescribed in clause 4 of Article 17 in the
Decree No. 10/2021/ND-CP
1. Based on the approved
construction cost estimate, the investor can, at their discretion, produce the
bid cost estimate, specifically including the followings:
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b) Determine cost components and
items included in the bid cost estimate according to the scope of work or
activities that need to be carried out in the bid on the basis of the approved
construction cost estimate.
c) Update volumes, unit costs,
prices of cost elements on a par with the price level at the local market where
the construction project is executed, relevant regulatory policies in effect at
the time of estimation of costs of the bid, technical directions, specific
requirements of the bid with respect to cost components or items that have
already been determined at point b of clause 1 of this Article.
2. Other relevant costs of the bid
is determined under point b of clause 1, point b of clause 2, point b of clause
3 and point d of clause 4 of Article 6 herein according to specific conditions
and characteristics of the bid and the approved construction cost estimate.
3. Contingency costs included in
the bid cost estimate are determined like those included in the construction
cost estimate prescribed in section 1 of Appendix II hereto and need to ensure
that total contingency cost included in the bid cost estimate does not exceed
contingency costs included in the approved construction cost estimate.
Article 8.
Management and announcement of construction prices prescribed in clause 2 of
Article 26 in the Decree No. 10/2021/ND-CP
1. Construction unit prices
announced by provincial People’s Committees under clause 2 of Article 26 in the
Decree No. 10/2021/ND-CP serve as a basis to determine and manage construction
investment costs of construction projects within their remit. Construction unit
prices announced by provincial People’s Committees are determined according to
construction cost norms issued by competent regulatory authorities and prices
of cost elements prescribed in clause 3, 4 and 5 of this Article provided that
they are appropriate to the calculation period. Prices of cost elements
including: Prices of building materials, unit prices of building labor, costs
of building machine and equipment per shift.
2. Prices of building materials,
unit prices of building labor, costs of building machine and equipment per
shift are announced by the Department of Construction on a periodic basis under
the provisions of clause 2 of Article 26 in the Decree No. 10/2021/ND-CP and
regulations laid down in clause 3, 4 and 5 of this Article.
3. Management and announcement of
prices of building materials:
a) Prices of building materials
that are announced must be in line with market prices, quality standards,
origins, capacity and scope of supply of building materials at the announcement
date. The announced list of building materials is compiled on the basis of the
list of building materials available in the set of norms issued by competent
regulatory authorities and the list of building materials available on the
market.
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c) Where necessary, the Department
of Construction can announce prices of building materials subject to changes on
a monthly basis to meet requirements of management of construction investment
costs. The deadline for quarterly and monthly announcement of prices of
building materials must be earlier than the 15th day of the first
month of the following quarter, and the 10th day of the following
month, respectively.
4. Management and announcement of
unit labor costs:
a) Unit labor costs put to use
locally must be on a par with labor prices on the local market, appropriate to
the characteristics, attributes and property of the work performed by
construction workers; must be inclusive of wages, salaries and fringe benefits
depending on the characteristics of construction work and several costs payable
by employees in accordance with regulations in force. Costs payable by
employees in accordance with regulations in force shall include: social
insurance, health insurance, unemployment insurance contributions and union
dues as well as several other payables.
b) Per-day unit costs of labor are
determined according to the statutory working time-length (8 hours/day and 26
days/month) of direct construction workers and vary depending on workmanship
levels stated in the worker's qualification rating available in the set of norms
issued by competent state authorities.
c) The list of groups and levels
of construction worker's qualification and methods for determination of unit
labor costs are specified in the Circular providing instructions about economic
and technical indicators and construction quantity takeoff.
d) Departments of Construction
shall take charge of and cooperate with related entities in: conducting or
hiring qualified consultants to conduct surveys, information collection,
consulting unit labor price brackets announced by the Ministry of Construction
to determine unit costs of construction labor for use in their localities;
making price announcements by using the sample No. 2 of Appendix VIII of this
Circular; sending these announcements to the Ministry of Construction for
monitoring and management purposes, enclosing electronic data files (Microsoft
Excel-formatted files) to be entered into the database as prescribed in clause
3 of Article 29 in the Decree No. 10/ 2021/ND-CP.
dd) The deadline for annual
announcement of unit labor prices should be prior to January 15th of
the following year.
5. Management and announcement of
per-shift costs of machines and equipment:
a) Per-shift costs of construction
machines and equipment that are announced must be appropriate to categories,
output, main technical specifications, characteristics and attributes of each
machine or equipment. The announced list of construction machines and equipment
is compiled on the basis of the list of construction machines and equipment
available in the set of norms issued by competent regulatory authorities, and
the list of construction machines and equipment available on the market.
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c) Per-shift costs of machines and
equipment are composed of all or several of cost items such as depreciation
costs, repair costs, fuel costs, energy costs, machine operating labor costs
and other costs of machines. Per-shift costs of machines and equipment are
exclusive of those costs specified in point b of clause 6 of Article 4 herein.
d) Consumption norms, basic data
used for determining per-shift costs and methods for determination of per-shift
costs of machines and equipment shall be subject to instructions given in the
Circular providing instructions about economic and technical indicators and
construction quantity takeoff.
dd) Departments of Construction shall
take charge of and cooperate with related entities in: conducting or hiring
qualified consultants to conduct surveys, information collection, consulting
historical costs of machines per shift announced by the Ministry of
Construction to determine per-shift costs of machines and equipment for use in
their localities; making price announcements by using the sample No. 3 of
Appendix VIII hereto; sending these announcements to the Ministry of
Construction for monitoring and management purposes, enclosing electronic data
files (Microsoft Excel-formatted files) to be entered into the database as
prescribed in clause 3 of Article 29 in the Decree No. 10/2021/ND-CP.
e) The deadline for annual
announcement of per-shift costs of machines and equipment should be earlier
than January 15th of the following year.
6. Manufacturers and suppliers of
building materials, labor; businesses supplying and leasing machines and
equipment within localities; investors, successful bidders of construction
projects, shall be responsible for providing information about prices of cost
elements for Departments of Construction for their announcement thereof as per
clause 2 of this Article.
Article 9.
Determination of construction costs
1. Construction costs include
detailed unit costs and total construction costs. Construction costs are
determined under clause 2 and 3 of Article 24 in the Decree No. 10/2021/ND-CP
and the detailed instructions given in Appendix IV hereto.
2. Investors may use construction
costs prescribed in clause 1 and 2 of Article 26 in the Decree No.
10/2021/ND-CP, and clause 1 and 2 of Article 8 herein, as a basis to determine
and manage construction investment costs. In case where construction costs are
determined based on detailed unit costs or total construction costs on the
basis of construction norms, costs of building materials, labor unit costs,
per-shift costs of machines and equipment may be determined under clause 3, 4
and 5 in this Article.
3. Costs of building materials:
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b) With respect to building
materials of which costs have not yet been announced or are already available
but proved to be inappropriate, costs of these building materials used for
determining construction costs shall be determined under the instructions given
in 1.2.1 of Appendix IV hereto.
c) When preparing a feasibility
study report, engineering design and determining construction investment costs
for a construction work or project, building materials meeting less mineral
consumption, energy saving and eco-friendly requirements are preferred on
condition that investment effectiveness and conformance to the project’s
requirements are ensured.
d) If any project needs particular
types of building materials, those not common on the market or imported ones,
explanatory notes to the pre-feasibility study report, the feasibility study
report, the economic-technical report and the construction design should be
given in detail.
4. Unit labour costs
a) Unit costs of building labor
announced by competent regulatory authorities under clause 4 of Article 8
herein serve as a basis for determining construction costs.
b) If any unit cost of building
labor announced by competent regulatory authorities is inappropriate to
particularities of the construction job, work or project, the investor must
conduct a survey to determine the unit cost of building labor according to the
method prescribed in the Circular, providing instructions about methods for
determination of economic-technical indicators and construction quantity
takeoff before making their decision to apply such unit cost when determining
construction costs. While determining unit costs of building labor, the
Department of Construction shall follow instructions about accuracy and
relevance of bases and methods for determining unit costs of building labor
upon the investor's request.
c) The investor shall send
dossiers on results of determination of unit costs of building labor under
point b of this clause to the Department of Construction for its monitoring and
management; these dossiers should describe bases, methods and results of
determination of unit costs of building labor, forms (if any) according to the
stipulated method; on an annual basis, upon receipt of these dossiers, the
Department of Construction shall compile a report for submission to the
Ministry of Construction.
5. Per-shift costs of building
machines and equipment:
a) Per-shift costs of building
machines and equipment announced by competent regulatory authorities under
clause 5 of Article 8 herein serve as a basis for determining construction
costs.
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c) The investor shall send
dossiers on results of determination of per-shift costs of building machines
and equipment under point b of this clause to the Department of Construction
for its monitoring and management; these dossiers should describe bases,
methods and results of determination of per-shift costs of building machines
and equipment, forms (if any) according to the stipulated method; on an annual
basis, upon receipt of these dossiers, the Department of Construction shall
compile a report for submission to the Ministry of Construction.
6. With respect to any
construction project located in at least 02 administrative units, the investor
shall take charge of determining construction costs under the provisions of
clause 3 of Article 26 in the Decree No. 10/2021/ND-CP to facilitate
determination of costs, ensure anti-wastefulness and effectiveness for the
project as well as adaptation to the capability of supplying resources
according to the project implementation plan.
Article 10.
Construction price indices
1. Construction price indices
announced by competent regulatory authorities under clause 3 of Article 27 in
the Decree No. 10/2021/ND-CP must meet the requirements concerning timeliness,
objectivity, conformance to price fluctuation trends in the market within the
given period, exclusive of costs of compensation, support and resettlement,
loan interest incurred during the construction time, initial working capital
for manufacturing and business activities. A construction price index is
expressed in percent (%).
2. It is necessary to consult
managerial requirements and regulations on management of projects, management
of construction investment costs and characteristics of local construction
projects to list out construction projects needed for the process of
determination and announcement of construction price indices. The number of
representative construction projects used for calculating construction price
indices applied to all construction projects on the predetermined list is not
fewer than 03 construction projects.
3. The cost structure used for
calculation of construction price indices is generated from statistical data,
and corresponds to the cost structure prescribed in regulations on management
of construction investment expenses, and is used in a stable manner until there
is any change in a base period of time prescribed in point a of clause 5 of
this Article.
4. Selecting input cost factors
for determination of construction price indices:
a) Representative input cost
factors used for determining construction price indices are costs related to
main categories of building materials, labor or machinery for construction
projects or types of construction projects; and are selected according to the
principle that total proportion of costs for main categories of building
materials, labor or machinery must account for more than 80% of the respective
total cost of building materials, labor or machinery in a construction project.
The list of building materials used for determining construction price indices
must be identical in terms of their types, specifications, markings or labels.
The list of construction workers used for determining construction price
indices must be identical in terms of their classifications and levels. The
list of construction machines and equipment used for determining construction
price indices must be identical in terms of their types and capacity.
b) Prices of building materials,
unit costs of building labor, per-shift costs of building machine and equipment
are determined under clause 2 of Article 8 and other regulations laid down in
point b of clause 3, point b of clause 4, point b of clause 5 of Article 9
herein.
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a) The base period is the year
2020 and the comparison period is the period of announcement of construction
price index compared to that in the base period. The Ministry of Construction regulates
the time of change in the base period so that local authorities make
appropriate adjustments.
b) As for construction price
indices announced on a quarterly basis, the announcement time is prior to the
15th day of the first month of the following quarter. As for
construction price indices announced on an annual basis, the announcement time
is prior to the 15th day of the first month of the following year.
c) Where it is necessary to
announce construction price indices on a monthly basis, competent state
authorities shall consider issuing decisions to meet requirements concerning
management of construction investment costs and adjustment of construction
contract prices in effect locally. The time of announcement of construction
price indices on a monthly basis is prior to the 10th day of the
following month.
6. Based on the list of
construction projects, methods for determining construction price indices under
the Circular providing instructions about economic and technical indicators and
construction quantity takeoff, and regulations laid down in clause 1, 2, 3, 4
and 5 of this Article, Departments of Construction shall take charge of
determining construction price indices before announcing them under point b of
clause 3 of Article 27 in the Decree No. 10/2021/ND-CP.
7. Determining construction price
indices for adjusting contract prices under clause 4 of Article 27 in the
Decree No. 10/2021/ND-CP as follows:
a) The type of construction price
index chosen for any adjustment in the construction contract price must
resemble the type of construction price index prescribed in clause 2 of Article
27 in the Decree No. 10/2020/ND-CP and must be agreed upon in the contract.
b) The cost structure used for
determining the construction price index must be conformable to regulations of
the Circular on adjustment of construction contract prices and the Circular
providing instructions about economic and technical indicators and construction
quantity takeoff.
c) Selecting input cost factors
for determination of construction price indices shall be subject to regulations
laid down in clause 4 of this Article.
d) The base period and comparison
period used for determining construction price indices must be based on
agreements entered into in the contract, the schedule of execution of the
contract provided that they conform to laws on construction contracts.
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Article 11. Unit
cost rate of investment in construction
1. Unit cost rates of investment
in construction announced by the Ministry of Construction under clause 1 of
Article 26 in the Decree No. 10/2021/ND-CP serve as a basis for determination
of preliminarily estimated total investment and total investment in
construction projects, calculation and management of construction investment
costs at the project preparatory stage. The deadline for announcement of unit
cost rate of investment in construction should be prior to January 31st
of the following year.
2. Unit cost rates of investment
in construction prescribed in clause 2 of Article 25 in the Decree No.
10/2021/ND-CP are announced annually and exclusive of costs of several jobs
particularly required in a construction project, including:
a) Compensation, support and
resettlement cost;
b) Loan interest incurred during
the period of investment in the construction project using loans;
c) Initial working capital (with
respect to investment and construction projects developed for manufacturing and
business purposes);
d) Contingencies or provisions for
work volumes and quantities and price slippage elements that may occur during
the project execution period;
dd) Several particular costs
specific to projects, such as environmental impact assessment of and response
to impacts of projects on the environment; register of international quality
inspection and monitoring of project deformation; costs of project quality
inspection; special reinforcement of project foundations; expenses for hiring
foreign consultants; other particular expenses.
3. Unit cost rates of investment
in construction are determined based on data collected or calculated in actual
situations; or based on data obtained from the existing database; or based on
both of the aforesaid. The method for determining unit cost rate of investment
in construction shall be subject to the Circular providing instructions about
economic and technical indicators and construction quantity takeoff.
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1. Conversion of construction
investment capital is conversion of investment cost items, including: Costs of
compensation, support and resettlement costs (if any); construction costs;
equipment costs; project management costs; construction investment consultancy
and other costs, all of which have already been settled according to price
levels determined at the time of transfer for operation. The purpose of
converting construction investment capital is to ensure all recognized investment
costs of a construction project must be fully reflected at the conversion time.
The report on conversion of construction investment capital should be prepared
together with settlement dossiers for submission to investment decision makers
to seek their approval decisions.
2. Conversion of construction
investment capital shall be required for construction projects and works of
which the period of execution is more than 02 years from the date of
commencement to the date of pre-acceptance testing date.
3. Methods for conversion of
construction investment capital and sample reports on conversion results shall
be subject to the instructions given in Appendix VII hereto.
Article 13.
Construction investment consultancy costs
1. Construction investment consultancy
costs are determined subject to Article 31 in the Decree No. 10/2021/ND-CP, and
several specific regulations as follows:
a) Construction investment
consultancy costs are calculated by percent ratios (%) stipulated in the
Circular issuing construction cost norms.
b) Costs of consultancy work not
yet controlled by norms or controlled by norms that are, however, inappropriate
are determined according the cost estimate appropriate to jobs to be done
according to the instructions given in Section II of Appendix VI hereto.
c) Before determination of total
investment or estimated construction costs of several consultancy works,
construction investment consultancy costs are determined according to the
approved values; or consultancy contracts concluded in accordance with laws.
d) Testing costs are estimated
like construction costs as provided in clause 2 of Article 4 herein.
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2. Costs of hiring of foreign consultant
for several types of consultancy work are determined according to Article 32 in
the Decree No. 10/2021/ND-CP, other relevant laws and international practices.
The method for cost estimating for hiring of foreign consultants shall be
subject to the instructions given in Section III of Appendix IV hereto.
Article 14.
Entry into force
1. This Circular is entering into
force as of October 15, 2021.
2. This Circular shall replace the
Circular No. 09/2019/TT-BXD dated December 26, 2019 of the Minister of
Construction, providing instructions about determination and management of
construction investment costs; the Circular No. 11/2019/TT-BXD dated December
26, 2019 of the Minister of Construction, providing instructions about the
calculation of per-shift costs of construction machinery and equipment; the
Circular No. 14/2019/TT-BXD dated December 26, 2019 of the Minister of
Construction, providing instructions about the calculation and management of
construction price indices; the Circular No. 15/2019/TT-BXD dated December 26,
2019 of the Minister of Construction, providing instructions about the
calculation of unit labor costs in construction; the Circular No.
16/2019/TT-BXD dated December 26, 2019 of the Minister of Construction,
providing instructions about determination of project management and
construction investment consultancy costs; the Circular No. 18/2019/TT-BXD
dated December 26, 2019 of the Minister of Construction, providing instructions
about conversion of construction investment capital; the Circular No.
02/2020/TT-BXD dated July 20, 2020 of the Minister of Construction, amending
and supplementing several Articles of 04 Circulars related to management of
construction investment costs./.
PP. MINISTER
DEPUTY MINISTER
Bui Hong Minh