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THE MINISTRY OF
CONSTRUCTION OF VIETNAM
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THE SOCIALIST
REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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No. 14/2023/TT-BXD
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Hanoi, December
29, 2023
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CIRCULAR
PROVIDING AMENDMENTS
TO CIRCULAR NO. 11/2021/TT-BXD DATED AUGUST 31, 2021 OF MINISTER OF CONSTRUCTION
OF VIETNAM PROVIDING GUIDANCE ON DETERMINATION AND MANAGEMENT OF CONSTRUCTION
INVESTMENT COSTS
Pursuant to the Law on Construction dated June
18, 2014; the Law on amendments to the Law on Construction dated June 17, 2020;
Pursuant to the Government’s Decree No.
52/2022/ND-CP dated August 08, 2022 defining functions, tasks, powers and
organizational structure of the Ministry of Construction of Vietnam;
Pursuant to the Government’s Decree No.
10/2021/ND-CP dated February 09, 2021 on management of construction investment
costs;
At the request of the Director of the Department
of Construction Economics;
The Minister of Construction of Vietnam
promulgates a Circular providing amendments to Circular No. 11/2021/TT-BXD dated
August 31, 2021 of the Minister of Construction of Vietnam providing guidance
on determination and management of construction investment costs.
Article 1. Amendments to Circular No.
11/2021/TT-BXD dated August 31, 2021 of Minister of Construction of Vietnam
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“Article 8. Management and
announcement of construction prices prescribed in clause 2 Article 26 of Decree
No. 10/2021/ND-CP
1. Construction unit prices announced by provincial
People’s Committees under clause 2 Article 26 of the Decree No. 10/2021/ND-CP
serve as the 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 on the basis of construction
norms issued by competent regulatory authorities and prices of cost elements
prescribed in clauses 3, 4 and 5 of this Article provided that they are
appropriate to the calculation period. Prices of cost elements include 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 provincial Departments of Construction on a periodic basis under the
provisions of clause 2 Article 26 of the Decree No. 10/2021/ND-CP and
regulations laid down in clauses 3, 4 and 5 of this Article.
3. Management and announcement of prices of
building materials:
a) Prices of building materials to be announced
must be in line with market prices, quality standards, origins, capacity and
scope of supply of building materials at the announcement date. The list of
building materials to be announced 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.
b) Provincial Departments of Construction shall
preside over and cooperate with relevant authorities in conducting surveys,
collecting information, and determining prices of building materials applied at
localities within their remit; announce these prices by using the Form No. 01
in Appendix VIII hereto; send announcement results, accompanied by electronic files
(using consistent forms) to the Ministry of Construction of Vietnam for
monitoring, managing, and inputting into the relevant database according to
regulations laid down in clause 3 Article 29 of the Decree No. 10/2021/ND-CP.
c) Where necessary, provincial Departments 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 announced locally must be on a
par with building labor prices on the local labor 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.
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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) Provincial 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 of Vietnam
to determine unit costs of construction labor for use in their localities;
making price announcements by using the Form No. 2 in Appendix VIII of this
Circular; sending these announcements, accompanied by electronic files (using
consistent forms) to the Ministry of Construction of Vietnam for monitoring,
managing and inputting into the relevant database as prescribed in clause 3
Article 29 of 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 to be announced must be appropriate to categories, output, main
technical specifications, characteristics and attributes of each machine or
equipment piece. The list of construction machines and equipment to be
announced 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.
b) Per-shift costs of machines and equipment are
determined as per a prescribed working shift (8 hours) of each machine or
equipment, conform to consumption norms and basic data used for calculation of
per-shift costs of machines and equipment that are issued by the Ministry of
Construction of Vietnam, and correspond to the list of machines and equipment
available in the set of norms issued by competent regulatory authorities.
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 clause 6 Article 4 hereof.
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) Provincial 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 of Vietnam to determine per-shift costs of machines and equipment
for use in their localities; making price announcements by using the Form No. 3
in Appendix VIII of this Circular; sending these announcements, accompanied by
electronic files (using consistent forms) to the Ministry of Construction of
Vietnam for monitoring, managing and inputting into the relevant database as
prescribed in clause 3 Article 29 of the Decree No. 10/2021/ND-CP.
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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 provincial Departments of Construction for their announcement thereof as
per clause 2 of this Article.
2. Article 9 is amended as
follows:
“Article 9. Determination of
construction costs
1. Construction costs include detailed unit costs
and total construction costs. Construction costs are determined under clause 2s
and 3 Article 24 of the Decree No. 10/2021/ND-CP and the detailed instructions
given in Appendix IV hereto.
2. Investors may use construction costs prescribed
in clauses 1 and 2 Article 26 of the Decree No. 10/2021/ND-CP and clauses 1 and
2 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 clauses 3, 4 and 5 in this Article.
3. Costs of building materials:
a) Costs of building materials announced by
competent regulatory authorities under clause 3 Article 8 herein serve as a
basis for determining construction costs.
b) With respect to building materials of which
costs have not yet been announced or are already available but their categories
are not appropriate to technical standards and regulations, quality
requirements, supply capacity and other specific conditions laid down for each
project or construction work, costs of these building materials used for
determining construction costs shall be collected, aggregated, analyzed,
assessed and selected by consulting sources of information on costs of building
materials under the instructions given in point b section 1.2.1.1 Appendix IV
hereto. Selection of costs of building materials must ensure objectivity,
transparency and effectiveness of the project.
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.
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dd) Assessment criteria employed to selection of
costs of building materials used for determining construction costs shall
conform to the instructions given in point a Section 1.2.1.1 Appendix IV
hereto.
e) Methods for determining costs of building
materials on site shall conform to the instructions given in section 1.2.1.2
Appendix IV hereto.
4. Unit labor costs
a) Unit costs of building labor announced by
competent regulatory authorities under clause 4 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, provincial Departments 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) Investors shall send dossiers on results of
determination of unit costs of building labor under point b of this clause to
provincial Departments of Construction for their 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, provincial Departments of
Construction shall compile consolidated reports for submission to the Ministry
of Construction of Vietnam.
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
Article 8 herein serve as a basis for determining construction costs.
b) In case where per-shift costs of building
machines and equipment have not yet been announced by competent regulatory
authorities, or have been announced but inappropriate to their uses and
conditions for implementation of a construction work or project, the investor
shall conduct a survey for determination of per-shift costs of building
machines and equipment according to the method prescribed in the Circular
providing methods for determination of economic-technical indicators and
construction quantity takeoff before making their decision to such unit costs
when determining construction costs. While determining per-shift costs of
building machines and equipment, provincial Departments of Construction shall
follow instructions about accuracy and relevance of bases and methods for
determining per-shift costs of building machines and equipment upon the
investor's request.
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6. With respect to any construction project located
in at least 02 provincial-level administrative units, the investor shall take
charge of determining construction costs under the provisions of clause 3
Article 26 of 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 2. Some Appendixes enclosed with the Circular
No. 11/2021/TT-BXD are amended by the Appendix enclosed herewith.
Article 3. Implementation
This Circular comes into force from February 15,
2024./..
PP. MINISTER
DEPUTY MINISTER
Bui Hong Minh