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MINISTRY OF
CONSTRUCTION
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THE SOCIALIST REPUBLIC OF VIETNAM
Independence– Freedom – Happiness
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No.: 02/2011/TT-BXD
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Hanoi, February 22, 2011
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CIRCULAR
GUIDING
THE DETERMINATION AND PUBLICATION OF CONSTRUCTION PRICE INDEX
Pursuant to the Law on Construction No.16/2003/QH11
dated 26/11/2003;
Pursuant to the Law Amending, Supplementing a
number of Articles of the Laws relating to basic construction investment No.38/2009/QH12
dated 19/6/2009;
Pursuant to the Decree No.17/2008/ND-CP dated
04/02/2008 of the Government stipulating the functions, tasks, powers and
organizational structure of the Ministry of Construction;
Pursuant to the Decree No.112/2009/ND-CP dated
14/12/2009 of the Government on management of work
construction investment expenditures,
The Ministry of Construction guides the
determination and publication of construction price index as follows:
Chapter
I
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Article 1. Scope of
governing and subjects of application
This Circular guides the determination and publication
of construction price index to:
a) Make and adjust the total investment rate,
work construction estimates, bid packages estimates and bidding price, price of
construction contract and conversion of work construction investment cost;
b) Develop and publish the construction price
index periodically in the areas of provinces, cities under the central
government;
c) Manage work construction investment cost.
2. Subjects of application:
a) The organizations and individuals relating
to the management of work construction investment cost in the projects using 30%
of state funds or more;
b) To encourage organizations and individuals
relating to the management of work construction investment cost using less than
30% of state funds and other funding sources applied upon guidance in this
Circular.
Article 2. Interpretation
of terms
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1. Work construction price index means
the norm reflecting the volatility degree of the price of work construction by time.
2. Selected representative works
to determine the construction price index mean the works which are built
newly with use performance in accordance with the classification of works,
built following the process of popular construction technology and use of the kinds
of common building materials.
3. Types of construction works published price
index mean a collection of construction works that are classified according
to current regulations.
4. Original time means the time that is
selected to be the original for comparison.
5. Comparison time means the time that
needs to determine the construction price index compared to the original one.
6. The price index of construction part
means the norm reflecting the volatility degree of part of the construction
cost of the work by time.
7. The equipment price index means the
norm reflecting the volatility degree of part of work’s equipment cost by time.
8. Price index of part of the other costs means
the norm reflecting the volatility degree of a number of costs such as project
management, consulting and other expenses of the work by time.
9. Price index of work building materials
means the norm reflecting the volatility degree of part of the building
materials cost in the work construction estimates by time.
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11. Price index of work construction machines
means the norm reflecting the volatility degree of part of the cost of machines
for work construction in the work construction estimates by time.
12. Price index by type of building
materials means the norm reflecting the price volatility degree of each
type of building material by time.
13. Price index by type of construction manpower
means the norm reflecting the price volatility degree of each type of
construction manpower by time.
14. Price index by group of construction machines
means the norm reflecting the volatility degree of machines price by
time of the types of machines included in the group of machines for
construction.
Article 3.
Classification of construction price index
1. The construction price index is defined according
to works, type of construction work, including:
a) Work construction price index.
b) The price index according to the cost
structure includes:
- The price index of construction;
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- Price index of the other costs.
c) The price index according to the cost
factors includes:
- Price index of work building materials;
- Price index of work construction manpower;
- Price index of work construction machines.
d) The price index by input factors,
including:
- Index by type of major building materials;
- Index by type of major construction manpower;
- Index by group of major construction
machines.
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Article 4. Principles
for determining the construction price index
The determination of the construction price
index must meet the following principles:
1. The determination of construction price
index must reflect objectively and in accordance with fluctuations of price on
the construction market in the localities.
2. Determination and publication of the
construction price index must be promptly, in accordance with provisions on management
of work construction investment costs.
3. When determining the construction price
index by type of work for publication, the list and number of certain representative
works for calculations must be selected.
4. Construction price index calculated
averagely in the period selected, excluding some costs on compensation,
assistance and resettlement, interest during the construction and initial
working capital for manufacture, business. Unit of construction price index is
percentage (%).
5. Cost structure used to calculate the
construction price index must consist with the cost structure in accordance
with provisions on the management of work construction investment cost. These
cost structures must be synthesized from the statistics data and used in the fixed
period of maximum to 5 years.
Article 5. Management
of determination and publication of construction price index
1. Provincial-level Departments of
Construction shall organize the data collection, calculation, and periodical
publication of construction price index as the basis for the establishment and management
of costs of the construction works in their areas.
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3. For construction works upon the line
passing through the region to be of many provinces and cities under central government,
investors determine the price index for the works and decide the application
after have the agreement of the Ministry of Construction.
Article 6. The
funding for organization to implement the determination and publication of the
construction price index
1. Funding for data collection, calculation of
determination and publication of the construction price index on the region of
the provinces and cities under central government shall be balanced and allocated
from the annual budget of the locality.
Based on price index number which should be published,
the number of published times during the year, the Departments of Construction make
cost estimates to report to the Provincial-level People’s Committees for
consideration and allocation of funds for implementation.
2. Where investors organize by themselves to
determine the construction price index for the application, the cost for
implementing this work is included in other expense item in the total
investment of the project.
Chapter II
METHOD
OF DETERMINATION OF CONSTRUCTION PRICE INDEX
Article 7. Time of
calculation
1. Time chosen to calculate the construction price
index for publication:
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b) The comparison time is the month, quarter
and year of publication compared to the original one.
2. If the determination of the construction price
index to establish and manage the construction investment cost for the project
is implemented, the investor must be based on progress and conditions of implementation
of the works for choosing the original time, comparison time.
Article 8. Determination
order and publication of the construction price index
The determination and publication of the work
construction price index is conducted upon the following orders:
Step 1: making a list of types of works,
selection of input cost factors.
Step 2: collection and handling of data and calculated
data.
Step 3: determination of the price index of work
construction includes: determining the cost structure, calculating the price
index according the cost structure, the cost factors, and price indexes for
each type of input factor.
Step 4: publication of construction price
index.
Article 9. Making
list of works, selection of input cost factors
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2. When determining the construction cost
index for the type of work, it must choose, make a list of works representing such
type of works.
The number of works representing the type of
work is determined depending on specific conditions of each locality, but not
less than three works.
3. In case a specific work is determined construction
price index, the work is the representative work.
4. The representative input cost factors are
the costs of materials, manpower, and major construction machines for the work
or type of work.
The choice of materials, manpower, and major construction
machine to calculate the construction price index is determined according to
the principle of cost for such materials, manpower; major machines for
construction must obtain a major proportion of the cost of materials, manpower,
and machine for construction of the work respectively.
Article 10.
Collection and processing of data, calculated data
1. Requirements for data, figures collection
to determine the cost structure:
a) Data on the cost of work construction investment
such as the total investment, work construction estimate and settlement of invested
capital for the completed works (if any) which have been approved, including
details of cost items;
b) The regimes, policies and regulations on
management of work construction investment costs and use of manpower,
materials, machinery and construction equipment and other concerned costs at
the time of calculation.
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a) Prices of building materials are
determined on the basis of market provided by the function organizations, the
manufacturers’ quotes, and price information of the providers. List of building
materials which are included to calculate the price index of construction must be
unified in types, specifications and labeling;
b) Price of construction manpower is
determined on the basis of guiding criteria for determining the market wage of manpower
or publication of the provinces in each period;
c) The price of machine for construction is
determined by the method of determining machine price and construction
equipment guided by the Ministry of Construction or the price list of machine announced
by the provinces in each period. List of machines and construction equipment included
in to calculate the price index of construction must be agreed on type,
capacity, and origin.
3. Handling of data to calculate construction
price index:
a) For data and figures to determine the cost
structure:
- The handling of the collected data and figures
includes the review, inspection and data, figure correction, and cost estimate
structure. Data on the structure of cost estimates need to be converted into
estimate structure defined at the original time;
- The data on total investment, estimate of
work construction and settlement of invested capital for the completed works
(if any) must be converted into terms of cost at the original time.
b) For information on prices of input factors:
collected data, figures on prices of input factors need to be tested, reviewed,
and corrected specifically:
- Prices of input building materials to be
tested the appropriateness of the types, specifications and labeling;
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- Prices of input machines and construction
equipment to be tested in conformity with type, capacity, and origin.
Article 11. Determination
of the construction price index
1. The calculation of the construction price
index shall comply with the guidance specified in the Appendix attached to this
Circular.
2. For the determination of the construction
price index according to type of work for publication, it can calculate the construction
price index generally applicable to the area of provinces and cities under
central authority or calculate the price index of construction for each area of
the area and aggregate to set a general construction price index.
The division by area for calculating the
construction price index decided by provinces and cities depends on the
characteristics of administrative boundaries and characteristics of the construction
market at the locality.
Article 12. Publication
of the construction price index
1. The construction price indexes published
include:
a) Price index of work construction; price
index by the cost structure: published quarterly and yearly;
b) The price indexes according to the cost
factors; price index of materials, manpower, and group of machines for major
construction: published monthly, quarterly and annually.
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a) For the construction price index published
monthly: the publication is made in the second week of the next month;
b) For the construction price index published
quarterly: the publication is made in the second week of the first month of
the next quarter;
c) For the construction price index published
yearly: the publication is made in the third week of the first month of next
year.
Chapter III
ORGANIZATION
OF IMPLEMENTATION
Article 13.
Responsibilities of the Ministry of Construction
1. To Guide the localities to organize the
determination and publication of the construction price index in accordance
with provisions in this Circular.
2. To publish the construction price index by
quarter and year for the construction industry since 2012 as decided by the
Prime Minister.
3. To synthesize and store information on the
fluctuation of construction price of the provinces and cities under central government,
region.
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5. To organize the training, professional
guidance on calculation of the construction price index at demand.
6. To consider and have consents to the
construction price index of construction works along the routes passing through
areas of many provinces and cities under central authority identified by the
investors.
7. To inspect and supervise the
implementation of the provisions of this Circular
Article 14.
Responsibilities of the provincial-level People's Committees
1. To direct the implementation of the
provisions of this Circular and arrange regular funding source from the budget
for the organization to determine and publish the construction price index.
2. To assign the Construction Departments to
implement some following tasks:
a) To preside over and coordinate with the
related units based on the guidance of this Circular and the fluctuation of
construction price of the locality to identify and promptly publish the construction
price indexes for use as a basis in the establishment and management of work
construction investment costs. Where necessary, it could sign the contract to
lease the qualified and experiencing consulting organizations to perform some
part or all of the data collection for determining the construction price
index. The consulting organization is responsible before law for the
truthfulness and objectivity of the data collected.
b) To publish the price indexes of
construction in the area since 10/2011;
c) To organize the regular monitoring of
information on construction market prices in the locality; update, store and
sent to the Ministry of Construction the information on construction market
prices in the locality monthly;
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e) To report periodically the publication of
the construction price index to the Provincial-level People’s Committee and the
Construction Ministry for monitoring and inspection.
Article 15.
Responsibilities of investors
1. To organize the determination of
construction price index prescribed in clause 2, clause 3 Article 5 of this
Circular to ensure the objectivity, accuracy, conformity with requirements of management
and self-responsible for the application. If insufficient conditions for self-determination
of the construction price indexes, may sign the contract to lease the qualified
and experiencing consulting organizations to perform. The consulting
organization determining construction price index shall be responsible before
the investors and the law in ensuring the accuracy and reasonableness of the
price indexes of construction determined by their own.
2. To get the consent as prescribed in clause
2, clause 3 of Article 5 of this Circular before applying.
Article 16. Transitional
settlement
The Ministry of Construction continues to
publicize construction price index for a number of provinces, cities directly
under the central government toward 9/2011.
Article 17. Effect
1. This Circular takes effect on April 15,
2011.
2. During the course of implementation, if
any problems arise, the organizations, individuals send opinion to the Ministry
of Construction for consideration, settlement./.
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FOR MINISTER
DEPUTY MINISTER
Tran Van Son
FILE
ATTACHED TO DOCUMENT
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