|
THE
MINISTRY OF CONSTRUCTION
|
SOCIALIST
REPUBLIC OF VIET NAM
Independence Freedom Happiness
|
|
No.
03/2008/TT-BXD
|
Hanoi,
January 25, 2008
|
CIRCULAR
GLIDING
THE ADJUSTMENT OF WORK CONSTRUCTION COST ESTIMATES
Pursuant to the Government's
Decree No. 36/2003/ND-CP of April 4, 2003, defining the functions, tasks,
powers and organizational structure of the Ministry of Construction;
Pursuant to the Governments Decree No. 16/2005/ND-CP of February 7, 2005, on
management of investment projects on the construction of works and Decree No.
112/2006/ND-CP of September 29, 2006 amending and supplementing a number of
articles of the Government's Decree No. 16/2005/ND-CP on management of
investment projects on the construction of works;
Pursuant to the Governments Decree No. 99/2007/ND-CP of June 13, 2007, on
management of work construction investment expenditures;
Pursuant to the Government's Decree No. 03/2008/ND-CP of January 7, 2008,
amending and supplementing a number of articles of the Government's Decree No.
99/2007/ND-CP of June 13, 2007, on management of work construction investment
expenditures;
Pursuant to the Government's Decree No. 166/2007/ND-CP of November 16, 2007,
providing for the common minimum wage level;
Pursuant to the Governments Decree No. 167/2007/ND-CP of November 16, 2007,
providing for region-based minimum wage levels for laborers working for
Vietnamese companies, enterprises, cooperatives, cooperative groups, farms,
households, individuals and other labor-employing organizations;
Pursuant to the Labor, War Invalids and Social Affairs Ministry's Circular No.
29/2007/TT-BLDTBXH of December 5, 2007, guiding the application of the common
minimum wage level and region-based minimum wage level in state companies and
one-member limited liability companies where the State holds 100% charter
capital.
The Ministry of Construction guides the adjustment of work construction cost
estimates from January 1, 2008, as follows:
I. GENERAL PROVISIONS
1. This Circular guides the
adjustment of cost estimates for the volumes performed from January 1, 2008,
under state-funded works or bidding packages (referred to as work construction
cost estimates) for which the investment deciders have not yet decided to
switch the management of work construction investment expenditures under the
Government's Decree No. 99/2007/ND-CP of June 13, 2007.
Work construction investment
projects funded with other capital sources are encouraged to apply regulations
on adjustment of cost estimates guided in this Circular.
2. Work construction cost
estimates formulated using construction, installation and construction survey
unit prices set by provinces or centrally run cities on the basis of wage
scales of the wage table A.1.8 promulgated together with the Government's
Decree No. 205/2004/ND-CP of December 14, 2004, with the minimum wage level of
VND 450.000/month, will be adjusted as prescribed in the Appendix to this
Circular.
3. For works for which separate
unit prices or machine-shift costs have been formulated using the minimum wage
level specified by competent persons, work construction cost estimates will be
adjusted using the new common minimum wage level or new region-based minimum
wage level in accordance with the principles and methods guided in this
Circular.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
5. For works under work
construction investment projects implemented under the Government's Decree No.
99/2007/ND-CP of June 13, 2006, on management of work construction investment
expenditures, investors shall use contingency funds for price increase to
adjust the expenditure structure in the work construction cost estimates.
II. SPECIFIC PROVISIONS
Work construction cost estimates
formulated using construction unit prices set by provinces or centrally run
cities on the basis of the minimum wage level of VND 450,000 per month and wage
scales in the wage table promulgated together with the Government's Decree No.
205/2004/ND-CP of December 14, 2004, are adjusted as follows:
1. Adjustment of construction
cost estimates
1.1. Adjustment of labor
expenses
Labor expenses in construction
cost estimates formulated using local construction unit prices will be
multiplied by an adjustment coefficient (KDC NC) in conformity with
the adjustment of the common minimum wage level or region-based minimum wage
level.
The adjustment coefficient (KDC
NC) is determined as being equal to the new minimum wage level or region-based
minimum wage level divided by the minimum wage level used for unit price
calculation (VND 450,000/month).
1.2. Adjustment of construction
machine expense
Construction machine expenses in
construction cost estimates formulated using local construction unit prices
will be multiplied by an adjustment coefficient (KDC MTC) in
conformity with the adjustment of the common minimum wage level, region-based
minimum wage level and fuel and energy prices in January 2008.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
According to the above-said
principle, the coefficient (KDC MTC) for adjustment of construction
machine expenses in construction expense estimates made by provinces and centrally
run cities will comply with the enclosed Appendix. The coefficient applicable
to provinces or cities with a particular construction structure will be decided
by provincial/municipal People's Committees.
For works which are built in
lines running through several provinces or centrally run cities for which
separate machine-shift price tables have been formulated, investors shall
calculate and report adjustment coefficients to investment deciders for
decision.
1.3. Expenses calculated in
proportion (%) to construction cost estimates
Expenses calculated in
proportion (%) to construction cost estimates include: other direct expenses,
common expenses, pre-calculated taxable incomes, value added tax amounts,
expenses for makeshift houses at construction sites for accommodation or
construction administration as prescribed.
2. Some other expenses
Expenses such as those for
management of work construction investment projects, project elaboration and
construction work designing are calculated in a percentage (%) as prescribed.
Labor expenses in construction
survey cost estimates will be adjusted using an adjustment coefficient (KDC
NCKS) prescribed in Table 2 in the Appendix to this Circular.
Particularly, pre-tax cost estimates
for elaboration of urban construction planning will be determined on the basis
of the construction planning expense limits promulgated together with the
Construction Minister's Decision No. 06/2005/QD-BXD of February 3, 2005,
multiplied by adjustment coefficient KDC QHXD= 1.25.
For cost estimates for provision
of urban public services, provincial-level People's Committees shall based
themselves on specific local conditions to guide the adjustment.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
1. For works under work
construction investment projects for which investment deciders have not yet
decided to switch the management of work construction investment expenditures
under the Government's Decree No. 99/2007/ND-CP of June 13, 2006:
1.1. Provincial/municipal People's
Committees shall, based on the guidance in this Circular and regulations on the
minimum wage level, region-based minimum wage level and wage-based allowances,
guide the adjustment of work construction cost estimates of state-funded
construction works.
Provincial/municipal
Construction Services shall assume the prime responsibility for, and coordinate
with concerned local agencies in, determining adjustment coefficients for
submission to provincial/municipal People's Committees for promulgation and application.
1.2. Ministries, economic groups
and state corporations shall guide the adjustment of work construction cost
estimates of work construction investment projects under their investment
decision competence under the guidance of this Circular.
1.3. Investors shall organize
and approve the results of adjustment of work construction cost estimates in
accordance with, current regulations.
1.4. For construction works for
which separate unit prices have been formulated (work construction unit
prices), investors shall base themselves on regimes and policies permitted by
the State for application and the principles of adjustment of work construction
cost estimates guided in this Circular to determine the levels of adjustment of
labor expenses, construction machine expenses and other expenses (if any) in
work construction cost estimates.
2. For works of work
construction investment projects implemented under the Governments Decree No.
99/2007/ND-CP of June 13, 2007, on management of work construction investment
expenditures, their cost estimates shall be adjusted under the guidance at
Point 4, Section I, of this Circular.
This Circular takes effect 15
days after its publication in "CONG BAO."
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
APPENDIX
(Attached to the Construction Minister's Circular So. 03/2008/TT-BXD of
January 25, 2008)
To adjust work construction cost
estimates formulated using construction, installation and construction survey
unit prices determined by provinces or centrally run cities (on the basis of
wage scales of wage table A.1.8. promulgated together with the Government's
Decree No. 205/2004/ND-CP of December 14, 2004, with the minimum wage level of
VND 450,000/month) before the effective date of the Government's Decree No.
99/2007/ND-CP of June 13, 2006, on management of work construction investment
expenditures:
1. Adjustment of construction
cost estimates
1.1. Adjustment of labor
expenses and construction machine expenses
Labor expenses and construction
machine expenses in construction cost estimates will be multiplied by the
adjustment coefficients (KDC NC) and (KDC MTC) prescribed
in Table 1 of this Appendix.
1.2. Expenses calculated in
proportion (%) to construction cost estimates.
Other direct expenses, common
expenses, pre-calculated taxable incomes, value-added tax amounts and expenses
for construction of makeshift houses at construction sites for accommodation
and construction administration will be calculated in a percentage as
prescribed.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
2.1. Adjustment of construction
survey cost estimates
Labor expense in construction
survey cost estimates will be multiplied by the adjustment coefficient (KDC
NCKS) prescribed in Table 2 of this Appendix.
2.2. Adjustment of labor
expenses in cost estimates for testing construction materials and structure.
Labor expenses in cost estimates
for testing materials and construction structure determined using norms and
unit prices for testing materials and construction structure promulgated
together with the Construction Minister's Decision No. 32/2001/QD-BXD of
December 20,2001, will be multiplied by the adjustment coefficient (KDC
NCTN) prescribed in Table 3 of this Appendix.
2.3. Other expenses which are
calculated in proportion (%) to work construction cost estimates will be
calculated according to current regulations of the State.
Table I. Coefficients for
adjustment of construction cost estimates
Minimum wage level
VND 540,000/month
VND 580,000/month
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Adjustment coefficient KDC
NC
1.20
1.29
1.378
Adjustment coefficient KDC
MTC
1.08
1.1
1.12
Table 2. Coefficients for
adjustment of construction survey cost estimates
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
VND 540,000/month
VND 580,000/month
VND 620,000/month
Adjustment coefficient KDC
NCKS
1.20
1.29
1.378
Table 3. Coefficients for
adjustment of cost estimates for testing materials and construction structure
Minimum wage level
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
VND 580,000/month
VND 620,000/month
Adjustment coefficient KDC
NCTN
2.83
3.04
3.25