THE MINISTRY OF CONSTRUCTION
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No. 12/2008/TT-BXD
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Hanoi, May 7, 2008
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CIRCULAR
GUIDING THE FORMULATION AND MANAGEMENT OF
CONSTRUCTION SURVEY EXPENSES
Pursuant to the Government s Decree No. 17/ 2008/ND-CP of February 4,
2008. defining the functions, tasks, powers and organizational structure of the
Ministry of Construction;
Pursuant to the Government's Decree No. 99/ 2007/ND-CP of June 13. 2007, on the
management of work construction investment expenses, and 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 the
management of work construction investment expenses,
The Ministry of Construction guides the formulation and management of
construction survey expenses as follows:
1. General provisions
1.1. Management of construction survey expenses
covers management of norms and estimates of construction survey expenses and
construction survey prices.
1.2. Construction survey expenses include all
expenses necessary for the fulfillment of construction survey jobs according to
the State's technical standards on construction surveys.
1.3. Construction survey expenses formulated
under the guidance of this Circular serve as a basis for the management of work
construction investment expenses.
2. Methods of estimating construction survey
expenses
Depending on the nature and specific conditions
of works and projects, investors may estimate construction survey expenses by
different methods such as basing on construction survey volumes and unit prices
or using available figures of survey expenses of works with similar
construction survey technical requirements and conditions.
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Cost estimates of construction survey expenses
(below referred to as survey cost estimates for short) may cover different
expense items and shall be determined according to the following formula:
The above items shall be determined as follows:
2.1.1. Volume of each survey job shall be determined
according to the survey technical plan which is suitable to the survey
conditions and location and accepted by the investor.
2.1.2. Unit price of each survey job:
Unit price of each survey job covers direct
expense (material expense, labor cost, expense for machine or equipment use),
general expense and pre-calculated taxable income.
Unit price of each survey job shall be
determined according to the following formula:
Gi = (Cti + PI)x(1+Lt)
(1)
Of which:
- Gi unit price of survey job i;
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- Pi: general expense for a volume
unit of survey job i;
- Lt: pre-calculated taxable income.
The above items shall be calculated as follows:
2.1.2.1. Direct expense (Cti):
Direct expense for a volume unit of survey job i
covers material expense, labor cost and direct expense for construction machine
use and shall be determined according to the following formula:
Cti=Cvi + Cni +
Cmi (2)
Of which:
- Cvi : direct material expense for a
volume unit of survey job i:
- Cni: direct labor cost for a volume
unit of survey job i;
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a/ Direct material expense (Cvi)
Direct material expense may be material expense
used in the construction survey price notified by the People's Committee of the
province or centrally run city where the work is located, or shall be
determined according to the following formula:
Of which:
- Kpi: norm of the ratio of
subsidiary materials to principal materials of survey job i;
- Mij: norm of waste of material j
for a volume unit of survey job i:
- Zj price of material j (exclusive
of value-added tax) at the survey site.
Material prices at survey sites shall be
determined suitable to work construction locations. Material prices shall be
determined based on prices notified by localities, producers' price advices,
suppliers' price information, or prices already applied to other works under
similar conditions.
b/ Direct labor cost (Cni):
Direct labor cost may be labor cost used in the
construction survey price notified by the People's Committee of the province or
centrally run city where the work is located, or shall be determined according
to the following formula:
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Of which:
- Ni: workday waste norm for a volume
unit of survey job
- i: workday salary of the person doing survey
job i.
The survey workday salary shall be calculated on
the principle of accurately and fully covering the salary. additional pay and
salary-based allowances based on me minimum salary level set by a competent
state agency to ensure that a laborer's salary is calculated taking into
account the average price level of the labor market in each region, each type
of laborers and specific conditions of each work.
c/ Direct expense for machine or equipment use
(Cmi)
Direct expense for machine or equipment use may
be machine expense used in the construction survey price notified by the
People's Committee of the province or centrally run city where the work is
located, or shall be determined according to the following formula:
Of which:
- Kmi; norm of the ratio of other
machines to principal machine for survey job i;
- Siq: norm of the number of
principal machine shifts q for a volume unit of survey job i:
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Survey machine shift prices (including machine
hire costs) shall be calculated under the Construction Ministry's Circular No.
07/2007/T7-BXD of July 25. 2007. guiding methods of determining machine shift
and construction equipment prices applicable to works, or accord with machine
shift and equipment prices publicized by localities.
2.1.2.2. General expense (Pi):
Pi
= Cni x Kpi (6)
Of which:
- Cni: direct labor cost for a volume
unit of survey job i:
- Kpi: norm of general expense for
survey job equal to 70%
2.1.2.3. Pre-calculated taxable income (Lt)
is equal to 6% of direct expense (Cti) and general expense (Pi).
2.1.3. Expense for making a survey plan and
survey result report is equal to 5% of the value of the total volume of each
survey job multiplied by the unit price of such survey job.
2.1.4. Expense for makeshift accommodation is
equal to 5% of the value of the total volume of each survey job multiplied by
the unit price of such survey job.
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Depending on the specific conditions of each
survey technical plan (specific surveys, small survey job volumes, etc.), investors
shall decide and estimate the expense for removal of laborers or machines and
some other expenses in survey cost estimates as appropriate.
2.1.6. Value -added tax on construction
survey-jobs must comply with current regulations.
2.1.7. Contingency expense:
Contingency expense is standby expense for
arising job volumes and price increases during the construction survey time,
which must not exceed 10% of the construction survey expense exclusive of
value-added tax.
2.2. Method of determining survey cost estimates
by using available data of survey expenses of works with similar construction
survey technical requirements and conditions:
When using available data of survey expenses of
works with similar construction survey technical requirements and conditions to
determine survey cost estimates of works, job volumes, conditions for doing
survey- jobs and price increase coefficients should be taken into account on
the basis of conditions, measures and time fordoing similar survey jobs.
3. Management of construction survey expenses
3.1. Management of norms for the estimation of
construction survey costs:
Norms for the estimation of construction survey
costs shall be notified by the Ministry of Construction.
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For new construction surveys which are not yet
dealt with in notified norms or in current norms not suitable to works (which
apply standards, processes or regulations different from current regulations),
investors shall base themselves on technical requirements, construction
measures and conditions and norm-formulating methods to formulate or adjust
cost norms for these surveys for use as a basis for determining construction
survey expenses.
Before applying new construction survey cost
norms, which are not yet included in notified norms, to making unit prices,
cost estimates and payment for state budget-funded bidding packages for which
contractors are appointed, investors shall report them to investment deciders
for consideration and decision. Particularly for construction works under
investment projects decided by the Prime Minister, investors shall report to
ministers, heads of ministerial-level agencies, heads of government-attached
agencies, presidents of provincial-level People's Committees, presidents of
economic groups, or chairmen of boards of directors of state corporations for
consideration and decision.
Investors may themselves organize the
formulation, supplementation or adjustment of the above norms, or hire capable
and experienced consultancy organizations to do so. Consultancy organizations
shall take responsibility for the rationality and accuracy of the norms they
formulate.
Investors may decide on the application of
notified survey cost norms, or supplement, adjust or formulate survey cost
norms for formulating and managing work construction survey expenses.
For projects which are built in lines running
through or in different provinces, investors shall decide on the application of
notified survey cost norms, or supplement, adjust and formulate survey cost
norms for formulating and managing work construction survey expenses.
Ministries and provincial-level People's
Committees shall annually send construction survey cost norms already notified
in the year to the Ministry of Construction for monitoring and management.
3.2. Management of construction survey prices:
Provincial-level People's Committees shall
direct provincial-level Construction Sen ices to base themselves on the
guidance of this Circular and their local situation to guide the formulation of
construction survey unit prices, formulate and submit work construction survey
prices to provincial-level People's Committees for notification.
Investors shall based on the nature and specific
conditions of works and the guidance of this Circular, formulate, and decide on
the application of, survey unit prices for formulating construction survey cost
estimates of works.
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4.1 Provincial-level People's Committees shall
direct provincial-level Construction Services to assume the prime
responsibility for. and coordinate with concerned Services in. formulating and
notifying prices of construction surveys., materials, labor cost and
construction survey machine shifts suitable to specific conditions of their
local markets for use as a basis for the management of construction survey
expenses; at the same time, send them to the Ministry of Construction for
monitoring, management and examination.
4.2 Provincial-level People's Committees shall,
based on the guidance of this Circular and relevant documents, guide and
prescribe the application of construction survey prices to local budget-funded
works.
4.3 The transitional implementation under Clause
2, Article 1 of 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 the management of work construction
investment expenses, is specified as follows:
For construction survey jobs under projects
approved prior to the effective date of this Circular, the formulation and
management of construction survev expenses comply with the Construction
Ministry's Circular No. 14/2005/TT-BXD of August 10. 2005. In case when it is necessary
to implement the provisions of this Circular, investment deciders shall
consider and make decision. Particularly for investment projects decided by the
Prime Minister, ministers, heads of ministerial-level agencies, heads of
government-attached agencies, presidents of provincial-level People's
Committees, presidents of economic groups, or chairmen of boards of directors
of state corporations shall make such decision.
For projects not yet approved, the formulation
and management of their construction survey expenses comply with the guidance
of this Circular.
4.4 The hire of foreign consultants to conduct
construction surveys complies with the Prime Minister's Decision No.
131/2007/QD-TTg of August 9. 2007. promulgating the Regulation on hire of
foreign construction consultants in Vietnam, and the Construction Ministry's
Circular No. 09/ 2007/TT-BXD of November 2,2007, guiding the determination and
management of expenses for hiring foreign construction consultants in Vietnam.
4.5 This Circular takes effect 15 days after its
publication in "CONG BAO" and replaces the Construction Ministry's
Circular No. 14/2005/TT-BXD of August 10,2005. guiding the formulation and
management of construction survey expenses.
In the course of implementation, concerned ministries,
localities and units should promptly report arising problems to the Ministry of
Construction for study and settlement.
FOR THE MINISTER OF CONSTRUCTION
VICE MINISTER
Dinh Tien Dung