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MINISTRY OF
CONSTRUCTION
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SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom – Happiness
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No.:
06/2016/TT-BXD
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Hanoi, 10 March 2016
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CIRCULAR
GUIDING
THE DETERMINATION AND MANAGEMENT OF CONSTRUCTION INVESTMENT COSTS
Pursuant to the Law on Construction No. 50/2014/QH13 dated 18/6/2014;
Pursuant to the Decree No.
62/2013/ND-CP dated
25/6/2013 of the Government
defining the functions, duties, power and organizational structure of the
Ministry of Construction;
Pursuant to the Decree No.
32/2015/ND-CP dated
25/3/2015 of the Government on
management of construction investment costs;
At the request of the Director of Institute
of Construction Economics, Director General of Department
of Construction
Economics,
the Minister of Construction issues this Circular guiding the determination and
management of construction investment costs.
Chapter I
GENERAL
PROVISIONS
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This Circular provides detailed instructions
on contents, method of determination and management of construction
investment costs including the preliminary total construction investment,
construction estimate, construction package estimate, construction norm, works
construction price, construction price index, machine shift price and constructional
equipment.
Article 2. Subjects
of application
1. The agencies, organizations and individuals
pertaining to the determination and management of construction investment costs
of construction investment projects using the capital from the state budget or
the off-budget state capital in accordance with the provisions in Clause 1,
Article 2 of Decree No. 32/2015/ND-CP dated 25/3/2015 of the Government on
management of construction investment costs (referred to as Decree No.
32/2015/ND-CP)
and construction investment projects in the form of public-private partnership
(PPP).
2. The construction investment projects using
other capital are encouraged to apply the provisions of this Circular.
Chapter II
TOTAL
CONSTRUCTION INVESTMENT
Article 3. Content of
total construction investment
1. The content of total construction investment
is in accordance with the provisions in Clause 4, Article 4 of Decree No.
32/2015/ND-CP ,
in which the project management costs, construction investment consultation
costs and other costs are defined as follows:
a) The project management costs include the
costs stipulated in Clause 2, Article 23 of Decree No. 32/2015/ND-CP are the necessary
costs to implement the project management from the stage of project
preparation, implementation and end of construction to put the works of project
into operation as follows:
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- Performing duties of construction survey,
supervision of construction survey;
- Carrying out the competitive examination,
selection of architectural design of works or selection of plan for architectural
design of works.
- Implementing the activities of compensation,
assistance and relocation is the responsibility of investor;
- Appraising the feasibility study report on
construction investment or report on economical - technical construction investment;
- Formulating, appraising, verifying and
approving the technical design, construction drawing design and construction
estimate;
- Selecting contractor in construction
activities;
- Managing quality, volume, progress, constructional
costs, construction contract;
- Implementing and managing the works
information system;
- Guaranteeing the working safety and
environmental hygiene of works;
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- Determining the works construction price and
works construction
price index;
- Testing the construction works quality of
state management agency upon completion acceptance;
- Testing the quality of constructional
material, structure or products and equipment installed in the works;
- Inspecting the quality of works components,
works items and works and testings of specialized construction as required;
- Controlling construction investment costs;
- Converting the works construction investment
capital after completion acceptance, handover and operation;
- Making acceptance, payment, contract
finalization; making payment and finalization of works construction investment
capital.
- Monitoring and evaluating the works
construction investment project;
- Making acceptance and handover of works;
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- Determining, updating and appraising the construction
package estimate;
- Performing the management activities of
competent state agencies (if any);
- Performing other management activities.
b) The construction investment consultation
costs including the costs specified in Clause 2, Article 25 of Decree No.
32/2015/ND-CP
are the necessary costs to carry out the construction investment consultation
from the stage of project preparation, implementation and completion of works
construction and operation as follows:
- Formulating the construction survey tasks,
implementing the construction survey and monitoring the construction survey;
- Making the pre-feasibility study report on
construction investment (if any), report on recommendation of investment policy
(if any), feasibility study report on construction investment or report on
economical - technical construction investment;
- Verifying the basic design and technological
design of project;
- Carrying out the competitive examination and
selection of architectural design of construction works;
- Performing the works construction design;
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- Preparing and verifying the interest
expression documents, pre-selection documents, bidding documents, requirement
and assessment docvolument of interest expression documents, bid submission
documents
and recommendation documents for contractor selection in constructional
activities;
- Verifying the contractor selection result in
constructional activities;
- Monitoring the construction performance and equipment
installation;
- Making report on environmental impact
assessment;
- Formulating and verifying the construction
norm, works construction price, works construction price index;
- Verifying the traffic safety activities.
- Applying the works information system;
- Controlling the works construction investment
costs;
- Giving the advice on management of construction
investment costs including the preliminary total construction investment,
construction estimate, price of construction package, price of construction
contract, construction norm and construction price, payment and finalization of
construction contract, payment and finalization of works construction
investment capital and other activities;
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- Making testings on specialized construction;
- Testing the quality of constructional
materials, structure and products and equipment installed in the works as
required by the investor (if any);
- Inspecting the quality of works items and
entire works;
- Monitoring and assessing the works
construction investment project (in case of consultant hiring);
- Giving the advice on environmental surveying
and monitoring;
- Converting the works construction investment
capital after completion acceptance, handover and operation;
- Performing other advicing activities;
c) Other cost to carry out the activities,
including:
- Demining of bombs and explosives;
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- International quality register and surveying
of works deformation;
- Audit, verification and approval for
finalization of investment capital;
- Inspection of acceptance during the
construction and completion acceptance of works items and works of competent
state management agencies;
- Technical and scientific research pertaining
to the projects, initial working capital for the construction investment projects
for the purpose of business and loan interest during the construction; the
costs for trial running with and without load according to the technological
process before the handover (excluding the value of products recovered);
- Natural resources taxes, fees and charges in
accordance with regulations.
- General items include the cost items
specified under Point a, Clause 5, Article 7 of this Circular;
- Costs of other activities.
2. In case of requirement for preliminary
determination of total construction investment, the preliminary content of
total construction investment is accordance with the provisions in Clause 2,
Article 4 of Decree No. 32/2015/ND-CP .
3. For the projects only requiring the
formulation of report on economical - technical construction investment, the
content of total construction investment is specified in Clause 3, Article 4 of
Decree No. 32/2015/ND-CP.
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Article 4. Method for
determining the total construction investment
1. The total construction investment is
determined by one of the methods specified in Clause 2, Article 5 of Decree No.
32/2015/ND-CP
as follows:
a) Determined from construction volume
calculated by the basic design and other necessary requirements of project.
b) Determined from works construction investment
capital.
c) Determined from the data of costs of similar
works which were or are implemented.
d) Combining the methods specified under Points
a, b and c, Clause 1 of this Article.
2. The preliminary total construction investment
is determined under the provisions in Clause 1, Article 5 of Decree No.
32/2015/ND-CP .
In case there is no sufficient conditions to determined the size, capacity or
service competence according to the preliminary design plan of project or with
determination but there is no data of works construction investment announced,
the preliminary total construction investment is determined on the basis of
data of costs of similar projects of type and grade of works, size, capacity or
service competence which implemented or implementing and the other necessary
costs are adjusted or added.
3. Some cost items belong to the content of
project management costs, construction investment consultation costs and other
costs of project if there is no regulation or are not calculated immediately
shall be added and estimated to be included in the total construction
investment.
4. The method for determining the total
construction investment and the preliminary total construction investment is
guided in Appendix 01 of this Circular.
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1. The contents of appraisal, verification and
approval for total construction investment are in accordance with the
provisions in Article 6 of Decree No. 32/2015/ND-CP .
2. The sample of report on result of appraisal,
verification of total construction investment as guided in Appendix 08 of this
Circular.
Article 6. Adjustment
of total construction investment
1. The total construction investment approved
shall be adjusted for the cases specified in Clause 1, Article 7 of Decree No.
32/2015/ND-CP .
2. The addition of contingency costs due to
price slippage factors specified in Clause 4, Article 7 of Decree No.
32/2015/ND-CP
shall be
determined by the investor when the average construction price index of
uninterrupted construction indexes announced by the competent state agency from
the time of project implementation to the time of adjustment is greater than
the construction price index used in the total construction investment
approved.
3. For the works not included in the List of
construction price indexes announced by the Department of Construction and
construction works along the route passing the areas of many provinces and
centrally-run cities as stipulated in Clause 4, Article 22 of Decree No.
32/2015/ND-CP,
the average construction price index specified in Clause 2 of this Article is
determined on the basis of construction price index from the time of project
implementation to the time of adjustment based on the method of determination
of construction price index as specified in Article 22 of this Circular.
4. The increased value of total construction
investment due to addition of contingency costs as specified in Clause 2 and 3
of this Article including the increased value due to additional increased level
of construction price index for the volume done to the time of adjustment and
the increased value due to degree of change of construction price index
(including the expected fluctuation in the market)
5. The appraisal, verification and approval for
the total construction investment adjusted must comply with the provisions in
Clause 1 and 2, Article 7 of Decree No. 32/2015/ND-CP .
Chapter III
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Section 1. WORKS
CONSTRUCTION ESTIMATE
Article 7. Contents
of works construction estimate
1. The works construction estimate as stipulated
in Clause 2, Article 8 of Decree No. 32/2015/ND-CP is determined for
works, works items, auxiliary works and temporary works in service of
construction, particularly the constructional costs include the direct costs,
general costs, pre-determined taxable income and value added tax.
- The direct costs include the material costs (including
the materials provided by the investor), labor, machine and constructional
equipment costs.
- The general costs include the enterprise’s
management costs, production operation costs at the construction site, worker
service costs, construction service costs at the construction site and some
costs in service of enterprise’s other management.
- The pre-determined taxable income is the
earnings of construction enterprise –pre-anticipated in the works construction
estimate.
- The value added tax in accordance with
regulations of the state.
2. The equipment costs of works and works items
including the cost items as stipulated under Point b, Clause 2, Article 8 of
Decree No.
32/2015/ND-CP .
3. The costs of project management include the
cost items as stipulated under Point a, Clause 1, Article 3 of this Circular.
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5. Other costs in the works construction
estimate include the cost items as stipulated under Point c, Clause 1, Article
3 of this Circular, particularly:
a) The costs of general items include:
- Costs of temporary house at the construction
site for stay and construction operation;
- Costs of labor safety and environmental
protection for the employees at the construction site and ambient setting;
- Costs of material testing of contractor
- Costs of movement of work force within
construction site;
- Costs of irregular pumping and dredging;
- Costs of movement of special-use machine and
equipment and work force (having skills under the enterprise’s management and
long-term labor contract) going in and out of the construction site;
- Costs of traffic safety assurance in service
of construction (if any);
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- Cost of construction of cover house for
machine, foundation for machine, power and compressed air supply system and
water drainage and supply system at the construction site, installation and
dismantlement of some machinery (concrete mixing plant, asphalt mixing plant,
overhead crane, tower crane and some other constructional machines and
equipment with similar features);
b) The loan interests during the construction
shall not be included in the works construction estimate. For the construction
investment projects with many works, the other costs in the works construction
estimate do not include the costs of demining of bombs and explosives, costs of
audit, verification and approval for investment capital finalization, costs of
technological and scientific research pertaining to the project; initial
working capital for construction investment projects for the purpose of
business; costs of trail running with and without load as per the technological
procedure before handover (except for recovered product value); fees, charges
and other costs calculated for the project.
6. The contingency costs include the contingency
costs for the factors of generated work volume and the contingency costs for
the price slippage factors during the time of works construction.
Article 8. Method of
determining the works construction estimate
1. Determing the constructional costs
The constructional costs can be determined
according to each content of cost or aggregation of content of costs by one of
the methods specified under Points a and b below.
a) Calculation by volume and price of works
construction
- The costs of materials, labor, machine and
equipment in the direct costs determined by volume and price of works
construction. The volume of construction is determined from the technical
design drawing or performance drawing design, technical instructions,
requirements for work to be done of the works, works items and price of works
construction specified in Article 18 and 19 of this Circular. To synchronize
with the estimate of tender package, the construction price for estimate
preparation can be the overall construction price.
- The general cost is calculated by the
percentage (%) over the direct cost or labor cost in the construction estimate
for each type of works as guided in Table 3.7 and 3.8 of Appendix 3 of this
Circular. For the works using ODA for international bidding, the general cost
is determined by the norm of percentage (%) as stipulated in this Circular and
addition of necessary costs as required by the international bidding package to
ensure the principle of proper and sufficient calculation.
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- The value added tax as stipulated by the
state.
b) Calculation by waste volume of materials,
labor, constructional machines, equipment and respective quotation.
- The costs of materials, labor, constructional
machine and equipment in direct cost are determined by the waste volume of
material, labor, constructional machines, equipment and respective quotation.
The total waste volume of materials, labor, constructional machines, equipment
is determined on the basis of waste materials, labor, constructional machines,
equipment for each volume of construction of works and works items.
The determination of quotation of materials
and constructional machines complies with the provisions in Article 19 of this
Circular.
The quotation of waste volume and costs of
materials, labor, constructional machine and equipment is determined according
to the instructions in Table 3.4 and 3.5, Appendix 03 of this Circular.
- The general costs and the pre-determined
taxable income and value added tax are guided under Point a, Clause 1 of this
Article.
2. Determining the cost of equipment
a) The cost of equipment is determined by the volume,
amount and type of equipment from technological design, construction and
purchase price of respective equipment. The purchase price is based on the
quotation of provider, manufacturer or market price at the time of calculation
or of the works having similar equipment (capacity, technology and origin)
which was or is being applied.
For equipment to be manufactured or
processed, these costs are determined on the basis of volume and amount of
equipment to be manufactured or processed and the price of manufacture and
process is consistent with the features and type of equipment under the signed
contract of manufacture or processing or based on the quotation of product
processing from the manufacturer selected by the investor or the price of
production or processing of similar works equipment which was or is being applied.
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c) The cost of installation of equipment, testing,
calibration and other relevant costs is determined by preparing the estimate
like the estimate of constructional costs.
3. Determining the cost of project management
The cost of project management which is
determined on the basis of norm of percentage (%) announced by the Ministry of
Construction is used for calculation in the total construction investment or is
by way of estimate preparation.
4. Determining the cost of construction
investment consultation
a) The consultation cost in the works
construction estimate is determined on the basis of norm of percentage (%)
announced by the Ministry of Construction or is by way of estimate preparation.
Where some activities of construction investment consultation are done before
determining the works construction estimate, the estimate is then determined by
the value of signed consultation contract in accordance with the regulations of
the state.
b) In case of hiring of foreign consultants, the
cost of consultation is determined by making the estimate in line with the
consultant hiring requirements, the regulations of competent level and
international practice. The method of determining the cost of hiring of foreign
consultants complies with the guidance of the Ministry of Construction.
5. The other costs are determined on the basis
of norm of percentage (%) as guided by the competent agencies or by the
estimate preparation or by the value of signed contract in accordance with
regulations of law.
For some specialized construction works with
particular cost factors, works using ODA, if there are other relevant costs,
such costs shall be added to ensure the principle of proper and sufficient
calculation of costs, in line with the specific conditions of wokrs and market
price level of place of works construction.
6. Determining the contingency cost
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b) The contingency cost for the price slippage
factors is determined on the basis of time of works construction (calculated by
month, quarter and year), capital arrangement plan and construction price index
in line with type of construction works taking into account the possible fluctuation
of price in the country and in the world.
7. The method of determining the cost of
construction, equipment, project management, construction investment
consultation, other costs and contingency cost specified in Clauses 1, 2, 3, 4, 5,
6 of
this Article is specified in Appendix 02 of this Circular.
Article 9. Appraisal,
verification and approval for works construction estimate
1. The content of appraisal, authority,
verification and approval for works construction estimate shall comply with the
provisions in Article 10 of Decree No. 32/2015/ND-CP.
2. The form of report on result of appraisal,
verification and approval for works construction estimate is guided in Appendix
8 of this Circular.
Article 10.
Adjustment of works construction estimate
1. The approved works construction estimate
shall be adjusted in cases specified in Clause 1 and 4 and the authority to
determine, appraise and approve the adjusted works construction estimate is in
accordance with the provisions in Clause 3 and 5, Article 11 of the Decree No.
32/2015/ND-CP .
2. The method of determining the adjusted works
construction estimate is guided in Part III of Appendix 2 of this Circular.
Section 2. CONSTRUCTION
PACKAGE ESTIMATE
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1. The content and method of determining the
estimate of construction performance package are specified in Article 13 of
Decree No.
32/2015/ND-CP .
2. Where the approved works construction
estimate is determined on the basis of incomplete detailed works construction
unit price, when determining the estimate of construction performance package,
it is required to make the aggregation based on the complete detailed works
construction unit price in proportion to the volume of construction to be done
of the package as stipulated under Point b, Clause 2, Article 13 of Decree No.
32/2015/ND-CP .
The incomplete detailed works construction unit price and the complete detailed
works construction unit price are specified in Clause 1, Article 18 of this
Circular.
3. The cost of general items of construction
performance package includes one, some or all costs determined in the approved works
construction estimate in line with the range of work, requirements and
technical instructions of the package and is determined by the cost norm
announced by the competent agency or by estimate preparation. The total cost of
general items of the construction performance package must not exceed the cost
of general items in the approved works construction estimate.
4. The contingency cost in the construction
performance package includes:
a) The contingency cost for the factors of
generated volume of work is calculated by the percentage (%) over the total
costs of construction and the cost of general items of the construction
performance package
b) The contingency cost for the price
slippage factors is determined on the basis of time of construction performance
of the package and the construction price index is consistent with the type of
construction works taking into account the fluctuation of price in the country
and in the world.
c) The used percentage (%) whose contingency
cost is determined under the Points a and b of this Clause must not exceed the
percentage of contingency cost in the approved works construction estimate.
5. The estimate of construction performance
package is determined under the instructions in Section 1, Part II, Appendix 2
of this Circular.
Article 12. Estimate
of package of procurement of materials and equipment installed in the works
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2. The cost of installation, testing and
calibration of equipment includes the cost items like the estimate of
construction performance and is determined by preparaing the estimate according
to the method of determining the constructional cost specified in Clause 1,
Article 8 of this Circular.
3. The contingency cost in the estimate of
package of procurement of materials and equipment installed in the works
includes:
a) The contingency cost for factors of
generated work volume is calculated by the percentage (%) over the total costs
of equipment procurement, costs of training and transfer of technology (if
any); costs of installation, testing, calibration, costs of transportation,
insurance, taxes and other fees.
b) The contingency cost for the price
slippage factors is determined on the basis of time of implementation of the
package and the construction price index in line with the type of construction
works taking into account the possible fluctuation of price in the country and
in the world.
c) The used percentage (%) whose contingency
cost is determined under the Points a and b of this Clause must not exceed the
percentage of contingency cost in the approved works construction estimate.
4. The estimate of package of procurement of
materials and equipment installed in the works is determined in the
instructions in Section 2, Part II, Appendix 2 of this Circular.
Article 13. Estimate
of construction investment package
1. The content and method of determining the
estimate of construction investment package are in accordance with the
provisions in Article 15 of Decree No. 32/2015/ND-CP .
2. The cost of expert, management, other
costs, pre-determined taxable income, taxes and contingency costs are
determined as guided by the Ministry of Construction.
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4. The contingency cost in the estimate of
estimate of construction investment package includes the contingency cost for
the factors of generated work volume and the contingency cost for the price
slippage factors is calculated by the percentage (%) as guided by the Ministry
of Construction but the total percentage (%) of contingency cost must not
exceed the percentage % of contingency cost corresponding to each factor of
approved works construction estimate.
5. The cost to buy the professional liability insurance of construction investment consultation for the
construction design of the construction works from grade II or higher is
determined in the other costs of the package. For the construction survey
package of the works from grade II or higher, the cost to buy the professional liability insurance of construction investment consultation is the separate
cost item of the estimate of package.
6. The estimate of construction investment consultation package is
determined according to the instructions in Section 3, Part II, Appendix 02 of
this Circular.
Article 14. Estimate
of engineering, procurement and construction contract package
1. The estimate of engineering and
construction package (EC) is the
estimate of work specified in Article 13 and 11 of this Circular.
2. The estimate of procurement and
construction package (EC) including the estimate of work is specified in
Article 11 and 12 of this Circular.
3. The estimate of Engineering – Procurement
– Construction package (EPC) and the project establishment – design –
procurement – construction (turnkey package) is specified in Clause 3 and 4,
Article 16 of Decree No. 32/2015/ND-CP .
Article 15. Authority
to determine, verify, appraise and approve the construction package estimate
1.The determination, verification, appraisal
and approval for the construction package estimates shall comply with the
provisions in Clause 3 and 4, Article 12 of Decree No. 32/2015/ND-CP .
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3. Where the construction package estimate
exceeds the approved works construction estimate, the investor shall report to
the investment decider for consideration and decision.
Chapter IV
CONSTRUCTION
NORM, WORKS CONSTRUCTION PRICE AND CONSTRUCTION PRICE INDEX
Section 1.
CONSTRUCTION NORM
Article 16. System
and method of construction norm preparation
1. The construction norm includes the
technical – economic norm and cost norm are specified in Article 17 and 18 of
Decree No.
32/2015/ND-CP .
2. Method of preparation for norm of works
construction estimate:
a) The norm of works construction estimate is
formulated according to the following order:
- Making the List of activities, work or
construction structure of works expressing the technical and technological
requirements, construction conditions, construction methods and determination
of consistent calculation unit.
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- Calculating and determining the waste of
materials, workforce, machine and constructional equipment.
- Establishing the norms on the basis of
aggregation of waste of materials, labor and constructional machines.
b) Method of preparation for norm of works
construction estimate is guided in the Appendix 05 of this Circular.
3. The cost norm is determined under the
guidance of the Ministry of Construction.
Article 17.
Management of works construction norm
1. The Ministry of Construction shall
announce the norm of construction in accordance with the Article 34 of Decree
No.
32/2015/ND-CP
for the relevant agencies, organizations and individuals to use, apply, refer
to the determination and management of cost of construction investment.
2. The Ministries managing the specialized
construction works and the provincial People’s Committee shall, based on the
method of determining the construction estimate norm as guided in Appendix 5 of
this Circular, develop and make an agreement with the Ministry of Construction
on the construction estimate norm for work with particularity or specialized
particularity of the Ministries, sectors and localities or not included in the
system of construction estimate norms or included in the list but with new
technology specified in Clause 1 of this Article for announcing the specialized
industries and localities and sending the announced construction estimate norms
to the Ministry of Construction for monitoring and management as stipulated in
Clause 2, Article 19 of Decree No. 32/2015/ND-CP.
3. The investor shall use, apply and refer to
the system of construction estimate norms with the same technology condition
and application condition announced or apply the norm of estimate with the same
technology condition and application condition in the works which ware or are
being applied as a basis for determining the total construction investment,
construction estimate and management of cost of construction investment. For
the constructional activities included in the announced system of construction
estimate norms but not consistent with the technical requirements, construction
condition, specific measures of construction of works or not included in the
announced system of construction estimate norms, the investor shall adjust and
add the norm of construction estimate as stipulated in Clause 4 and 5, Article
19 of Decree No.
32/2015/ND-CP
as a basis for calculation of costs of works construction investment.
4. The consultation contractor preparing the
construction estimate under the works design shall recommend the norm of
construction estimate for new constructional activities or norms to be adjusted
or added to prepare the estimate and ensure the completeness of dossier for
report to the investor.
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Article 18. Content
and method of setting of construction works price
1. The construction works price includes the
detailed construction unit price of works and the general construction price
specified in Clause 1, Article 20 of Decree No. 32/2015/ND-CP.
a) The detailed construction unit price is
calculated for the specific constructional activities of works including the incomplete
detailed construction unit price of works (including cost of materials, labor, constructional
machine and equipment) and the complete detailed construction unit price of
works (including cost of materials, labor, constructional machine and equipment,
general costs and pre-determined taxable income) as a basis for determining the
works construction estimate and construction package estimate.
b) The general construction price is
calculated for group and type of constructional activities, structural unit or
works component and is aggregated from the detailed construction unit price of
works specified under Point a of this Clause, including the incomplete general
construction unit price of works (including cost of materials, labor, constructional
machine and equipment) and the complete general construction unit price of
works (including cost of materials, labor, constructional machine and equipment,
general costs and pre-determined taxable income) as a basis for determining the
construction estimate and the total construction investment.
2. The method of setting the works
construction price is guided in the Appendix 04 of this Circular.
Article 19.
Management of price of works construction
1. The provincial People’s Committee assigns
the Department of Construction to coordinate with the relevant agencies to
determine and announce the price of constructional materials, construction
labor unit price, price of machine shift and constructional equipment,
construction price index and works construction unit price as a basis for
management of works construction price in accordance with the provisions in
Clause 2, Article 36 of Decree No. 32/2015/ND-CP .
2. The price of constructional materials must
be periodically as per month, quarter; the types of materials generally used
must be updated. The price of constructional materials announced must be
consistent with the standard of quality, origin and consistent with the market
price level at the time of announcement (specify the transportation distance).
For the bordering areas between provinces and centrally-run cities, the
Departments of Construction need to exchange information before announcement to
avoid the great difference.
3. The unit price of construction labor is
determined and announced on the basis of guidance of the Ministry of
Construction; must be consistent with skill level based on the labor grade in
the system of works construction estimate norm; must be consistent with the
construction labor price level on labor market of each locality and
characteristics and nature of work of construction labor; must meet the
requirements for payment of some costs belonging to the employee’s liability for
payment under regulations (social insurance, health insurance, unemployment
insurance and other payable amounts).
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5. Liability for management of works
construction price of the investor, the consultation organization on management
of cost of construction investment and construction contractor.
a) The investor shall determine and manage
the construction price in accordance with the provisions in Article 21 and 31
of Decree No.
32/2015/ND-CP .
b) The consultation organization on
management of cost of construction investment shall formulate and verify the
price of works construction and management of price of works construction in
accordance with the provisions in Clause 2, Article 21 and 32 of Decree No.
32/2015/ND-CP .
c) The construction contractor shall manage
the price of works construction in accordance with the provisions in Article 33
of Decree No.
32/2015/ND-CP .
Section 3.
CONSTRUCTION PRICE INDEX
Article 20. General
regulation on determining the construction price index
1. The construction price index is announced
as per type of works and cost structure (including the price index of
constructional part, equipment and other costs); the cost factors include the
constructional material price index, construction labor price index and constructional
machine and equipment price are determined on the basis of List and number of
representative works for calculation.
2. The construction price index is averaged
in the selected period, excluding the compensation, assistance, relocation and
loan interest during the construction, initial working capital for production
and business (if any). The calculation unit for construction price index is the
percentage (%).
3. The cost structure used to calculate the
construction price index must be consistent with the cost structure in
accordance with the regulation on management of cost of construction
investment; the statistical data must be aggregated and used stably until the
change of original time. The structure of price index used for contract payment
is determined on the basis of structure of package estimate.
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1. The construction price indexes are
determined by works or type of works, including:
a) The price index by the cost factors
includes:
- The price index of constructional materials
is the indicator which reflects the price fluctuation of price of constructional
materials.
- The price index of works construction labor
is the indicator which reflects the price fluctuation of price of works construction
labor.
- The price index of works constructional
machine and equipment is the indicator which reflects the price fluctuation of works constructional
machine and equipment.
b) The price index by the cost structure
includes:
- The price index of constructional part is the
indicator which reflects the price fluctuation of constructional part
of works.
- The price index of equipment is the indicator
which reflects the price fluctuation of works equipment.
- The price index of other costs is the
indicator which reflects the price fluctuation of some types of cost such
as project management, works construction investment consultation
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2. The construction price index announced
includes the types of price index in accordance with the provisions of Points
a, b and c, Clause 1 of this Article.
3. For the specific works and construction
packages, the calculation of the whole or some indexes specified in Clause 1 of
this Article shall be based on the purpose and requirements of management of
cost and cost structure of package estimate.
Article 22. Method of
determining the construction price index
1. The construction price index which is
announced is determined in the following order:
a) Determining the time of calculation
including the original time and the comparison time.
b) Making the list of price index to be
determined and selecting the input elements.
c) Collecting and processing the calculation data.
d) Determining the works construction price
index including the determination of cost structure, calculation of price index
for each type of input factor, by the cost factor, cost structure and works
construction price index.
2. The works construction price index is
determined based on the progress and the conditions for work performance to
select the original time and the comparison time accordingly. The cost
structure determining the price index to adjust the contract price is the cost
structure of package price.
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Article 23.
Management of construction price index
1. The provincial People’s Committee shall
allocate the annual budget of localities for assigning the Departments of
Construction to perform some activities as follows:
a) Coordinate with the relevant units based
on the instructions of this Circular and the fluctuation of construction price
of localities to determine in order to promptly announce the construction price
index in the areas as stipulated in Clause 2, Article 36 of Decree No.
32/2015/ND-CP .
b) Regularly update and keep the information
on price of materials, constructional materials, construction labor, price of
machine shift and constructional equipment on the constructional market at
localities and send it to the Ministry of Construction on a monthly basis.
c) Announce the construction price indexes
every month, quarter and year and send them to the Ministry of Construction for
monitoring and management.
2. Based on the method of determining the
construction price index as guided in Appendix 7 of this Circular, the investor
shall determine the work construction price index in accordance with the
provisions in Clause 4, Article 22 of Decree No. 32/2015/ND-CP. In case of using the
above construction price index to adjust the price of construction contract,
the investor shall report to the investment decider for decision. The projects
which the Prime Minister decides to invest shall be reported to the Minister or
Chairman of provincial People’s Committee or Chairman of State Group or
Corporation for decision.
Article 24.
Announcement of construction price index
1. The construction price index which
is announced includes:
a) The national construction price index
which is announced by the Ministry of Construction on a quarterly and annually
basis.
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2. Time of announcement
a) For the construction price indexes
announced on a monthly basis, the announcement is done in the second week of
the succeeding month.
b) For the construction price indexes
announced on a quarterly basis, the announcement is done in the second week of
the first month of succeeding quarter.
c) For the construction price indexes
announced on a yearly basis, the announcement is done simultaneously with the
price index of quarter IV of the year.
Chapter V
PRICE OF
MACHINE SHIFT AND CONSTRUCTIONAL EQUIPMENT
Article 25. General
provisions on determining the price of machine shift and constructional
equipment
1. The price of machine shift and
constructional equipment is the average cost determined for one working shift
in accordance with the regulation on constructional machine and equipment.
2. The price of machine shift and
constructional equipment is determined based on the requirements for management
and use of constructional machine and equipment, the waste norms to calculate
the price of machine shift and constructional equipment and the price level at
localities.
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Article 26. Content
of cost in price of machine shift and constructional equipment
1. The price of machine shift and
constructional equipment includes all or some cost items such as cost of
depreciation, repair, fuel, energy, controlling labor and other costs of
machine.
2. The price of machine shift and constructional
equipment does not include the cost of construction of cover house for machine,
foundation for machine, power and compressed air supply system and water
drainage and supply system at the construction site, installation and
dismantlement of some machinery (concrete mixing plant, asphalt mixing plant,
overhead crane, tower crane and some other constructional machines and
equipment with similar features);
Article 27. Method of
determining the price of machine shift and constructional equipment
1. The price of machine shift and
constructional equipment is determined in line with the types of machine of the
same technology, origin, essential technical indicators and in the order as
follows:
a) Making the list of constructional machine
and equipment;
b) Determining the waste norms to calculate
the price of machine shift and constructional equipment.
c) Calculating the price of machine shift and
constructional equipment.
2. The method of determining the price of
machine shift and constructional equipment is guided in Appendix 06 of this
Circular.
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1. The provincial People’s Committee shall
assign the Department of Construction, based on the method of determining the
price of machine shift and constructional equipment as guided in Appendix 06 of
this Circular, to determine and announce the price of machine shift and
constructional equipment in the areas of provinces and cities in accordance
with the provisions in Clause 2, Article 36 of Decree No. 32/2015/ND-CP as a basis for
reference and use when determining the construction price and send it to the
Ministry of Construction for monitoring and management.
2. The investor shall use, apply and refer to
the price of machine shift and constructional equipment announced as a basis
for determining the price of works construction. Where the types of constructional
machine and equipment are not included in the announcement or are included but are
not consistent with the requirements for use and constructional conditions of
works, the investor shall formulate the price of machine shift and
constructional equipment as guided in Appendix 06 of this Circular.
3. The consultation contractor making the
estimate of construction based on the work construction design shall recommend
the price of machine shift and constructional equipment which has not been
announced as stipulated in Clause 1 of this Article or has been announced but
is not consistent with the requirements for use and constructional conditions
of works to make the estimate and ensure the completeness of dossiers and documents
for report to the investor.
Chapter VI
IMPLEMENTATION
Article 29. Liability
for state management on cost of construction investment
The liability for state management on cost of
construction investment of the Ministry of Construction, the Ministry of
Finance, the Ministries and the provincial People’s Committees shall comply
with the provisions in Articles 34, 35 and 36 of Decree No. 32/2015/ND-CP.
Article 30.
Transitional provision
a) The determination and management of cost
of construction investment in the transitional period are specified in Clause 1
and 2, Article 37 of Decree No. 32/2015/ND-CP .
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Article 31. Effect
1. This Circular takes effect from 01/5/2016 and supersedes the
Circular No.
04/2010/TT-BXD
dated
26/5/2010
guiding the formulation and management of costs of works construction
investment, the Circular No. 06/2010/TT-BXD dated 26/5/2010 guiding the method
of determining of price of machine shift and constructional equipment and the
Circular No.
02/2011/TT-BXD
dated 22/02/2011
guiding the method of determining
and announcing the construction index of the Ministry of Construction.
2. Any problem arising during the
implementation should be promptly reported to the Ministry of Construction for
study and settlement.
FOR THE MINISTER
DEPUTY MINISTER
Bui Pham Khanh
APPENDIX
1
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I. TOTAL CONSTRUCTION INVESTMENT
1. Method of determination from the volume
calculated by the basic design and other necessary requirements of project.
The total investment of construction
investment project is calculated by the following formular:
VTM = GBT,TĐC + GXD
+ GTB + GQLDA + GTV + GK + GDP
(1.1)
In which:
- VTM: total construction
investment of project;
- GBT, TĐC: costs of
compensation, assistance and relocation;
- GXD: cost of construction;
- GTB: cost of equipment;
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- GTV cost of construction
investment consultation;
- GK: other costs;
- GDP: contingency cost.
1.1. Determining the costs of compensation,
assistance and relocation
The costs of compensation, assistance and
relocation (GBT, TĐC) are determined by the
volume of project to be compensated, assisted and relocated and the current
regulations of the state on the price of compensation and relocation at
locality where the project is performed with the approval or issuance from the
competent level.
1.2. Determining the cost of construction
The cost of construction (GXD) is equal to the
total costs of works construction and works items under the project is
determined by the following formula:
(1.2)
In which:
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- n: Number of works or works items under
the project (except for works as tents for stay and construction operation)
The cost of construction of works or works
items is determined by the following formula:
(1.3)
In which:
- QXDj: volume of group or
type of jth constructional activity, structural unit or works part
of works or works items under the project (j=1÷m);
- Zj: general constructional
cost corresponding to the group or type of jth constructional
activity, structural unit or works part of works or works items. The general constructional
cost can be the incomplete or complete general constructional cost as guided in
Appendix 03 of this Circular.
- T: tax rate of value added tax under the
current regulations
1.3. Determining the cost of equipment
Based on the specific conditions, information
source and data of project, the cost of equipment of project is determined as
follows:
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The project has information on the
synchronous offer price for works equipment or technological equipment of the
manufacturer or the equipment provider, the cost of equipment (GTB) of the project can
be referred directly from the quotations or the offer price of synchronous
equipment on the basis of selecting the lowest price between the manufacturer
or equipment provider’s quotations (except for the equipment introduced for the
first time and being unique on the market) to ensure the satisfaction of requirements
for supply of equipment to the works or the price of equipment with similar
capacity, technology and origin on the market at the time of calculation or of
the works having similar equipment which was or is being implemented. During
the determination of cost of construction investment, the consultation
contractor shall consider and evaluate the consistency of price of equipment
when using the above quotations.
1.3.2. Where the cost of equipment of project
cannot be determined as guided under Point 1.3.1 mentioned above,
based on the general information and data on capacity and technical standards
of works equipment, technological equipment of works, the cost of equipment of
project is determined by the indicator of cost rate of equipment calculated for
one capacity unit or service capacity of works by the formula (1.9) under the
Point 2.2, Section 2 of this Appendix.
1.3.3. Where the cost of equipment of the
project is not determined as guided under Point 1.3.1 and 1.3.2 mentioned above,
based on the data of price of similar equipment on the market at the time of
calculation or of the works with similar equipment which was and is being
implemented.
The cost of equipment of woeks is determined
by the method of making the estimate specified in Section 2, Part I of Appendix
02 of this Circular.
1.4. Determining the cost of project
management, cost of construction investment consultation and other costs
The cost of project management (GQLDA), cost of construction
investment (GTV) consultation and
other costs (GK) are determined
according to the percentage cost norm as in Sections 3, 4, 5, Part I, Appendix 02
of this Circular or by making the estimate or from the data of similar projects
which have been done. In case of estimation, the total of such costs (excluding
the loan interest during the time of project implementation and initial working
capital) shall not exceed 15% of total constructional costs and cost of project
equipment.
The initial working capital (VLđ) (for the business
and production projects) and loan interest during the time of project
implementation (LVay) (for project using
the loan interest), depending on the specific condition, progress and capital
allocation plan of each project for determination.
1.5. Determining the contingency cost
The contingency cost (GDP) is determined by the
total contingency cost for the factors of generated work volume (GDP1) and the contingency
cost due to the price slippage factors (GDP2) by the following
formula:
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The contingency cost for the factors of
generated work volume
(GDP1) is determined by the following formula:
GDP1 = (GBT,
TĐC + GXD + GTB + GQLDA + GTV
+ GK) x kps (1.5)
In which:
- kps: contingency
percentage for volume of work generated, this percentage depends on complexity
of works under the project and geological condition of works where the works is
built and the percentage is kps ≤ 10%.
For the construction investment project, only
making the report on economical - technical construction investment, kps ≤ 5%.
The contingency cost due to price slippage
factors (GDP2) is determined on the
basis of length of time of works construction of the project, capital
allocation progress by year, average yearly fluctuation of price of works
construction of the last 03 years in line with type of works, by construction
area taking into account the fluctuation trend of factors of cost and price in
the region and in the world. The contingency cost due to the price slippage
factors (GDP2) is determined by the
following formula:
(1.6)
In which:
- T: length of time of implementation of
construction investment project, T>1 (year);
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- Vt: investment capital
before contingency under the plan carried out in tth year;
- LVayt: cost of loan
interest of investment capital carried out as planned in tth year;
- IXDCTbq: Construction price
index used to calculate the contingency for the price slippage factors is
determined by calculating the average of uninterrupted construction price index
by the type of works of at least the last 03 years compared with the time of
comparison (not taking into account the times of unusual fluctuation of price
of material, fuel and constructional materials) by the following formula:
(1.7)
In which:
T: number of years (nearest year compared with
the time of calculation and use to determine IXDCTbq; T≥3;
In: construction price
index of year nth selected;
In+1: construction price
index of year n+1;
± ∆IXDCT: the average
fluctuation of construction price index by year of works construction compared
with the average price slippage of the year which is calculated and is
determined on the basis of forecasting of fluctuation trend of factors of costs
and price in the region and in the world by the experience of expert.
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Where the total construction investment is
determined by scale, power or service capacity based on the basic design, the
norm of constructional cost rate (SXD) and equipment cost
rate (STB) or the overall
construction price can be used to calculate the construction investment cost
for each works under the project and the total construction investment is
determined by the formula 1.1 of this Appendix.
2.1. Determining the constructional cost
The constructional cost of project (GXD) is equal to the
total constructional costs of works, works items or group of constructional
activities, structural unit or works part of project determined by the formula
(1.2) in Section 1.2, part I of this Appendix. The cost of construction of
works, works items or group of constructional activities, structural unit or
works part (GXDCT)
is
determined by the formula
GXDCT = SXD
x P + CCT-SXD (1.8)
In which:
- SXD: constructional cost
rate calculated for one power unit or service capacity announced by the
Ministry of Construction or agreed upon for announcement or referred from the
data of constructional cost rate of similar projects on type, scale and
features of project.
- P: production capacity or service
capacity of works, works items or group of constructional activities,
structural unit or works part of project.
- CCT-SXD: cost items not yet
calculated in the constructional cost rate or in the overall construction unit
price calculated for 01 power unit, service capacity of works, works items of
the project;
2.2. Determining the cost of equipment
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GTB
= STB x P + CCT-STB (1-9)
In which:
- STB: cost rate of works
equipment and technological equipment calculated for one power unit and service
capacity of works is announced by the Ministry of Construction or agreed upon
for announcement or referred from the data of constructional cost rate of
similar projects on type, scale and features of project.
- P: production power or service capacity
of works, works items or group of constructional activities, structural unit or
works part of project.
- CCT-STB: cost items not yet
calculated in the cost rate of works equipment under the project.
2.3. Determining other costs
The cost of compensation, assistance and
relocation; cost of project management, construction investment consultation,
other costs and contingency cost are determined in accordance with the
instructions in Section 1.1, 1.4, Section 1.5, Part I
of this Appendix.
3. Method of determination from data of cost
of similar works which were or are being implemented
The similar projects are the projects having
similar construction works of the same type, works level, scale, nature of
project and power of technological line (for works of production).
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3.1. Where there are sufficient information
and data on the cost of construction investment of similar works and work items
which were or are being implemented, the total investment is determined by the
following formula:
V=
(1.10)
In which:
- n: a number of similar works which were
or are being implemented;
- i: ordinal number of similar works which
were or are being implemented;
- GTti: cost of construction
investment of similar works which were implemented ith of investment
project (i
= 1÷n);
- Ht: coefficient
converting the cost to the time of making the construction investment project.
The coefficient Ht
is
determined by the construction price index. The original year of price index
must be consistent to use this coefficient.
- Hkv: coefficient
converting the cost of construction area. The coefficient Hkv is determined by the
expert method based on the comparison of the price level of area where the
project investment is being implemented and the price level of area of similar
project used for calculation;
- CTti: Costs which have not
yet been calculated or have been calculated in the cost of similar works
construction or ith works items which were implemented.
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3.2. If with the data source of cost of
construction investment of similar works or works items which were or are being
implemented, only the cost of construction and the cost of equipment of works
can be determined, it is necessary to convert these costs to the time of project
preparation, location of project construction simultaneously add other
necessary costs (if any). On the basis of costs of construction, technological
equipment and the equipment of works converted, costs of compensation,
assistance and relocation, project management, construction investment
consultation, other costs and contingency cost are determined similarly in the
instructions in Section 1.1, 1.4, Section 1.5, Part I of this Appendix.
4. Method of combination to determine the
total construction investment
For the projects having many works, depending
on the specific conditions and requirements of the project and source of data,
it is likely to apply the combination of above methods to determine the total
investment of the works construction investment project.
Table 1.1.
AGGREGATION OF TOTAL CONSTRUCTION INVESTMENT
Project: ……………………………..
Unit:...
No.
CONTENT OF COST
PRE-TAX
VALUE
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AFTER-TAX
VALUE
[1]
[2]
[3]
[4]
[5]
1
Cost of compensation, assistance and
relocation
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GBT,TĐC
2
Cost of construction
GXD
2.1
Cost of main work construction
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2.2
Cost of auxiliary work construction (except
for tents)
…………………
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3
Cost of equipment
GTB
4
Cost of project management
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GQLDA
5
Cost of construction investment
consultation
GTV
5.1
Cost of making report on feasibility study
of construction investment
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5.2
Cost of works design and construction
5.3
Cost of construction supervision
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…………………
6
Other costs
...
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GK
6.1
Cost of demining of bombs and explosives
6.2
Costs of general items
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…………………………….
7
Contigency cost (GDP1 +
GDP2)
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GDP
7.1
Contigency cost for factors of generated
work volume
GDP1
7.2
Contigency cost for price slippage factors
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GDP2
TOTAL (1+2+3+4+5+6+7)
VTM
TABLE MAKER
(Signature, full name)
PERSON IN CHARGE
(Signature, full name)
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Where the total construction investment does
not include all items of cost specified in Table 1.1, the determination is done
by items of actual cost of the project.
II. PRELIMINARY TOTAL CONSTRUCTION INVESTMENT
Based on the database from the preliminary
design plan of project on scale, power or service capacity, the preliminary
total construction investment is estimated as follows:
General formula to calculate the preliminary
total construction investment:
VSb = GSbBT, TĐC
+ GSbXD + GSbTB + GSbQLDA
+ GSbTV + GSbK + GSbDP
(1.11)
In which:
- VSb: preliminary
preliminary total investment of construction investment project;
- GSbBT, TĐC: cost of compensation,
assistance and relocation;
- GSbXD: cost of construction;
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- GSbQLDA: cost of project
management;
- GSbTV: cost of construction
investment consultation;
- GSbK: other costs;
- GSbDP: contingency cost.
1. Cost of compensation, assistance and
relocation
Based on the expected location and land area
to be used for the construction investment project, the estimated cost of
compensation, assistance and relocation by the land area to be used and the
regulations and policies on land recovery, land compensation and assistance
when the State recovers the land at the location of estimated construction of
project and other State relevant regulations and policies.
When the volume of compensation, assistance
and relocation can be determined, the estimation of cost of compensation,
assistance and relocation shall comply with the instructions in Section 1.1,
Part I of this Appendix.
2. Cost of construction
2.1. Based on the preliminary design plan of
project showing the scale, power or service capacity of works under the
project, the cost of construction of the project is estimated as follows:
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The cost of construction of works (GSbXDCT) is estimated by the
following formula:
GSbXDCT = P x SXD x kĐCXD + CCT-SXD (1-12)
In which:
- P: Scale, capacity or service capacity of
works under the project;
- SXD: constructional cost rate calculated for one
power unit or service capacity announced by the Ministry of Construction or
agreed upon for announcement or referred from the data of constructional cost
rate of similar projects on type, scale and features of project.
- kĐCXD: adjustment
coefficient of constructional cost rate is determined by the experience of
expert.
- CCT-SXD: items of cost under
the project not yet included in the works constructional cost rate
2.2. For the preliminary design plan of the
project, only showing the initial ideas on design of works construction,
preliminary information on scale, power or service capacity based on the preliminary
design plan of the project, the cost of project construction estimated from the
data of cost of construction of projects of similar type, scale and features of
the project which was or is being implemented shall comply with the
instructions in Section 3, Part I of this Appendix.
3. Cost of equipment
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The cost of equipment of the project (GSbTB) is equal to the
total costs of equipment of works under the project. The cost of equipment of
the project (GSbTBCT) is estimated by the
following formula:
GSbTBCT
= P x STB x kĐCTB + CCT-STB (1.13)
In which:
- STB: cost rate of works
equipment and technological equipment calculated for one power unit and service
capacity of works is announced by the Ministry of Construction or agreed upon
for announcement or referred from the data of constructional cost rate of
similar projects on type, scale and features of project.
- kĐCTB: adjustment
coefficient of works equipment cost rate kĐCTB is determined by the
experience of expert.
- CCT-STB: cost items of works
not yet included in the cost rate of works equipment.
3.2. For the preliminary design plan, only
the preliminary technology and equipment line, the cost of equipment of the
project is estimated from the data of constructional cost rate of similar
projects on type, scale and features of project which was or is being
implemented under the instructions in Section 3, Part I of this Appendix.
4. Cost of project management, cost of
construction investment consultation and other costs
The cost of project management(GSbQLDA), cost of construction
investment consultation (GSbTV) and other costs (GSbK) are estimated not
exceeding 15% of the total cost of construction and cost of equipment of the
project.
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5. Contingency cost
This cost is determined in accordance with
the provisions under Point 1.5, Section 1 of this Appendix and the estimated
cost of unanticipated volume of the project is added.
Table 1.2.
PRELIMINARY AGGREGATION OF TOTAL CONSTRUCTION INVESTMENT
Project: …………………………………………….
Unit:......
No.
CONTENT OF COST
PRE-TAX
VALUE
VAT
...
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[1]
[2]
[3]
[4]
[5]
1
Cost of compensation, assistance and
relocation
...
...
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2
Cost of construction
GSbXD
3
Cost of equipment
...
...
...
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4
Cost of project management
GSbQLDA
5
Cost of construction investment
consultation
...
...
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6
Other costs
GSbK
7
Contigency cost
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TOTAL(1+2+3+4+5+6+7)
VSb
TABLE MAKER
(Signature, full
name)
PERSON IN CHARGE
(Signature, full
name)
Certificate of practice of construction
valuation grade…., No….
...
...
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APPENDIX
NO. 2
METHOD
OF DETERMINATION OF CONSTRUCTION ESTIMATE
(Issued with Circular No. 06/2016/TT-BXD dated 10/3/2016 of the Ministry of
Construction)
I. WORKS CONSTRUCTION ESTIMATE
The works construction estimate is determined
by the following formula
GXDCT = GXD
+ GTB + GQLDA + GTV + GK + GDP (2.1)
In which:
- GXD: cost of construction;
- GTB: cost of equipment;
- GQLDA: cost of project
management;
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- GK: other costs;
- GDP: contingency cost.
The works construction estimate is aggregated
in Table 2.1 of this Appendix.
1. Determining the cost of construction (GXD)
The cost of works construction is the total
costs of construction of items of main and auxiliary works (except for
temporary works for staying and construction operation), the temporary works in
service of construction likely to be determined by each content of cost or
aggregate the contents of cost by one of the methods guided in Appendix 03 of
this Circular.
2. Determining the cost of equipment (GTB)
The cost of equipment determined by works or
works items including the cost of procurement of works equipment and
technological equipment, cost of training and transfer of technology (if any);
cost of installation, testing, calibration of equipment and other relevant
costs are determined by the following formula:
GTB
= GMS + GĐT + GLĐ (2.2)
In which:
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- GĐT: cost of training and
transfer of technology;
- GLĐ: cost of installation,
testing, calibration of equipment;
2.1. The cost of procurement of works
equipment and technological equipment is determined by the following formula:
(2.3)
In which:
- Qi: Quantity or amount of
ith equipment (group of equipment) ith (i = 1÷n);
- Mi: price calculated for
a unit of quantity or a unit of amount of equipment (group of equipment) ith (i =
1÷n) determined by the
following formula:
Mi = Gg + Cvc + CIk + Cbq + T (2.4)
In which:
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- Cvc: Cost of transport of
a unit of quantity or a unit of amount of equipment (group of equipment) from
the purchasing place or ports of Vietnam transported to the construction site;
- Clk: Cost of storage, open
storage or container storage of a unit of quantity or a unit of amount of
equipment (group of equipment) in ports of Vietnam for imported equipment;
- Cbq: Cost of maintenance
of a unit of quantity or a unit of amount of equipment (group of equipment) at
the site;
- T: relevant taxes and fees
For the equipment which does not meet the
conditions for price determination by the formula (2.4) mentioned above, it is
likely to make estimation on the basis of selection of lowest price between the
quotations of the manufacturer or equipment provider (except for the equipment
introduced for the first time and being unique on the market) to ensure the
satisfaction of requirements for equipment supply for the works or the price of
equipment of similar power, technology and origin on the market at the time of
calculation or of the works with similar equipment which was or is being
implemented. During the determination of cost of construction investment, the
consultation contract is responsible for review and evaluation of consistency
of equipment price when using the above quotations.
For types of works equipment and
technological equipment to be manufactured or processed, the cost is determined
on the basis of quantity of equipment to be manufactured or processed and the
price of manufacture and processing of one ton (or a calculation unit) in line
with nature and type of equipment under the signed contract of production and
processing or based on the manufacturer’s quotation of product processing
selected by the investor or the price of production and processing of similar
equipment of works which were or are being implemented.
2.2. The cost of training and technology
transfer
is determined by making the estimate depending on the specific features of each
project.
2.3. The cost of installation of equipment
and cost of testing and equipment calibration is determined by
making the estimate like the cost of construction.
The cost of equipment is aggregated in Table
2.2 of this Appendix.
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3.1. The cost of project management is
determined by the following formula:
GQLDA
= N x (GXDtt + GTBtt) (2.5)
In which:
- N: norm of percentage (%) of cost of project
management in proportion to the scale of installation and equipment of the
project (under the instruction of the Ministry of Construction);
- GXDtt: cost of construction
of pre-value added tax;
- GTBtt: cost of equipment before
value added tax;
3.2. Where the cost of project management
determined under the instructions under Point 3.1 mentioned above is not
consistent, such cost shall be determined by making the estimate. The method of
making the estimate as guided by the Ministry of Construction.
4. Determining the cost of construction
investment consultation (GTV)
4.1. The cost of construction investment
consultation is determined by the following formula:
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In which:
- Ci: cost of construction
investment consultation ith (i=1÷n) is determined by the
percentage (%) as guided by the Ministry of Construction;
- Dj: cost of construction
investment consultation jth (j=1÷m) is determined by making the estimate as
guided by the Ministry of Construction;
4.2. Where some activities of construction investment
consultation are implemented before determining the works construction estimate,
the cost of construction investment consultation is determined by the value of
that signed consultation contract.
5. Determining the other costs (GK)
The other costs are determined by the
following formula:
(2.7)
In which:
- Ci: other costs ith (i=1÷n) are determined by
the norm of percentage (%)
as guided by the competent agency;
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- Ek: other costs kth(k=1÷1);
- CHMC: cost of general items
The cost of general items is determined as
follows:
CHMC
= (CNT + CKKL) x (1+T) + CK (2.8)
In which:
a) CNT: cost of temporary
house at the construction site for stay and construction operation
The cost of temporary house at the
construction site for stay and construction operation is the cost to build the
temporary house at the construction site or house lease or travel expenses in
service of stay and operation of construction of the contractor during the
works construction.
The cost of temporary house at the
construction site for stay and construction operation is calculated by the
percentage of 2% over the cost of construction and installation, testing and
calibration of equipment before value added tax for works along the route such
as transmission lines, postal communication lines, roads, canals, pipelines and
other construction works along the route and equal to 1% for the remaining
works.
For other special cases (such as the works
with large scale, complexity, at sea, in islands and works using ODA selecting
the contractor in the form of international bidding), if the cost items of
temporary house at the construction site for stay and construction operation is
calculated by the percentage (%) mentioned above is not suiTable, the investor
shall, based on the actual conditions, make and approve such cost estimate.
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In case of bidding, such cost items must be
calculated in the price of package.
b) CKKL: costs of work of
general items but the volume from design cannot be determined including: cost
of labor safety and environmental protection for the employees on the
construction site and the ambient setting; cost of contractor’s material
testing; cost of movement of employees within construction site; cost of
irregular pumping and dredging are calculated by the percentage (%) over the
cost of construction and cost of installation, testing, calibration of
equipment before value added tax specified in Table 2.4 of this Appendix.
c) CK: cost of remaining general
items are the cost of movement of special-use constructional machines and
equipment and labor force (with skills under the business management) coming
and going out of construction site; cost of traffic safety assurance for
construction (if any); cost of restoration of technical infrastructure affected
by the works construction (if any); cost of storage and open storage of
materials (if any), cost of building of cover house for machine, machine
foundation, power and compressed gas and water supply and drainage system at
the construction site, installation and dismantlement of some machinery
(concrete mixing plant, asphalt mixing plant, overhead crane, tower crane and
some other constructional machines and equipment with similar features) and are
determined by the method of estimate making or cost estimation.
In case of determination by the estimate, the
instructions in the Appendix 03 of this Circular shall apply.
d) T: the prescribed tax rate of VAT.
The estimate of cost of general items is
aggregated in Table 2.3 of this Appendix.
6. Determining the contingency cost (GDP)
The contingency cost is determined by 02
factors: cost contingency for the generated volume of work and cost contingency
for price slippage factor.
The contingency cost is determined by the
following formula :
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In which:
- GDP1: contingency cost for
the generated volume of work is determined by the following formula:
GDP1 = (GXD
+ GTB + GQLDA + GTV + GK)
x kps (2.10)
- kps is the contingency
coefficient for the generated volume of work. This percentage rate depends on
the complexity of works under the project and the geological condition of works
where it is being built and the percentage rate is kps ≤ 5%.
- GDP2: contingency cost
for the price slippage factors (GDP2) is determined by the
following formula:
(2.11)
In which:
- T: time of works construction determined
by (quarter, year);
- t: ordinal number of capital allocation under
the work construction plan (t=1÷T);
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- IXDCTbq: construction price
index used to calculate the contingency for the price slippage factors determined
by the formular 1.7 in the Appendix 01 of this Circular.
± ∆IXDCT: average fluctuation
of construction price index by the time of works construction compared with the
average price slippage of the unit (quarter, year) calculated and determined on
the basis of forecasting of fluctuation trend of factors of price and cost in
the region and in the world by the expert experience.
Table 2.1.
AGGREGATION OF WORKS CONSTRUCTION
Works : ………………………………….
Unit: dong
NO.
CONTENT OF COST
PRE-TAX
VALUE
VAT
...
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SYMBOL
[1]
[2]
[3]
[4]
[5]
[6]
1
Cost of construction
...
...
...
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GXD
1.1
Cost of works construction
...
...
...
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Cost of auxiliary work construction (except
for tents)
…
…
...
...
...
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2
Cost of equipment
GTB
3
Cost of project management
...
...
...
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GQLDA
4
Cost of construction investment
consultation
GTV
...
...
...
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Cost of works construction design
4.2
Cost of construction supervision
...
...
...
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…
…
5
Other costs
...
...
...
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GK
5.1
Cost of demining of bombs and explosives
...
...
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Cost of works insurance
5.3
Cost of general items
...
...
...
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dự toán
…
…
6
Contingency cost (GDP1
+ GDP2)
...
...
...
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GDP
6.1
Contingency cost for generated volume of
work factors
GDP1
...
...
...
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Contingency cost for price slippage factors
GDP2
TOTAL (1+ 2 + 3
+ 4 + 5+ 6)
...
...
...
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GXDCT
TABLE MAKER
(Signature, full
name)
PERSON IN CHARGE
(Signature, full
name)
Certificate of practice of construction valuation grade…., No….
TABLE 2.2 AGGREGATION
OF COSTS OF EQUIPMENT
Works: …………………………………………………….
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NO.
CONTENT OF COST
PRE-TAX
VALUE
VAT
AFTER-TAX
VALUE
SYMBOL
[1]
[2]
[3]
...
...
...
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[5]
[6]
1
Cost of procurement of equipment
GMS
1.1
...
...
...
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1.2
…
...
...
...
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…
…
2
Cost of training and technology transfer
...
...
...
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GĐT
3
Cost of installation, testing and
calibration of equipment
GLĐ
4
...
...
...
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GK
TOTAL (1+2+3+4)
...
...
...
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TABLE MAKER
(Signature, full name)
PERSON IN CHARGE
(Signature, full
name)
Certificate of practice of construction valuation grade…., No….
TABLE 2.3.
AGGREGATION OF ESTIMATE OF COST OF GENERAL ITEMS
Works: …………………………………………………
Unit: dong
NO.
COST ITEMS
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VAT
AFTER-TAX
VALUE
SYMBOL
[1]
[2]
[3]
[4]
[5]
[6]
...
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Cost of building of temporary house at
construction site for stay and construction operation
CNT
2
Cost of some work whose volume cannot be
determined from the design
...
...
...
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CKKL
3
Cost of remaining general items
CK
3.1
Cost of movement of constructional machines
and equipment and labor force coming and going out of construction site
...
...
...
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3.2
Cost of traffic safety guarantee in service
of construction
...
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Cost of technical infrastructure
restoration due to effect from works construction
…
….
...
...
...
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TOTAL (1+2+3)
CHMC
TABLE MAKER
(Signature, full
name)
...
...
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Table 2.4. COST NORM
OF SOME WORK OF GENERAL ITEMS WITHOUT DETERMINATION OF VOLUME FROM DESIGN
(Including the cost
items specified under Point b, Clause 5.1 of Appendix No.2 of this Circular))
Unit: %
No.
TYPE OF WORKS
PERCENTAGE (%)
1
Civil works
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2
Industrial works
2.0
As for the construction in hydropower
tunnel, pit
6.5
3
Traffic works
2.0
As for the construction in traffic tunnel
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4
Agricultural and rural development works
2.0
5
Technical infrastructure works
2.0
- For construction works having many works
items, such works items shall apply the above percentage norm by type of works.
- For works having the cost of construction,
installation, testing and calibration of equipment before the value added tax
of under 50 (billion dong), the cost norm of som work under the general items
but without determination of volume from the design specified in the above Table
2.4 excluding the cost of lab building at the construction site.
- As for the some work under the general items
of construction in traffic tunnel, hydropower tunnel or pit including the cost
of operation and cost of regular repair of water drainage and supply system,
ventilation, power supply in service of construction in tunnel and excluding
the costs of initial investment for the system of ventilation, lighting, power,
water supply and drainage and traffic in service of construction in tunnel.
...
...
...
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+ Cost of initial investment of technical water
system for works construction;
+ Cost of initial investment of water pumping,
dredging, pumping of water from foundation pit right after river closure, flood
prevention and power syste for construction;
+ Cost of pumping water frm foundation pit
right after river closure, flood prevention;
+ Cost of additional testing of construction of
roller compacted concrete
(RCC).
II. CONSTRUCTION PACKAGE ESTIMATE
1. Construction package estimate
The construction package estimate is
determined by the following formula:
GGTXD = GXD + GHMC + GDPXD (2.12)
In which:
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- GXD: cost of construction
of construction package estimate;
- GHMC: cost of general items
of construction package;
- GDPXD: contingency cost of
construction package estimate;
a) The cost of construction of construction
package estimate is determined for works, works items, auxiliary works (except
for tents), temporary works in service of construction within the range of
construction package, including the volume of construction and construction
unit price of respective construction work (including the cost of materials,
labor, machine, general costs, predetermined taxable income and VAT).
The mthod of determining the cost of
construction of package estimate is done under the instructions in Appendix 03
of this Circular.
b) The cost of general items of construction
of package includes one, some or all costs determined in the general items in
the approved works construction estimate in line with the range of work,
technical requirement and instructions of the package.
The method of determining the contents in the
cost of general items of the construction package shall comply with the
instructions in Section 5, Part I of this Appendix.
c) GDPXD: contingency cost of
construction package estimate is determined by 02 factors: cost contingency for
the generated work volume factors and for the price slippage factors.
The contingency cost in construction package
estimate is determined by the following formula:
...
...
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In which:
+ QDPXD1: contingency cost for
the generated work volume factors of the construction package estimate is
determined by the following formula:
GDPXD1
= (GXD + GHMC) x kps (2.14)
kps is the contingency
coefficient for generated work volume, kps ≤ 5%.
+ GDPXD2: contingency cost for
the price slippage factors of the construction package estimate is determined
like the contingency cost for the price slippage factors in the works
construction estimate in the formula (2.11) of the Appendix No.02, in which GtXDCT is the cost of
construction and the cost of general items of the construction package.
Aggregating the contents of construction
package estimate in the Table 2.5 of this Appendix.
2. Estimate of package of material and
equipment procurement for installation in the works
The estimate of package of material and
equipment procurement for installation in the works is determined by the
following formula:
GGTTB
= GMS + GĐT + GLĐ + GDPTB (2.15)
...
...
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- GGTTB: estimate of package
of material and equipment procurement for installation in the works
- GMS: cost of procurement
of works equipment and technological equipment;
- GĐT: cost of training and
technology transfer;
- GLĐ: cost of installation
of equipment, testing and calibration;
- GDPTB: contingency cost in
the estimate of package of material and equipment procurement for installation
in the works
a) The estimate of package of material and
equipment procurement for installation in the works is calculated and
determined based on the work to be done of the package, technical instructions,
work volume and price of materials and equipment installed in the works and
other relevant costs in line with the time of package estimate determination.
The method of determining the cost contents
in the estimate of package of material and equipment procurement for
installation in the works (cost of procurement of works equipment and
technological equipment; cost of training and technology transfer, cost of
equipment installation, testing and calibration) are determined under the
instructions in Section 2, Part I of this Appendix
b) The contingency cost of estimate of
package of material and equipment procurement for installation in the works is
determined by 02 factors: cost contingency for the generated work volume factors
and the price slippage factors.
The contingency cost in the estimate of
package of material and equipment procurement for installation in the works is
determined by the following formula:
...
...
...
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In which:
+ GDPTB1: contingency cost for
the generated work volume factors of the estimate of package of material and
equipment procurement for installation in the works is determined by the
following formula:
GDPTB1 = (GMS
+ GĐT + GLĐ + GK) x kps (2.17)
kps is the contingency
coefficient for the generated volume of material and equipment, kps
≤ 5%.
+ GDPTB2: contingency cost for
the price slippage factors of the estimate of package of material and equipment
procurement for installation in the works is determined as for the contingency
cost for the price slippage factors in the works construction estimated in the
formula (2.11) of the Appendix 2, in which GtXDCT is the cost of
procurement of works equipment and technological equipment; cost of training
and technology transfer; cost of equipment installation, testing and
calibration of the package of material and equipment procurement for
installation in the works implemented during the tth period.
Aggregating the contents of estimate of
package of material and equipment procurement for installation in the works in
the Table 2.6 of this Appendix.
3. Estimate of construction investment
consultation
3.1. For the consultation,
the percentage or man-month estimate is determined, including: cost of expert,
management, other costs, pre-determined taxable income, tax and contingency
cost as guided by the Ministry of Construction.
3.2. For the specialized testing
consultation, it can be determined like the estimate of cost of construction specified
in Section 1, Part II of this Appendix.
...
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Table 2.5.
AGGREGATION OF CONSTRUCTION PACKAGE ESTIMATE
Project: …………………………
Package: …………………………
Unit: dong
NO.
CONTENT OF COST
PRE-TAX
VALUE
VAT
AFTER-TAX
VALUE
...
...
...
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[1]
[2]
[3]
[4]
[5]
[6]
1
Cost of construction of package
...
...
...
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GXD
1.1
Work A
1.2
...
...
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1.3
…
...
...
...
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…
…
2
Cost of general items
...
...
...
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GHMC
2.1
Cost of building of temporary house for
stay and construction operation at the construction site
2.2
...
...
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2.3
Cost of remaining general items
...
...
...
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…
...
3
Contingency cost (GDPXD1
+ GDPXD2)
...
...
...
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GDPXD
3.1
Contingency cost for generarated work volume
factors
GDPXD1
3.2
...
...
...
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GDPXD2
TOTAL (1+2+3)
...
...
...
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TABLE MAKER
(Signature, full
name)
PERSON IN CHARGE
(Signature, full
name)
Certificate of practice of construction valuation grade…., No….
Table 2.6.
AGGREGATION OF ESTIMATE OF PACKAGE OF PROCUREMENT OF MATERIALS AND EQUIPMENT
INSTALLED IN THE WORKS
Project: …………………………….
Package: ………………………….
Unit: dong
NO.
...
...
...
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PRE-TAX
VALUE
VAT
AFTER-TAX
VALUE
SYMBOL
[1]
[2]
[3]
[4]
[5]
...
...
...
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1
Cost of equipment procurement
1.1
Cost of technological equipment procurement
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1.2
Cost of works equipment procurement
2
...
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3
Cost installation, testing and calibration
(Determined by making the estimated like
the cost of construction, including the cost of general items and other
relevant costs)
...
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4
Contingency cost (GDPTB1
+ GDPTB2)
GDPTB
4.1
Contingency cost for the generated work volume
factors
...
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GDPTB1
4.2
Contingency cost for the price slippage
factors
GDPTB2
...
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TOTAL (1+2+3+4)
GGTTB
TABLE MAKER
(Signature, full
name)
PERSON IN CHARGE
(Signature, full
name)
Certificate of practice of construction valuation grade…., No….
...
...
...
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Project: …………………………………..
Package: ……………………………….
Unit: dong
NO.
COST ITEMS
PRE-TAX
VALUE
VAT
AFTER-TAX
VALUE
SYMBOL
...
...
...
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[2]
[3]
[4]
[5]
[6]
1
Consultation work A
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2
Consultation work B
…
...
...
...
...
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TOTAL
GGTTV
...
...
...
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TABLE MAKER
(Signature, full
name)
PERSON IN CHARGE
(Signature, full
name)
Certificate of practice of construction valuation grade…., No….
III. METHOD OF DETERMINING THE MODIFIED WORKS
CONSTRUCTION ESTIMATE
The modified works construction estimate is
applied to the case of design change with the approval from the competent
level. For the contracted package, the determination of modified works
construction estimate only applies to the generated work which must be
estimated in accordance with the regulations on management of construction
contract and must be consistent with the contents agreed in the construction
contract.
The modified works construction estimate (GDC) is determined by the
approved works construction estimate (GPD) plus (or minus) the
increased (or decreased) value. The increased (or decreased) value is the value
of modified estimate of works (GPDC). The modified works
construction estimate is determined by the following formula:
GDC = GPD
± GPDC (2.19)
The part of modified estimate of works is
determined by the volume modification factors and the price slippage factors:
GPDC
= GPDCm + GPDCi (2.20)
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- GPDCm: part of estimate of
works modified due to the volume modification factors;
- GBSi: part of estimate of
works modified due to the price slippage factors;
The modified works construction estimate is
aggregated like the Table 2.8 of this Appendix.
1. Part of estimate of works modified due to
the volume modification factors
The part of estimate of works modified due to
the volume modification factors is determined by the following formula:
GPDCm
= GPDCXDm + GPDCTBm + GPDCTVm
+ GPDCKm (2.21)
1.1. The part of cost of construction
modified due to the volume modification factors (GPDCXDm)
is
determined by the following formula:
GPDCXDm
(2.22)
In which:
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- Di: construction unit
price in proportion to the volume of construction modified at the time of
adjustment
1.2. The part of modified cost of equipment
for the volume modification factors (GPDCTBm) is determined by the
following formula:
GPDCTBm
(2.23)
In which:
- Qj: volume of equipment
modified (increased, decreased, generated);
- Dj: unit price of
equipment in proportion to the volume of equipment modified at the time of
adjustment.
1.3. Part of modified construction investment
consultation (GPDCTVm) and the other
modified costs GPDCKm) due to the volume
modification factors is determined as in Section 4 and 5, Part I of this
Appendix in which the volume to be calculated and determined is the part of
modified volume (increased, decreased, generated);
2. Part of estimate of works modified due to
price fluctuation factors
The part of estimate of works modified due to
price fluctuation factors is determined by the following formula:
...
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In which:
- 
: part of modified cost of construction;
- 
: part of modified cost of equipment;
2.1. Determining the
modified cost of construction
2.1.1. Direct offset method
a) Determining the modified cost of materials
(VL)
The part of modified cost of materials (VL)
is determined by the total modified cost of each type of material jth
(VLj) by the following
formula:
(2.25)
Part of modified cost of jth
material is determined by the following formula:
...
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In which:
- QJiVL: waste of jth
material of ith construction in the volume of construction to be
modified (i=1÷n);
- CLJVL: difference value of jth
material at the time of adjustment compared with the price of constructional
materials in the approved estimate;
The price of constructional materials at the
time of adjustment is determined on the basis of announcement of price of
constructional materials of locality in line with the time of adjustment and
the market price level at the place of works contruction. Where the price of
constructional materials according to the price announcement of locality is not
consistent with the market price level at the place of works contruction and
the types of constructional material are not included in the announcement of
price of constructional materials of locality, the price of these
constructional materials is determined based on the selection of appropriate
price between the quotations of the manufacturer or provider of constructional
materials (except for the equipment introduced for the first time and being
unique on the market) to ensure the satisfaction of demand for use of materials
of works on progress, supply volume, quality standards and technical
specification of materials or price of type of constructional materials with
similar standards and quality which were and are being used in other works.
b) Determining the modified cost of labor
The modified cost of labor is determined by
the following formula:
(2.27)
In which:
- QiNC: waste of labor of ith
work in construction volume to be modified (i=1÷n);
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The labor unit price at the time of
adjustment is determined by the announcement of labor price of locality or as
guided by the Ministry of Construction in accordance with the current
regulation.
c) Determining the modified cost of constructional
machines
(MTC).
The modified cost of constructional machines (MTC) is determined by the
total modified cost of each type of jth constructional machines (MTCj) by the following
formula:
(2.28)
The modified cost of jth constructional
machines is determined by the following formula:
(2.29)
In which:
- QJiMTC: waste of jth
constructional machines of ith construction in the construction volume
to be modified (i=1÷n);
- CLJMTC: difference value of
price of jth machine shift at the time of adjustment compared with
the price of machine shift in the approved estimate (i=1÷n).
...
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The part of modified cost of construction is
aggregated like the Table 2.9 of this Appendix.
2.1.2. Method of construction price index
2.1.2.1. Case of using the price index of
construction part
The modified cost of construction (
) is determined by the
following formula:
(2.30)
In which:
- GXD: cost of construction
in the approved estimate of volume of construction to be modified;
- IXD: price index of
construction part at the time of adjustment.
- 
: price index of construction part at the time
of adjustment GXD
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2.1.2.2. In case of using the price index of
construction by the cost factors (price index of constructional materials of
works, price index of works construction labor, the price index of works constructional
machines).
2.1.2.2.1. Determining the modified cost of
materials (VL)
The modified cost of materials is determined
by the following formula:
(2.31)
In which:
- GVL: cost of materials in
the approved estimate of the construction volume to be modified;
- PVL: proportion of cost of
works constructional materials to be modified over the cost of materials in the
approved estimate;
- IVL: price index of works constructional
materials at the time of adjustment;
- 
: price index of works constructional materials
at the time of making the estimate GVL
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2.1.2.2.2. Determining the modified cost of
labor (NC)
The modified cost of labor is determined by
the following formula:
(2.32)
In which:
- GNC: cost of labor in the
approved estimate of construction volume to be adjusted;
- INC: price index of works
construction labor at the time of adjustment;
- 
: price index of works construction labor at
the time of estimate making GNC
The price index of works construction labor
is determined under the current regulations.
2.1.2.2.3. Determining the modified cost of constructional
machines (MTC)
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(2.33)
In which:
- GMTCcost of constructional
machines in the approved estimate of construction volume to be modified;
- IMTC: price index of
works constructional machines at the time of adjustment;
- 
: price index of works constructional machines
at the time of estimate making GMTC
The price index of works constructional
machines is determined under the current regulations.
The modified cost of construction is
aggregated like the Table 2.9 of this Appendix.
2.1.3. Combination method
Depending on the specific conditions of each
works, the above methods can be used in combination with the above methods to
determine the modified cost of construction accordingly.
...
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The modified cost of equipment is
determined by the total modified costs of procurement of equipment 
. The modified cost
of equipment installation, modified cost of testing and calibration of
equipment and other modified costs.
2.2.1. Modified cost of procurement of equipment (
)
The modified cost of procurement of equipment
is determined by the following formula:
(2.34)
In which:
- 
: cost of equipment in the approved estimate;
- 
: cost of equipment at the time of adjustment
2.2.2. The modified cost of equipment
installation and the modified cost of equipment testing and calibration are
determined like the modified cost of construction
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Works: ………………………………............................................................................
Unit: dong
NO.
COST ITEMS
PRE-TAX
VALUE
VAT
AFTER-TAX
VALUE
SYMBOL
[1]
...
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[3]
[4]
[5]
[6]
I
Approved works construction estimate
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II
Part of modified works construction
estimate
GPDC
II.1
Part of works estimate modified for volume
modification
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GPDCm
II.2
Part of modified works estimate for price
fluctuation factors
GBSi
...
...
...
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GDC
TABLE MAKER
(Signature, full
name)
PERSON IN CHARGE
(Signature, full
name)
Certificate of practice of construction valuation grade…., No….
Table 2.9.
AGGREGATION OF MODIFIED ESTIMATE OF PART OF CONSTRUCTIONAL COST
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Unit: dong
NO.
COST ITEMS
METHOD OF
CALCULATION
VALUE
SYMBOL
I
DIRECT COST
...
...
...
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1
Cost of materials
VL
2
Cost of labor
NC
...
...
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3
Cost of constructional machines
MTC
Direct cost
VL+NC+MTC
...
...
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T
II
GENERAL COSTS
T x percentage
C
III
PRE-DETERMINED TAXABLE INCOME
(T+C) x percentage
...
...
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TL
Cost of construction before tax
(T+C+TL)
G
IV
VALUE ADDED TAX
G x TGTGT-XD
...
...
...
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VAT
Cost of construction after tax
G + VAT
TABLE MAKER
(Signature, full
name)
PERSON IN CHARGE
(Signature, full
name)
Certificate of practice of construction valuation grade…., No….
...
...
...
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APPENDIX
3
METHOD
OF DETERMINING THE CONSTRUCTIONAL COST ESTIMATE
(Issued with Circular No. 06/2016/TT-BXD dated 10/3/2016 of the Ministry of
Construction)
The cost of construction is determined for
works, works items, auxiliary works or temporary works in service of
construction by one of the following methods:
I. METHOD OF CALCULATION BY VOLUME AND PRICE OF
WORKS CONSTRUCTION
1. Determination by volume and detailed works
construction unit price
1.1. The volume of construction is determined
from the technical design or construction drawing design dossier, technical
instructions, technical requirements and constructional activities to be done
of works and works items.
1.2. The detailed works construction unit
price can be the incomplete unit price (including the cost of materials, labor,
constructional machines and equipment) or complete unit price (including the
cost of materials, labor, constructional machines and equipment, general costs
and predetermined taxable income). To synchronize with the package estimate,
the unit price can be the complete unit price.
The detailed works construction unit price is
aggregated as per the Table 3.3 of this Appendix.
2. Determination by volume and general
construction price
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2.2. The general construction price is made
in proportion to the list of and content of volume of group of type of
constructional work, structural unit and part of works.
The general construction price can be the incomplete
general construction price (including the cost of materials, labor, constructional
machines and equipment) or the complete general construction price (including
the cost of materials, labor, constructional machines and equipment, general costs
and predetermined taxable income) which is made on the basis of detailed
construction unit price of the works. To synchronize with the package estimate,
the applicable unit price can be the complete unit price.
The general construction price is aggregated
as per the Table 3.3 of this Appendix.
The method of preparing the works
construction price is guided in the Appendix 04 of this Circular.
The cost of construction is calculated by the
volume and the incomplete detailed construction unit price and the incomplete
general construction price of the works and is determined and aggregated as per
the Table 3.1 below.
Table 3.1.
AGGREGATION OF ESTIMATE OF CONSTRUCTIONAL COST CALCULATED BY THE INCOMPLETE
DETAILED CONSTRUCTION UNIT PRICE AND THE INCOMPLETE GENERAL CONSTRUCTION PRICE
OF THE WORKS
Date ….. month….. year……
Works: ………………………………..............................................................
Unit: dong
...
...
...
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CONTENT OF COST
METHOD OF
CALCULATION
VALUE
SYMBOL
I
DIRECT COST
...
...
...
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Cost of materials
VL
2
Cost of labor
NC
...
...
...
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Cost of constructional machines and
equipment
M
Direct cost
VL+NC+M
T
...
...
...
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GENERAL COST
T x percentage
C
III
PREDETERMINED TAXABLE INCOME
(T+C) x percentage
TL
...
...
...
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Cost of construction before tax
(T+C+TL)
G
IV
VALUE ADDED TAX
G x TGTGT-XD
VAT
...
...
...
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Cost of construction after tax
G + VAT
GXD
TABLE MAKER
(Signature, full
name)
PERSON IN CHARGE
(Signature, full
name)
Certificate of practice of construction valuation grade…., No….
In which:
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+ Qj is the volume of one
group of lists of work or one jth structural unit or part of the
works.
+ Djvl, Djnc,
Djm are the costs of materials, labor and constructional
machines and equipment in the general construction price of one group of lists
of work or one jth structural unit or part of the works;
- Where the cost of materials, labor and constructional
machines and equipment is determined by the volume and the incomplete detailed
construction unit price:
+ Qj is the jth
volume of construction;
+ Djvl, Djnc,
Djm are the cost of materials, labor, constructional machines
and equipment in the detailed construction unit price of works for jth construction
work;
cost of materials (Djvl), cost of labor (Djnc), cost of constructional
machines and equipment (Djm) in the incomplete detailed
construction unit price and the incomplete general construction price are
calculated and aggregated as per the Table 3.4 of this Appendix.
+ The norm of general cost percentage and the
pre-determined taxable income is specified in Table 3.7, 3.8 and 3.9 of this Appendix;
+ G: cost of contruction of works, works
items, component, work part or activities before tax;
+ TGTGT-XD: tax rate of VAT
stipulated for constructional activities;
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Knc = 1+ percentage of work volume for night
shift * 30% (labor unit price of night-shift work)
+ Km: night-shift constructional machines
coefficient (if any) and is determined as follows:
Km = 1 - g + g* Knc
In which: g is the average
salary percentage in the machine shift price.
The night-shift work volume is determined by
the requirement for works construction progress with the investor’s consent.
The cost of construction is calculated by the
volume and the complete detailed works construction unit price and the complete
general constructional cost is determined and aggregated as per the Table 3.2
below
Table 3.2.
AGGREGATION OF CONSTRUCTIONAL COST ESTIMATE CALCULATED BY THE COMPLETE DETAIL
WORKS CONSTRUCTION UNIT PRICE AND THE COMPLETE GENERAL CONSTRUCTION PRICE
Unit:...
NO
...
...
...
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CALCULATION METHOD
VALUE
SYMBOL
1
Cost of construction before tax
G
2
...
...
...
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G x TGTGT-XD
VAT
3
Cost of construction after tax
G + VAT
GXD
...
...
...
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PERSON IN CHARGE
(Signature, full
name)
Certificate of practice of construction valuation grade…., No….
In which:
- Where the cost of construction is
determined on the basis of volume of complete general construction price:
+ Qi is the volume of one
group of work or one ith structural unit or part of works (i=1÷n);
+ Di is the complete general construction
price (including the direct cost of materials, labor, constructional machines,
general costs and pre-determined taxable income) for implementation of one
group of work or one ith structural unit or part of works.
- Where the cost of construction is
determined on the basis of olvolume and the complete detailed works unit price:
+ Qi is the ith
construction volume of the works (i=1÷n);
+ Di is the complete works
construction unit price (including the direct cost of materials, labor, constructional
machines, general costs and pre-determined taxable income) for implementation
of one group of work or one ith structural unit or part of works.
+ G: cost of works construction before tax;
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+ GXD: cost of works
construction after tax;
Where the cost of construction is estimated
for the component, work part or activities, the cost of construction after tax
in the estimate of works and works items is determined by the following
formula:
(3.1)
In which:
- gi: cost of construction after tax of ith
component, work part or activities of works and works items (i=1÷n).
On the basis of general or detailed level of
construction volumes determined in Section 1 and 2 of this part, it is likely
to combine the use of detailed works construction unit price and the general
construction price to determine the constructional cost in the works
construction estimate.
Table 3.3.
AGGREGATION OF WORKS CONSTRUCTION PRICE
Name of works: ………………………………............................................................
PART OF DETAILED WORKS CONSTRUCTION UNIT
PRICE
...
...
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Unit:.....
CODE UNIT PRICE
CODE MATERIAL,
LABOR, MACHINE
WASTE COMPONENTS
CALCULATION UNIT
VOLUME
UNIT PRICE
AMOUNT
[1]
...
...
...
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[3]
[4]
[5]
[6]
[7]
DG.1
Cost of materials
...
...
...
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V.1
V.2
...
...
...
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...
...
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...
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Total
VL (Material)
Cost of labor (based on average
worker grade)
work
...
...
...
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NC (Labor)
Cost of constructional machines
M.1
...
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shift
M.2
shift
...
...
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….
Total
...
...
...
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M (Machine)
PART OF GENERAL CONSTRUCTION PRICE
No. (Name of group of type of construction
activities, structural unit and components of the works)
Unit:...
CODE OF UNIT PRICE
WORK COMPONENTS
CALCULATION UNIT
VOLUME
...
...
...
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TOTAL
MATERIALS
LABOR
MACHINE
[1]
[2]
[3]
[4]
[5]
...
...
...
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[7]
[8]
DG.1
...
...
...
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DG.2
...
...
...
...
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Total
...
...
...
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VL (materials)
NC (labor)
M (machine)
å
Note:
- The code of unit price, materials, labor, constructional
machines can be written in letters, figures or combined letters and figures and
consistent with the norm code announced by the competent agency.
- Where the complete general constructional
cost is determined, it includes the general cost and the pre-determined taxable
income.
II. METHOD OF CALCULATION BY WASTE VOLUME
OF MATERIALS, LABOR, CONSTRUCTIONAL MACHINES AND EQUIPMENT AND RESPECTIVE
QUOTATION
The cost of materials, labor, constructional
machines and equipment in the cost of construction can be determined on the
basis of total waste volume of necessary materials, labor, constructional
machines and equipment and the quotation of respective materials, labor, constructional
machines and equipment.
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The total waste volume of materials, labor, constructional
machines and equipment is determined on the basis of waste of materials, labor,
constructional machines and equipment for each volume of construction
activities of works and works items as follows:
- Determining each volume of construction of
works and works items as in Section 1.1, Part I of this Appendix.
- Determining the volume of materials, labor
and constructional machines and equipment in proportion to each volume of
construction based on the technical design or construction drawing design of
works and works items through the waste of materials, labor and constructional
machines and equipment to finish a volume unit of construction based on the
regulations and standards of construction and technical norms.
- Calculating the total waste volume of each
type of materials, labor and constructional machines and equipment for works
and works items by aggregation of waste of all materials, labor and constructional
machines and equipment that are alike of different construction activities.
When calculating, it is required to specify
the amount, unit, type and specification for materials; a number of workdays
for each worker grade; a number of machine shift for each type of constructional
machines and equipment based on the technical parameters and code in the
quotation of machine shift and works constructional equipment.
2. Determining the
quotation of materials, labor, constructional machines and equipment
The price of materials, labor, constructional
machines and equipment is determined on the basis of market price of place of
works construction or as guided in Appendix 04 of this Circular.
- Determining the cost of materials, labor, constructional
machines and equipment in the direct cost based on the total waste volume of
each type of material, labor, constructional machines and equipment and the
price of respective materials, labor, constructional machines and equipment as
in Table 3.4 and 3.5 of this Appendix
The cost of construction calculated by the
total waste volume of materials, labor, constructional machines and equipment
is determined and aggregated as in Table 3.6 of this Appendix.
...
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No.
Code
Name of work
Unit
Volume
Waste
Waste volume
Material
Labor
...
...
...
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Material
Labor
Machine
[1]
[2]
[3]
[4]
[5]
[6]
...
...
...
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[8]
[9]
[10]
[11]
001
DM.001
Work 1
m3
...
...
...
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V.001
Fine sand
m3
...
...
...
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V.002
Solid brick
...
...
...
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...
...
...
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...
...
...
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3/7 Worker of grade 3/7
work
...
...
...
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N.002
Worker of grade 3.5/7
work
...
...
...
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…
...
...
...
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M.001
80 liter mortar
mixer
shift
...
...
...
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M.002
0.8 ton lift
shift
...
...
...
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...
...
...
...
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002
DM.002
Work 2
….
...
...
...
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Table 3.5. AGGREGATION
OF COST OF MATERIAL, LABOR, CONSTRUCTIONAL MACHINES AND EQUIPMENT IN DIRECT
COST
Unit: ...
No.
...
...
...
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Content
Unit
Volume
Price
Amount
[1]
[2]
[3]
[4]
...
...
...
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[6]
[7]=[5]x[6]
I
Material
...
...
...
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V.001
Fine sand
m3
I.2
V.002
Solid brick
...
...
...
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…
…
…
...
...
...
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Total
VL Material
II
...
...
...
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II.1
N.001
Worker of grade 3/7
work
...
...
...
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II.2
N.002
Worker of grade 3.5/7
work
…
...
...
...
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…
Total
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NC Labor
III
Constructional machines
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M.001
80 liter mortar mixer
shift
III.2
M.002
0.8 ton lift
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…
…
…
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Total
M Machine
Note:
The demand for materials, labor, constructional
machines and equipment (column 5) is aggregated from the identical waste of
materials, labor, constructional machines and equipment of all constructional
activities of works and works items (column 9, 10, 11 in Table 3.4 of this
Appendix).
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NO.
CONTENT OF COST
METHOD OF
CALCULATION
VALUE
SYMBOL
I
DIRECT COST
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1
Cost of materials
Taken from Table
3.5
VL
2
Cost of labor
NC
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Cost of constructional machines and
equipment
M
Direct cost
material + labor
+machine
T
II
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T x percentage
C
III
PRE-DETERMINED TAXABLE INCOME
(T+C) x percentage
TL
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(T+C+TL)
G
IV
VALUE ADDED TAX
G x TGTGT-XD
VAT
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G + VAT
GXD
TABLE MAKER
(Signature, full
name)
PERSON IN CHARGE
(Signature, full
name)
Certificate of practice of construction valuation grade…., No….
In which:
- The norm of general cost percentage is
specified in Table 3.7
and 3.8
of this
Appendix;
- Norm of pre-determined taxable income is
specified in Table 3.9 of this Appendix;
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- TGTGT-XD: tax rate of value
added tax specified for the constructional activities;
- GXD: cost of construction
of works and works items after tax.
- The general cost is determined by the
percentage norm (%) of general cost multiplied by the direct cost in the
construction. The percentage norm (%) of general cost is determined by the cost
of construction before tax in in the total construction investment of project
approved in accordance with the instructions in Table 3.7
Table 3.7. NORM OF
GENERAL COST PERCENTAGE (%)
Unit: %
No.
Type of works under
project
Cost of
construction before tax in the total construction investment of the approved
project
≤15
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≤500
≤1000
>1000
[1]
[2]
[3]
[4]
[5]
[6]
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1
Civil works
6,5
6,0
5,6
5,4
5,2
As for works renovating or restoring the
historical and cultural monvoluments
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9,0
8,6
8,4
8,2
2
Industrial works
5,5
5,0
4,6
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4,2
As for construction works of hydropower
tunnel, pit
6,5
6,3
6,0
5,8
5,7
3
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5,5
5,0
4,6
4,4
4,2
As for works of traffic tunnel
6,5
6,3
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5,8
5,7
4
5,5
5,0
4,6
4,4
4,2
5
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5,0
5,0
4,1
3,9
3,7
Note:
- Where the scale of cost of construction
before tax is within the scale of cost specified in Table 3.7, the norm of
general cost percentage (Kc) is determined by the interpolation
method using the following formula:
(3.2)
In which:
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+ Ga: upper value of cost
of construction of the value whose norm needs to be calculated;
+ Gb: lower value of cost
of construction of the value whose norm needs to be calculated;
+ Ka: norm of general cost
percentage in proportion to Ga;
+ Kb: norm of general cost
percentage in proportion to Gb.
- Where the construction investment project
has many types of works, the norm of general cost percentage (%) in the works
estimate is determined by the type of works in proportion to the cost of
construction before tax in the approved total construction investment of
project.
- Where the works construction contractor
must exploit and produce the materials of soil, stone, sand and gravel for
works construction, the general cost calculated in the estimate to determine
the price of material is equal to the percentage of 2.5% over the cost of labor
and constructional machines.
- The general cost is determined by the norm
of percentage (%) of general cost multiplied by the cost of labor in the construction
estimate of type of constructional activities and installation of work
according to the instruction in Table 3.8.
Table 3.8. NORM OF
GENERAL COST OVER COST OF LABOR
Unit: %
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Type of work
Cost of labor in
the direct cost (billion dong)
≤15
≤100
>100
[1]
[2]
[3]
[4]
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1
Maintenance and repair of roadway, railway,
inland waterway, maritime signal system and inland waterway
66
60
56
2
Digging and leveling of soil for
agricultural and rural development works is done totally manually
51
45
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3
Installation of technological equipment in
construction works, building and installation of line, testing and
calibration, electricity line and substation, testing of materials, structure
and constructional structure.
65
59
55
Note:
- Where the scale of cost of labor in the
direct cost is within the range of cost specified in Table 3.8, the norm of
general cost percentage calculated over the cost of labor is determined by the
interpolation method using the formula (3.2 ) mentioned above.
- For construction works in mountainous
areas, border areas, at sea and on islands, the norm of general cost percentage
specified in Table 3.7 and 3.8 is modified with the coefficient from 1.05
to 1.1 depending on the specific conditions of works.
Table 3.9. NORM OF
PRE-DETERMINED TAXABLE INCOME
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NO.
TYPE OF WORKS
PRE-DETERMINED
TAXABLE INCOME
[1]
[2]
[3]
1
Civil works
5,5
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Industrial works
6,0
3
Traffic works
6,0
4
Agricultural and rural development works
5,5
5
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5,5
6
Installation of technological equipment in
construction works, building and installation of line, testing and
calibration, electricity line and substation, testing of materials, structure
and constructional structure.
6,0
- The predetermined taxable income is
calculated by the percentage (%) over the dicrect cost and general cost in the constructional
cost estimate.
- For construction works having many works
items, such works items have separate utility and are applied with the
percentage of predetermined taxable income by appropriate works.
- Where the works construction contractor
must exploit and produce the materials of soil, stone, sand and gravel for
works construction, the predetermined taxable income calculatd in the estimate
to determine the price of material is equal to the percentage of 3% over the
direct cost and the general cost.
Where the project requires the report on
economical - technical construction investment, the norm of general cost
percentage and the predetermined taxable income are determined by the
prescribed percentage in column [3] under the instructions in Table 3.7, 3.8
and 3.0 of this Circular.
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APPENDIX
4
METHOD
OF DETERMINING THE PRICE OF WORKS CONSTRUCTION
(Issued with the
Circular No. 06/2016/TT-BXD dated 10/3/2016 of the Ministry of
Construction)
The price of works construction includes the
detailed construction unit price of works and the general construction price.
The detailed construction unit price of works
is the economic – technical indicator, including all necessary direct cost on
materials, labor and constructional machines to finish one volume unit of
construction.
The general construction price is the
economic – technical indicator, including all necessary direct cost to finish
one unit of group of type of constructional activities, structural unit and
component unit of works.
The construction unit price is determined
based on the market price or determined from the norm of works construction
estimate.
I. METHOD OF DETERMINING THE DETAILED WORKS
CONSTRUCTION UNIT PRICE
1. Grounds for determining the detailed works
construction unit price
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- Norm of construction estimate under the
List in need of unit price;
- Cost of materials (excluding VAT)
transported to the constructional site;
- Cost of works construction labor;
- Cost of machine shift and works constructional
equipment
2. Determining the incomplete detailed works
construction unit price
2.1. Determining the cost of material (VL)
The cost of material is determined by the
following formula:
(4.1)
In which:
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- 
: price of one unit of
ith material (i=1÷n) determined must be consistent with the
technical standards, the prescribed quality of material, requirements for
material use of works taking into account the construction site. The price of
one unit of ith constructional material is determined as per the
announcement of price of constructional material of locality in line with the
time of unit price preparation and the market price at the place of works
construction.
Where the price of constructional materials
as announced by locality is not consistent with the market price level at the
place of works construction and the constructional materials not included in
the announcement of price of constructional materials of the localities, the
price of these constructional materials is determined on the basis of selecting
the consistent price between the quotations of the manufacturer or the provider
of constructional materials (except for the equipment introduced for the first
time and being unique on the market) to ensure the satisfaction of demand for
use of materials of works on progress, supply volume, quality standards and
technical specification of materials or price reference of types of
constructional materials with similar standards and quality which were and are
being used in other works.
For the constructional materials which the
domestic market does not have and must import them, the price of these
materials is determined on the basis of selecting the lowest price between the
quotations of the manufacturer or the provider of constructional materials in
line with the quality standards and origin of goods.
For the works using the ODA, in case of
determining the price of types of material which the domestic market has but
must import them in accordance with the provisions in the loan agreement of the
donor, the price of imported materials is determined by the import quotation in
line with the quality standards, origin of goods and the price level in the
region.
Where the price of material has not taken
into account the constructional site, the price of material transported to the
construction site is determined under the instructions in Section 2.4 of this
Appendix.
- Kvl: cost calculation
coefficient of other materials (if any) compared with total costs of main
materials determined in the norm of works construction estimate.
2.2. Determining the cost of labor (NC)
The cost of labor is determined by the
following formula:
NC = N x Gnc (4.2)
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- N: waste volume of labor calculated by the
workday of direct production based on the worker’s average grade for one volume
unit of construction;
- Gnc: unit price of labor
of workers directly performing the construction is determined under the
instructions of the Ministry of Construction and the provincial People’s
Committee.
2.3. Determining the cost of constructional
machines (MTC)
The cost of constructional machines is
determined by the following formula:
(4.3)
In which:
- Mi: waste volume of machine shift of type of ith
main constructional machines and equipment (i=1÷n) calculated for one volume
unit of construction;
- Gimtc: price of machine
shift of ith main constructional machines and equipment (i=1÷n) based on the
quotation of constructional machines shift and equipment of works or price of
machine leasing determined in the Appendix 06 of this Circular.
- Kmtc: cost calculation
coefficient of other machine (if any) compared with the total cost of main constructional
machines and equipment determined in the norm of works construction estimate.
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The price of materials transported to the
construction site is determined by the following formula:
Gvl = Gng + Cv/c + Cbx + Cvcnb
+ Chh (4.4)
In which:
- Gng: price of materials at
the supply source (price of material on means of transportation);
- Cv/c: cost of
transportation to the works;
- Cbx: cost of loading and
unloading (if any);
- Cvcnb: cost of
transportation within the works (if any).
- Chh: cost of loss from
storage at the construction site (if any);
The table of price calculation of material
transported to the construction site is aggregated under the instructions in
Table 4.1 in which the cost of material transportation to the construction site
is determined on the basis of transportation plan (distance, transport road
grade, type, load of means of transportation) in line with the conditions for
works construction.
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Table 4.1. TABLE OF
PRICE CALCULATION OF MATERIAL TRANSPORTED TO THE CONSTRUCTION SITE
No.
Type of material
Calculation unit
Price of materials
transported to the constructional site
Cost of transport
within the works (if any)
Cost of loss from
storage at the construction site (if any);
Price of materials
transported to construction site
Price of materials
at the supply source
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Cost of loading and
unloading (if any)
[1]
[2]
[3]
[4]
[5]
[6]
[7]
[8]
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1
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3. Determining the complete detailed
construction unit price of works
- The direct costs include the cost of
material, labor and constructional machines of the complete detailed
construction unit price of works determined under the instructions in Appendix
2, Part I of this Circular.
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- The pre-determined taxable income is
calculated by the percentage (%) over the direct cost and the general cost in
the detailed construction unit price of works. The pre-determined taxable
income is under the instructions in Table 3.9, Appendix 03 of this Circular.
II. Method of determining
the general constructional cost of works
1. Grounds for determining the general constructional
cost
- The List of group of types of
constructional activities, structural unit and components of works;
- The works construction unit price corresponds
to the group of types of constructional activities, structural unit and
components of works;
2. Determining the incomplete general
construction price
The order to determine the incomplete general
construction price is as follows:
- Step 1. Determining the group of types of
construction and installation activities, structural unit and components of
works that need the preparation of general construction price, some essential
technical indicators, calculation unit, content and component of work.
- Calculating the volume of construction and
installation (q) of each constructional activity forming the general constructional
cost.
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VLi = q x vl; NCi
= q
x nc; Mi = q x m (4.8)
- Step 4. Aggregating the result by each cost
item in the general construction price by the following formula:
(4.9)
In which:
- VLi, NCi, Mi: are the cost of
materials, labor and constructional machines of ith construction
activities (i=1÷n) formed in the
general construction price.
3. Determining the complete general
construction price
- The direct cost includes the cost of
materials, labor and constructional machines of the complete general
construction price determined under the instructions in Section 2, Part II of
this Circular.
- The general cost is calculated by the
percentage (%) over the direct cost or by the percentage (%) over the cost of
labor in the general constructional cost. The norm of general cost percentage
is under the instructions in Table 3.7 and 3.8, Appendix 03 of this Circular.
- The pre-determined taxable income is
calculated by the percentage (%) over the direct cost and the general cost in
the general construction price. The pre-determined taxable income is under the
instructions in Table 3.9, Appendix 03 of this Circular.
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METHOD
OF DETERMING THE NORM OF WORKS CONSTRUCTION ESTIMATE
(Issued
with Circular No. 06/2016/TT-BXD dated 10/3/2016 of the Ministry of
Construction)
I. DETERMINING THE NORM OF CONSTRUCTION
ESTIMATE OF NEW WORKS
The norm of new construction estimate of works is determined in the following
order:
Step 1. Making the List of construction
activities or new structure of works not included in the announced List of
estimate norm
The List of construction activities or new
structure ensure the requirements for clear expression of volume calculation
unit and technical requirements, conditions and essential method of
construction of constructional activities or constructional structure.
Step 2. Determining the work components
The work components represent the steps of
work to be performed of each phase based on the design of organization of
performance technology line from the preparation to the completion, in line
with the condition and measures of performance and range of work performance of
constructional activities or constructional structure.
Step 3. Calculating the waste of materials,
labor and constructional machines
1. Calculating the waste of materials
1.1. Determining the waste components of
materials
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1.1.1. Main materials are the basic materials
forming a product unit by the design and have large proportion in material
cost.
- The calculation unit is determined in
accordance with the regulations in the system of common measurement unit or in
kind.
1.1.2. Other materials are the materials
forming a product unit by the design and have smaller proportion in material
cost.
- The calculation unit is determined by the
percentage (%) compared with the cost of main materials in the material cost.
1.2. Calculating the material waste
The material waste is the necessary waste by
the design requirements to finish one volume unit constructional activities or
constructional structure.
1.2.1. The formula used to calculate the main
material waste is as follows:
a) Non-circulating materials
VL1 = QV x (1 + Ht/c) (5.1)
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- QV: waste of necessary material by design
requirement over the norm calculation unit.
- Ht/c: percentage of
material loss in construction under the instructions in the announced material
use norm. For the new materials, the percentage of material loss in
construction can be applied by the announced material use norm; by the
manufacturer’s standards and instructions; by the actual loss or by expert
experience.
b) Circulating materials
The material waste for the construction based
on the performance measure design is determined by the performance techniques
and a number of circulation by the material use norm announced or calculated in
case of not included in the material use norm.
Calculation formula:
VL2
= QVLC x (1 + Ht/c) x KLC (5.2)
In which:
- QVLC: circulating material
waste volume
- Ht/c: determined as in
formula (5.1).
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+ For the materials with the times of
circulation and loss compensation percentage different from the regulations in
the announced material use norm, the coefficient KLC is determined by the
following formula:
(5.3)
In which:
h: loss compensation percentage from the 2nd
time onwards, in case of no loss compensation, h = 0.
n: number of uses of circulating materials
1.2.2. Determining the other material waste
For the other materials normalized by the
percentage (%) compared with the total costs of main materials which are
quantified in the construction estimate norm and determined by the type of
work, the data of expert experience or the estimate norm of similar works should
be referred to.
2. Calculating the labor waste
The labor waste is determined by the direct
number and average worker grade (excluding the workers operating the constructional
machines and equipment) for completion of work volume unit or constructional
structure by one or many cycles.
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2.1. Performance organization technology line
The labor waste for one work volume unit or
constructional structure is determined by the labor organization in the technology
line in line with the conditions and measures of works construction.
The formula used to determine the labor waste
is:
(5.4)
In which:
- NC: labor waste for one work volume unit or
constructional structure
- TNC: number of workdays
for completion of work volume unit or constructional structure
- Q: volume of work or constructional structure to
be performed
- Kcđ: coefficient converted
to the constructon estimate norm. This coefficient depends on the group of work
(simple or complex based on the performance organization technology line),
technical requirements, performance conditions, continuous or interrupting
working cycle, volume of work continuously performed. Kcđ = 1,05÷1,3 determined by the
expert experience.
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The labor waste for one work volume unit or
constructional structure is determined on the basis of calculation of analysis
of statistic and general data.
The labor waste is determined by the formula
(5.4)
2.3. Based on the actual survey data
The labor waste for one work volume unit or
constructional structure is calculated on the basis of number of workers of
each phase in the production line and the total number of workers in the entire
line based on the actual survey data of works (by the time, location and volume
performed in one or many cycles…) and reference to the regulations on worker
employment.
The formula is used to calculate the labor
waste:
NC = å (tgđm
x Kcđ)
x Ktgn (5.5)
- tgđm: is the direct labor
waste from the preparation to the end of work of each phase or performance
technology line for one specific work volume unit or constructional structure
(workhour).
- Kcđ: is determined by
formula (5.4).
- Ktgn = 1/8: conversion
coefficient from workhour norm to workday norm
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Based on the specific conditions, the 03
methods mentioned above can be combined to determine the labor waste for the
work or constructional structure not included in the announced construction
estimate norm system.
3. Calculating the waste of constructional
machines
3.1. Determining the waste components of constructional
machines
The waste components of constructional
machines are the constructional machines and equipment determined by the
performance organization to finish one work volume unit or constructional
structure. The waste components of constructional machines include:
3.1.1. Main constructional machines are the constructional
machines with a large proportion of cost in the cost of constructional machines
over one work volume unit or constructional structure;
3.1.2. Other machines are the constructional
machines with a small proportion of cost in the cost of constructional machines
over one work volume unit or constructional structure;
- The calculation unit is determined by the
percentage (%) compared with the total costs of constructional machines and
equipment in the cost of construction of constructional machines and equipment.
3.2. Determining the waste of constructional
machines and equipment
The waste of constructional machines and
equipment is the necessary waste volume as required by the performance
organization technology line to finish one work volume unit or constructional
structure.
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The general formula used to determine the
waste of main constructional machine is as follows:
(5.6)
In which:
- Kcđ: conversion
coefficient to the norm of construction estimate. This coefficient depends on
the group of work (simple or complex as per the performance organization
technology line), technical requirements, performance conditions, continuous or
interrupting working cycle, volume of work continuously performed. Kcđ
= 1,05÷1,3 determined by the
expert experience.
- Kcs: power use coefficient
is the coefficient which reflects the effective use of productivity of machine
complex in the combined line. This coefficient is calculated by the
productivity of constructional machine of working steps with the appropriate
adjustment when the type of machine with smallest productivity Kcs
≥ 1 is used.
- QCM: norm of constructional
machine productivity in a shift.
The norm of constructional machine
productivity is determined by the following method:
3.2.1. Based on the performance organization
technology line
The norm of constructional machine
productivity is determined by the technical parameters of each machine in the
performance organization technology line or reference to the constructional
machine productivity in machine manuals or is determined by the following
formula:
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In which:
- NLT: theoretical
productivity in a shift
- Kt: time use coefficient in a work shift
of constructional machine.
3.2.2. Based on the statistical data of works
which were and are being implemented with similar construction conditions and
measures
The norm of constructional machine
productivity is determined based on the analysis of statistic data or
aggregative data from works for one calculation unit to complete one volume
unit constructional activities or constructional structure by many cycles of
the similar performance organization technology line and is determined by the
following formula:
(5.8)
In which:
- mTK: volume of
constructional activities or constructional structure to be done based on the
statistic data or aggregative data;
- tCM: time to finish the volume
of constructional activities or constructional structure based on the statistic
data or aggregative data (machine hour).
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3.2.3. Based on the actual survey data
The norm of constructional machine productivity
is calculated based on the survey data (time, location, volume done in many
cycles…) of each type of machine or reference to the regulations on technical
productivity of machine and regulations on use of constructional machine and is
determined by the following formula:
(5.9)
In which:
- mKS: volume unit
constructional activities or constructional structure to be done based on the
actual survey data.
- tCM: time to finish the volume of constructional
activities or constructional structure based on the actual survey data (machine
hour).
- Ktgm = 1/8: conversion
coefficient from machine hour norm to machine shift norm.
3.2.4. Combination method
Based on the specific conditions, the 03
methods mentioned above can be combined to determine the waste of constructional
machine for work or constructional structure not included in the not included
in the announced construction estimate norm system.
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For the other constructional machine and
equipment which are normalized by the percentage (%) compared with the total
costs of main machines quantified in the construction norm and are determined
by the type of work based on expert experience or estimate norm of similar
works.
Step 4. Formulation of norms based on the
aggregation of waste of materials, labor and constructional machine
Aggregating the norms based on the
aggregation of waste items of materials, labor and constructional machine.
Each norm consists of 02 parts:
1. Work components: Giving clear and full
contents of working steps in order from the preparation to the completion of
work or constructional structure, including the specific constructional
conditions and measures.
2. Table of norms of waste items: Describing
name, type and specification of main material in work or constructional
structure and other materials; average constructional worker grade; name, power
of main machine and equipment and other machine and equipment in the
performance technology line to finish work or constructional structure.
In the norm table, the waste of main material
is calculated by the kind and the other materials are calculated by the
percentage (%) compared with the cost of main materials; the waste of labor is
calculated by the workday by the average constructional worker grade; the waste
of constructional machine and equipment is calculated by the number of machine
shift; other machines are calculated by the percentage (%) compared with the
cost of main constructional machine and equipment.
The new norms of construction is aggregated
by group or type of work or constructional structure and are consistently
coded.
II. DETERMINING THE NORM OF MODIFIED WORKS
CONSTRUCTION ESTIMATE
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Step 1. Making the List of estimate norm to
be adjusted
Step 2. Analyzing and comparing the technical
requirements, specific construction conditions and measures with the contents
in the announced estimate norm
Step 3. Adjusting the waste of materials,
labor and constructional machine
1. Adjusting the waste of materials
- For the materials forming the products as
required by the design, the calculation of adjustment is based on the
regulation and standard of design.
- For the materials used for construction,
the component factors in the announced estimate norm, the estimate norm of
similar works as calculated from the design of construction measures or by
experience of experts or professional organizations.
2. Adjusting the labor waste
The adjustment of components and waste of
labor is based on the conditions for works construction or by experience of experts
or professional organizations.
3. Adjusting the waste of constructional
machine
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APPENDIX
6
METHOD
OF DETERMINING THE PRICE OF MACHINE SHIFT AND CONSTRUCTIONAL EQUIPMENT
(Issued
with Circular No. 06/2016/TT-BXD dated 10/3/2016 of the Ministry of
Construction)
I. CONTENT OF COST IN THE PRICE OF MACHINE
SHIFT AND CONSTRUCTIONAL EQUIPMENT
The price of constructional machine and
equipment (hereafter referred to as the price of machine shift) is the average
cost for one working shift in accordance with the regulation of constructional
machine and equipment.
The price of machine shift includes all or
some cost items like cost of depreciation, repair, fuel, energy, controlling
labor and other costs of machine.
The price of machine is determined by the
formula:
CCM
= CKH + CSC + CNL + CNC + CCPK
(dong/shift) (6.1)
In which:
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- CKH: cost of depreciation (dong/shift)
- CSC: cost of repair (dong/shift)
- CNL: cost of energy and
fuel (dong/shift)
- CNC: cost of controlling labor (dong/shift)
- CCPK: other costs (dong/shift)
II. DETERMINING THE CONTENTS OF COST IN THE
PRICE OF MACHINE SHIFT
1. Determining the cost of depreciation
During the use of machines, they are worn out
and their value of use and value due to participation in the business and
production and natural depreciation.
The depreciation of machine is the
calculation and systemic allocation of prime cost of machine into the cost of
production and busness during the time of depreciation of machine to recover
the machine investment capital. The machine depreciation is calculated in the
price of machine shift.
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(6.2)
In which:
- CKH: cost of depreciation
in the price of machine shift (dong/shift)
- G: prime cost of machine before tax (dong)
- GTH: recovery value (dong)
- ĐKH: depreciation norms of
machine (% / year)
- NCA: number of working
shifts of machine in a year (shift/year)
* Determining the prime cost of machine
+ The prime cost of machine to calculate the
price of works machine shift is determined on the principle of consistency with
the machine price level on the market of the type of machine used for works
construction.
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+ The prime cost to calculate the price of
works machine shift is determined by the provider’s quotation, under machine
sale contract and other relevant cost to put the machine into the state of
availability or reference to the prime cost from similar works which were and
are being implemented the principle of consistency with the machine price level
on the market at the time to calculate the price of machine shift.
+ The prime cost of machine does not include
the costs as stipulated in Clause 2, Article 26 of this Circular and the costs
such as the cost of installation, dismantlement of mortar or asphalt mixing
plant, overhead crane, tower crane and some other similar constructional
machines and equipment from the second time onwards. These costs are determined
by making the estimate and are included in the cost of general items in the
works construction estimate and construction package estimate.
* The recovery value is the value of
remaining part of machine after disposal. The recovery value is calculated as
follows:
+ For the machine with the prime cost from
30,000,000 dong (thirty million dong) or more, the recovery machine is equal to
10% of the prime cost;
+ The recovery machine of the machine with the
prime cost of less than 30,000,000 dong (thirty million dong) is not
calculated.
* Determining the number of working shifts of
machine in a year.
The number of working shifts of machine in a
year is determined as follows:
+ Collection and aggregation of statistical
data on the actual time of machine use;
+ Processing of collected statistical data on
the time of machine use, determination of number of working shift in a year of
machine based on the processed statistical data.
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+ Determination of number of working shift of
machine in a year based on the specific conditions of works;
During the time to determine the number of
working shift of machine in a year based on the processed statistic data, the
number of working shift of similar machines announced by the Ministry of
Construction can be referred.
The data dossier on the time of machine use
includes: site diary, periodical report on the time of machine use, the technical
regulations and requirements on time of maintenance, machine repair and
statistic data on weather affecting the working time of machine,….
The depreciation norm of machine is
determined on the basis:
- Instructions of the Ministry of Finance on regime
of management, use and depreciation of fixed assets;
- The depreciation norm of similar machines
is announced by the Ministry of Construction;
- The depreciation of machines during the
time of use is based on the specific conditions of works.
2. Determining the cost of repair
The cost of machine repair is the costs of
regular and irregular maintenance and repair of machine during the time of
their use in order to maintain and restore the standard operation capacity of
machine.
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(6.3)
In which:
- CSC: cost of repair in the price of machine shift
(dong/shift)
- ĐSC: norm of machine
repair (% year)
- G: prime cost of machine before tax (dong)
- NCA: number working shift
of machine in a year (shift/year)
The norm of repair for a year of machine use
is determined on the basis of regulation on technical maintenance, periodical
repair, machine operation procedure, machine quality, conditions for machine
use and price level of machine maintenance and repair on the market.
The norm of machine repair is determined on
the basis:
- Estimation of total costs of maintenance and
repair of machines in proportion to the total norm machine shifts in the
machine lifetime;
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- Regular allocation of percentage of cost of
repair of machines based on the number of year of machine lifetime.
- Repair norm of similar machines is
announced by the Ministry of Construction;
In the cost of machine repair, the cost of
replacement of spare parts of the working components of machine having great
value but their depreciation depends mainly on the nature of working objects.
3. Determining the cost of fuel and energy
The fuel and energy for one working shift of
machine is gasoline, oil, power, gas or compressed air that are consvolumed in the
working time of machine to create the motive force for the operation of machine
called as main fuel.
The types of lubricants, transmission oil,
... called as auxiliary fuel in a working shift of machine are determined by
the coefficient compared with the cost of the main fuel.
The cost of fuel and energy in the price of
machine shift is determined by the formula:
(6.4)
In which:
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- ĐNL: norm of consumption
of fuel and energy of ith type of the working time of machine in a
shift.
- GNL: price of fuel of ith
type
- Kp: coefficient of price of auxiliary fuel
of ith type
- n: number of types of fuel used in a machine
shift.
The norm of consumption of fuel and energy in
the working shift of machine is determined on the principle of consistence with
the actual working time of machine in a shift, consumption of fuel and energy
of machine and the specific condtions of works or similar machine announced by
the Ministry of Construction;
The coefficient of cost of auxiliary fuel for
one working shift of machine is valued depending on each type of machine and
specific conditions of works. The coefficient of cost of auxiliary fuel is
valued within the range as follows:
- Gas engine: 1.01 – 1.03
- Diesel engine: 1.02 – 1.05
- Electric engine: 1.03 – 1.07
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The norm of consumption of main fuel of types
of machine used for work with the actual working time (number of hours) of
machine in different shifts, the norm of consumption of fuel should be
developed on the principle of consistence with the number of actual working
hours of machine in a shift of each type of work.
4. Determining the cost of controlling labor
The cost of controlling labor in a working
shift of machine is determined based on the regulation on number, component,
group, machine controlling worker grade in line with the machine operation
procedure and regulations on labor unit price in management of cost of
construction investment as guided by the Ministry of Construction and the
provincial People’s Committee.
The cost of controlling labor in the price of
machine shift is determined by the following formula:
(6.5)
In which:
- N: number of worker as per controlling grade of
machine of ith type in one machine shift.
- CTL: workday unit price of
worker’s controlling grade of machine of ith type
- n: number and type of worker controlling machine
in 01 machine shift.
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In case of determining the price of machine
shift of types of machine to perform some work (such as survey, testing and
others) but the cost of machine controlling labor was included in the cost of
labor in the unit price, the cost of controlling labor in the price of machine
shift shall not be calculated.
5. Determing the other costs
The other costs in the price of machine shift
are the necessary costs to ensure the machine operates normally and effectively
at the construction site, including the insurance of machine and equipment
during the time of use, storage and service for the technical maintenance in
machine storage, register, movement of machine within the construction site and
other relevant costs directly related to the management and use of machine at
the construction site not included in the other cost in the price of works
construction and construction estimate.
The other costs in the price of machine shift
is determined by the formula:
(6.6)
In which:
- CK: other costs in the price of machine cost
(dong/shift)
- GK: norm of other costs of machine (% year)
- G: prime cost of machine before tax (dong)
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The norm of other costs of machine is
determined on the basis:
- Aggregation of costs of machine management
based on the documents actually collected of the types of machine to be
calculated.
- Review to remove the improper expenditures
and addition of necessary expenditures but not implemented due to the
characteristics of the time of generated data in the documents;
- Allocation of costs for each machine and
type of machine.
- Conversion of value of these costs by the percentage
% compared with the depreciation price of machine.
- Allocation of cost of machine management to
the number of years of machine lifetime
- Norm of other costs of similar types of
machine is announced by the Ministry of Construction;
The norm of other costs of machine is
determined on the principle of consistence with each type of machine, size of
machine and conditions for operation and use of respective machine
corresponding to the specific condtions of works.
6. Determining the price of stand-by machine
shift
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The price of stand-by machine shift includes
the cost of depreciation (50% of cost of depreciation), cost of controlling
labor (50% of cost of controlling labor) and other costs of machine.
APPENDIX
7
METHOD
OF DETERMINING THE CONSTRUCTION PRICE INDEX
(Issued
with Circular No. 06/2016/TT-BXD dated 10/3/2016 of the Ministry of
Construction)
I. ORDER TO DETERMINE THE CONSTRUCTION PRICE
INDEX
The determination of the construction price
index is done by the following steps:
Step 1. Determining the time of calculation
1. The time of calculation is chosen
to calculate the construction price index for announcement of:
a) The original time which is determined by
the current announcement of the provinces and centrally-run cities and is
stable within 05 years.
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c) When the original time changes, the
announced years need to be re-calculated ( by year) compared with the new
original time (at least 01 year before the new original time).
2. In case of determining the construction
price index for the specific works, the investor must, based on the progress
and conditions for work implementation, choose the original time and the
comparison time accordingly.
Step 2. Making the list of works and
selecting the input cost factors
a) The selection of number and list of works
as per the type of works for announcement is based on the management
requirements, the regulations on management of project, management of cost of
works construction investment and regulation on classification and grade of
works.
b) When determining the construction price
index for type of works, the list of representative works for such type of
works. The number of representative works for the type of works determined
depends on the specific conditions of each locality but must not be less than
03 works.
c) Where the construction price index is
determined for a specific works, such works shall be the representative works.
d) The representative input cost factors are the
costs of type of materials, labor, constructional machine mainly for works or
type of works. The selection of of materials, labor, constructional machine
mainly for calculating the construction price index determned on the principle
of cost for such main materials, labor, constructional machine must occupy the
large proportion (over 80%) in the cost of respective materials, labor, constructional
machine of the works.
Step 3. Collecting and processing the
calculation data
a) Requirements for collecting data to
determine the cost structure:
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- The regulations and policies on management
of cost of works construction investment, use of materials, labor, constructional
machine and equipment and other relevant costs at the time of calculation.
b) Requirements for information on market
price of input factors:
- The price of
constructional materials is determined under the instructions at Point 2.1,
Section 2, Part I, Appendix No.04 of this Circular. The list of materials
included to calculate the construction price index must be uniform in type and
specification and origin.
- The price of construction labor is
determined under the instructions at Point 2.2, Section 2, Part I, Appendix
No.04 of this Circular.
- The price of constructional machine shift
is determined at Point 2.1, Section 2, Part I, Appendix No.04 of this Circular.
The list of constructional machine and equipment used to calculate the
construction price index must be uniform in type and specification and origin.
c) Processing of calculation data of
construction price index:
- For data used to determine the structure of
cost:
+ The processing of collected data includes the
review, verification and re-modification of data and cost estimate structure.
The data of cost estimate structure must be converted on the basis of estimate
specified at the original time.
+ The data of total investment, works
construction estimate, finalization of completed works investment capital (if
any) must be converted to the cost level at the original time.
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+ Price of types of input constructional
materials is verified for the consistent type, specification and label.
+ Price of types of input labor is verified for
the consistent worker grade of work implementation.
+ Price of machine price of types of input constructional
machine and equipment is verified for the consistent type, power and origin.
Step 4. Determining the construction price
index
4.1. Determining the construction price index
based on the cost factors
4.1.1. The price index of works constructional
material (KVL) is determined by the
total products of cost proportion of each type of main material multiplied by
the price index of type of such respective material. The price index of works
constructional material at the time of comparison is as follows:
(7.1)
In which:
- Pvlj: proportion of average
cost of jth type of main constructional material in the total cost
of types of main constructional material of the representative works;
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- m: number of types of main constructional
material
Proportion of average cost (Pvlj) of the jth
type of main constructional material in the total costs of main materials is
equal to the average of cost proportions of jth types of main
constructional material of the representative works.
The total of proportions in the cost of main
constructional material is equal to 01.
The cost proportion of each jth
type of main constructional material of each representative works is calculated
by the ratio between the cost of jth types of main constructional
material compared with the total costs of main materials in the direct cost of
such representative works and is determined as follows:
(7.2)
In which:
- 
: cost proportion of jth types of
main constructional material of ith representative works;
- 
: cost of jth types of main
constructional material of ith representative works;
The prescribed types of of main
constructional material include: cement, constructional sand, stone, wood,
brick, tile, steel, covering materials, electric materials, water materials,
asphalt and completion materials.
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Price index of type of constructional
material
(KVLj) is calculated by the
average price indexes of types of constructional material included in such
group of material.
The price index of each type of
constructional material in the group is determined by the ratio between the
average price transported to the construction site of such type of
constructional material at the time of comparison compared with the original
time.
4.1.2. Price index of works construction
labor (KNC) is determined by the
average price index of works construction labor of main worker grades of works
or type of works.
Depending on the specific features and nature
of each constructional works, the type of main worker grades can be selected
for calculating the price index of works construction labor accordingly.
Price of construction labor is determined on
the basis of labor unit price used in the management of cost of construction
investment announced by the competent state authority at the time of
calculation in line with the market labor price level.
The price index of construction labor of each
main type worker grade is determined by the ratio between the workday unit
price of constructional worker at the time compared with the original time.
4.1.3. Price index of works constructional
machine (KMTC) is determined by the
total products of cost proportion of each main type of constructional machine
multiplied with the price index of such main type of constructional machine,
particularly:
(7.3)
In which:
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- KMk: cost proportion of kth
main constructional machine
- f: number of main constructional machines.
The total cost proportion of main constructional
machine is equal to 01.
The cost proportion of each main constructional
machine of each representative works is calculated by the ratio between the
cost of such main constructional machine compared with the total cost of main constructional
machines in the direct cost of the representative works. The formula used to
determine is:
(7.4)
In which:
- 
: cost proportion of kth main constructional
machine of ith representative works
- 
: cost of kth main constructional
machine of ith representative works
The prescribed main constructional machines
are: management machne, transport machine, lifting machine, concret work
machine, metal processing machine, pile work machine, tunnel boring machine,
road making machine.
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The price index of main machine shift and the
constructional equipment is determined by the ratio between the price of
machine shift and the constructional equipment of such type of constructional
machine and equipment at the time of comparison compared with the original
time.
4.2. Determining the constructional price
indexes of based on the cost structure
4.2.1. The price index of constructional part
(IXD) is determined by the
product of the price index of the direct cost part multiplied by the
coefficient pertaining to the remaining cost items calculated over the cost
components of materials, labor and constructional machine included in the
constructional cost
IXD = ITT x H (7.5)
In which:
- ITT: price index of the
direct cost in the constructional cost of the representative works;
- H: coefficient of remaining cost items in the
constructional cost including the general cost, the pre-determined taxable cost
and the VAT calculated over the cost of materials, labor and constructional
machine in the constructional cost of the representative works.
The price index of the direct cost (ITT) is determined by the
total products of average proportion of cost of constructional materials and
constructional machine in the direct cost with the price indexes of the
respective constructional materials and constructional machine and is
determined by the formula:
ITT
= PVL x KVL
+ PNC x KNC
+ PMTC x KMTC (7.6)
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The total average proportions mentioned above
is equal to 01.
KVL, KNC, KMTC: price index of
constructional materials, labor and machine in the direct cost of the
representative works;
The method of determining the components of
formular (7.6) is as follows:
- The price index of constructional
materials, labor and machine (KVL, KNC, KMTC) is determined under
the instructions in Section 4.1 mentioned above.
- The average proportion of cost of
materials, labor and constructional machine in the direct cost (PVL,
PNC, PMTC) is determined as follows:
(7.7)
(7.8)
(7.9)
In which:
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- GVLi, GNCi, GMTCi: cost of materials,
labor and constructional machine in the direct cost of ith
representative works;
- GTti: total of cost of
materials, labor and constructional machine in the direct cost of ith
representative works;
Cost of materials, labor and constructional
machine is determined based on the volume of performed constructional work, the
norms, unit price of works construction, announcement of price of materials,
labor, machine shift and constructional machine.
Coefficient pertaining to the remaining cost
items (H) in the cost of construction is determined by the ratio of total
product of coefficients of items calculated over the materials, labor and
constructional machine multiplied by the respective cost proportion at the time
of comparison and the total product of such coefficients with their cost
proportion at the original time.
The coefficient H can be determined as
follows:
(7.10)
In which:
-
: coefficients of the remaining cost items
(general cost, predetermined taxable cost, VAT) in the cost of construction
calculated over the cost of materials, labor and constructional machine at the
time comparison;
- 
: coefficients of the remaining cost items
(general cost, predetermined taxable cost, VAT) in the cost of construction
calculated over the cost of materials, labor and constructional machine at the
original time;
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The proportion of cost of each type of
material, labor and constructional machine in the direct cost at the time of
comparison determined by the respective cost proportion at the original time
multiplied by the its price index and divided by the price index of the direct
cost.
(7.11)
(7.12)
(7.13)
The coefficients related to the remaining
cost items in the cost of construction, including: general cost, predetermined
taxable cost, VAT calculated over the cost of materials, labor and
constructional machine determined based on the instructions on making the
constructional cost estimate issued at the original time and the time of
comparison and the type of works.
4.2.2. Price index of works equipment (ITB) is determined by the
total of products of average proportion of cost of main equipment procurement,
cost of installation, testing and calibration of such main equipment (if any)
multiplied by the fluctuation coefficient of the respective costs mentioned
above of the selected representative works.
ITB
= PSTB x KSTB
+ PLĐ x KLĐ (7.14)
In which:
- PSTB, PLĐ: average proportion of
cost of main equipment procurement, cost of installation, testing, calibration
of such main equipment (if any) of the selected representative works.
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fluctuation coefficient of cost of main
equipment procurement is determined by the ratio between the average cost of
equipment procurement at the time of comparision with the original time.
The price of equipment is determined by the
method of survey and statistics of price data of the main equipment with large
quantity, high price and great fluctuation on the market, or can be determined
on the basis of reference to the price slippage of equipment or calculated by
the price slippage of equipment manufacture structure.
The main equipment is the one with the large
cost proportion in the cost of equipment procurement. Example for the civil construction
works: lift system, airconditioning system…. for the industrial construction
works: major manufacture technology line, etc.
The fluctuation coefficient of cost of
equipment installation, testing and calibration (if any) is determined as for
the price index of constructional part.
4.2.3. The price index of other cost (ICPK) is determined by the
total products of average proportion of main cost items in the other costs of
the representative works multiplied by the fluctuation coefficient of the respective
cost items and is determined by the following formula:
(7.15)
In which:
- PKMKs: average proportion of
sth main cost items in the total cost of main items of the other
costs of the representative works;
- KKMKs: cost fluctuation
coefficient of the sth main cost items of the other costs of the
representative works;
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The main cost items of the other costs of the
representative works are the cost items occupying a large proportion of the
other costs of the representative works, for example for the civil construction
works, the main cost items of the other costs such as the cost of
constructional survey, design, preparation for works construction project,
management of project,…
For the cost items occupying the proportion < 1,5% of the other total
costs of the representative works, no calculation is required.
For some other cost items calculated over the
cost of construction or cost of equipment, their fluctuation coefficients are
equal to the price coefficient of constructional part or the price index of
respective equipment.
For some other cost items calculated over the
total cost of construction and cost of equipment, their fluctuation coefficients
are equal to the average of price index of constructional part and the price
index of equipment.
4.3. Xác Determining the price
index of works construction
The price index of works construction is
determined by the total products of the average proportion of cost of
construction, equipment and other costs with the price indexes of part of
construction, equipment and the other respective costs of the representative
works.
The price index of works construction (I) is calculated by the
formula:
I = PXD
IXD + PTB ITB + PCPK ICPK (7.16)
In which:
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- IXD, ITB, ICPK: price index of part
of construction, equipment and the other costs of the representative works.
The method of determining the components of
formula (7.16) is as follows:
- The price index of part of construction,
equipment and the other costs (IXD, ITB, ICPK) is determined under
the instructions at Point 4.2 of this Appendix.
- The average proportion of the cost of
construction, equipment and the other costs (PXD, PTB, PCPK) is determined as
follows:
The average proportion of the cost of
construction (PXD), cost of equipment (PTB), and the other costs (PCPK) is determined by the
arithmetic average of proportions of respective cost of construction, of
equipment and of other costs of the representative works of the type of works.
The proportion of the cost of construction,
cost of equipment and other costs of each representative works is equal to the
ratio between the cost of construction, equipment and other costs of such
representative works compared with these total costs of the works. The formula
for determination is:
(7.17)
(7.18)
(7.19)
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- PXDi, PTBi, PCPKi: proportion of cost of
construction, equipment and other costs compared with these total costs of ith
representative works;
- GXDi, GTBi, GCPKi: cost of construction,
equipment and other costs compared with these total costs of ith
representative works;
- GXDCTi:
total costs of construction, equipment and
other costs of ith representative works;
The data of cost of construction, equipment
and other costs of the selected representative works are determined from the
collected statistical data.
II. FORMS ANNOUNCING THE CONSTRUCTION PRICE
INDEX OF LOCALITIES (PROVINCES AND CITIES)
TABLE 7.1. WORKS
CONSTRUCTION PRICE INDEX
Unit: %
No.
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Price index of
month (quarter, year) compared with
Original year 20....
Previous month
(quarter, year)
1
Civil works
1.1
Residential house
...
...
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1.2
Public works
...
…
...
...
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Công trình công nghiệp Industrial works
2.1
Energy works
2.2
Constructional material production works
...
...
...
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…
….
3
Technical infrastructure works
...
...
...
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Water supply works
3.2
Water drainage works
…
….
...
...
...
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4
Traffic works
4.1
Roadway works
...
...
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Bridge works
....
...
5
Agricultural and rural development works
...
...
...
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5.1
Irrigational works
5.2
….
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Unit : %
No.
Type of works
Price index of
month (quarter, year) compared with
Original year 20....
Previous month
(quarter, year)
1
Civil works
...
...
...
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1.1
Residential house
1.2
Public works
...
...
...
...
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2
Industrial works
2.1
Energy works
...
...
...
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2.2
Constructional material production works
…
….
3
...
...
...
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3.1
Water supply works
3.2
Water drainage works
...
...
...
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…
….
4
Traffic works
4.1
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4.2
Bridge works
....
...
...
...
...
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5
Agricultural and rural development works
5.1
Irrigational works
5.2
...
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...
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Table 7.3. PRICE
INDEX OF MATERIALS, LABOR AND CONSTRUCTIONAL MACHINE
Unit: %
No.
Type of works
Price index of
month (quarter, year) compared with
Original year 20....
Previous month
(quarter, year)
...
...
...
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Labor
Constructional
machine
Materials
Labor
Constructional
machine
1
Civil works
...
...
...
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1.1
Residential house
...
...
...
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1.2
Public works
...
...
...
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....
2
Industrial works
...
...
...
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2.1
Energy works
...
...
...
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2.2
Constructional material production works
...
...
...
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...
...
...
...
...
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Technical infrastructure works
3.1
Water supply works
...
...
...
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3.2
Water drainage works
...
...
...
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...
…
...
...
...
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4
Traffic works
...
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...
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Roadway works
4.2
Bridge works
...
...
...
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…
…
...
...
...
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5
Agricultural and rural development works
...
...
...
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5.1
Irrigational works
...
...
...
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….
Table 7.4. PRICE
INDEX OF CONSTRUCTIONAL MATERIALS
Unit: %
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Type of works
Price index of
month (quarter, year) compared with
Original year 20....
Previous month
(quarter, year)
1
Cement
2
...
...
...
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3
Constructional stone
4
Constructional brick
...
...
...
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5
Constructional wood
6
Constructional steel
7
...
...
...
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8
Tile
9
Roofing and covering materials
...
...
...
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10
Constructional glass
11
Paint and painting materials
12
...
...
...
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13
Materials, water pipeline
...
….
...
...
...
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APPENDIX
8
REPORTING
FORM OF RESULT OF APPRAISAL/VERIFICATION/CONSULTATION TO DETERMINE THE
CONSTRUCTIONAL PRICE INDEX
(Issued
with Circular No. 06/2016/TT-BXD dated 10/3/2016 of the Ministry of
Construction)
I. REPORT ON RESULT OF APPRAISAL/VERIFICATION OF
TOTAL CONSTRUCTION INVESTMENT
The report of result of
appraisal/verification of total construction investment is aggregated as in the
form No.8.1 below:
Form 8.1. Report of
result of appraisal/verification of total construction investment
APPRAISING/VERIFYING
UNIT
-------
SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom – Happiness
---------------
(Docvolument No.)
Subject: appraisal/verification
of total construction investment……
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REPORT ON RESULT OF
APPRAISAL/VERIFICATION OF TOTAL CONSTRUCTION INVESTMENT
Project: ……………………………………………..
Location: …………………………………………………………………………………
To: ……………………………………………..
Performing the duties of
constructional professional agency decentralized or professional agency of the
investment-deciding person (for appraising unit) or at the request of
(investment-deciding person/investor) (for verifying and consulting unit) on
the appraisal/verification of total construction investment (name of project).
After studying the dossier, (name of appraising/verifying agency or unit) has
the opinions as follows:
1. Overiew of project
- Name of project, works,
construction location, scale,….of works;
- Investor, consulting units
of survey, project preparation,…;
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2. Legal grounds and documents
used in appraisal/verification
- Construction Law;
- Decree on management of construction
investment project;
- Decree on management of construction investment
costs;
- Circular guiding the determination and
management of construction investment costs;
- Other documents of the state, ministries,
sectors, localities…;
- Dossiers and documents of the investment
project, including….
3. Remark about quality of dossier of total
construction investment
- Remark about the method of preparation for
total construction investment selected for calculation;
...
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- Conclusion on eligibility or
ineligibility for appraisal/verification.
4. Principles for appraisal/verification
- The consistence of the method for
determining the total construction investment with the characteristics, nature,
technical and technological requirements of the project;
- Verifying the completeness of volumes used
to determined the total construction investment; the rationality and
consistency with regulations and instructions of the state for the costs used
to calculated and determine the costs in the total construction investment.
- Determining the total construction
investment after the appraisal/verification. The analysis of cause of increase
and reduction and assessment of investment efficiency assurance of the project
based on the value of the
total construction investment which is determined after the appraisal/verification.
5. Result of appraisal/verification
Based on the grounds and principles mentioned
above, the value of total construction investment (name of project) after the
the appraisal/verification
is as follows:
Unit:...
No.
...
...
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Value for appraisal/ verification
Value of appraisal/ verification
Increase/ reduction
1
Cost of compensation, assistance and relocation
2
...
...
...
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3
Cost of equipment
4
...
...
...
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5
Cost of construction investment
consultation
6
...
...
...
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7
Contingency cost
...
...
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(with attached
detailed Appendix)
6. Causes of increase/reduction and
assessment of investment efficiency assurance of the project:
6.1 Raising and analyzing the causes of
increase and reduction for the main contents of cost increase and reduction.
6.2 Evaluating the investment efficiency
assurance of the project as per the indicators based on the value of total
construction investment appraised or verified.
7. Conclusion and recommendation
...
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- (signature, full
name)
- (signature, full
name)
- (signature, full name)
- …
PERSON-IN-CHARGE
(signature,
full name)
Certificate
of practice of construction valuation grade…., No….
Sent to
-
-
...
...
...
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-
HEAD OF
APPRAISING/VERIFYING UNIT
(signature,
seal)
II. REPORT ON RESULT OF
APPRAISAL/VERIFICATION OF WORKS CONSTRUCTION ESTIMATE
The report on result of
appraisal/verification of works construction estimate is aggregated as for the
form 8.2 below:
Form 8.2. Report
on result of appraisal/verification of works construction estimate
APPRAISING/VERIFYING
UNIT
-------
SOCIALIST REPUBLIC
OF VIETNAM
Independence – Freedom – Happinese
---------------
(Docvolument No.)
V/v:
Subject:
Appraisal/verification of works estimate……
………………………………
...
...
...
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REPORT ON RESULT OF
APPRAISAL/VERIFICATION OF WORKS CONSTRUCTION ESTIMATE
Works: ……………………………………………………………………………………….
Location:
……………………………………………………………………………………..
To: …………………………………….
Performing the duties of
constructional professional agency decentralized or professional agency of the
investment-deciding person (for appraising unit) or at the request of the investor
or under contract (contract number) (for the appraising/verifying unit) on the
appraisal/verification of works construction estimate (name of works). After
studying the dossier, (name of appraising/verifying agency or unit) has the
opinions as follows:
1. Grounds for appraisal/verification
- Decree on management of construction
investment project;
- Decree on management of construction
investment costs;
...
...
...
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- Other documents of the state, ministries,
sectors, localities…;
- Dossiers and documents of the investment
project, including….
2. General introduction about the works
- Name of works;
- Investor;
- Consultation units preparing the design and
works estimate;
3. Remark about the quality of dossier of
works construction estimate
- Remark about the selected method of
estimate preparation;
- Remark about the grounds to determined the
cost items in the works construction estimate;
...
...
...
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4. Principles for appraisal/verification
- Verifying the consistent volume of
construction, type and amount of equipment in the estimate compared with the
amount, type and the number of equipment in the estimate compared with the
amount, type and the number of equipment calculated from the design of
construction and technology;
- Verifying the properness and rationality of
the application of norm of estimate, constructional price of works and other
relevant regulations in determining the cost items of the works construction
estimate;
- Determining the value of works construction
estimate after the appraisal/verification and recommendation of value of
construction estimate for the competent level to review and approve. Evaluating
the level of increase or reduction of cost items, analyzing the cause of
increase or reduction compared with the value of works construction estimate
which requires the appraisal/verification.
5. Result of appraisal/verification
Based on the grounds and principles mentioned
above, the value of works construction estimate after the
appraisal/verification is as follows:
Unit:...
No.
Contents of cost
...
...
...
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Value of appraisal/ verification
Increase/ reduction
1
Cost of construction
2
Cost of equipment
...
...
...
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3
Cost of project management
4
Cost of construction investment
consultation
...
...
...
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5
Other costs
6
Contingency cost
...
...
...
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Total
(with attached
detailed Appendix)
6. Causes of
increase/reduction
...
...
...
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7. Conclusion and recommendation
APPRAISER/VERIFIER
- (signature, full
name)
- (signature, full
name)
- (signature, full
name)
- …
PERSON-IN-CHARGE
(signature,
full name)
Certificate
of practice of construction valuation grade…., No….
...
...
...
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-
-
-
-
HEAD OF
APPRAISING/VERIFYING UNIT
(signature,
seal)
III. REPORT ON VERIFICATION OF CONSTRUCTION PACKAGE
ESTIMATE
The report on verification of construction package
estimate is aggregated as for the form 8.3 below:
Form 8.3. Report
on verification of works construction package estimate
...
...
...
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SOCIALIST REPUBLIC
OF VIETNAM
Independence – Freedom – Happinese
---------------
(Document number)
Subject: Verification of construction package estimate
………………………………
..., date ... month ... year ....
REPORT ON RESULT OF
VERIFICATION OF CONSTRUCTION
PACKAGE ESTIMATE
Package: …………………………………………………………………………..
Works: ………………………………………………………………………
Location:
……………………………………………………………………………
To: ……………………………………..
...
...
...
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1. Grounds for verification
- Decree on management of construction
investment project;
- Decree on management of construction
investment costs;
- Circular guiding the determination and
management of construction investment costs;
- Other documents of the state, ministries,
sectors, localities…;
- Dossiers and documents pertaining to the
package, including….
- Name of package
- Name of works;
- Investor;
...
...
...
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3. Remark about the quality of dossier of
construction package estimate
- Remark about the selected method of
determining the selected construction package estimate;
- Remark about the grounds to determined the
cost items in the construction package estimate;
- Conclusion on eligibility or
ineligibility for verification.
4. Principles for verification
- Based on the contents of structure and
verification of method for determining the cost items of the type of
construction package in part II, Appendix 02 of this Circular.
- About the value of construction package
estimate
5. Result of verification
Based on the grounds and principles mentioned
above, the value of construction package estimate after the verification is as
follows:
...
...
...
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No.
Contents of cost
(Based
on the structure of cost items of type of construction package)
Value of request
Value of appraisal
Increase, reduction
1
………
...
...
...
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2
………
3
………
...
...
...
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…..
Total
...
...
...
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(with attached
detailed appendix)
6. Causes of increase and reduction:
Raising and analyzing the causes of increase
and reduction for the main contents of cost increase and reduction.
7. Conclusion and recommendation
VERIFIER
...
...
...
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- (signature, full
name)
- (signature, full
name)
- (signature, full
name)
- …
PERSON-IN-CHARGE
(signature,
full name)
Certificate
of practice of construction valuation grade…., No….
Sent to
-
...
...
...
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-
-
HEAD OF VERIFYING
UNIT
(signature,
seal)
IV. REPORT ON RESULT OF CONSULTATION TO
DETERMINE THE PRICE INDEX OF WORKS CONSTRUCTION
The report on the result of consultation to
determine the price index of works construction is aggregated as for the form
8.4 below:
Form 8.4. Report on
the result of consultation to determine the price index of works construction
CONSULTATION UNIT
-------
SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
---------------
...
...
...
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..., date ... month... year....
REPORT ON RESULT OF
CONSULTATION TO DETERMINE THE PRICE INDEX OF WORKS CONSTRUCTION
Works: ……………………………………………………
Location:
……………………………………………………………………….
To:
…………………………………………………………….
Implementing the contract (contract number)
on consultation to calculate the price index of works/package (name of works).
After studying the dossier (name of consultation unit) has the following
opinions:
1. Grounds for determining the price index of
works/package
- Decree on management of construction
investment project;
...
...
...
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- Circular guiding the determination and
management of construction investment costs;
- Other documents of the state, ministries,
sectors, localities, dossier pertaining to the works/package….
2. Principles and scope of determination of
price index of construction
- The original time to determine the price
index of construction
- The time of comparison to calculate the
price index of construction.
- About the grounds for determining the price
index of constructional materials, labor and machine (method of determination,
principles to select the input factor,…).
- The price index is applied to the works
(name of works/package).
3. Result of determination of price index of
construction
Based on the grounds and principles mentioned
above, the result of determination of price index of works (name of works) is
as follows:
...
...
...
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Unit: %
No.
Price index of
construction
Month.../year....
Month.../year....
Month.../year....
1
Materials
...
...
...
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Cement
Sand
...
...
...
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....
2
Machine
...
...
...
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3
Labor
4. Conclusion and
recommendation
MAKER
...
...
...
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- (signature, full
name)
- (signature, full
name)
- (signature, full
name)
- …
PERSON-IN-CHARGE
(signature,
full name)
Certificate
of practice of construction valuation grade…., No….
Sent to
-
-
...
...
...
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