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THE
MINISTRY OF CONSTRUCTION
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No.
05/2009/TT-BXD
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Hanoi,
April 15, 2009
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CIRCULAR
GUIDING THE ADJUSTMENT OF WORK CONSTRUCTION COST ESTIMATES
Pursuant to the Government's
Decree No. 17/2008/ND-CP of February 4, 2008, defining the functions, tasks,
powers and organizational structure of the Ministry of Construction;
Pursuant to the Government's Decree No. 12/2009/ND-CP of February 12, 2009, on
management of investment projects on the construction of works
Pursuant to the Government's Decree No. 99/2007/ND-CP of June 13, 2007, on
management of work construction investment expenses (below referred to as
Decree No. 99/200/VND-CP); and the Government's Decree No. 03/2008/ND-CP of
January 7, 2008, amending and supplementing a number of articles of Decree No.
99/2007/ND-CP of June 13, 2007, on management of work construction investment
expenses;
Pursuant to the Government's Decree No. 110/2008/ND-CP of October 10, 2008,
prescribing the region-based minimum wage level applicable to laborers working
in Vietnamese companies, enterprises, cooperatives, cooperative groups, farms,
households, individuals and other-employers (below referred to as Decree No. 110/2008/ND-CP);
Pursuant to the Construction Ministry's Circular No. 03/2008/TT-BXD of January
25,2008, guiding the adjustment of work construction cost estimates (below
referred to as Circular No. 03/ 2008/TT-BXD);
Pursuant to the Labor, War Invalids and Social Affairs Ministry's Circular No.
23/2008/TT-BLDTBXH of October 20, 2008, promulgating the Guidance on
implementation of the region-based minimum wage level applicable to state
companies and one-member limited liability companies in which the State owns 100%
of charter capital;
The Ministry of Construction
guides the adjustment of work construction cost estimates as follows:
I. GENERAL
PROVISIONS
1. This Circular guides the
adjustment of cost estimates from January 1, 2009, using the minimum wage level
applicable based on regions (where works are constructed) under Decree No.
110/2008/ ND-CP, for the remaining volumes of works or bidding packages (below
referred to as work construction cost estimates) under uncompleted state-funded
investment projects on the construction of works for which investment deciders
have not yet decided to change the management of work construction investment
expenditures under Decree No. 99/2007/ND-CP.
It is encouraged to apply this
Circular's provisions on the adjustment of work construction cost estimates to
work construction investment projects funded with capital of other sources.
2. To adjust work construction
cost estimates formulated using construction, installation and construction
survey unit prices set by provinces or centrally run cities on the basis of
wage scales in wage table A. 1.8 enclosed with the Government's Decree No.
205/2004/ND-CP of December 14, 2004, prescribing the system of wage scales and
wage tables and allowances applicable to state companies (below referred to as
Decree No. 205/ 2004/ND-CP), and the minimum wage level of VND 450,000/month,
as prescribed in the Appendix to this Circular.
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4. Adjustment of contractual
prices or amounts paid for work volumes performed from January 1, 2009, under
signed contracts and contractual terms: If the involved parties have agreed in
a contract not to adjust prices during the implementation process, the investor
and construction contractor may negotiate and supplement the contract in order
to ensure laborers' interests under regulations.
II. SPECIFIC
PROVISIONS
1. Work construction cost
estimates formulated using construction unit prices set by provinces or
centrally run cities on the basis of the minimum wage level of VND
450,000/month under the Government's Decree No. 94/2006/ND-CP of September 7,
2006, adjusting the common minimum wage level, and wage scales in wage table A.
1.8 enclosed with Decree No. 205/2004/ND-CP. will be adjusted as follows:
1.1. Adjustment of construction
cost estimates
1.1.1. Adjustment of labor
expense
Labor expense in construction
cost estimates formulated using local construction unit prices shall be
multiplied by an adjustment coefficient (KDCNC) in compliance with the
region-based minimum wage level.
The adjustment coefficient (KDCNC)
is equal to the new region-based minimum wage level divided by the minimum wage
level already included in the unit price.
1.1.2. Adjustment of
construction machine expense
Construction machine expense in
construction cost estimates formulated using local construction unit prices
shall be multiplied by an adjustment coefficient (KDCMTC) in
compliance with the region-based minimum wage level and fuel and energy prices
applicable in January 2009.
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According to the above
principle, the coefficient for adjusting construction machine expense (KDCMTC)
in construction cost estimates made by provinces and centrally run cities is
guided in the Appendix to this Circular. For provinces or cities with a
peculiar construction structure, their People's Committees shall decide on the
adjustment coefficient of construction machine expense.
For works constructed in lines
running through several provinces or centrally run cities for which separate
machine-shift price tables have been formulated, investors shall calculate and
report adjustment coefficients to investment deciders for decision. For works
under investment projects on the construction of works in which investment is
decided by the Prime Minister, ministers, heads of ministerial-level agencies,
heads of government-attached agencies, presidents of provincial-level People's
Committees, chairmen of economic groups or chairmen of boards of directors of
state corporations shall decide on adjustment coefficients.
1.1.3. Expenses calculated in
proportion (%) to construction cost estimates
Expenses calculated in
proportion (%) to construction cost estimates, including other direct expense,
common expense, pre-calculated taxable income, value-added tax, expense for the
construction of makeshift houses at construction sites for accommodation and
construction administration, must comply with regulations.
1.2. Adjustment of construction
survey cost estimates
Labor expense in construction
survey cost estimates (KDCNCKS) shall be adjusted using the
coefficients specified in the Appendix to this Circular.
In case work construction cost
estimates formulated under Point 1 of this Section have been adjusted under the
guidance of Circular No. 03/ 2008/TT-BXD: When adjusting the cost estimate
using the new region-based minimum wage level, labor expense and construction
machine expense in construction cost estimates and labor expense in
construction survey cost estimates shall be further multiplied by the
corresponding adjustment coefficient which equals the adjustment coefficient
using the new region-based minimum wage level specified in the Appendix to this
Circular divided by the used adjustment coefficient under Circular No.
03/2008/TT-BXD.
3. Some other expenses in work
construction cost estimates
Expenses for management of
investment projects on the construction of works, work construction designing,
construction supervision and installation of equipment of works specified at
Point 1 of Section I above are calculated in a percentage (%) under
regulations.
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1. Investors shall adjust, and
approve results of adjustment of, work construction cost estimates for
remaining volumes performed from January 1. 2009. of construction works under
investment projects on the construction of works as specified at Point 1,
Section I of this Circular. If approved work construction cost estimates result
in an excess of the total investment, investors shall report such to investment
deciders for consideration and decision. Ministers, heads of ministerial-level
agencies, heads of government-attached agencies, presidents of provincial-level
People's Committees, chairmen of economic groups or chairmen of boards of
directors of state corporations shall decide on the adjustment of cost
estimates for construction works under investment projects on the construction
of works in which investment is decided by the Prime Minister.
2. For construction works for
which separate unit prices have been formulated (work construction unit
prices), investors shall, based on regimes and policies applicable to works as
permitted by the State and principles of adjusting work construction cost
estimates guided in this Circular, determine levels of adjustment of labor
expense, construction machine expense and other expenses (if any) in work
construction cost estimates.
3. Investors shall decide on the
adjustment of construction cost estimates for works under investment projects
on the construction of works under Decree No. 99/2007/ND-CP.
This Circular takes effect 45
days from the date of its signing.
FOR
THE MINISTER OF CONSTRUCTION
VICE MINISTER
Cao Lai Quang
APPENDIX
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To adjust cost estimates of
remaining volumes performed from January 1, 2009, of construction works under
uncompleted investment projects as specified at Point 1, Section I of this
Circular.
1. Adjustment of construction
cost estimates
1.1. Adjustment of labor expense
or construction machine expense
Labor expense or construction
machine expense in construction cost estimates shall be multiplied by the
adjustment coefficient (KDCNC) or (KI)CMTC) specified in
Table 1 in this Appendix.
1.2. Expenses calculated in
proportion (%) to construction cost estimates.
Other direct expense, common
expense, pre-calculated taxable income, value-added tax and expense for the
construction of makeshift houses at construction sites for accommodation and
construction administration shall be calculated in percentage (%) under
regulations.
2. Adjustment of construction
survey cost estimates
Labor expense in construction
survey cost estimates shall be multiplied by the adjustment coefficient (KDCNCKS)
specified in Table 2 in this Appendix.
3. Adjustment of cost estimates
for testing construction materials and structure
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4. Other expenses calculated in
proportion (%) to work construction cost estimates shall be determined
according to the State's current regulations.
Table
1. Adjustment coefficients for construction cost estimates
Region-based
minimum
Wage
level
Adjustment
coefficient
Region
I
Region
II
Region
III
Region
IV
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VND
800,000/month
VND
740,000/month
VND
690,000/month
VND
650,000/month
For labor expense (KDCNC)
1.78
1.64
1.53
1.44
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1.2
1.18
1.16
1.14
Table
2. Adjustment coefficients for construction survey cost estimates
Region-based
minimum
Wage
level
Adjustment
coefficient
Region
I
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Region
III
Region
IV
VND
800,000/month
VND
740,000/month
VND
690,000/month
VND
650,000/month
For labor expense (KDCNCKS)
1.78
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1.53
1.44
Table
3. Adjustment coefficients for cost estimates for testing construction
materials and structure
Region-based
minimum
Wage
level
Adjustment
coefficient
Region
I
Region
II
Region
III
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VND
800,000/month
VND
740,000/month
VND
690,000/month
VND
650,000/month
For labor expense (KDCNCTN)
4.2
3.88
3.62
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LIST OF GEOGRAPHICAL AREAS IN WHICH
REGION-BASED MINIMUM WAGE LEVEL IS APPLICABLE
Regions
Geographical
areas
I
- Urban districts of Hanoi;
- Urban districts of Ho Chi
Minh City.
II
- Gia Lam, Dong Anh, Soc Son,
Thanh Tri, Tu Liem, Thuong Tin, Hoai Due, Dan Phuong, Thach That and Quoc Oai
districts, and Son Tay town, of Hanoi;
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- Urban districts and Thuy
Nguyen and An Duong districts of Hai Phong city;
- Urban and rural districts of
Da Nang city;
- Ninh Kieu and Binh Thuy
districts of Can Tho city;
- Ha Long city of Quang Ninh
city;
- Bien Hoa city, Long Khanh
town, and Nhon Trach, Long Thanh, Vinh Cuu and Trang Bom districts, of Dong
Nai province;
- Thu Dau Mot town and Thuan
An, Di An, Ben Cat and Tan Uyen districts, of Binh Duong province;
- Vung Tau city and Tan Thanh
district of Ba Ria-Vung Tau province.
III
- Provincial cities (except
those of Region II);
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- Bac Ninh city, Tu Son town
and Que Vo, Tien Du and Yen Phong districts, of Bac Ninh province;
- Bac Giang city and Viet Yen
and Yen Dung districts, of Bac Giang province;
- Hung Yen city and My Hao, Van
Lam, Van Giang and Yen My districts, of Hung Yen province;
- Hai Duong city and Cam
Giang, Nam Sach, Chi Linh, Kim Thanh and Kinh Mon districts, of Hai Duong
province;
- Vinh Yen city and Phuc Yen
town of Vinh Phuc province;
- Remaining rural districts of
Hai Phong city;
- Mong Cai city and Uong Bi
and Cam Pha towns of Quang Ninh province;
- Da Lat city and Bao Loc town
of Lam Dong province;
- Nha Trang city and Cam Ranh
town of Khanh Hoa province;
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- Remaining rural districts of
Binh Duong province;
- Remaining rural districts of
Dong Nai province;
- Tan An town, and Due Hoa,
Ben Luc and Can Duoc districts, of Long An province;
- Remaining urban and rural
districts of Can Tho city;
- Ba Ria town, and Chau Due,
Long Dien, Dat Do and Xuyen Moc districts, of Ba Ria-Vung Tau province.
IV
- Remaining geographical
areas.