Circular No. 01/2017/TT-BXD dated February 06, 2017 of the Ministry of Construction on guiding the determination and management of construction survey costs

CIRCULAR

Guiding the determination and management of construction survey costs[1]

Pursuant to Construction Law No. 50/2014/QH13 of June 18, 2014;

Pursuant to the Government’s Decree No. 62/2013/ND-CP of June 25, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Construction;

Pursuant to the Government’s Decree No. 32/2015/ND-CP of March 25, 2015, on management of construction investment costs;

Pursuant to the Government’s Decree No. 46/2015/ND-CP of May 12, 2015, on quality management and maintenance of construction works;

At the proposal of the Director of the Construction Economics Department and the Director of the Construction Economics Institute;

The Minister of Construction promulgates the Circular guiding the determination and management of construction survey costs.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Circular guides the determination and management of construction survey costs to serve the formulation of construction investment projects, work construction designs, surveys serving the construction planning, and other surveys involved in construction investment activities.

Article 2.Subjects of application

1. Agencies, organizations and individuals involved in the determination and management of construction survey costs of projects using state budget funds and non-budget state funds as specified in Clause 1, Article 2 of the Government’s Decree No. 32/2015/ND-CP of March 25, 2015, on the management of construction investment costs (below referred to as Decree No. 32/2015/ND-CP), and construction investment projects in the form of public-private partnership (PPP) contracts.

2. Agencies, organizations and individuals involved in the determination and management of construction survey costs of projects using other funding sources are encouraged to apply the provisions of this Circular.

Article 3.Principles of determination and management of construction survey costs

1. Construction survey costs shall be determined in accordance with construction survey tasks prescribed in Clause 1, Article 74 of Construction Law No. 50/2014/QH13 and Article 12 of the Government’s Decree No. 46/2015/ND-CP of May 12, 2015, on quality management and maintenance of construction works.

2. Construction survey costs shall be correctly and fully calculated for each project or work and in conformity with stages of the construction investment process, designing steps, types of construction surveys, grades of works, and relevant regulations.

3. Management of construction survey costs covers management of construction survey cost estimates, management of construction survey estimate norms and management of construction survey prices.

4. Project owners shall assume the prime responsibility for ensuring quality of construction surveys and managing construction survey costs.

Chapter II

CONTENTS, AND METHODS OF DETERMINING, CONSTRUCTION SURVEY COSTS

Article 4.Contents of construction survey costs

1. Construction survey costs shall be determined based on construction survey cost estimates.

2. Construction survey cost estimates include direct costs, general costs, precalculated taxable income, other costs for the survey work, value-added tax and contingency costs. Cost items are specified as follows:

a/ Direct costs include material and fuel costs, labor cost and survey machinery and equipment cost;

b/ General costs include management expenses of enterprises carrying out construction surveys, expenses for on-site production administration, expenses for worker services, expenses for on-site construction survey, and a number of related expenses;

c/ Precalculated taxable income means a construction survey enterprise’s profit estimated in construction survey cost estimates;

d/ Other costs for the survey work include costs of formulation of construction survey technical plans based on approved construction survey tasks, making of construction survey result reports, and costs of general items;

dd/ Value-added tax means a payable tax amount under regulations;

e/ Contingency costs for additional work volume and inflation in the course of construction survey.

Article 5.Methods of making construction survey cost estimates

1. Based on specific technical requirements and conditions for carrying out construction surveys of each work or project, construction survey cost estimates shall be made by either of the following methods:

a/ Estimation based on construction survey volume and unit price;

b/ Estimation based on volume of used materials and fuel; labor; and survey machinery and equipment and table of their costs.

2. Methods of making construction survey cost estimates are guided in the Appendix to this Circular (not translated).

Article 6.Determination of a number of construction survey-related costs

1. The cost of formulation of construction survey tasks must equal 3% of the estimated construction survey cost.

2. The cost of survey supervision shall be determined with the limits in percentage (%) promulgated by the Ministry of Construction.

Chapter III

MANAGEMENT OF CONSTRUCTION SURVEY COSTS

Article 7.Appraisal and approval of construction survey cost estimates

Project owners and heads of agencies assigned to prepare projects shall organize the appraisal and approval of construction survey cost estimates in conformity with construction survey tasks.

Article 8.Adjustment of construction survey cost estimates

1. Approved construction survey cost estimates shall be adjusted in case construction survey tasks are adjusted or added.

2. Project owners shall formulate, appraise and approve adjusted construction survey cost estimates.

Article 9.Management of limits of construction survey cost estimates

1. The Ministry of Construction shall announce limits of construction survey cost estimates as prescribed in Clause 1, Article 34 of Decree No. 32/2015/ND-CP so that related agencies, organizations and individuals can apply and use them in the determination and management of construction survey costs.

2. Limits of construction survey cost estimates shall be managed under Article 19 of Decree No. 32/2015/ND-CP.

Article 10.Management of construction survey prices

1. People’s Committees of provinces and centrally run cities (below referred to as provincial-level People’s Committees) shall assign provincial-level Construction Departments to assume the prime responsibility for, and coordinate with related agencies in, determining prices of construction survey materials, construction survey workers, survey machine and equipment shift and construction survey unit prices to serve as a basis for announcing construction survey prices for use in the formulation and management of construction survey costs.

2. Based on the method of making construction survey prices, guidance of provincial-level People’s Committees, and works’ specific technical requirements, construction conditions and methods, project owners shall organize the making of construction survey estimates.

3. Project owners may hire organizations and individuals that fully satisfy the capacity conditions to make and verify construction survey tasks, unit prices and estimates. Verification costs shall be determined by estimation.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 11.Transitional provisions

1. For construction survey cost estimates approved prior to the effective date of this Circular and before the signing of construction survey contracts, project owners shall consider and decide to apply this Circular in adjusting such construction survey cost estimates.

2. For construction survey activities for which survey contracts have been signed, contents of such contracts shall be implemented.

Article 12.Effect

1. This Circular takes effect on April 1, 2017. The Ministry of Construction’s Circular No. 17/2013/TT-BXD of October 30, 2013, guiding the determination and management of construction survey costs, ceases to be effective on the date this Circular takes effect.

2. Any problems arising in the course of implementation should be reported to the Ministry of Construction for consideration and settlement.-

For the Minister of Construction
Deputy Minister
BUI PHAM KHANH