Circular No. 03/2017/TT-BXD dated March 16, 2017 of the Ministry of Construction guiding the determination of costs of maintenance of construction works

THE MINISTRY OF CONSTRUCTION

Circular No. 03/2017/TT-BXD dated March 16, 2017 of the Ministry of Construction guiding the determination of costs of maintenance of construction works

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

Pursuant to the Government’s Decree No.46/2015/ND-CP on construction quality control and maintenance (hereinafter referred to as “Decree No.46/2015/ND-CP);

Upon request of the Director of the Institute of Construction Economics;

The Ministry of Construction hereby issues this Circular providing guideline for determination of costs of maintenance of construction works.

Article 1. Scope of adjustment

This Circular provides the guideline for determination of costs of construction maintenance as prescribed in Article 37 of the Decree No.46/2015/ND-CP.

Article 2. Subjects of applications

1.This Circular applies to owners or manager, users of construction works and relevant entities engaging in determination of costs of maintenance of construction works funded by the State budget and extra-budgetary funds.

2.This Circular should apply to determine costs of maintenance of construction works funded by other sources of finance.

Article 3. Principles for determination of maintenance costs

1.The maintenance costs shall be determined in the maintenance cost estimate.

2.The maintenance cost estimate shall include necessary costs estimated based on tasks according to the approved maintenance process. A maintenance cost estimate may include, a part or whole, expenses incurring from construction maintenance according to the approved maintenance process.

3.The maintenance cost estimate is made in accordance with the approved maintenance process or maintenance technical standards.

4.According to the construction maintenance plan prepared based on the approved maintenance construction and the current condition of the construction works:

a) A maintenance cost estimate shall be annually or periodically (in case of repair) prepared.

b) Where it is necessary to carry out occasional maintenance, which is beyond the maintenance plan, the maintenance cost shall be added to the maintenance plan.

5.The maintenance cost shall be appropriately determined based on cost elements, current condition of the construction works and the current market price at the time of cost determination.

Article 4. Maintenance cost elements

1.Costs of preparation and assessment of construction maintenance processes (if any);

2.Costs of annual maintenance, including:

a) Costs of preparation of the construction maintenance plan (including costs of preparation of maintenance cost estimate, assessment fees and other incurring costs);

b) Costs of regular and periodic construction inspection;

c) Maintenance costs according to the annual maintenance plan;

d) Costs of preparation and management of construction maintenance records.

3.Costs of periodic and occasional repair;

4.Costs of quality control for the purpose of maintenance (if any);

5.Monitoring costs for the purpose of occasional maintenance and inspection upon request (if any);

6.Costs of assessment of bearing capacity and safety for operation;

7.Other necessary costs.

Article 5. Determination of maintenance costs

1.The maintenance cost shall be determined by one of the following methods:

a) Rate of the maintenance cost by percentage (%);

b) Quantity and unit prices, including: the quantity of work according to the maintenance plan and unit price; the number of specialists by each tasks, scope of work and progress of works, qualifications of each specialist, and salaries and incurring expenses; or

c) Combined methods.

2.Maintenance cost elements prescribed in Article 4 hereof shall be determined as follows:

a) The cost of preparation and assessment of construction maintenance process shall be calculated based on technical design expenses (for construction works requires 3-stage design) or construction design expenses (for any construction works requires 1-stage design and 2-stage design). Costs of assessment of the construction maintenance process shall be included in the costs of design assessment. If a construction works is in progress or in operation without any construction maintenance process, the owner or manager of such construction works shall take charge of preparing the construction maintenance process. Expenses for completing such tasks shall be estimated based on the quantity of work and unit price as prescribed in point b clause 1 of this Article.

b) Costs of annual construction maintenance of the specialized construction works under the State management of the Ministry of Construction prescribed in clause 1 Article 51 of the Decree No.46/2015/ND-CP shall be determined on the basis of the cost rate as stipulated in the Appendix attached hereto. The Ministry in charge of management of specialized construction works specified in clause 2 Article 51 of the Decree No.46/2015/ND-CP shall, according to properties and nature of such construction works, provide guidelines for determination of the maintenance cost.

c) Costs of construction repair, quality control, construction monitoring, assessment of safety and bearing capacity during the operation for the purpose of maintenance shall be estimated based on the quantity of work and unit prices or by applying combined methods as prescribed in point c clause 1 of this Article.

d) Other necessary and incurring expenses shall be determined by using appropriate methods.

Article 6. Construction norms for purposes of construction maintenance

1.Construction norms shall be determined on the basis of reference to those announced by the competent authority.

2.In case it is necessary to determine a construction norm for purpose of maintenance of the new work or to adjust an announced construction norm according to the characteristics, construction techniques and technical requirements, the owner or manager of such construction works shall determine and adjust or hire qualified management cost consultants to determine or adjust the construction norms as the basis for determinate of the maintenance cost.

3.Construction norms shall be announced, adjusted or established in conformity with the current guidance and regulations on management of construction works.

Article 7. Management of construction maintenance costs

1.The owner or manager of a construction works shall prepare, assess and approve the maintenance cost estimate or hire qualified cost management consultants to prepare and assess the maintenance cost estimate as the basis for approval for that estimate. Where the estimate for repair and renovation values VND 5 million or more, point b, clause 4 Article 39 of the Decree No.46/2015/ND-CP.

2.If a construction works is in the process of investment but has yet to have its maintenance process prepared, or a construction comes into operation but has yet to have its maintenance process prepared, the costs of preparation and assessment of the construction maintenance process shall be included in the cost of construction consulting in the total investment or to the maintenance cost estimate.

3.The owner or manager of every construction works shall be responsible for managing and settling maintenance costs as prescribed in clause 5 Article 42 of the Decree No.46/2015/ND-CP.

4.In case of adjustments to the construction maintenance process as stipulated in clause 5 Article 38 of the Decree No.46/2015/ND-CP, adjustments to the maintenance cost estimate shall be made accordingly.

Article 8. Implementation organizations

1.Investors shall prepare and approve the maintenance process under clause 2 Article 38 of the Decree No.46/2015/ND-CP.

2.After the construction works comes into operation, the owner or manager shall prepare a construction maintenance plan according to the approved maintenance process, and determine the annual maintenance cost, including periodic maintenance costs.

3.Sources of finance for construction maintenance are prescribed in clause 1 Article 42 of the Decree No. 46/2015/ND-CP.

Article 9. Effect

This Circular takes effect on May 01, 2017 and replaces the Circular No.11/2012/TT-BXD dated December 25, 2012 on preparation and management of construction maintenance costs by the Ministry of Construction.

For the Minister

The Deputy Minister

Le Quang Hung

APPENDIX

(To attach with the Circular No.03/2017/TT-BXD dated March 16, 2017 by the Ministry of Construction)
RATE OF ANNUAL MAINTENANCE COST ELEMENTS

Unit: %

Instructions:

1.The annual maintenance cost equals (=) the respective rate specified in the above table multiplied by (x) the construction cost and equipment cost ( excluding costs of technological equipment) calculated by the investment rate of the construction works at the same grade and of the same type at the time of preparation of the maintenance plan:

C_BTHN= t x (C_XD+ C_TB)

Where:

C_BTHN: cost of annual maintenance of required works

t: rate (%) according to the above table

C_XD; C_TB: construction cost and equipment cost calculated by the investment rate of the construction works at the same grand and of the same type at the time of preparation of the construction maintenance plan.

2.The owner or manager of the construction works shall decide a rate within the range of rate prescribed in the above table according to the specific requirements for management, operation, useful life, type and grade of the construction works. In case the rate of maintenance costs (%) specified in the above mentioned table is inappropriate to the reality, the owner or manger of the construction works shall request the owner to adjust the rate as the basis for determination of annual maintenance costs.