Circular No. 11/2012/TT-BXD dated December 25, 2012 of the Ministry of Construction guiding the calculation and management of maintenance costs of construction works

THE MINISTRY OF CONSTRUCTION

Circular No. 11/2012/TT-BXD of December 25, 2012, guiding the calculation and management of maintenance costs of construction works

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. 114/2010/ND-CP of December 6, 2012, on maintenance of construction works;

At the proposal of the Directors of the Department of Construction Economics and the Institute of Construction Economics,

The Minister of Construction promulgates the Circular guiding the calculation and management of maintenance costs of construction works as follows:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

This Circular guides the calculation and management of maintenance costs of construction works and items thereof according to the requirements of the maintenance process; and applies to organizations and individuals involved in the management, exploitation and use of construction works (owners or lawfully authorized persons) within Vietnam’s territory.

Article 2. Maintenance costs of construction works

The maintenance costs of a construction work include:

1. Cost of elaboration and appraisal or verification of the maintenance process of the work;

2. Cost of maintenance planning (including the cost of estimation and appraisal or verification of the maintenance cost of the work);

3. Cost of regular, periodic and irregular inspections of the work;

4. Cost of observation of the work, for works with observation requirements;

5. Cost of preservation of the work;

6. Cost of assessment of the quality of the work when necessary;

7. Cost of periodic and irregular repairs of the work;

8. Cost of compilation and management of the maintenance dossier of the work.

Particularly, the costs of observation and assessment of the quality of a work may, depending on the maintenance requirements of each type of construction work, be included in the maintenance cost estimate of the work as provided in Article 26 of the Government’s Decree No. 114/2010/ND-CP of December 6, 2010 (below referred to as Decree No. 114/2010/ND-CP).

Article 3. Principles of calculation of construction maintenance costs

1. Maintenance costs of a construction work calculated under the guidance in this Circular are necessary expenses for completing some or all of the jobs within the process of maintaining the work according to the methods and with all expense items as prescribed, and suitable to the size and design requirements of the work, the maintenance process and other relevant conditions.

2. The workload used as the basis for calculating the costs must be determined based on the nature, characteristics and duration of performing the jobs within the maintenance process of the work as guided in Article 4 of this Circular.

3. When calculating the costs of maintenance jobs specified in Clauses 4, 6 and 7, Article 2 of this Circular, the announced construction norms and prices may be referred to or used.

When it is necessary to elaborate construction norms and unit prices for additional jobs, or adjust the announced construction norms and unit prices of the jobs to suit the nature, characteristics, conditions, construction methods and technical requirements of the above maintenance jobs, the owner or a lawfully authorized person may organize such elaboration or adjustment as a basis for cost calculation.

The application of the announced or adjusted or elaborated construction norms and unit prices must comply with the current principles of elaboration and management of construction norms and prices.

Chapter II

METHODS OF CALCULATING MAINTENANCE COSTS OF WORKS

Article 4. Methods of calculating maintenance costs of works

1. The method of calculating cost estimates based on workload and unit price

On the basis of the workload of jobs to be performed according to the maintenance plan and unit price of each job, costs must be estimated for the observation of the work, periodic and irregular repairs, and assessment of its quality.

2. The method of calculating according to the percentage (%) norm

This method is used for calculating costs of maintenance planning; regular, periodic and irregular inspections; preservation; compilation and management of the work maintenance dossier (below referred to as preservation costs).

Article 5. Calculation of maintenance costs of works

1. Costs of elaboration, appraisal or verification of the maintenance process of a work

The cost of elaboration of the maintenance process of a work is determined in the technical design cost (for works designed in 3 steps) or the construction drawing cost (for works designed in 2 steps or 1 step).

The cost of the appraisal or verification of the maintenance process of a work is determined in the cost of appraisal or verification of the work’s design.

If the work is currently in use without any maintenance process as prescribed in Article 15 of Decree No. 114/2010/ND-CP, the cost of elaboration and appraisal or verification of the maintenance process must be determined under the Ministry of Construction’s guidance on estimation of construction investment consultancy costs.

2. Preservation costs of a work (including the costs of construction maintenance planning, regular, periodic and irregular inspections, compilation and management of the maintenance dossier)

Preservation costs include the cost of monitoring and repairing minor damage (e.g., replacing ventilation fans, filling holes, replacing concrete slabs, replacing pipe valves, etc.), maintaining equipment (excluding the central air conditioning system and central gas system) installed in the work (e.g., replacing bolts, lubricating transformers, maintaining local air conditioners), which are calculated based on the percentages (%) specified in Appendix No. 1 to this Circular, compared to the construction cost and equipment cost of the work (excluding technological equipment of the work) at the investment rate of works in the same grade and of the same type at the time of planning the work maintenance.

The cost of maintaining technological equipment of a work (including the central air conditioning system and central gas system) must be calculated based on the maintenance process of their suppliers.

3. The cost of observation of a work, for works with observation requirements

This cost is determined under the Ministry of Construction’s guidance on the calculation and management of construction survey costs.

4. The cost of assessment of the quality of a work when necessary.

This cost is calculated under the Ministry of Construction’s current guidance on the inspection, verification and certification of the bearing capacity conditions, and the certification of conformity of construction work quality.

5. The cost of periodic and irregular building repairs

The cost of periodic repairs (medium and major repairs) is estimated according to the workload- and price-based method. The estimate is made under the Ministry of Construction’s guidance on the calculation and management of work construction investment costs.

The cost of periodic repairs and replacement of technological equipment of a work is based on the requirements of repair and replacement in the maintenance process of their suppliers.

The cost of irregular repairs of a work is calculated under the Government’s Decree No. 71/2005/ND-CP of June 6, 2005, on management of investment in the construction of special works.

The general statement of maintenance costs of a work is guided in Appendix No. 2 to this Circular.

Chapter III

MANAGEMENT OF MAINTENANCE COSTS OF WORKS

Article 6. Management of maintenance costs of works funded by the state budget

1. For periodic and irregular repairs of works and equipment that cost less than VND 500 million, their cost estimates may be prepared and decided by their owners or authorized persons in accordance with Point a, Clause 4, Article 10 of Decree No. 114/2010/ND-CP.

2. For periodic and irregular repairs of works and equipment that cost VND 500 million or more, a technical-economic report or construction investment project must be made. The owner or an authorized person shall organize the elaboration of such report or project and submission for appraisal and approval in accordance with the regulations on management of work construction investment. The contents of the technical-economic report and work construction investment project must comply with current regulations.

3. The owner or an authorized person shall organize the elaboration and appraisal (if qualified and capable), or hire qualified consultancy organizations and persons to elaborate and verify construction norms and unit prices that are added or adjusted according to Clause 3, Article 3 of this Circular, or verify the estimate of maintenance costs of the work before the owner or authorized person approves it.

4. The owner or an authorized person shall manage the fund for maintenance, and pay and finalize maintenance costs based on the contracts with the organizations and persons carrying out the maintenance.

5. In maintaining works not funded by the state budget, their owners or authorized persons are encouraged to comply with Clauses 1, 2 and 3 of this Article.

Chapter IV

ORGANIZATION OF IMPLEMENTATION

Article 7. Organization of implementation

1. Investors shall develop maintenance processes for their works during the designing stage, and organize appraisal or verification as a basis for approval before the acceptance test and use of the works.

For works of projects under construction for which no maintenance process has been developed yet, their investors shall organize the elaboration and appraisal or verification of a maintenance process for such works. The cost of these jobs may be added to the construction investment consultancy costs in the total investment of the project.

If a work has been put into use without a maintenance process, its owner or authorized person shall organize the elaboration, appraisal and approval the maintenance process and cost for the work.

2. After a work is put into use, its owner or authorized person shall prepare a maintenance plan according to the approved maintenance process and the annual maintenance cost, including the cost of periodic repairs according to the maintenance plan.

3. The fund for maintenance of works complies with Article 19 of Decree No. 114/2010/ND-CP.

4. The payment for maintenance costs of works complies with Article 20 of Decree No. 114/2010/ND-CP.

Article 8. Effect

This Circular takes effect on February 1, 2013.

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

For the Minister of Construction
Deputy Minister
TRAN VAN SON

Appendix No. 1

(To Circular No. 11/2012/TT-BXD of December 25, 2012, of the Ministry of Construction)

NORMS OF PRESERVATION COSTS OF A WORK

The preservation costs of a work (including the costs of maintenance planning, regular, periodic and irregular inspections and compilation and management of a maintenance dossier) are determined according to the percentage (%) of these costs to the building cost and equipment cost (excluding technological equipment of the work) at the investment rate of works of the same type and in the same grade at the time of planning the work maintenance.

Unit of calculation: %

The owner or an authorized person shall decide on the percentage (%) within the above range based on the specific conditions of management, use, lifetime, type and grade of the work.

If the preservation costs of a work determined based on the percentages above are not suitable to the actual condition of the maintenance, its owner may adjust, or the authorized person may request the authorizing person to adjust, the percentages as the basis for calculating the preservation costs of the work.

Appendix No. 2

(To Circular No. 11/2012/TT-BXD of December 25, 2012, of the Ministry of Construction)

GENERAL STATEMENT OF MAINTENANCE COSTS OF A CONSTRUCTION WORK

Unit of calculation: ...

In which:

- Dm: Percentage provided in Appendix No. 1.

- GXDTB: Building cost and equipment cost of the construction (not including the technological equipment of the construction) calculated at the investment rate of a construction of the same type and in the same grade at the time of planning the construction maintenance.

- GDP : Contingency cost of 10%.-