Circular 11/2021/TT-BXD determination and management of construction investment costs
Determination and management of construction investment costs
The Circular No. 11/2021/TT-BXD guiding a number of provisions on determination and management of construction investment costs is issued on August 31, 2021 by the Ministry of Construction.
Specifically, announced construction material prices must conform to market prices, quality standards, origin, and capacity and scope of material supply at the time of announcement. An announced list of construction materials shall be selected from lists of construction materials available in the system of norms issued by competent agencies and lists of construction materials available in the market.
In case of necessity, provincial-level Departments of Construction shall announce construction material prices on a monthly basis for construction materials with fluctuating prices to meet requirements of the management of construction investment costs. The deadline for announcement of construction material prices in a quarter or a month is the 15th of the first month of the subsequent quarter or the 10th of the subsequent month, respectively.
Besides, announced construction machinery shift and equipment prices must conform to categories, capacity, major technical indicators, nature and characteristics of each type of machinery and equipment. It is encouraged to choose environment-friendly construction materials made with economical use of natural resources, minerals and energy upon formulation of feasibility study reports and construction designs and determination of construction investment costs for works and projects while ensuring investment efficiency and meeting projects’ requirements.
This Circular takes effect on October 15, 2021.
For further details of the Circular 11/2021/TT-BXD, Click here
translation of the Official Gazette of the Vietnam News Agency
THE MINISTRY OF CONSTRUCTION
THE SOCIALIST REPUBLIC OF VIETNAM
Hanoi, August 31, 2021
Guiding a number of provisions on determination and management of construction investment costs
Pursuant to the June 18, 2014 Construction Law; and the June 17, 2020 Law Amending and Supplementing a Number of Articles of the Construction Law;
Pursuant to the Government’s Decree No. 81/2017/ND-CP of July 17, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Construction;
Pursuant to the Government’s Decree No. 10/2021/ND-CP of February 9, 2021, on management of construction investment costs;
At the proposal of the Director of the State Authority of Construction Economics;
The Minister of Construction promulgates the Circular guiding a number of provisions on determination and management of construction investment costs.
Article 1. Scope of regulation
This Circular guides a number of provisions on determination and management of construction investment costs, including preliminary total construction investment amounts, total construction investment amounts, work construction cost estimates, bidding package cost estimates, construction prices, work construction prices, construction price indexes, construction investment unit costs, construction investment capital conversion, and construction investment consultancy expenses.
Article 2. Subjects of application
This Circular applies to the subjects specified in Article 2 of the Government’s Decree No. 10/2021/ND-CP of February 9, 2021, on management of construction investment costs (below referred to as Decree No. 10/2021/ND-CP).
Article 3. Preliminary total construction investment amounts and total construction investment amounts
1. Preliminary total construction investment amounts shall be determined under Clauses 1 and 2, Article 4 of Decree No. 10/2021/ND-CP and by the method guided in Section I of Appendix I to this Circular. In case no data on construction investment unit costs have been announced, preliminary total construction investment amounts shall be determined on the basis of cost data of implemented similar projects with modification and addition of other necessary costs and conversion of expenses and costs conformable to construction locations, features and characteristics of projects and time of determination of preliminary total construction investment amounts.
2. Total construction investment amounts shall be determined under Article 6 of Decree No. 10/2021/ND-CP and by the method guided in Section II of Appendix I to this Circular and must comply with the following specific provisions:
a/ Bases for determination of total construction investment amounts include basic designs, applicable technical regulations and standards, technological and technical solutions, major equipment; work architecture solutions and main structures; construction solutions and major materials; project implementation conditions and plans, and other necessary requirements of projects.