Circular 14/2021/TT-BXD guiding the determination of construction work maintenance costs

CIRCULAR

Guiding the determination of construction work maintenance costs^[1]

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. 06/2021/ND-CP of January 26, 2021, detailing a number of provisions on quality management, construction and maintenance of construction works; 

At the proposals of the Director of the State Authority of Construction Economics and the Director of the Institute of Construction Economics;

The Minister of Construction promulgates the Circular guiding the determination of construction work maintenance costs.

Article 1. Scope of regulation

This Circular guides the determination of construction work maintenance costs specified in Article 35 of the Government’s Decree No. 06/2021/ND-CP of January 26, 2021, detailing a number of provisions on quality management, construction and maintenance of construction works (below referred to as Decree No. 06/2021/ND-CP).

Article 2. Subjects of application

1. This Circular applies to organizations and individuals involved in the determination of construction work maintenance costs from state budget funds reserved for current expenditures or state funds other than public investment funds.

2. Organizations and individuals involved in the maintenance of construction works using other funding sources may refer to this Circular to determine construction work maintenance costs.

Article 3. Determination of construction work maintenance costs

Construction work maintenance costs shall be determined by cost estimation. Estimates of construction work maintenance costs cover costs for performance of annual maintenance jobs, costs for repair of construction works, costs for consultancy serving maintenance of construction works, other costs, and costs for maintenance management by construction work owners or managers/users. Estimates of construction work maintenance costs shall be determined as follows:

1. Costs for performance of annual maintenance jobs specified at Point a, Clause 3, Article 35 of Decree No. 06/2021/ND-CP shall be determined by multiplying the percentage (%) of costs by construction cost and equipment cost, in which:

a/ Construction cost and equipment cost shall be determined based on the account-finalized value of  construction works and adjusted price level at the time of formulating maintenance plans. In case of unavailability of the account-finalized value of a construction work, the construction cost and equipment cost shall be determined based on the investment ratio of a corresponding construction work announced by a competent agency.

b/ The percentage (%) of costs for performance of annual maintenance jobs shall be determined under the guidance provided in Appendix I to this Circular.

c/ Based on the type and grade, maintenance process, and conditions on management and operation of a construction work, the work owner or manager/user shall formulate a construction work maintenance plan and make the estimate of cost for performance of annual maintenance jobs. This cost must not exceed the cost determined in percentage (%) of the cost for performance of annual maintenance jobs provided in Appendix I to this Circular.

2. Costs for repair of construction works shall be determined by cost estimation. The estimate of costs for repair of a construction work covers a cost for repair of construction jobs of the work and a cost for repair of equipment of the work and other related costs (if any).

3. In case the repair of a construction work requires a cost of VND 500 million or more, the estimate of costs for repair of such construction work shall be determined under the Ministry of Construction’s circular guiding a number of provisions on the determination and management of construction investment costs.

4. In case the repair of a construction work requires a cost of under VND 500 million, the estimate of costs for repair of such construction work shall be determined as follows:

a/ Costs for repair of a construction work shall be determined on the basis of the volume and unit price of repair jobs of such work.

In case of periodical repair of a construction work, the volume of repair jobs shall be determined based on the approved repair design, repair plan and maintenance process. In case of unscheduled repair of a construction work, the volume of repair jobs shall be determined based on the actual state of the work, repair design documents and other relevant requirements.

The unit prices of repair jobs of a construction work shall be determined based on the repair estimate norms and prices of cost items or according to market prices or similar prices already applied to other construction works.

In case the unit prices of repair jobs of a construction work are determined based on the repair estimate norms and prices of cost items, direct costs (costs of materials, labor and construction machinery and equipment), they shall be determined under the Ministry of Construction’s circular guiding a number of provisions on the determination and management of construction investment costs. Indirect costs shall be equal to 10% of direct costs. The pre-calculated taxable income shall be determined in percentage (%) of direct costs and indirect costs in the unit prices of repair jobs of a construction work. The percentage (%) of the pre-calculated taxable income shall be determined under the Ministry of Construction’s circular guiding a number of provisions on the determination and management of construction investment costs. In case the unit prices of repair jobs of a construction work are determined according to market prices or similar prices already applied to other construction works, they may include items of indirect costs and pre-calculated taxable income.

b/ The estimates of costs for repair of a construction work that requires a cost of under VND 500 million are provided in Table 2.2, Appendix II to this Circular.

5. In case costs for the unexpected repair of a construction work arise in the planning year, the estimates of such costs shall be determined according to:

a/ Clause 3 of this Article, in case the repair requires a cost of VND 500 million or more.

b/ Clause 4 of this Article, in case the repair requires a cost of under VND 500 million.

6. Expenses for consultancy serving construction work maintenance shall be determined as follows:

a/ For consultancy jobs specified in the Ministry of Construction’s circular issuing construction norms, the consultancy expenses must comply with such circular.

b/ For consultancy jobs such as monitoring of construction works serving maintenance; surveys serving designs for repair, experiments serving maintenance consultancy and other consultancy jobs specified in the Ministry of Construction’s circular guiding a number of provisions on the determination and management of construction investment costs, the consultancy expenses must comply with such circular.

c/ For such consultancy jobs as consultancy on formulation and verification of construction work maintenance process (in case of  unavailability of maintenance process) or adjustment of construction work maintenance process; quality inspection of construction works serving maintenance; unscheduled inspection of construction works upon request; and periodical assessment of the safety of construction works during operation and use; and consultancy jobs for which the applied norms are no longer appropriate, the consultancy expenses shall be determined by cost estimation.

d/ In case the repair of a construction work requires a cost of VND 500 million or more and requires formulation of a techno-economic report or investment project for repair of the construction work, the expenses for consultancy serving the repair shall be included in the total construction investment and construction cost estimate of the work.

7. Other costs specified at Point d, Clause 3, Article 35 of Decree No. 06/2021/ND-CP shall be determined in percentage or by cost estimation under the guidance of competent agencies.

8. The cost for maintenance management by construction work owners or managers/users shall be determined as follows:

a/ In case the repair of a construction work requires a cost of under VND 500 million, the cost for maintenance management shall be equal to 3.5% of the total cost for performance of annual maintenance jobs, cost for repair of construction works, expense for consultancy serving maintenance, and other costs/expenses specified in Clauses 1, 2, 6 and 7 of this Article, respectively.

b/ In case the repair of a construction work requires a cost of VND 500 million or more and requires formulation of a techno-economic report or investment project for repair of the construction work, the cost for maintenance management shall be equal to 3.5% of the total cost for performance of annual maintenance jobs, expense for consultancy serving maintenance, and other costs/expenses specified in Clauses 1, 6 and 7 of this Article, respectively.

9. The appraisal, approval and adjustment of construction work maintenance costs must comply with Clauses 4 and 5, Article 35 of Decree No. 06/2021/ND-CP.

Article 4. Effect

This Circular takes effect on November 1, 2021, and replaces the Ministry of Construction’s Circular No. 03/2017/TT-BXD of March 16, 2017, guiding the determination of construction work maintenance costs.-

For the Minister of Construction
Deputy Minister
LE QUANG HUNG

* The appendices to this Circular are not translated.