Circular 15/2019/TT-BXD determination of unit prices of construction labor

CIRCULAR

Guiding the determination of unit prices of construction labor^[1]

Pursuant to the Government’s Decree No. 81/2017/ND-CP of July 17, 2017, defining functions, tasks, powers and organizational structure of the Ministry of Construction;

Pursuant to the Government’s Decree No. 68/2019/ND-CP of August 14, 2019, on management of construction investment costs;

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

The Minister of Construction promulgates the Circular guiding determination of unit prices of construction labor.

Article 1.Scope of regulation

This Circular guides the determination of unit prices of construction labor (including construction workers and construction consultancy workers) to determine and manage construction investment costs, including preliminary total investment, total investment, construction cost estimates, construction bidding package prices, work construction prices, construction contract prices, construction price indexes and construction consultancy cost estimates.

Article 2.Subjects of application

1. Agencies, organizations and individuals involved in the determination and management of construction investment costs of projects funded with the state budget’s capital or off-budget state capital and investment projects in the form of public-private partnership (PPP) as specified in Clause 1, Article 2 of the Government’s Decree No. 68/2019/ND-CP of August 14, 2019, on management of construction investment costs.

2. Organizations and individuals are encouraged to apply this Circular to determine and manage construction investment costs, and determine construction investment costs to serve as a basis for performing financial obligations toward the State of projects funded with other capital sources.

Article 3.Principles of determination and adjustment of unit prices of construction labor

1. Unit prices of construction labor determined under guidance of this Circular must adhere to the following principles:

a/ Being conformable to professional skills of different worker ranks in the system of norms for construction cost estimation and working conditions of construction workers; characteristics and nature of jobs; or contents and nature of jobs, and titles, qualifications and quality of construction consultancy workers.

b/ Matching the construction labor price level (including cost-of-living adjustments) in the labor market of each locality, which must not be lower than regional minimum wage levels set by the Government;

c/ Being enough to cover a number of expenses payable by workers under regulations (social insurance, health insurance and unemployment insurance premiums and trade union dues).

d/ Being determined based on daily working time of 8 hours.

2. Unit prices of construction labor may be adjusted upon volatility of the construction labor price level in the market.

Article 4.Contents of unit prices of construction labor

1. Workday unit price of construction labor means a unit price of a workday of workers directly engaged in construction activities, vehicle drivers,  construction machinery and equipment operators and survey engineers; ship captains and mates, river or seagoing vessel operators, sailors, mechanics and technicians; or artisans or professional divers working under normal conditions.

2. Workday unit price of construction consultancy labor means a  unit price of a workday of domestic construction consultants, including senior engineers and project managers; main engineers and division heads; engineers; technicians of intermediate, collegial or vocational training level, which must be inclusive of wage, wage-based allowances and insurance premiums payable by workers under regulations (social insurance, health insurance and unemployment insurance premiums and trade union dues).

3. Unit price of construction labor for particular jobs means a unit price of construction workers working in dangerous and hazardous conditions (construction on high mountain passes, slopes or in tunnels, offshore construction, and other special construction works).

4. Unit prices of construction  labor shall be surveyed, determined and announced for 10 groups of construction jobs specified in Appendix 2 to this Circular. Particularly for the 11^thgroup of construction jobs, which is a special group, the survey and announcement of unit prices of construction labor depend on specific characteristics of each locality.

5. Unit prices of construction consultancy labor shall be surveyed, determined and announced for 4 groups of construction consultancy jobs announced in Appendix 3 to this Circular.

Article 5.Method of determination of units prices of construction labor

1. Unit prices of construction labor shall be surveyed from the following information sources:

a/ Results of direct surveys at work sites in announced areas.

b/ Statistics from finalization dossiers for completed works or bid-winning results of similar construction works in announced areas, which are adjusted according to construction labor price indexes by the time of determination.

c/ Survey results obtained by experienced experts, project owners, contractors and individuals and organizations operating in the field of construction.

d/ Combination of above survey results and statistics.

2. Unit price of construction labor of a worker performing one job among a group of construction jobs  shall be calculated as the arithmetic average of unit prices of labor collected and summarized from survey questionnaires, and determined by the following formula:

In which:

-:Unit price of construction labor of a worker performing one job among group of construction jobs No.jin the table of groups of construction jobs provided in Appendix 2 to this Circular (VND per workday);

-: Unit price of labor for performing construction job No.iin group of construction jobs No.jannounced in Appendix 2 to the Circular, which shall be determined through investigation and survey under the guidance provided in Appendix 1 to the Circular (VND per workday);

- m: Number of unit prices of construction labor summarized in the group.

3. The method of determination of unit prices of construction labor shall be detailed in Appendix 1 to this Circular.

4. Unit prices of construction labor shall be collected and summarized in the forms provided in Appendices 7 thru 10 to this Circular.

Article 6.Method of determination of unit prices of construction consultancy labor

1. Unit prices of construction consultancy labor shall be surveyed, determined and announced for 4 groups of construction consultancy jobs announced in Appendix 3 to this Circular.

2. Unit prices of construction consultancy labor shall be surveyed based on titles and professional qualifications of consultancy experts at construction consultancy units.

3. Unit price of labor of a consultant in a group of construction consultancy experts shall be calculated by arithmetic average of unit prices of labor of construction consultants in the group, specifically by the following formula:

In which:

-: Unit price of labor of a consultant in groupof consultancy experts No.kin the table of groups of construction consultancy levels provided in Appendix 3 to this Circular (VND per workday);

- : Unit price of consultancy labor for performing job No.lin group of construction jobs No.kannounced in Appendix 3 to the Circular, which shall be determined through investigation and survey under the guidance provided in Appendix 1 to the Circular (VND per workday);

- n: Number of unit prices of construction consultancy labor summarized in the group.

4. The method of determination of unit prices of construction consultancy labor shall be detailed in Appendix 1 to this Circular.

5. Unit prices of construction consultancy labor shall be collected, summarized and announced in the forms provided in Appendices 12 and 13 to this Circular.

Article 7.Management of unit prices of construction labor

1. The Ministry of Construction shall announce the unit price bracket of construction labor  for 3 types of construction labor in 4 regions in Appendix 4, and the unit price bracket of construction labor for 4 groups of construction consultancy jobs in 4 regions in Appendix 5, to this Circular.

2. Provincial-level People’s Committees shall base themselves on the guidance of this Circular to direct provincial-level Departments of Construction to assume the prime responsibility for, and coordinate with related agencies and units in, surveying or hiring qualified consultants to survey, collect information and determine unit prices of construction labor in conformity with the unit price brackets of construction labor announced by the Ministry of Construction for use as a basis for announcing or authorizing monthly or quarterly  announcement of unit prices of construction labor as a basis for estimation and management of construction investment costs in their localities and send announcement results to the Ministry of Construction for monitoring and management.

3. For construction jobs belonging to a special group; construction jobs not yet included in any announced list or construction jobs included in a list but unit prices of construction labor announced by provincial-level People’s Committees do not match types and construction conditions of works, such provincial-level People’s Committees may organize additional surveys and make additional announcements, and make adjustments in the application of such unit prices in determining and managing construction investment costs for construction works in their localities.

4. Funds for surveys, collection of information, determination and announcement of unit prices of construction labor shall be allocated from the sources of current expenditures of provincial-level state budgets. Particularly, expenses for surveying and verifying unit prices of construction labor of project owners shall be determined by the estimation method and may be accounted as other consultancy costs in construction investment cost estimates of works.

Article 8.Organization of implementation

1. The Ministry of Construction shall guide, inspect and examine determination and announcement of unit prices of construction labor by localities under Clause 4, Article 32 of the Government’s Decree No. 68/2019/ND-CP of August 14, 2019, on management of construction investment costs.

2. Provincial-level People’s Committees shall announce or authorize provincial-level Departments of Construction to announce unit prices of construction labor and unit prices of construction consultancy labor according to the forms provided in Appendix 11 to this Circular.

3. Project owners, construction contractors and construction consultancy contractors operating in a province or city have the responsibility and obligation to provide adequate and accurate information about unit prices of construction labor in their construction dossiers to local specialized agencies in charge of construction to summarize, determine and announce unit prices of construction labor.

Article 9.Transitional handling

1. In case total investment and work construction cost estimates are approved before the effective date of this Circular but contractors are not yet selected, investment deciders shall decide on adjustment of unit prices of construction labor in total investment and work construction cost estimates to serve as a basis for determining bidding package prices based on unit prices of construction labor announced by provincial-level People’s Committees while ensuring project implementation progress and efficiency.

2. Bidding packages for which construction contracts are signed before the effective date of this Circular may be performed under such contracts.

Article 10.Effect

1. This Circular takes effect on February 15, 2020, and replaces the Ministry of Construction’s Circular No. 05/2016/TT-BXD of March 10, 2016, guiding the determination of unit prices of labor in the management of construction investment costs.

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

*The appendices to this Circular are not translated.