Circular 20/2019/TT-BXD guiding management of construction planning

CIRCULAR

Guiding the determination and management of construction planning and urban planning expenses^[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. 37/2010/ND-CP of April 7, 2010, on formulation, appraisal, approval and management of master plans on urban centers;

Pursuant to the Government’s Decree No. 44/2015/ND-CP of May 6, 2015, detailing a number of provisions on construction planning;

Pursuant to the Government’s Decree No. 72/2019/ND-CP of August 30, 2019, amending and supplementing a number of articles of Decree No. 37/2010/ND-CP of April 7, 2010, on formulation, appraisal, approval and management of master plans on urban centers, and Decree No. 44/2015/ND-CP of May 6, 2015, detailing a number of provisions on construction planning;

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

The Minister of Construction promulgates the Circular guiding the determination and management of construction planning and urban planning expenses.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Circular guides the determination and management of expenses for construction planning and urban planning, including master plans on construction of district and inter-district areas; master plans on urban centers (general plans, zoning plans, detailed plans, and specialized plans on technical infrastructure); master plans on construction of functional zones (general plans, zoning plans, and detailed plans) and master plans on rural areas (general plans on construction of communes and detailed plans on construction of rural residential quarters).

Article 2.Subjects of application

1. This Circular applies to organizations and individuals that use state budget capital and non-budget state capital to determine and manage construction planning and urban planning expenses.

2. To encourage organizations and individuals that use other capital sources to apply the provisions of this Circular in determining and managing construction planning and urban planning expenses.

Article 3.Principles of determination of expenses

1. Construction planning and urban planning expenses shall be correctly and fully calculated to suit the size of plans, and characteristics, nature and requirements on outcomes of each planning job.

2. Construction planning and urban planning expenses determined under the guidance of this Circular shall be used for their estimation and management and for selection of contractors through contest or appointment in order to identify units to perform planning jobs in accordance with law.

3. Expenses for formulation of construction and urban planning tasks and plans (below referred to as planning tasks and plans) shall be determined to suit planning jobs’ contents and schedules and quality requirements as prescribed. The authority approving estimates of expenses for formulation of plans shall consider and adjust such expenses as appropriate when the State changes tax and salary policies leading to changes in expert remuneration levels which directly impact the expenses for formulation of plans or when the duration of implementation of plans is prolonged not due to the fault of units formulating the plans. The adjustment of expenses for formulation of plans must be conformable with capital sources used, contract form and relevant regulations.

Chapter II

DETERMINATION OF CONSTRUCTION PLANNING AND
URBAN PLANNING EXPENSES

Article 4.Method of determining construction planning and urban planning expenses

1. Expenses for formulation of plans and expenses for other planning jobs shall be determined according to norms provided in the Appendix to this Circular. Expenses for jobs determined according to norms provided in this Circular are exclusive of value-added tax. This tax should be added when estimating construction planning and urban planning expenses in accordance with current regulations.

2. In case the size of a plan lies between the two sizes provided in the Appendix to this Circular, expense norm (or percentage) of the plan shall be determined on the basis of expenses norms (or percentages) of the maximum and minimum levels of the size range provided in this Circular according to the following formula:

In which:

- N₁: expense norm (or percentage) to be calculated; unit of calculation: million VND (or percentage);

- G₁: Planned population size or area for which a norm needs to be calculated; unit of calculation: value;

- G_a: minimum planned population size or area for which a norm needs to be calculated; unit of calculation: value;

- G_b: maximum planned population size or area for which a norm needs to be calculated; unit of calculation: value;

- N_a: planning expense norm (or percentage) corresponding to G_a; unit of calculation: million VND (or percentage);

- N_b: planning expense norm corresponding to G_b; unit of calculation: million VND (or percentage).

3. Construction planning and urban planning expense norms of plans of a size smaller than that specified in this Circular shall be determined to be equal to norms of projects of the specified smallest size.

4. For plans of a size larger than the specified size or for planning jobs for which no norm is provided or norms provided in this Circular are inappropriate, expenses shall be determined in estimates. The estimates shall be made under the guidance provided in Appendix 2 to this Circular. Estimates of expenses for formulation of plans shall be made on the basis of planning tasks approved by a competent authority.

Article 5.Determination of expenses for formulation and appraisal of plans

1. Contents and products of plans are specified in the Decree detailing a number of provisions on construction planning, Decree on formulation, appraisal, approval and management of master plans on urban centers, relevant specialized decrees and guiding documents.

2. Expenses for formulation of a plan include: expenses for participants in the formulation of the plan, other expenses (for purchase of documents, data, maps, stationery, planning software (if any), depreciation of equipment, travel, accommodations, conferences, and workshops, and other expenses (if any).

3. Expenses for formulation of a plan determined according to norms provided in this Circular are exclusive of expenses for the following jobs:

a/ Formulation of planning tasks.

b/ Construction survey to serve the formulation of the plan.

c/ Purchase or drawing of topographic maps (if any) for the formulation of the plan.

4. Expenses for formulation of a number of plans specified in this Circular shall be determined as follows:

a/ Expenses for formulation of a plan on construction of a district area or an inter-district area shall be determined on the basis of area and population density of the planned area and norms provided in Table 1 in Appendix 1.

b/ Expenses for formulation of a general plan on an urban center shall be determined on the basis of area, type of urban center and population density of the planned area and norms provided in Table 2 in Appendix 1.

c/ Expenses for formulation of a plan on an urban sub-zone shall be determined on the basis of planned area and norms provided in Table 3 in Appendix 1.

d/ Expenses for formulation of a detailed plan on an urban center shall be determined on the basis of planned area and norms provided in Table 4 in Appendix 1.

dd/ Expenses for formulation of a specific blueprint on a urban center shall be determined in an estimate but must not exceed 1.5 times those calculated according to norms of expenses for formulation of detailed plans on urban centers of an 1:500 scale in proportion to area of the blueprint.

e/ Expenses for formulation of a specialized plan on technical infrastructure of a centrally run city shall be estimated according to jobs but must not exceed those calculated in percentage in Table 5 in Appendix 1 compared to expenses for formulation of a relevant general plan on an urban center.

g/ Expenses for formulation of a general plan on construction of functional zones shall be determined on the basis of planned area and norms provided in Table 6 in Appendix 1.

h/ Expenses for formulation of a zoning plan on construction of functional zones shall be determined on the basis of planned area and norms provided in Table 7 in Appendix 1.

i/ Expenses for formulation of a detailed plan on construction of functional zones shall be determined on the basis of planned area and norms provided in Table 8 in Appendix 1.

k/ Expenses for formulation of a general plan on construction of communes shall be determined on the basis of population size forecast for the planning period in approved planning tasks (excluding vision-based population forecasts) and norms provided in Table 9 in Appendix 1.

l/ Expenses for formulation of a detailed plan on construction of rural residential quarters shall be determined on the basis of planned area and norms provided in Table 10 in Appendix 1.

m/ Expenses for formulation of a plan on urban underground construction space or another construction plans shall be determined in an estimate.

5. Expenses for modification of plans shall be specifically determined as follows:

a/ In case of partial modification of a plan: Based on jobs that need to be adjusted, expenses shall be determined in an estimate but must not exceed 50% of expenses for formulation of a new plan.

b/ In case of overall modification of a plan with the scope of modification not exceeding the area or population covered by the approved plan, expenses for modification of the plan shall be determined in an estimate but must not exceed 80% of expenses for formulation of a new plan.

In case the scope of modification exceeds the area or population covered by the approved plan, expenses for modification of the plan must not exceed expenses for formulation of a new plan.

6. Expenses for formulation of plans that require planning dossiers to be made according to the Geographic Information System (GIS) may be adjusted with coefficient K = 1.1.

7. Expenses for appraisal of a plan are those paid directly for the appraisal activities as remuneration directly paid to individuals and agencies inside or outside the unit participating in the appraisal; expenses for conferences, workshops and meetings to give opinions to related units in the course of appraisal; and expenses for coordination with other units in conducting site surveys of locations where plans are implemented.

Expenses for appraisal of a plan shall be determined in percentage as provided in Table 11 in Appendix 1 compared to expenses for formulation of the plan. Particularly, expenses for hiring of organizations and experts (including foreign ones) to provide criticisms on the plan and expenses for site survey (if any) to serve the appraisal of the plan shall be determined in an estimate of additional expenses other than expenses for formulation of the plan and calculated in percentage as provided in Table 11.

Article 6.Determination of expenses for formulation and appraisal of planning tasks

1. Planning tasks are specified in the Decree detailing a number of provisions on construction planning, Decree on formulation, appraisal, approval and management of master plans on urban centers, relevant specialized decrees and guiding documents.

2. Expenses for formulation of planning tasks shall be determined as follows:

a/ Expenses for formulation of planning tasks of construction of a district area or an inter-district area shall be determined on the basis of area and population density of the planned area and norms provided in Table 1 in Appendix 1.

b/ Expenses for formulation of general planning tasks for urban centers shall be determined on the basis of area, type of urban center and population density of the planned area and norms provided in Table 2 in Appendix 1.

c/ Expenses for formulation of planning tasks for urban sub-zones shall be determined on the basis of planned area and norms provided in Table 3 in Appendix 1.

d/ Expenses for formulation of detailed planning tasks for urban centers shall be determined on the basis of planned area and norms provided in Table 4 in Appendix 1.

dd/ Expenses for formulation of specific designing tasks for urban centers shall be determined in an estimate but must not exceed 1.5 times those for formulation of detailed planning tasks for urban centers of an 1:500 scale in proportion to the area of the urban blueprint.

e/ Expenses for formulation of specialized planning tasks on technical infrastructure of a centrally run city shall be estimated according to jobs but must not exceed those calculated in percentage in Table 5 in Appendix 1 compared to expenses for formulation of relevant general planning tasks for urban centers.

g/ Expenses for formulation of general planning tasks for construction of functional zones shall be determined on the basis of planned area and norms provided in Table 6 in Appendix 1.

h/ Expenses for formulation of zoning planning tasks for construction of functional zones shall be determined on the basis of planned area and norms provided in Table 7 in Appendix 1.

i/ Expenses for formulation of detailed planning tasks for construction of functional zones shall be determined on the basis of planned area and norms provided in Table 8 in Appendix 1.

k/ Expenses for formulation of general planning tasks for construction of communes shall be determined on the basis of population size forecast for the planning period in approved planning tasks (excluding vision-based population forecasts) and norms provided in Table 9 in Appendix 1.

l/ Expenses for formulation of detailed planning tasks for construction of rural residential quarters shall be determined on the basis of planned area and norms provided in Table 10 in Appendix 1.

m/ Expenses for formulation of planning tasks of other plans shall be determined in an estimate.

3. Expenses for appraisal of planning tasks shall be determined to be equal to 20% of those for formulation of such planning tasks.

Article 7.Determination of expenses for management of planning operations and other jobs

1. Expenses for management of formulation of construction plans are those paid for activities of the agency managing the planning process, such as expenses for experts, part-time officers, conferences, meetings, working missions, supplies, stationery and other jobs serving the management of planning operations under regulations on revenue management and spending regime.

2. Expenses for management of planning operations shall be determined in percentage of expenses for formulation of plans. Norms of expenses for management of formulation of plans are provided in Table 11 in Appendix 1. In case the management of formulation of construction master plans covers a region or inter-region and formulation of a general plan for a special urban center, expenses for management of planning operations shall be determined according to norms and adjusted with coefficient K = 2.

3. Expenses for management of planning operations determined according to norms are exclusive of expenses for the following jobs:

a/ Hiring of organizations and experts to provide criticisms on plans or workshops to provide criticisms on plans.

b/ Collection of opinions of agencies, organizations and representatives of population communities on plans, if any.

c/ Planting of planned boundary markers at site.

d/ Announcement of approved plans.

dd/ Hiring of consultants for formulation and verification of estimates of planning expenses.

e/ Organization of contests to select organizations providing consultancy on formulation of plans (if any).

g/ Other jobs to serve the management of the operations of formulating plans.

4. Expenses for collection of opinions of agencies, organizations and representatives of population communities shall be determined in an estimate not under VND 5,000,000 (five million) but must not exceed 2% of expenses for formulation of the relevant plan.

5. Expenses for announcement of a plan shall be determined in an estimate not under VND 5,000,000 (five million) but must not exceed 3% of expenses for formulation of the relevant plan.

6. Expenses for making of planning mockups shall be determined according to norms provided in Table 12 in Appendix 1 and multiplied by area of such mockups.

7. Expenses for organization of contests for selection of organizations providing consultancy on formulation of plans (if any) shall be determined in an estimate as guided in Appendix 2.

Article 8.Determination of expenses for hiring of foreign consultants for formulation of master plans

1. Expenses for hiring of foreign consultants for formulation of master plans shall be determined in an estimate but must not exceed the following levels:

a/ In case of hiring domestic consultancy organizations to assume the prime responsibility for, and coordinate with foreign consultants in, formulating planning tasks and plans: Expenses for the hiring must not exceed 1.5 times expenses for formulation of planning tasks and plans calculated under this Circular.

b/ In case of hiring domestic consultancy organizations and foreign consultancy organizations to coordinate with each other in formulating planning tasks and plans: Expenses for the hiring must not exceed 2.5 times expenses for formulation of planning tasks and plans calculated under this Circular.

c/ In case of hiring foreign consultancy organizations to perform all jobs of formulating planning tasks and plans: Expenses for the hiring must not exceed 3.5 times expenses for formulation of planning tasks and plans calculated under this Circular.

2. In case of hiring foreign consultancy organizations to formulate planning tasks and plans with complicated or special characteristics and requirements or plans with expenses for their formulation determined in an estimate under the guidance provided in this Circular, while norms of expenses for such hiring exceed norms of expenses specified in Clause 1 of this Article, the agency competent to approve planning expense estimates shall report such to the authority approving plans and decide to approve the expense estimates under regulations.

Chapter III

MANAGEMENT OF CONSTRUCTION PLANNING AND URBAN PLANNING EXPENSES

Article 9.Management of planning expenses and expenses related to formulation of plans

1. Agencies assigned to manage planning operations shall manage in a thrifty and efficient manner planning expenses and expenses for other related jobs under relevant regulations.

2. Expenses for management of planning operations serve as limits of expenses for activities of agencies managing the planning process. In the course of management of expenses, agencies assigned to manage planning operations may hire capable and experienced consultants to make and verify planning expense estimates.

3. Expenses for formulation of planning tasks by state management agencies shall be managed under the financial mechanism applicable to state management agencies.

4. Expenses for appraisal of plans shall be managed based on approved estimates. The payment of these expenses must comply with relevant regulations.

Article 10.Competence to appraise and approve planning expense estimates

1. Authorities approving plans or their authorized agencies shall appraise and approve estimates of expenses for formulation of planning tasks and plans and expenses for performance of planning-related jobs.

2. The Ministry of Construction, other ministries and provincial-level People’s Committees shall appraise and approve estimates of expenses for formulation of planning tasks and plans and expenses for performance of planning-related jobs, for plans formulated by themselves and approved by the Prime Minister.

Chapter IV

ORGANIZATION OF IMPLEMENTATION

Article 11.Transitional provisions

1. For planning jobs being performed under signed contracts, the payment of planning expenses must be based on such contracts.

2. For planning jobs for which expense estimates have been approved but contractor selection has not yet been organized or contractors have been selected but contracts have not yet been signed, authorities competent to approve planning expense estimates shall consider and decide on the application of this Circular.

3. For cases not mentioned in Clauses 1 and 2 of this Article, planning expenses shall be determined under this Circular.

Article 12.Effect

This Circular takes effect on March 10, 2020, and replaces the Ministry of Construction’s Circular No. 05/2017/TT-BXD of April 5, 2017, guiding the determination and management of construction planning and urban planning expenses.

Any problems arising in the course of implementation of this Circular 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.