Decision No. 2038/QD-TTg dated December 18, 2017 of the Prime Minister on approving the Scheme on improvement of the system of construction norms and prices

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Decision No. 2038/QD-TTg dated December 18, 2017 of the Prime Minister on approving the Scheme on improvement of the system of construction norms and prices
Issuing body: Prime MinisterEffective date:
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Official number:2038/QD-TTgSigner:Trinh Dinh Dung
Type:DecisionExpiry date:Updating
Issuing date:18/12/2017Effect status:
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Fields:Construction

SUMMARY

Construction labor unit prices shall be determined due to skills, area

Scheme on improvement of the system of construction norms and prices is approved at the Decision No. 2038/QD-TTg dated December 18, 2017 by the Prime Minister.

There are some targets in this Scheme such as: By 2018, completing the review of the announced norms to address shortcomings in application and technology explanations provided in different decisions, including: The system of construction cost estimation and urban public service price norms announced by the Ministry of Construction; The systems of specialized cost estimation norms announced by the line ministries and provincial-level People’s Committees.

According to this Scheme, every norm must has a code, a title and a unit of calculation and specify jobs to be performed, technology to be applied, conditions to be met and numeric value. Concurrently, construction norms used for determining construction unit prices shall be changed from cost estimation norms to labor productivity norms, including material consumption norm, labor productivity norm and construction machinery productivity norm. Construction labor unit prices shall be determined according to jobs, skills and construction locations. Construction machinery and equipment unit prices shall be determined according to hour, day, week, month and year suitable to each type of machinery and technology; labor, energy and fuel costs shall be separated from machinery shift prices.

This Decision takes effect on the signing date.
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Effect status: Known

THE PRIME MINISTER

 

THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

No. 2038/QD-TTg

 

Hanoi, December 18, 2017

 

DECISION
Approving the Scheme on improvement of the system of construction norms and prices[1]

THE PRIME MINISTER

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to November 1, 2016 Resolution No. 05/NQ-TW of the 4th plenum of the Party Central Committee (the XIIth Congress) on a number of major policies to further renew the growth model and raise the growth quality, productivity and competitiveness of the economy;

Pursuant to the Government’s Resolution No. 35/NQ-CP of May 16, 2016, on enterprise support and development until 2020;

Pursuant to the Government’s Resolution No. 27/NQ-CP of February 21, 2017, promulgating the Government’s Program of Action to implement Resolution No. 05/NQ-TW of November 1, 2016;

At the proposal of the Minister of Construction,

DECIDES:

Article 1. To approve the Scheme on improvement of the system of construction norms and prices (below referred to as the Scheme) with the following principal contents:

I. OBJECTIVES AND VIEWPOINTS ON IMPROVEMENT OF THE SYSTEM OF CONSTRUCTION NORMS AND PRICES

1. General objectives

To improve the system of construction norms and prices (including urban service norms and prices) to suit the socialist-oriented market economy and international integration process during 2017-2021 and subsequent years, thus contributing to raising the investment efficiency, creating a transparent and competitive construction market, and preventing loss and waste in construction investment.

2. Specific objectives

a/ Objectives by 2018

- To complete the review of the announced norms to address shortcomings in application and technology explanations provided in different decisions, including:

+ The system of construction cost estimation and urban public service price norms announced by the Ministry of Construction;

+ The systems of specialized cost estimation norms announced by the line ministries and provincial-level People’s Committees;

- To improve the methods of building a new system of construction norms and prices to suit Vietnam’s market economy and conform with international practices.

- To amend and supplement the system of legal documents on management of construction investment and urban service expenses.

b/ Objectives by 2021 and subsequent years

- To build a system of construction norms and prices by the new methods.

- To guide and popularize new mechanisms, policies and methods of elaborating construction norms and prices and volumes of new norms and prices.

- To train to build capacity for entities related to the building and management of the system of construction norms and prices.

-  To develop a database on construction norms and prices.

3. Viewpoints of renewal of the management of construction norms and prices

First, the renewal of the management of the system of construction norms and prices must be in line with the Party’s socio-economic development orientations, the State’s Constitution and laws, be suitable to the socialist-oriented market economy and international integration process, and realize the guiding viewpoint that the State controls the construction market and comprehensively manages the system of construction norms and prices applicable to state capital-funded construction projects and urban services and PPP projects.

Second, the renewal of the management of the system of construction norms and prices must ensure correct and complete calculation, synchronism, simplicity and transparency, clearly define the role and functions of the State and the market, and clarify the legal status, role, responsibilities and competence of the Ministry of Construction, ministries managing specialized construction works and local authorities and entities involved in the management, building and use of the system of construction norms and prices.

Third, to retain the existing construction norms and prices which still meet the renewal requirements and management practices and harmoniously combine the review and revision of the announced or promulgated construction norms and prices with the elaboration of new ones.

Fourth, to focus on renewing the models and process of management of the system of construction norms and prices to suit the requirements and capacity of the ministries, sectors, local authorities and entities with assigned tasks and decentralized powers.

Fifth, the renewal of the management of the system of construction norms and prices must ensure conformity with construction standards, sector standards, technical construction instructions, applied construction technologies, construction schedules and markets of the places where works are constructed.

Sixth, to actively involve organizations and enterprises in the building, use, management and supervision of the system of construction norms and prices.

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