Decision No. 79/QD-BXD dated February 15, 2017 of the Ministry of Construction on standard project management and construction consulting costs

THE MINISTRY OF CONSTRUCTION

Decision No.79/QD-BXD dated February 15, 2017 of the Ministry of Construction on standard project management and construction consulting costs

Pursuant to the Government s Decree No. 62/2013/ND-CP dated June 25, 2013defining the functions, tasks, entitlements and organizational structure of the Ministry of Construction;

Pursuant to the Government s Decree No. 32/2015/ND-CP dated March 25, 2015 on construction cost management;

Pursuant to the Government s Decree No. 37/2015/ND-CP dated April 22, 2015 on construction contracts;

Pursuant to the Government s Decree No.46/2015/ND-CP dated May 12, 2015 on construction quality control and maintenance;

Pursuant to the Government s Decree No. 59/2015/ND-CP dated June 18, 2015 on construction project management;

Pursuant to 63/2014/ND-CP dated June 26, 2014 providing guidelines for regulations of the Law on Investment on contractor selection;

Pursuant to the Government s Decree No. 15/2015/ND-CP dated February 14, 2015 on Public-Private Partnerships;

Pursuant to the Government s Decree No. 136/2015/ND-CP dated December 31, 2015 providing guidelines for implementation of the Law on Investment;

At the request of Director of Department of Construction Economics and Director of Institute of Construction Economics,

DECIDES:

Article 1.Standard project management and construction consulting costs are promulgated together with this Decision as the basis for relevant organizations and individuals to determine their project management and construction consulting costs in their total investment, construction estimates; determine contract values and manage construction costs of projects regulated by the Government s Decree No. 32/2015/ND-CP.

Article 2.This Decision takes effect on March 01, 2017 and supersedes Decision No. 957/QD-BXD dated September 29, 2009 of the Minister of Construction.

For the Minister

The Deputy Minister

Bui Pham Khanh

STANDARD PROJECT MANAGEMENT AND
CONSTRUCTION CONSULTING COSTS

(Issued with Decision no. 79/QD-BXD dated February 15, 2017 of the Minister of Construction)

Part I

STANDARD PROJECT MANAGEMENT COSTS

I. Instructions on application of standard project management costs

1. Standard project management costs specified in this Decision is the basis for determination of project management costs in total investment and construction estimates. Project management costs are necessary expenditures on project management, including preparation, execution and inauguration of the project (excluding costs of project management by competent authorities in case of PPP projects) as specified in Clause 1a Article 3 of Circular No. 06/2016/TT-BXD.

2. Project management costs determined according to the standard costs in this Decision include salaries of project managers; wages of employees under contracts; allowances; bonuses, collective benefits, contributions (social insurance, health insurance, unemployment insurance, trade union fees and other contributions by people receiving salaries from the project); application of science and technology and information system management; provision of training for project manager; payment for public services; office supplies; information and communications; organization of relevant conventions; business trip allowances; rentals; repair and purchase of assets serving project management; other costs and cost contingency.

3. Project management cost in the total investment equals (=) the rate (%) in Table 1 herein multiplied by (x) building cost and equipment cost (exclusive of VAT) in the total investment approved. Project management cost in the cost estimate of the project or the contract (if the project is divided into multiple contracts) equals (=) the aforementioned rate (%) multiplied by (x) building cost and equipment cost (exclusive of VAT) in cost estimate. Project management cost in the preparation phase shall be estimated according to the project preparation tasks. The project management cost in this phase is part of the project management cost determined according to the standard project management cost provided for in this Decision.

In the cases where a project is managed by the investor’s personnel, the factor k = 0.8 shall apply to determination of project management cost.

4. In the cases where an external entity is hired to manage a project, the project management cost shall be estimated according to the workload agreed upon by the investor and the consulting contractor, and relevant policies. In this case, the payment to project management consultants plus (+) the cost of project management by the investor must not exceed the standard project management cost provided for in this Decision.

5. The factor k = 1.35 shall apply to project management costs of construction projects at sea, on islands, along land borders, in extremely disadvantaged areas defined by law. The factor k = 1.1 shall apply to project management costs of any project that spreads over more than one province. In the cases where a project consists of multiple works located in more than one province, its project management cost shall be determined according to building cost and equipment cost of each work (not multiplied by the factor k = 1.1).

6. In the cases where the equipment cost makes up ≥ 50% of the total investment approved, the factor k = 0.8 shall apply.

7. In the cases where a project consists of component projects, the project management cost shall be determined according to the scope of each component project.

8. In the cases where the general contractor performs certain project management tasks of the investor, the general contractor will be paid accordingly. The payment for project management by the general contractor shall be agreed upon by the investor and the general contractor and included in the general contract value.

9. If the project cost does not exceed the limits provided for in this Decision, the standard project management cost shall be determined as follows:

Where:

- N_t: Standard project management cost according to building cost and equipment cost; unit: %;

- G_t: Building cost and equipment cost

- G_a: Infimum building cost and equipment cost;

- G_b: Supremum building cost and equipment cost;

- N_a: Standard project management cost corresponding to G_a; unit: %;

- N_b: Standard project management cost corresponding to G_b; unit: %.

10. If the cost of a project (including building cost and equipment cost) is greater than the cost provided for in this Decision, an estimate shall be prepared to determine the project management cost.

11. If the project management board is capable of performing project management tasks of other projects or certain consulting tasks, the cost of such tasks shall be included in the cost of the project management board. The aforementioned costs shall be managed in accordance with applicable instructions.

12. In the cases where a foreign consultant is hired to manage a project funded by state capital outside state budget or a PPP project, the payment for the foreign consultant shall be estimated according to the project management tasks and application regulations. In this case, the project management cost inclusive of payment for the foreign consultant must not exceed 2.5 times the standard cost in this Decision.

13. The management and use of project management budget shall comply with instructions of the Ministry of Finance on the basis of the annual cost estimate, project management tasks and relevant policies.

II. Standard costs

Table 1: Standard project management costs

Unit: %

Notes:Project management cost of a national defense and security work is determined according to the standard project management costs of corresponding civil works, industrial works, infrastructural works, traffic works and agricultural works.

Part II

STANDARD CONSTRUCTION CONSULTING COSTS

I. Overall instructions on application of standard construction consulting costs

1. The standard construction consulting costs (hereinafter referred to as “standard consulting costs") provided for in this Decision are used for determination of costs of consulting works in the total investment and construction cost estimate, and is the basis for determination of the contract value. The consulting contract price is determined according to the consulting contractor selection result in accordance with regulations of law on bidding.

2. The consulting costs determined according to the standard consulting costs provided for in this Decision include: payments for experts directly providing consulting services; management cost incurred by the consulting organization (including payment for professional liability insurance); estimated taxable income exclusive of VAT. In the cases where building information modeling (BIM) is applied during provision of consulting services, the cost shall be estimated.

3. Standard consulting costs Article are determined according to the types of construction works specified in Clause 2 Article 5 of the Law on Construction 2014; classes of construction works specified by the Ministry of Construction. Consulting cost of a national defense and security work is determined according to the standard consulting costs of corresponding civil works, industrial works, infrastructural works, traffic works and agricultural works.

4. Consulting costs are determined according to the standard rates (%) provided for in this Decision according to the building cost, equipment cost or both. If the building cost, equipment cost or both building and equipment cost of a project does not exceed the bracket specified in this Decision, the standard consulting cost shall be interpolated according to formula (1).

5. Depending on each project, the investor shall consider applying the standard consulting costs provided for in this Decision. If the standard consulting costs are not suitable or the scope of the project is larger than that specified in this Decision, the investor shall prepare a cost estimate.

6. Regarding consulting tasks without standard costs, the standard costs of similar projects or works shall apply (upon determination of total investment or construction cost estimate) or a cost estimate shall be prepared in accordance with the instructions in the Appendix enclosed herewith.

7. The standard consulting costs provided for in this Decision do not include the cost of preparation of documents in foreign languages. The cost of preparation of documents in foreign languages shall be aggregated with the consulting cost and estimated. Nevertheless, it must not exceed 15% of the standard consulting cost provided for in this Decision.

8. In the case of a project funded by foreign loans where consulting documents are required in conformity with international practice or other reports are requested by the sponsor, the costs of such tasks shall be estimated on a case-by-case basis.

9. In the cases where factors are applied to the standard consulting cost, the standard consulting cost shall be multiplied by (x) the factors.

10. In the cases where an individual or organization is hired to perform certain consulting tasks at the request of a regulatory body during project commissioning, the payment for such individual or organization shall be estimated according to the contents and scope of the consulting tasks to be performed.

11. In the cases where a foreign consultant is hired to perform certain consulting tasks of a project funded by state budget or state capital outside state budget or a PPP project, the payment for the foreign consultant shall be determined as follows:

- In the cases where a domestic consulting organization and foreign consultants are hired to perform the consulting tasks, the consulting cost shall be estimated. In this case, the cost of hiring the foreign and domestic consultants must not exceed 2.0 times the standard costs provided for in this Decision.

- In the cases where a domestic consulting organization and a foreign consulting organization are both hired to perform consulting tasks, the consulting cost shall be estimated. In this case, the cost of hiring the domestic and foreign consulting organizations must not exceed 2.5 times the standard costs provided for in this Decision.

- In the cases where the foreign consulting organization performs all consulting tasks, the cost of hiring the foreign consulting organization shall be estimated but must not exceed 3.0 times the standard costs provided for in this Decision.

12. The costs of construction project appraisal, construction design and cost estimation by a construction authority or an agency affiliated to the person that decide the investment shall be determined in accordance with instructions of the Ministry of Finance.

13. If the consulting product is finished but not used (through no fault of the consulting contractor), the investor shall pay the consulting cost agreed in the contract. If the consulting contract has to redo the consulting tasks or perform additional consulting tasks at the investor’s request (through no fault of the consulting contractor), the investor shall pay for such tasks as agreed in the consulting contract between the investor and the consulting contractor.

14. If the feasibility study report is prepared without an approved 1:500 scale construction planning and the investor has to prepare a 1:500 scale construction planning and submit it to the planning authority for approval, the cost of preparation of the 1:500 scale construction planning shall be determined according to the standard planning costs specified by the Ministry of Construction. In this case, the cost of preparation of the feasibility study report shall be determined according to the standard costs provided for in this Decision and apply the factor k = 0.85.

II. Application of standard costs of preparation of pre-feasibility study reports, feasibility study reports and economic-technical reports

1. The cost of preparation of the pre-feasibility study report equals (=) the rate (%) in Table 2 herein multiplied by (x) building cost and equipment cost (exclusive of VAT) which are estimated according to the investment rate or data about costs of other ongoing or finished projects with similar characteristics or scope.

2. The cost of preparation of the pre-feasibility study report equals (=) the rate (%) in Table 3 herein multiplied by (x) building cost and equipment cost (exclusive of VAT) in the total investment specified in the approved pre-feasibility study report, or estimated according to the investment rate or data about costs of other ongoing or finished projects with similar characteristics or scope (in the cases where the pre-feasibility study report is not mandatory).

3. The cost of preparation of the economic-technical report equals (=) the rate (%) in Table 4 herein multiplied by (x) building cost and equipment cost (exclusive of VAT) which are estimated according to the investment rate or data about costs of other ongoing or finished projects with similar characteristics or scope.

4. Cost of preparation of a project proposal in case of a PPP project:

- The cost of preparation of Group A and Group B project proposals equals (=) 40% of the standard cost of preparation of feasibility study reports of projects with equivalent scopes provided for in this Decision.

- The cost of preparation of Group C project proposals equals (=) 80% of the standard cost of preparation of feasibility study reports of projects with equivalent scopes provided for in this Decision.

5. The cost of preparation of pre-feasibility study reports and feasibility study reports of projects of national importance shall apply the factor k = 1.1.

6. Cost of preparation of the feasibility study report and economic-technical reports of some projects:

- A renovation, repair or expansion project connected to an existing work: k = 1.15.

- A project that consists of separate works located in more than one province: k = 1.1.

- A project using a design pattern or standard design provided by a regulatory body: k = 0.80.

- A project that use an existing design: k = 0.80.

7. The cost of adjustment to pre-feasibility study reports, feasibility study reports and economic-technical reports shall be estimated according to instructions provided in the Appendix enclosed herewith.

III. Standard costs

Table 2: Standard costs of preparation of pre-feasibility study reports

Unit: %

Table 3: Standard costs of preparation of feasibility study reports

Unit: %

Table 4: Standard costs of preparation of economic-technical reports

Unit: %

Note: Costs of preparation of economic-technical reports must not fall below5,000,000 Vietnamese dongs

IV. Instructions on application of standard construction design costs

1. Construction design costs provided for in this Decision are costs of: description of the design and drawings, preparation of the construction cost estimate, provision of technical instructions, establishment of maintenance procedures, designer s supervision and purchase of professional liability insurance.

2. The construction design cost equals (=) the rate (%) in Table 5 to 14 herein multiplied by (x) building cost (exclusive of VAT), which varies according to the type and class of the construction work, in the total investment approved.

3. Construction design cost is determined as follows:

C_tk= C_xdx N_tx k            (2)

Where:

- C_tk: Construction design cost;

- C_xd: Engineering design cost according to the type or class of work in the total investment;

- N_t: Standard engineering design cost; Unit: %;

- k: Engineering design cost factor;

4. The construction design costs calculated according to the rates (%) specified herein are inclusive of the cost of preparation of the construction cost estimate. The cost of preparation of the construction cost estimate makes up about 12% of the construction design cost.

5. Factors applied to construction design costs:

5.1. For repair, renovation, upgrade or expansion projects:

- Repair, renovation or upgrade projects:

The bearing structure of the work remains unchanged: k = 1.1.

+ The bearing structure of the work (except foundation) is changed; or the technological line is upgraded or new equipment is added: k = 1.2.

+The bearing structure and foundation of the work or work item are changed: k = 1.3.

- The expansion project is connected to an existing technological line: k = 1.15.

5.2. For construction projects at sea, on island; technological lines having System Control and Data Acquisition (SCADA) or Distributed Control System (DCS): k = 1.15.

5.3. For projects using a design pattern or standard design provided by a regulatory body; projects using a design repeatedly for a work cluster or a project:

C_tk= Q_xdx N_tx (0.9 x k + 0.1)     (3)

Where:

- k: Engineering design cost factor:

+ The project uses a design pattern or standard design: first work: k = 0.36; from the second work: k = 0.18.

+ The design is repeatedly used in a work cluster or a project: first work: k = 1 (unchanged); second work: k = 0.36; from the third work: k = 0.18.

- 0.1: cost of designer s supervision (10%).

6. The factors in (5.1) shall not be applied if the factors specified in (11) through (15) have been applied.

7. When the leveling of an economic zone, industrial park, tourist resort or new urban area project has to be separately engineered, the engineering design cost shall equal 40% of the standard engineering design cost of a Class IV traffic work.

8. In case of a general design contract, the administrative cost incurred by the general designing contractor shall be part of the engineering design cost of subcontractors on the basis of their agreement.

9. The standard construction design cost does not include the cost of:

- Construction survey;

- Bringing the center and boundary of the construction work to the site;

- Measuring and evaluating the work condition;

- Planning the relocation or demolition of the work;

- Designing and manufacturing equipment (except for that specified in Table TL1);

- Designing the smart control system of the building;

- Making or testing the hydraulic model;

- Preparing geological description during construction of a hydropower or irrigation work;

- Preparing the environmental impact assessment report or commitment to environment protection;

- Preparing the seismic assessment report (if such a separate report is required);

- Preparing reports and agreements requested by the investor (if any);

- Buying copyright of the design.

The costs of aforementioned tasks shall be determined according to corresponding guiding documents or estimated.

10. The cost of construction design adjustment or cost estimate adjustment shall be estimated according to instructions provided in the Appendix enclosed herewith. If a construction design contract has been concluded, agreements therein shall apply.

11. STANDARD ENGINEERING DESIGN COSTS OF CIVIL WORKS

Table 5: Standard engineering design costs of civil works requiring a 3-step process

Unit: %

Table 6: Standard shop drawing costs of civil works requiring a 2-step process

Unit: %

Notes:

1) The construction design cost of a civil work requiring a 3-step designing process is the total cost of engineering design, which is determined according to the rates specified in Table 5, and shop drawing cost, which is 55% of the rates specified in Table 5.

2) The shop drawing of a civil work requiring a 2-step process shall be determined according to the rates specified in Table 6.

3) The factor k = 1.2 shall apply to the following types of civil works: national sports stadiums, national convention centers, nation museums, exhibition centers and libraries; buildings for the National Assembly, the President, Headquarters of the Government, Headquarters of the Central Committee of the Communist Party; office buildings of Ministries, ministerial agencies, the People’s Committees of provinces and equivalent agencies; air ports.

4) In the cases where the equipment cost of a civil work is equal to or greater than 50% of the total building cost and equipment cost in the cost estimate, the design cost shall be determined according to the rates (%) of building cost and equipment cost (exclusive of VAT) in Table 5 or Table 6 and Table DD1 below.

Table DD1

12. STANDARD ENGINEERING DESIGN COSTS OF INDUSTRIAL WORKS

Table 7: Standard engineering design costs of industrial works requiring a 3-step process

Unit: %

Table 8: Standard shop drawing costs of industrial works requiring a 2-step process

Unit: %

Notes:

1) The construction design cost of an industrial work requiring a 3-step designing process is the total engineering design cost, which is determined according to the rates specified in Table 7, and shop drawing cost, which is 60% of the rates specified in Table 7.

2) The shop drawing cost of an industrial work requiring a 2-step process shall be determined according to the rates specified in Table 8.

3) Factors applied to standard engineering design costs of some types of industrial works:

- Mining and mineral processing projects:

+ Open-pit coal mining; open-pit ore mining: Class II: k = 1.2; Class III: k= 1.35.

+ Underground coal mining; underground ore mining, coal sorting plants, ore sorting and enrichment plants: Class I: k =1.2; Class II: k = 1.45; Class III: k = 1.6.

+ Standard engineering design costs of horizontal coal mining projects. The factor k = 1.3 shall apply to vertical or inclined coal and ore mining projects.

+ The factor k = 3.0 shall apply to standard engineering design costs of open-pit coal and ore mine repair/renovation projects; The factor k = 1.5 shall apply to underground coal and ore mines; The factor k = 1.2 shall apply to coal sorting plants, ore sorting and enrichment plants.

+ Standard engineering design costs of electrical substation repair or expansion projects are the same as those of new electrical substation projects and apply the following factors: Special class: k = 1.1; Class I: k = 1.3; other Classes: k = 1.5.

- Thermal power projects: Special Class: k = 0.8; Class I: k = 0.95; Class II: k = 1.15; Class III: k= 1.3.

- Hydropower projects: Special Class: k = 1.0; Class I: k = 1.2; Class II: k = 1.44; Class III: k = 1.59.

- Electrical substation projects: Special Class: k = 1.95; Class I, Class II: k = 2.03; Class III, Class IV: k = 2.15.

- Aerial line projects: Special Class: k = 0.64; Class I: k = 0.76; Class II: k = 0.85; Class III, Class IV: k = 0.93.

- Standard costs of a line with ≥ 2 circuits and dual phase lines are the same as those applied to aerial lines at the same voltage and apply the following factors: for lines with 2 - 4 circuits: k =1.1; lines with > 4 circuits: k = 1.2; split-phase lines with a voltage of 220KV÷500KV: k = 1.1; lines with multiple voltages from 35KV and above: k = 1.2.

- Standard engineering design costs of switching stations, capacitor stations, counting stations with a voltage of ≤ 35kV are the same as those applied to electrical substations with the same voltage.

- Standard engineering design costs of compensation station with a voltage of 500kV are the same as those of electrical substations at with the same voltage.

- Gas insulation switchgear (GIS) substations with a voltage of up to 220KV: k = 1.35, which is multiplied by (x) the standard designing cost of a common substation with the same voltage.

- Compact substations, with a voltage of up to 220IV: k = 1.2, which is multiplied by (x) the standard designing cost of a common substation with the same voltage.

- Cement plants: Class I: k=1.2; Class II: k = 1.42; Class III: k = 1.58.

- Chemical plants:

+ Basic chemicals: Class I: k = 1.2; Class II: k = 1.43; Class III: k = 1.6.

- Cosmetics: Class II: k=1.2; Class III: k = 1.34.

+ Chemicals for production of urea, DAP, MPA, SA, NPK fertilizers: Class I: k=1.2; Class II: k = 1.35; Class III: k = 1.5;

- Oil depots: Class I: k = 1.2; Class II: k = 1.36; Class III: k = 1.5;

- LPG depots, LPG extraction stations:  Class I: k = 1.18; Class II: k= 1.36.

4) Standard engineering design costs of underground cable works requiring a 2-step process shall equal (=) the rate (%) in Table CN1 below multiplied by (x) building cost and equipment cost (exclusive of VAT). For underground cable works requiring a 3-step process, the factor k = 1.15 shall apply.

Table CN1

Unit: %

5) In the cases where the equipment cost of a chemical production, coal mining, ore mining or substation work is equal to or greater than 50% of the total building and equipment cost in the cost estimate, the design cost shall be determined according to the rates (%) of building cost and equipment cost (exclusive of VAT) in Table 7 or Table 8 and Table CN2 below.

Table CN2

Unit: %

6) The engineering design costs of nuclear power works shall be separately estimated.

13. STANDARD ENGINEERING DESIGN COSTS OF TRAFFIC WORKS

Table 9: Standard engineering design costs of traffic works requiring a 3-step process

Unit: %

Table 10: Standard shop drawing costs of traffic works requiring a 2-step process

Unit: %

Notes:

1) The construction design cost of a traffic work requiring a 3-step designing process is the total engineering design cost, which is determined according to the rates specified in Table 9, and the shop drawing cost, which is 55% of the rates specified in Table 9.

2) The shop drawing cost a traffic work requiring a 2-step process shall be determined according to the rates specified in Table 10.

3) Factors applied to standard engineering design costs of some types of traffic works:

+ Road tunnel, railway tunnel, interchange projects: Class I: k = 1.5; Class II: k = 1.65; Class III, Class IV: k = 1.86.

+ Railway, railway bridge repair projects: k = 1.5. In the cases where the cost of repair or renovation of a railway bridge and railway crossing work is equal to or smaller than 1 billion VND: k = 3.3.

+ Air operations area works (runway, taxiway, aircraft stands):  Special Class: k = 1.35; Class I: k = 1.56.

14. STANDARD ENGINEERING DESIGN COSTS OF AGRICULTURAL WORKS

Table 11: Standard engineering design costs of agricultural works requiring a 3-step process

Unit: %

Table 12: Standard shop drawing costs of agricultural works requiring a 2-step process

Unit: %

Notes:

1) The construction design cost of an agricultural work requiring a 3-step designing process is the total engineering design cost, which is determined according to the rates specified in Table 11, and the shop drawing cost, which is 55% of the rates specified in Table 11.

2) Shop drawing costs of agricultural works requiring a 2-step process shall be determined according to the rates in Table 12.

3) Factors applied to standard engineering design costs of some types of agricultural works:

- Renovation, repair, expansion of an agricultural work: k= 1.5.

- The cost of body or foundation grouting of an irrigation work shall apply the same rates as those of such irrigation work.

- Diversion channels, water pipelines: k = 0.8.

- Hydraulic tunnels, diversion tunnels, diversion drains: k = 1.1.

- Dredging design of: irrigation channels, drainage channels: k = 0.8 of the standard engineering design cost of Class IV irrigation works requiring a 2-step designing process.

- Dams, spillways, blocking walls classified as key irrigation works: Special Class: k = 1.0; Class I: k = 1.1; Class II: k = 1.2; Class III, Class IV: k = 1.35.

4) Regarding an irrigation work that requires designing of mechanical devices (valve doors, closing devices, trash grates, etc.) the cost of designing the mechanical devices shall be determined according to the rates (%) in Table TL1:

Table TL1

Unit: %

15. STANDARD ENGINEERING DESIGN COSTS OF INFRASTRUCTURAL WORKS

Table 13: Standard engineering design costs of infrastructural works requiring a 3-step process

Unit: %

Table 14: Standard shop drawing costs of infrastructural works requiring a 2-step process

Unit: %

Notes:

1) The construction design cost of an infrastructural work requiring a 3-step designing process is the total engineering design cost, which is determined according to the rates specified in Table 13, and the shop drawing cost, which is 55% of the rates specified in Table 13.

2) The shop drawing cost an infrastructural work requiring a 2-step process shall be determined according to the rates specified in Table 14.

3) Factors applied to standard engineering design costs of some types of infrastructural works:

- Water treatment plants; clean water treatment projects; raw water, clean water pumping stations or high-pressure pumping stations (excluding pipelines): Class I: k = 1.2; Class II: k = 1.3; Class III: k= 1.44.

- Rainwater pumping station; wastewater treatment projects; wastewater pumping stations (excluding pipelines); mud treatment; solid waste treatment: Class I: k = 1.15; Class II: k = 1.25; Class III: k = 1.35.

- Water supply and drainage pipelines: k = 1.2.

- River-crossing water supply pipelines: k = 1.2 applied to the river-crossing section

4) Standard engineering design costs of posts, poles or towers for telecommunications and broadcasting shall apply the factor k = 1.2.

5) Standard engineering design costs of information – communication works are specified in Table HTKT1:

Table HTKT1

Unit: %

- Standard engineering design costs of information – communications works in Table HTKT1 are applied to Class III works; The factor k = 0.9 shall apply to Class IV works

- Standard engineering design costs of signaling works and railway information devices, electricity information works shall apply the rates in Table HTKT1.  If the building and equipment cost is equal to or smaller than 1 billion VND, the factor k = 1.3 shall apply.

7) Standard engineering design costs of information – communication works are specified in Table HTKT2:

Table HTKT2

Unit: %

8) Factors applied to standard engineering design costs of some information – communication devices specified in Table HTKT2:

- Works using integrated equipment without designing technological lines: k = 0.60.

- Expansion projects, whether new racks or cards (except installation of new stations): k = 0.40.

- Identical works in a cluster or projects: follow instructions in 5.3. From the 11^thidentical work (or station): k = 0.10.

V. Application of standard costs of verification of pre-feasibility study reports, feasibility study reports and economic-technical reports

1. The cost of verification of a pre-feasibility study report equals (=) the rate (%) in Table 15 herein multiplied by (x) building cost and equipment cost (exclusive of VAT) which are estimated according to the investment rates or data about costs of other ongoing or finished projects with similar characteristics or scope.

2. The cost of verification of a feasibility study report equals (=) the rate (%) in Table 16 herein multiplied by (x) building cost and equipment cost (exclusive of VAT) in the total investment specified in the approved pre-feasibility study report, or estimated according to the investment rates or data about costs of other ongoing or finished projects with similar characteristics or scope (in the cases where the pre-feasibility study report is not mandatory).

3. The cost of verification of an economic-technical report shall equal (=) the standard cost of verification of the design and standard cost of verification of the cost estimate provided for herein multiplied by (x) the building cost (exclusive of VAT) in the economic-technical report and multiplied by (x) the factor k = 1.2.

4. Cost of verification of an adjusted pre-feasibility study report, adjusted total investment, or adjusted economic-technical report shall be estimated as instructed in this Decision.

Table 15: Standard costs of verification of pre-feasibility study reports

Unit: %

Notes:

- The cost of verification of a pre-feasibility study report determined according to the rates in Table 15 consists of:

+ Verification of the preliminary design: 35%.

+ Preliminary verification of the total investment: 35%.

+ Verification of other contents of the project: 30%.

Table 16: Standard costs of verification of feasibility study reports

Unit: %

Notes:

- The cost of verification of a feasibility study report determined according to the rates in Table 16 consists of:

+ Verification of the fundamental design: 35%.

+ Verification of the total investment: 35%.

+ Verification of other contents of the project: 30%.

- If the project requires verification of the project’s technological design, the verification cost shall be increased by 20% of the cost of feasibility study report verification.

VI. Instructions on application of standard costs of construction design verification

1. The cost of construction design verification equals (=) the rate (%) in Table 17 herein multiplied by (x) building cost (exclusive of VAT), in the total investment approved. The designing is made into a contract, the cost of construction design verification equals (=) the rate (%) in Table 17 herein multiplied by (x) building cost (exclusive of VAT) specified in the approved contract value.

2. The costs of adjusted construction design verification shall be estimated as instructed in this Decision.

Table 17: Standard costs of construction design verification

Unit: %

Notes:

- The costs of construction design verification of a project using a standard design or design pattern provided by a competent authority shall apply the factor k = 0.36 from the second work.

- The costs of construction design verification of a leveling project are equal to 40% of that of a traffic work.

- The costs of construction design verification shall be expressed as percentage (%) but shall not fall below VND 2,000,000 million.

VII. Instructions on application of standard costs of cost estimate verification

1. The cost of cost estimate verification equals (=) the rate (%) in Table 18 herein multiplied by (x) building cost (exclusive of VAT) in the total investment approved. In case of verification of the cost estimate of a construction contract, the verification cost shall equal (=) the rate (%) in Table 18 herein multiplied by (x) building cost (exclusive of VAT) specified in the approved contract value.

2. In the cases where the equipment cost makes up ≥ 25% of the total building cost and equipment cost in the cost estimate, the factor k = 1.2 shall apply.

3. The cost of verification of the adjusted cost estimate, adjusted cost estimate of a building contract; estimate of cost of purpose of supplies and equipment; cost estimate of a consulting contract; cost estimate of a mixed contract shall be estimated as instructed in this Decision

Table 18: Standard costs of cost estimate verification

Unit: %

Notes:

- Regarding a project requiring the 3-step designing process, the costs of verification of the engineering design cost estimate and shop drawing cost estimate shall be separately determined according to the rates in Table 18.

- The cost verification of the building cost estimate of a project using a standard design or design pattern provided by a competent authority shall apply the factor k = 0.36 from the second work.

- The cost of verification of a leveling cost estimate is equal to 40% of that of a traffic work.

- The costs of verification of cost estimates shall be expressed as percentage (%) but shall not fall below VND 2,000,000 million.

I. Instructions on application of standards costs of bidding document preparation and bid evaluation

1. In case of selection of a consulting contractor, the cost of preparation of bidding documents and bid evaluation shall equal (=) the rate (%) in Table 19 herein multiplied by (x) the approved consulting contract value (exclusive of VAT).

2. In case of selection of a building contractor, the cost of preparation of bidding documents and bid evaluation shall equal (=) the rate (%) in Table 20 herein multiplied by (x) the approved building contract value (exclusive of VAT).

3. In case of selection of a supplier, the cost of preparation of bidding documents and bid evaluation shall equal (=) the rate (%) in Table 21 herein multiplied by (x) the approved purchasing contract value (exclusive of VAT).

4. While determining the total investment, if a project is divided into multiple contracts, the costs of preparation of bidding documents and bid evaluation may be estimated according to the rates (%) in Table 19, 20 and 21 herein, which vary according to the costs of consulting services, building cost or equipment cost of each contract.

5. The cost of preparation of the request for expression of interest and evaluation of expressions of interest; the cost of preparation of prequalification documents and evaluation of pre-qualification applications shall equal 30% of the cost of preparation of the bidding documents and bid evaluation provided for in this Decision.

6. The cost of preparation of the request for proposals and evaluation of proposals shall equal 60% of the cost of preparation of the bidding documents and bid evaluation provided for in this Decision.

7. In case of a mixed contract, the cost preparation of bidding documents and bid evaluation shall be estimated as instructed in this Decision.

Table 19: Standards costs of bidding document preparation and bid evaluation in case of a consulting contract

Notes:

The standards cost of bidding document preparation and bid evaluation consists of:

- Bidding document preparation: 45%;

- Bid evaluation: 55%.

Table 20: Standards costs of bidding document preparation and bid evaluation in case of a building contract

Unit: %

Notes:

The standards cost of bidding document preparation and bid evaluation as specified in Table 20 consists of:

- Bidding document preparation: 45%;

- Bid evaluation: 55%.

Table 21: Standards costs of bidding document preparation and bid evaluation in case of a purchasing contract

Unit: %

Notes:

The standards cost of bidding document preparation and bid evaluation as specified in Table 21 consists of:

- Bidding document preparation: 45%;

- Bid evaluation: 55%.

IX. Instructions on application of standard supervision costs

1. The cost of construction supervision equals (=) the rate (%) in Table 22 herein multiplied by (x) building cost (exclusive of VAT) in the approved building cost estimate.

2. The cost of installation supervision equals (=) the rate (%) in Table 23 herein multiplied by (x) equipment cost (exclusive of VAT) in the approved building cost estimate.

3. The cost of survey supervision equals (=) the rate (%) in Table 24 herein multiplied by (x) survey cost (exclusive of VAT) in the approved construction survey cost estimate.

4. While determining the total investment, if a project is divided into multiple contracts, the costs of building, installation supervision may be estimated according to the rates (%) in Table 22 and Table 23 herein, which vary according to the building cost or equipment cost of each contract.

5. The cost of supervision of building or installation of construction works at sea, on island, along the land border or in extremely disadvantaged areas shall apply the factor k = 1.2.

6. The costs of construction supervision and installation supervision provided for in this Decision are exclusive of the supervising contractor’s costs of leasing or building offices at the construction site, which shall be determined according to applicable regulations.

Table 22: Standard construction supervision costs

Unit: %