Decree No. 68/2019/ND-CP management of construction investment costs

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Decree No. 68/2019/ND-CP dated August 14, 2019 of the Government on management of construction investment costs
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Official number:68/2019/ND-CPSigner:Nguyen Xuan Phuc
Type:DecreeExpiry date:
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Issuing date:14/08/2019Effect status:
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Fields:Construction , Investment

SUMMARY

08 expenses for determining the total construction investment

On August 14, 2019, the Government issues the Decree No. 68/2019/ND-CP on management of construction investment costs.

Accordingly, total construction investment shall be determined by 08 types of cost, includes: Compensation, assistance and resettlement costs; Construction investment costs; Equipment costs; Project management costs; Construction investment consulting costs; Other costs; Contingency costs.

The adjustment of total construction investment shall be carried out in conjunction with the adjustment of project construction investment and shall be adjusted when costs arise in excess of the total investment.

In case of adjusting only the cost structuring, including the contingency costs, due to price adjustment when price indexes increase higher than the indexes calculated in the price escalation reserves but this does not exceed the approved total construction investment, the investors shall adjust the investment and submit the results to the investment deciders for approval.

In case of increasing the costs of the projects or delaying projects leading to loss and waste by deciding on implementation of projects when the capital plans are inconsistent with the project implementation plans, the investment deciders shall take legal accountability.

This Decree takes effect on October 01, 2019. 
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Effect status: Known

THE GOVERNMENT
 

 

THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

No. 68/2019/ND-CP

 

Hanoi, August 14, 2019

 

DECREE

On the management of construction investment costs

 

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

Pursuant to the June 18, 2014 Construction Law;

At the proposal of the Minister of Construction,

The Government promulgates the Decree on management of construction investment costs.

 

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Decree prescribes the management of construction investment costs of projects using state budget funds or non-budget state funds, and investment projects in the form of public-private partnership (PPP) regarding preliminary total investment, total investment, construction cost estimates, prices of construction bidding packages, construction norms and prices, and project management and construction investment consultancy expenses; payment and liquidation of construction contracts, and payment and settlement of work construction investment funds; and rights, obligations and responsibilities of investment deciders, project owners, construction contractors and consultancy contractors in the management of construction investment costs.

2. Construction investment projects using official development assistance (ODA) loans must comply with relevant treaties and the Law on Treaties.

Article 2. Subjects of application

1. This Decree applies to agencies, organizations and individuals involved in the management of construction investment costs of projects using state budget funds or non-budget state funds specified in Clauses 1 and 2, Article 60 of the Construction Law, and investment projects in the form of PPP.

2. Organizations and individuals may apply the provisions of this Decree to manage and determine construction investment costs of projects using other funding sources for use as a basis for fulfillment of financial obligations of such projects toward the State.

Article 3. Principles of management of construction investment costs

1. The management of construction investment costs must ensure the achievement of approved investment objectives and project efficiency and conform to the construction investment procedures prescribed in Clause 1, Article 50 of the Construction Law, and suit funding sources used, investment forms and implementation mode of projects. Construction investment costs shall be correctly and fully calculated for each construction project, work or bidding package according to engineering requirements, technical instructions, construction conditions, project implementation plans as well as market prices in work construction areas and anticipated price fluctuations during the construction investment process.

2. The State shall manage construction investment costs through promulgating, and guiding and examining the implementation of, regulations; and guide methods of formulating and managing construction investment costs.

3. A project owner shall manage construction investment costs from the stage of project preparation to construction completion and putting of the project’s works into operation and use, and settle construction investment funds within the project’s approved total investment, even in case the total investment is adjusted under Article 7 of this Decree. The project owner may hire cost management consultants that fully satisfy the capacity conditions prescribed in the Decree on the management of construction investment projects to formulate, verify, control and manage construction investment costs.

4. For special construction works classified as state-secret works and works built under urgent orders, the principles and methods of determining construction investment costs as well as construction norms, construction unit prices and construction price indexes prescribed in this Decree shall be applied for determining construction investment costs as a basis for the determination of values constituting public assets for these construction works. The appraisal and approval of construction investment costs of these works must comply with the provisions on the management of construction investment of special works of the Decree on the management of construction investment projects.

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