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

DECREE

On the management of construction investment costs^[1]

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.

5. Infrastructure construction works under national target programs on sustainable poverty reduction or national target programs on building a new countryside are subject to the principles and methods of determining construction investment costs prescribed in this Decree as suitable to their characteristics.

6. The inspection, examination and audit of construction investment costs shall be based on the grounds, contents, methods and time for determining cost items in the total construction investment amount, construction cost estimates, prices of construction bidding packages, construction norms, construction prices and construction price indexes of works which the investment decider and project owner have agreed to use in each stage of the cost formation process under this Decree’s provisions on the management of construction investment costs.

Chapter II

PRELIMINARY TOTAL CONSTRUCTION INVESTMENT AND TOTAL CONSTRUCTION INVESTMENT

Article 4.Cost items of preliminary total construction investment and total construction investment

1. Preliminary total construction investment means the construction investment costs of a project estimated in the stage of making a construction investment prefeasibility study report or an investment policy proposal report, for group-B or group-C projects in accordance with the Law on Public Investment. The preliminary total construction investment includes the cost items specified in Clause 2 of this Article.

2. Total construction investment means all construction investment costs of a project determined according to the base design and other contents of the construction investment feasibility study report. The total construction investment includes compensation, support and resettlement expenses (if any); construction costs; equipment costs; project management expenses; construction investment consultancy expenses; other costs; and contingency amounts for additional volumes and inflation.

3. For projects which only require construction investment techno-economic reports, the total construction investment includes the construction cost estimates prescribed in Article 8 of this Decree and compensation, support and resettlement expenses (if any).

4. Cost items constituting the total construction investment are specified as follows:

a/ Compensation, support and resettlement expenses include compensations for land, houses and works on land, and assets attached to land and on water surface, and other compensations as prescribed; support amounts upon land recovery by the State; resettlement expense; expense for organization of compensation, support and resettlement; expense for payment of land use levy and rental (if any) during construction; expense for relocation of or payment for built technical infrastructure items (if any); and other relevant expenses;

b/ Construction costs include costs of the construction of works and work items of a project; makeshift or auxiliary works or work items serving the project construction; and costs of the dismantlement of construction works not covered by dismantlement and ground clearance costs calculated as compensation, support and resettlement expenses. Construction costs include direct costs, overhead costs, presumed taxable income, and value-added tax;

c/ Equipment costs include costs of the procurement of work equipment and technological equipment; costs of the management of procurement of work equipment by contractors; costs of the purchased copyright of software used for work equipment and technological equipment of a project (if any); costs of training and technology transfer (if any); costs of the processing and manufacture of non-standard equipment (if any); costs of the installation, testing and calibration; costs of the trial operation of equipment according to technical requirements; costs of the transportation and insurance; and relevant taxes, charges and expenses;

d/ Project management expenses include expenses for the performance of project management jobs from the stage of project preparation, project implementation and construction completion to the commissioning of the project’s works. For investment projects in the form of PPP, project management expenses include expenses for the project management by competent state agencies, expenses for the operation of project management units of competent state agencies implementing projects, and expenses for the project management by investors;

dd/ Construction investment consultancy expenses include expenses for consultancy on construction survey and preparation of prefeasibility study reports or investment policy proposal reports for group-B and group-C projects in accordance with the Law on Public Investment, preparation of feasibility study reports or techno-economic reports; engineering expense, expense for consultancy on work construction supervision, and other relevant consultancy expenses;

e/ Other expenses include expenses for the implementation of work construction investment projects, such as expenses for deactivating bombs, mines and explosives; costs of insurance for works during the construction; charges and fees for appraisal of projects, designs and construction cost estimates; expenses for the audit, verification and approval of final accounts of investment capital, and other necessary expenses for the implementation of work construction investment projects other than those specified at Points a, b, c, d and dd, Clause 4 of this Article;

g/ Contingency amounts include the contingency amount for additional volumes and contingency amount for inflation during the project implementation.

Article 5.Determination of preliminary total construction investment and total construction investment

1. The preliminary total construction investment of a project shall be estimated on the basis of the project’s size, capacity or service capacity according to its preliminary design and investment ratio or data on costs of completed or ongoing projects of similar type, size and characteristics, with analyses and evaluations taken to adjust and convert them into market prices as suitable to places of construction and addition of other necessary costs of the project.

For projects implemented under construction contracts for performance of all the jobs of project formulation, engineering, procurement, and construction (below referred to as turnkey projects), the preliminary total investment shall be determined on the basis of the construction volume calculated according to the preliminary design in combination with other methods of determining prices of bidding packages.

2. The total construction investment shall be determined according to the following methods:

a/ Based on the construction volume calculated according to the base design, project implementation plan, organization of construction methods, other necessary requirements of a project, construction norms and unit prices, and relevant regimes and policies;

b/ Based on data on costs of similar works;

c/ Based on the work construction investment ratio;

d/ Combination of the methods mentioned at Points a, b and c of this Clause.

3. The methods mentioned at Points b and c of this Clause shall be applied only for ordinary construction works.

4. For projects implemented under contracts for performance of the jobs of engineering, procurement and construction (EPC), engineering and construction (EC), or engineering and procurement (EP), the total investment shall be determined according to the method mentioned at Point a, Clause 2 of this Article in combination with other methods.

5. Details of the methods of determining the total investment must comply with the guidance of the Minister of Construction.

Article 6.Appraisal and approval of total construction investment

1. The appraisal of the total construction investment shall be carried out simultaneously with the appraisal of a construction investment project. Appraisal of the total construction investment covers:

a/ Examining the adequacy and conformity of legal grounds for determination of the total investment;

b/ Examining the conformity of the method of determining the total construction investment with characteristics and technical and technological requirements of the project;

c/ Examining the adequacy and conformity of construction volumes with the base design, project implementation plan, organization of construction methods, and requirements of the project; and the compliance with the State’s regulations and guidance on costs used or calculating and determining cost items in the total construction investment;

d/ Determining the value of the total construction investment after the appraisal. Analyzing causes of increase or decrease in and evaluating the project’s investment efficiency based on the value of the total construction investment after the appraisal.

2. For projects requiring only construction investment techno-economic reports, the appraisal contents must comply with Clause 2, Article 10 of this Decree.

3. Competence to appraise the total construction investment:

a/ The State Appraisal Council formed by the Prime Minister shall organize the appraisal of national important projects;

b/ Specialized construction agencies as delegated shall organize the appraisal of projects using state budget funds;

c/ Specialized agencies under investment deciders shall organize the appraisal of projects using non-budget state funds;

d/ Focal points managing PPP activities under competent state agencies shall organize the appraisal of PPP projects. Specialized construction agencies as delegated shall give opinions on unit prices and norms used for determining the total construction investment of a project and evaluate engineering solutions on efficient use of work construction costs of a project.

4. Specialized construction agencies as delegated shall organize the appraisal of projects only requiring construction investment techno-economic reports and using state budget funds or non-budget state funds.

5. Agencies in charge of appraisal may invite professionally capable and experienced entities to participate in appraising the total construction investment, or request project owners to select construction investment cost management entities that fully satisfy the capacity conditions prescribed in the Decree on the management of construction investment projects to verify the total construction investment for national important projects, group-A projects or projects involving complicated technical requirements or using high technologies for use as a basis for appraisal and approval.

6. Contents of, funds for, and responsibilities of entities invited to carry out, the appraisal or verification of the total construction investment:

a/ Entities invited to appraise the total construction investment shall perform the jobs required by the agency in charge of appraisal and take responsibility for their appraisal results in accordance with law;

b/ Contents of the verification of the total construction investment include those specified in Clause 1 of this Article. Verifiers shall report verification results to the agency in charge of appraisal and project owner and take responsibility for such results in accordance with law;

c/ Expenses to be paid to entities invited to appraise the total construction investment and expenses for the verification of the total construction investment shall be determined based on cost norms issued by competent state agencies or by the method of cost estimation.

7. The investment decider shall approve the total construction investment simultaneously with the approval of a project. The approved total construction investment is the maximum amount the construction investment project owner may use for implementing the project. In case the total construction investment is larger than the preliminary total investment, the investment decider shall approve the total construction investment after reaching agreement with the investment policy decider.

8. A dossier for appraisal of the total construction investment is the same as the dossier for appraisal of a construction investment project prescribed in Clause 2, Article 56 of the Construction Law and the Decree on the management of construction investment projects, for projects requiring only techno-economic reports. A report on results of the appraisal and verification of the total investment shall be made according to a form provided by the Ministry of Construction.

9. Cost estimates for jobs performed in the stage of investment preparation for making a prefeasibility study report or investment preparation report shall be appraised and approved by agencies or units performing project investment preparation tasks. These costs shall be included in the total investment of a project after the project obtains the investment policy decision from a competent authority.

10. Cost estimates for jobs performed in the stage of project preparation for making a feasibility study report shall be appraised by the specialized agency under the investment decider for submission to an investment-deciding authority for approval. These costs shall be included in the total investment amount of a project for the formulation and management of construction investment costs.

Article 7.Adjustment of total construction investment

1. An approved total construction investment may be adjusted under Clause 5, Article 134 of the Construction Law. The total construction investment shall be adjusted simultaneously with the adjustment of a construction investment project. Such adjustment shall be made when an expense or cost arises resulting in the excess of the total investment. The investment decider shall approve the adjusted total construction investment together with the adjusted construction investment project.

2. The adjusted total construction investment must undergo appraisal and approval procedures under Article 6 of this Decree.

3. In case only the structure of cost items is adjusted, including contingency amounts as a result of price increase against the prices included in contingency amounts for inflation of the total investment, which does not lead to the excess of the approved total investment, the project owner shall make adjustment and submit it to the investment decider for approval.

4. The investment decider shall decide on the use of contingency amounts of a construction investment project. The project owner shall decide on the use of contingency amounts for projects only requiring construction investment techno-economic reports.

5. In case the total construction investment adjusted under Clause 1 of this Article makes an increase or a decrease in size (group) of a project, such project shall still be managed based on the size (group) approved before the adjustment. In case the adjustment makes a project become a national important project or group-A project, the investment decider shall approve the adjusted total investment after obtaining approval of the new size (group) of the project from an authority competent to decide on investment policy.

Chapter III

CONSTRUCTION COST ESTIMATES AND PRICES OF CONSTRUCTION BIDDING PACKAGES

Article 8.Contents of construction cost estimates

1. Construction cost estimates mean all necessary costs estimated before the contractor selection for construction of work(s) and bidding packages which are determined based on construction volumes calculated according to technical designs, for 3-step designing, or working drawing designs, for 2-step designing, or front-end engineering designs (FEED), for works implemented in the form of EPC, EC or EP, job requirements and construction norms and unit prices.

Construction cost estimates include construction cost, equipment cost, project management expense, construction investment consultancy expense, other costs, and contingency amounts. The items of the above costs are specified at Points b, c, d, dd, e and g, Clause 4, Article 4 of this Decree.

2. For a project involving different construction works, its owner shall determine its construction cost estimate for each work.

The work construction cost estimates include construction cost, equipment cost, construction investment consultancy expense, other costs, and contingency amounts.

The construction cost estimates of a project (total cost estimates) include the total of work construction cost estimates and project management expenses, consultancy expenses, other costs, and relevant contingency amounts of the project.

3. For a project for which the contractor selection plan has been approved by a competent authority, its owner shall determine its construction cost estimates based on cost estimates of construction bidding packages stated in the approved contractor selection plan. In this case, the project’s construction cost estimates include cost estimates of construction bidding packages and project management expenses, consultancy expenses, other costs, and relevant contingency amounts of the project.

The cost estimates of a construction bidding package include:

- Cost estimates for separate construction bidding packages: cost estimate for construction bidding package; cost estimate for procurement bidding package; cost estimate for equipment installation bidding package; cost estimate for construction investment consultancy bidding package; and cost estimate for bidding packages covered by other cost items;

- Cost estimates for mixed bidding packages: cost estimate for EC bidding package; cost estimate for PC bidding package; cost estimate for EPC bidding package; and cost estimate for turnkey bidding package, etc.

4. Details of cost items of construction cost estimates, work construction cost estimates and construction bidding packages’ cost estimates must comply with the Minister of Construction’s regulations.

Article 9.Determination of construction cost estimates

1. Construction cost estimates shall be determined based on the construction volumes calculated according to technical designs, for 3-step designing, working drawing designs, for 2-step designing, FEED for determining prices of bidding packages, for EPC, EC or EP bidding packages, and technical instructions, job requirements of projects and works, implementation plans for works of projects, construction conditions, construction methods, and construction norms and prices applicable to projects and works.

2. The cost items in the construction cost estimate shall be determined as follows:

a/ Construction costs include direct costs of materials, labor and construction machinery, which shall be determined based on the volumes of construction jobs measured and calculated according to the technical design drawing, working drawing design, technical instructions and job requirements, construction prices, as well as overhead costs, presumed taxable income and value-added tax, which shall be determined based on the cost norms issued by a competent state agency or determined by the estimation method;

b/ Equipment costs include equipment procurement costs, which shall be determined based on the volumes, quantities and kinds of equipment according to technological and construction designs and purchase prices of equipment; costs of the management of equipment procurement by contractors; costs of the purchased copyright of software used for work equipment and technological equipment of the project (if any); costs of the training and technology transfer; costs of the manufacture of  non-standard equipment (if any); costs of the installation, testing and calibration; costs of the trial operation of equipment according to technical requirements and contracts; transportation and insurance costs; and relevant taxes, charges and costs, which shall be determined based on cost estimates or cost norms issued by a competent state agency;

c/ Project management expenses shall be determined under Clause 3, Article 21 of this Decree;

d/ Construction investment consultancy expenses shall be determined under Clause 3, Article 23 of this Decree;

dd/ Other costs shall be determined in percentage (%), or by the estimation method, or estimated based on costs of similar projects and works;

e/ The contingency amount for additional volumes shall be determined in percentage (%) of the total costs specified at Points a, b, c, d and dd of this Clause. The contingency amount for inflation shall be determined based on the work construction duration, project implementation plan and construction price index suitable to the type of construction works, taking into account domestic and international price fluctuations.

3. Details of methods of determining construction cost estimates of projects, work construction cost estimates, and cost estimates of construction bidding packages must comply with the guidance of the Minister of Construction.

Article 10.Appraisal and approval of construction cost estimates

1. Construction cost estimates shall be appraised simultaneously with the appraisal of technical designs or working drawing designs, specifically as follows:

a/ The construction cost estimate of a project shall be appraised on the basis of appraising work construction cost estimates, cost estimates of construction bidding packages and other relevant cost items of the project;

b/ For a project of group A or larger size for which the investment decider allows the implementation of the technical design or working drawing design for each construction work or bidding package in each stage of the project implementation plan, the appraisal of the construction cost estimate of each work or cost estimate of each construction bidding package shall be carried out simultaneously with the appraisal of the technical design or working drawing design of such work or bidding package;

c/ For EPC, EC or EP bidding packages for which contracts have been signed, the appraisal of cost estimates is not required;

d/ For EPC, EC or EP bidding packages for which cost estimates are determined according to FEED as a basis for determining prices of bidding packages, their cost estimates shall be appraised based on cost estimates formulated based on FEED.

2. The appraisal of construction cost estimates, work construction cost estimates, or cost estimates of construction bidding packages must cover:

a/ Examining the adequacy and consistency of legal grounds for determining construction cost estimates;

b/ Examining the consistency of volumes of construction jobs and types and quantities of equipment in cost estimates with those calculated according to the construction or technological design;

c/ Examining the properness and rationality of the application of construction norms and prices of works and relevant regulations in determining cost items of cost estimates;

d/ Determining the value of cost estimates after the appraisal. Assessing the increase or decrease in cost items against the value of work construction cost estimates to be appraised, and analyzing causes of such increase or decrease.

3. The competence to appraise and approve construction cost estimates (including work construction cost estimates and cost estimates of construction bidding packages) must comply with the Decree on the management of construction investment projects. Particularly, specialized agencies under investment deciders shall appraise costs estimates for jobs in the preparation for the formulation of technical designs or working drawing designs for submission to investment-deciding authorities for approval. These cost items shall be updated into work construction cost estimates to serve the formulation and management of construction investment costs.

4. The competence to appraise cost estimates of EPC, EC or EP bidding packages which are determined according to FEED as prescribed at Point d, Clause 1 of this Article must comply with Clause 3 of this Article.

5. For works of national important projects, or projects of group A, B or C involving complicated technical requirements or applying high technologies, agencies in charge of appraisal may invite organizations or individuals to appraise construction cost estimates, or request project owners to select cost management consultants to verify construction cost estimates as a basis for appraisal and approval. The invited or selected entities must fully meet the capacity conditions prescribed in the Decree on the management of construction investment projects.

6. Contents of, funds for, and responsibilities of entities engaged in, the appraisal or verification of cost estimates are prescribed as follows:

a/ Entities invited to appraise cost estimates shall perform the jobs required by agencies in charge of appraisal and take responsibility for their appraisal results in accordance with law;

b/ The verification of construction cost estimates covers all the contents specified in Clause 2 of this Article. Verifiers shall report verification results to agencies in charge of appraisal and project owners and take responsibility for verification results in accordance with law;

c/ Expenses to be paid to entities invited to appraise construction cost estimates and expenses for the verification of construction cost estimates shall be determined on the basis of cost norms issued by competent state agencies or by the method of cost estimation.

7. A dossier for appraisal of cost estimates is the same as that for appraisal of technical designs, working drawing designs and construction cost estimates prescribed in the Decree on the management of construction investment projects. A report on results of the appraisal and verification of construction cost estimates shall be made according to a form issued by the Ministry of Construction.

Article 11.Adjustment of construction cost estimates

1. An approved construction cost estimate may only be adjusted in the following cases:

a/ The total construction investment is adjusted;

b/ The design is changed or supplemented which is not contrary to the base design or adjusted base design, or the structure of cost items in the cost estimate is changed, including contingency amounts, as a result of price increase against the price stated in the contingency amount for inflation, which does not lead to an excess of the approved total construction investment.

2. An adjusted construction cost estimate shall be appraised and approved in accordance with the construction law.

3. In case a construction cost estimate is adjusted as a result of price increase against the price stated in the contingency amount for inflation, which does not change the approved construction cost estimate value, the project owner shall adjust and approve the cost estimate after obtaining approval of the investment decider. For cost estimates to be approved by investment deciders, investment deciders shall approve them and take responsibility for such approval.

4. Investment deciders shall decide on the use of contingency amounts of construction cost estimates. Project owners shall decide on the use of contingency amounts in cost estimates of projects for which techno-economic reports are formulated.

Article 12.Prices of construction bidding packages

1. The price of a construction bidding package is the value of such bidding package approved in the contractor selection plan for use as a basis for the contractor selection. Such price is inclusive of all necessary costs which are correctly and fully calculated for the execution of the bidding package.

2. Total construction investment, constructions cost estimates of projects, work constructions cost estimates, and approved cost estimates of construction bidding packages serve as bases for the determination and approval of prices of bidding packages. The price of a construction bidding package shall be determined as follows:

a/ In case the cost estimate of a construction bidding package has been approved, the price of such bidding package shall be determined based on the approved cost estimate;

b/ In case the cost estimate of a construction bidding package is not available, the price of such bidding package shall be determined according to the structure of costs in the cost estimate of the bidding package on the basis of the cost items related to the scope of jobs of the bidding package which have been included in the approved total construction investment, project’s construction cost estimate or work construction cost estimate.

c/ The contingency amount in the price of a construction bidding package shall be determined depending on the form of contract applicable to the bidding package as stated in the contractor selection plan.

3. In case the actual time of organizing contractor selection is other than that stated in the project implementation plan, the project owner shall update prices of construction bidding packages based on prices applicable 28 days before the date of bid opening. In case the updated price of a bidding package is higher than the approved price, resulting in the excess of the project’s total construction investment, the project owner shall make adjustments relating to the type and origin of supplies and equipment for them to meet quality and technical requirements with appropriate prices so as not to lead to the excess of the total construction investment, then report such to the investment decider for decision.

4. The investment decider shall decide to use contingency amounts when determining or updating prices of bidding packages.

5. Details of the method of determining or updating prices of construction bidding packages must comply with the guidance of the Minister of Construction.

Chapter IV

CONSTRUCTION NORMS, CONSTRUCTION PRICES AND CONSTRUCTION PRICE INDEXES

Section 1

CONSTRUCTION NORMS

Article 13.Techno-economic norms

1. Techno-economic norms include basic norms and norms of work construction cost estimates.

2. Basic norms include material use norms, labor productivity norms, and construction machinery and equipment productivity norms. Basic norms of common construction jobs shall be determined through surveying the construction market according to construction standards, technical and technological requirements, and construction conditions. Basic norms of construction jobs with the application of new technologies shall be determined on the basis of technological requirements and technology application conditions.

3. Norm of work construction cost estimate means the necessary level of used materials, labor and construction machinery and equipment which is determined according to specific technical requirements, construction conditions and construction methods to complete a construction volume unit.

4. Techno-economic norms shall be used as a basis for the management of construction investment costs.

Article 14.Cost norms

1. Cost norms include norms calculated in percentage (%), norms calculated in value, and norms calculated in volume with regard to construction investment consultancy expenses.

2. Cost norms shall be used as a basis for determining construction prices and cost estimates of certain jobs and costs in construction investment, including project management expenses, construction investment consultancy expenses, overhead costs, presumed taxable income, and some other jobs and costs.

Article 15.Management of construction norms

1. The Minister of Construction shall guide methods of determining basic norms, norms of work construction cost estimates and cost norms, and the agreement on issuance of construction norms.

2. Based on the methods prescribed in Clause 1 of this Article, ministries managing specialized construction works or provincial-level People’s Committees shall determine, or hire entities fully meeting the capacity requirements prescribed in the Decree on the management of construction investment projects to determine, adjust or verify, the norms for issuing norms of construction cost estimates for specialized jobs of their respective sectors and localities after reaching agreement with the Ministry of Construction, and send these norms to the Ministry of Construction for monitoring and management.

3. The issued construction norms shall be used as a basis for the formulation of unit prices for determining the total construction investment and construction cost estimates and managing construction investment costs.

4. For construction jobs not yet included in the system of issued norms of construction cost estimates or already included in this system but failing to meet specific technical requirements, construction conditions or construction methods of works:

a/ Project owners shall determine new or adjusted norms of work construction cost estimates for use as a basis for determining work construction unit prices and managing work construction investment costs;

Entities providing consultancy on the estimation or management of costs of projects or bidding packages shall determine new or adjusted norms of construction cost estimates according to specific designs or requirements of relevant jobs, bidding packages or projects for use as a basis for determining construction cost estimates, work construction cost estimates, or cost estimates of construction bidding packages;

b/ For new or adjusted norms of construction cost estimates which make the construction unit price lower than that when issued norms are applied, the investment decider shall decide to approve and apply the new or adjusted norms to the relevant project or work for determining construction cost estimates, work construction cost estimates or cost estimates of construction bidding packages, and send them to the Ministry of Construction for monitoring and management. For construction works under projects the investment in which is decided by the Prime Minister, line ministers or chairpersons of provincial-level People’s Committees shall approve norms of construction cost estimates;

c/ The project owner shall summarize the list of jobs for which norms are adjusted or new norms not yet included in the issued list of norms are formulated, then report such to the specialized agency in charge of construction as delegated, and organize the survey for formulating norms of work construction cost estimates during the construction by the method guided by the Ministry of Construction. The specialized agency in charge of construction as delegated shall summarize and send norm formulation results to the Ministry of Construction for management. Expenses for the formulation of norms shall be included in the total investment of a project.

5. Project owners may hire cost management consultancy organizations that fully satisfy the capacity conditions prescribed in the Decree on the management of construction investment projects to formulate, adjust and verify construction norms prescribed in Clause 4 of this Article.

6. Construction norms issued by a competent state management agency shall be reviewed on a regular basis and issued once every 2 years, for new and adjusted norms. Expenses for the review shall be covered by the state budget.

Section 2

WORK CONSTRUCTION PRICES AND
CONSTRUCTION PRICE INDEXES

Article 16.Work construction prices

1. Work construction prices include:

a/ Detailed construction unit prices of a work determined for construction jobs of such work for use as a basis for the determination of construction cost estimates;

b/ General construction prices determined for different groups and types of construction jobs, structure units or work items or works for use as a basis for the determination of construction cost estimates and total construction investment.

2. Detailed construction unit prices of a work shall be determined based on construction norms of that work, prices of supplies, materials and construction structures, labor, machine shift and construction equipment costs, and other necessary costs that match market prices in the work construction area at the time of determination and must comply with other relevant regulations, or shall be determined based on market prices.

3. General construction prices shall be determined on the basis of detailed construction unit prices of a work.

Article 17.Management of work construction prices

1. Methods of determining prices of construction materials, unit costs of labor, machine shift and construction equipment costs based on market mechanism, and basic databases for determining machine shift and construction equipment costs must comply with the regulations of the Minister of Construction.

2. Provincial-level People’s Committees shall issue work construction unit prices applicable in their provinces and, on a monthly or quarterly basis, publicize information on market prices of construction materials and work equipment; unit costs of labor; machine shift costs and expenses for hiring construction machinery and equipment. Information serving the publicization of prices shall be synthesized from market surveys; results of successful bids of construction investment projects in provinces; price quotes issued by province-based enterprises producing construction materials or equipment, enterprises supplying or leasing construction machinery or equipment, or enterprises distributing or acting as sale agents for manufacturers of construction equipment and materials outside provinces.

3. Project owners and contractors that implement construction investment projects using state budget funds or non-budget state funds, or construction investment projects in the PPP form in provinces are obliged to provide local specialized construction agencies with information on price levels in bid-winning results of bidding packages of projects as a basis for issuance of price notices.

4. Project owners shall base themselves on methods of determining work construction prices guided by the Ministry of Construction, technical requirements, construction conditions, construction methods, and specific implementation plans of work projects to organize the determination of detailed construction unit prices of works and general construction prices of works for use as a basis for the determination of construction cost estimates and total investment and managing construction investment costs.

5. Project owners may hire construction investment cost management consultancy entities that fully satisfy the capacity conditions prescribed in the Decree on the management of construction investment projects to perform jobs or job items related to the determination and verification of work construction prices.

6. Expenses for the issuance of construction unit prices, notification of material, labor and machine shift costs, and expenses for hiring of construction machinery and equipment shall be covered by the state budget.

Article 18.Construction price indexes

1. Construction price indexes mean criteria showing chronological changes in construction prices and serving as a basis for the determination and adjustment of total construction investment, work construction cost estimates, prices of construction bidding packages and construction contracts, conversion of work construction investment funds, and management of construction investment costs.

2. Construction price indexes include construction price indexes based on work type, cost structure (including price index for construction, price index for equipment and price index for other costs), cost items (including price index for construction materials, labor cost index, and construction machinery and equipment cost index), and price indexes for some main materials.

3. Methods of determining construction price indexes and agreement on work construction price indexes must comply with regulations of the Minister of Construction. Provincial-level People’s Committees shall assign specialized construction agencies to base themselves on the Minister of Construction-guided methods of determining construction price indexes to organize the determination of construction price indexes to be applied in provinces (including indexes based on work type, cost structure, and cost items prescribed in Clause 2 of this Article) for provincial-level People’s Committees to publicize them on a monthly, quarterly and annual basis and send them to the Ministry of Construction for monitoring and management.

4. For works not yet included in the lists of construction price indexes issued by the Ministry of Construction or provincial-level People’s Committees, their owners shall base themselves on Ministry of Construction-guided methods of determining construction price indexes to organize the determination of construction price indexes and decide on the application of these indexes to works after reaching agreement with the Ministry of Construction, for works to be built in 2 or more provinces, or with provincial-level People’s Committees, for works to be built in a province.

5. Project owners may hire cost management consultancy organizations that fully satisfy the capacity conditions prescribed in the Decree on the management of construction investment projects to calculate construction price indexes prescribed in Clause 4 of this Article for use as a basis for the determination and management of construction investment costs.

6. Expenses for the collection of data, and calculation and issuance of national, inter-regional and local construction price indexes shall be allocated from annual state budget funds.

Section 3

DATABASES ON CONSTRUCTION NORMS, CONSTRUCTION PRICES AND CONSTRUCTION PRICE INDEXES

Article 19.Building of databases

1. Databases on construction norms, construction prices and construction price indexes are grounds for management, control and building of a transparent market in terms of construction norms, construction prices and construction price indexes.

2. Information and data on construction norms, construction prices and construction price indexes include material use norms, labor productivity norms, construction machinery and equipment productivity norms, norms of project management and construction investment consultancy expenses, norms of indirect expenses, investment ratios for and general construction prices of structure components, unit prices of construction materials, unit prices of construction labor, unit prices of construction machine shifts and construction equipment, and construction price indexes.

Article 20.Management of databases

1. The Ministry of Construction shall:

a/ Build, manage and comprehensively control the system of databases on construction norms, construction prices and construction price indexes nationwide;

b/ Build and finalize codes and application software for the management of the system of databases on construction norms, construction prices and construction price indexes;

c/ Guide the contents and methods of building databases; the use of database management software; the methods of updating the system of databases by ministries managing specialized construction works, provincial-level People’s Committees at all levels,and related subjects.

2. Ministries managing specialized construction works and provincial-level People’s Committees shall:

a/ Summarize, update and control the system of software managing databases on construction norms, construction prices and construction price indexes under their management according to the guidance of the Ministry of Construction;

b/ Assign specialized construction agencies to take responsibility for conducting market surveys and promptly updating information according to their functions and management areas for summarization and update into the system of databases on construction norms, construction prices and construction price indexes.

3. Project owners, project management units and subjects involved in the implementation of projects using state funds and investment projects in the form of PPP shall provide information on bidding data and work and project settlement data to specialized construction agencies as delegated and guided by the Ministry of Construction for the latter to update such data to the system of databases on construction norms, construction prices and construction price indexes.

Chapter V

PROJECT MANAGEMENT AND CONSTRUCTION INVESTMENT CONSULTANCY EXPENSES

Article 21.Project management expenses

1. Project management expenses are expenses necessary for implementing project management jobs from project preparation, project implementation to project completion to put the project’s works into operation and use.

2. Project management expenses include salaries of project managers; wages for contractual employees; salary-based allowances; bonuses; collective welfare; contributions (social insurance, health insurance and unemployment insurance premiums; trade union dues, and other deductions prescribed by law for persons salaried by the projects); expenses for science and technology application, management of information systems of works and capacity building training for project managers; public service charges; expenses for supplies and stationery, public information and communication, and organization of relevant conferences; work trip allowances; expenses for hiring, repair and procurement of assets serving project management; other expenses and contingency amounts.

3. Project management expenses shall be determined on the basis of the percentile norms (%) issued by the Ministry of Construction or by cost estimating in conformity with the form of project management, project implementation duration, and scope and characteristics of the project management job.

4. In case owners of projects using off-budget state funds or individual projects of particular characteristics hire consultants to manage such projects, project management consultancy expenses shall be determined by cost estimating based on the contents and volumes of the project management job agreed upon between project owners and consultants in project management contracts.

5. Owners of small-scale upgrading or repair projects prescribed in the Decree on management of construction investment projects and projects with community participation may use their attached specialized units to manage these projects; in this case, project management expenses shall be determined by cost estimating under Clause 3 of this Article.

Article 22.Management of project management expenses

1. For projects using state funds and investment projects in the form of PPP, their management expenses determined under Clause 3, Article 22 of this Decree are maximum expenses for project management according to their schedule. Project management expenses shall be managed based on cost estimates annually determined in conformity project management tasks and jobs and in compliance with relevant regimes and policies.

2. In case expenses for a number of management jobs which need to be implemented at the project preparation stage have been approved by competent authorities, such expenses shall be added to project management expenses.

3. Norms of project management expenses and the estimation method to determine project management expenses must comply with the Minister of Construction’s regulations.

Article 23.Construction investment consultancy expenses

1. Construction investment consultancy expenses are expenses necessary for implementing construction investment consultancy jobs from project preparation, project implementation to project completion to put the project’s works into operation and use.

2. Construction investment consultancy expenses include expenses for consultants; (salaries; salary-based allowances; bonuses; collective welfare; social insurance, health insurance and unemployment insurance premiums; trade union dues, and other deductions prescribed by law for individuals providing consultation to projects); expenses for science and technology application, management of information systems of works; public service charges; expenses for supplies and stationery, public information and communication; expenses for hiring, repair and procurement of assets serving project consultation (if any); management expenses of consultancy organizations; other expenses; presumed taxable profits, taxes, and contingency amounts. Particularly for construction survey consultancy and specialized construction testing, consultancy expenses include items like construction costs in cost estimates of construction works.

3. Construction investment consultancy expenses shall be determined on the basis of the norms issued by the Ministry of Construction or by cost estimating based on the scope and volume of and to-be-implemented consultancy jobs, bidding packages’ implementation plan and regulations on regimes and policies issued by the State.

4. Expenses for hiring foreign consultants to perform several consultancy tasks shall be determined by cost estimating in conformity with consultancy qualifications and quality according to international practices.

5.  Norms of construction investment consultancy expenses (calculated in percentage (%) or in volume) and the estimation method to determine construction investment consultancy expenses and expenses for hiring foreign consultants must comply with the Minister of Construction’s regulations.

Article 24.Management of construction investment consultancy expenses

1. Approved construction investment consultancy cost estimates are maximum costs for construction investment consultancy activities and may be adjusted only upon change in the scope, conditions and schedule of implementation of these activities. Construction investment consultancy expenses shall be managed through construction consultancy contracts.

2. In case owners or management units of construction investment projects that fully satisfy the prescribed capacity conditions implement a number of construction investment consultancy activities by themselves, expenses for consultancy activities may be added to project management expenses.

Chapter VI

PAYMENT AND SETTLEMENT OF WORK CONSTRUCTION INVESTMENT FUNDS

Article 25.Payment for construction contracts

The payment for construction contracts must comply with the Decree on construction contracts.

Article 26.Payment of work construction investment funds

1. Within 7 working days after receiving a complete and valid dossier of request for payment, the investment fund-paying agency shall pay investment funds at the request of the project owner or its/his/her lawful representative on the basis of the assigned funding plan.

2. Project owners or their lawful representatives, but not investment fund-paying agencies, shall take responsibility for unit prices, volumes and value requested for payment in payment request dossiers. In the process of making payment, if detecting errors in the dossiers, investment fund-paying agencies shall notify such in writing to the project owners or their lawful representatives for correction.

3. Investment fund-paying agencies and project owners are prohibited from setting illegal requirements in payment of construction investment funds.

Article 27.Settlement of work construction investment funds

1. The settlement of construction investment funds for works using state budget funds or off-budget state funds and investment projects in the form of PPP must be conducted after such works and projects are completed, handed over and put into use or permanently terminated after competent authorities issue a written request for suspension or permit the termination of such projects.

2. To-be-settled investment expenses of a project must be within the project’s total investment amount approved or adjusted in accordance with law.

3. To-be-settled investment expenses of a project are all lawful expenses spent during construction investment to put the project’s works into operation and use, covering all expense items spent within the scope of the project according to its approved designs and cost estimates and construction contracts signed in accordance with law, including also adjustments and additions approved under regulations andintra vires. PPP projects must comply with the regulations on investment in the form of PPP.

4. Contractors shall make dossiers for liquidation of the contracts signed with project owners under the regulations on construction contracts.

5. Project owners shall make dossiers for settlement of work construction investment funds and conversion of work contruction investment funds for submission to investment deciders for approval within 9 months after the works are completed, tested before acceptance, handed over and put into operation and use.

When it is necessary to immediately settle construction investment funds of independent works or work items under construction investment projects which have been completed and put into use, project owners shall report such to investment deciders for consideration and decision.

6. Agencies in charge of verifying and approving final accounts shall verify or approve the final accounts within 9 months after receiving a complete dossier for settlement according to regulations.

7. Within 6 months after obtaining a decision approving the final accounts of its/his/her project, the project owner shall settle all liabilities and the project’s account opened at the investment fund-paying agency. In case the final account of a completed project has been approved but the project has not yet received sufficient investment funds, the project owner shall report such to the investment decider and relevant agencies for the latter to allocate funds for settlement of liabilities and the project’s account under regulations.

8. For construction investment projects using state budget funds, after the end of a fiscal year, project owners shall settle the use of investment funds according to the Ministry of Finance’s regulations.

9. Project owners that delay the settlement prescribed in Clause 3 of this Article shall be handled under the Decree on sanctioning of administrative violations in construction investment activities; mining, processing and trading of minerals to be used as construction materials; production and trading of construction materials; management of technical infrastructure facilities; real estate business, housing development and management of housing and working offices.

10. Competence to approve final accounts:

a/ For national important projects and other important projects the investment in which is decided by the Prime Minister:

- Project owner-managing agencies shall approve the final accounts of component projects using state budget funds;

- Project owners shall approve the final accounts of component projects not using state budget funds.

b/ For other projects, investment deciders are competent to approve or may authorize others to approve the final accounts of projects upon completion. Investment projects in the form of PPP must comply with the regulations on investment in the form of PPP.

Chapter VII

RIGHTS, OBLIGATIONS AND RESPONSIBILITIES OF INVESTMENT DECIDERS, PROJECT OWNERS AND CONSTRUCTION CONTRACTORS IN MANAGEMENT OF CONSTRUCTION INVESTMENT COSTS

Article 28.Rights, obligations and responsibilities of investment deciders

1. Investment deciders have the following rights:

a/ To approve cost estimates for the jobs performed in the stage of project preparation for making feasibility study reports and estimating costs for preparatory jobs for the making of technical designs, construction drawing designs, total investment, construction cost estimates, prices of construction bidding packages, adjusted total investment, adjusted construction cost estimates, and adjusted prices of construction bidding packages which lead to an increase in total investment;

b/ To decide on the use of contingency amounts (except projects requiring only techno-economic reports);

c/ To decide on prices of bidding packages in contractor selection plans, and on types and forms of contract;

d/ To decide on the scheme to update prices of construction bidding packages in case the updated prices of bidding packages are likely to lead to an increase in the total construction investment;

dd/ To approve the selection of construction investment cost management consultants that fully satisfy the capacity conditions prescribed in the Decree on management of construction investment projects to verify total investment and cost estimates of construction works which shall be used as a basis for appraisal and approval;

e/ To exercise other rights related to expense management in accordance with other relevant laws.

2. Investment deciders have the following obligations:

a/ To ensure sufficient investment funds for projects according to approved schedules;

b/ In case a project has not yet received sufficient investment funds for disbursement according to the project schedule, affecting the project implementation plan and construction investment efficiency, the investment decider shall formulate a financial mechanism for using other funding sources in the short term and report such to investment policy-approving authorities for approval so that the project can be further implemented on schedule;

c/ To urge project owners to make dossiers for settlement of investment funds under regulations. To verify and approve settlement of investment funds under regulations;

d/ To perform other obligations related to expense management in accordance with relevant laws.

3. Investment deciders shall take responsibility before law when:

a/ Failing to fulfill the obligations specified in Clause 2 of this Article and other relevant articles and clauses in this Decree, except inforce majeurecases;

b/ Deciding to implement the projects when the projects’ funding plans do not conform to implementation plans, leading to an increase in projects’ costs and delay in project implementation, thus causing loss and waste;

c/ Adjusting projects’ total investment in contravention of the construction law.

Article 29.Rights, obligations and responsibilities of project owners

1. Project owners have the following rights:

a/ To decide on the use of contingency amounts, for projects requiring only techno-economic reports;

b/ To hire construction investment cost management consultants that fully satisfy the capacity conditions prescribed in the Decree on management of construction investment projects to estimate, verify, control and manage construction investment costs;

c/ To claim compensation or initiate lawsuits in accordance with law to claim compensation for damage caused by the delay in payment of funds from the state budget by investment fund-paying agencies;

d/ To approve changes proposed by contractors in construction methods and technical requirements, provided that such changes ensure quality, schedule, safety and environmental protection under the signed contracts. To control changes during work construction such as changes in construction investment costs or acceleration of construction progress;

dd/ To approve proposals of engineering consultants or construction contractors concerning changes in supplies and construction materials on the basis of the signed contracts and objectives of the projects, provided that such changes meet technical, aesthetic, quality and schedule requirements;

e/ To perform several construction investment consultancy tasks when meeting the prescribed capacity conditions;

g/ To exercise other rights related to expense management under other relevant laws.

2. Projects owners have the following obligations:

a/ To formulate work construction investment projects; to submit total investment or adjusted total investment to competent authorities for appraisal and approval;

b/ To make or adjust cost estimates of construction works and submit them to competent authorities for appraisal and approval;

c/ To determine or adjust construction norms applicable to their works and submit them to competent authorities for approval for use as a basis for management of construction investment costs;

d/ To determine work construction prices and construction price indexes applicable to their construction works and bidding packages;

dd/ To make advance payment and payment for, and liquidate, contracts signed with contractors under contractual terms;

e/ To control work construction investment costs under regulations;

g/ To decide on, and take responsibility for the accuracy and reasonability of, the value of payments they request investment fund-paying agencies to make to contractors;

h/ To make reports on settlement of construction investment funds for completed works under Article 27 of this Decree;

i/ To buy insurance for works that require insurance or authorize contractors to buy insurance via construction contracts;

k/ To perform other obligations related to expense management in accordance with other relevant laws.

l/ To provide information and data of projects at the request of state management agencies; to coordinate with, and collect information on expense management at the request of, state management agencies.

3. Project owners shall take responsibility before law when:

a/ Failing to fulfill the obligations specified in Clause 2 of this Article and other relevant articles and clauses in this Decree, except inforce majeurecases;

b/ Committing errors in administration, inefficiently using investment funds and failing to promptly disburse funds, leading to an increase in project costs or delay in project implementation, thus causing loss and waste.

Article 30.Rights, obligations and responsibilities of construction investment cost management consultancy contractors

1. Construction investment cost management consultancy contractors have the following rights:

a/ To provide consultancy on cost management tasks in conformity with their competencies and operational scope as prescribed in the Decree on management of work construction investment projects;

b/ To request project owners and related parties to provide information and documents serving the cost management consultancy;

c/ To exercise other rights under cost management consultancy contracts and other relevant laws.

2. Construction investment cost management consultancy contractors have the following obligations:

a/ To perform cost management consultancy tasks under this Decree and other relevant laws;

b/ To take responsibility before law and project owners for their performance of cost management consultancy tasks;

c/ To refrain from disclosing information and documents relating to their cost management activities without being permitted by project owners or competent authorities;

d/ To provide information and data on cost management of projects at the request of state management agencies and project owners;

dd/ To perform other obligations under contracts and relevant laws.

3. Construction investment cost management consultancy contractors shall take responsibility before law when:

a/ Failing to fulfill the obligations specified in Clause 2 of this Article and other relevant articles and clauses in this Decree;

b/ Having to pay compensations for damage caused to project owners (if any) according to regulations on contracts and relevant laws.

Article 31.Rights, obligations and responsibilities of construction contractors

1. Construction contractors have the following rights:

a/ To decide on construction norms, construction prices and other relevant costs when determining bids for bidding;

b/ To exercise other rights under contracts and other relevant laws.

2. Construction contractors have the following obligations:

a/ To buy insurance in accordance with law;

b/ To provide information and data of projects at the request of state management agencies; to coordinate with, or collect information on cost management at the request of, state management agencies;

c/ To perform other obligations under contracts and relevant laws.

3. Construction contractors shall take responsibility before law when:

a/ Failing to fulfill the obligations specified in Clause 2 of this Article and other relevant articles and clauses in this Decree;

b/ Having to pay compensations for damage caused to project owners and related parties due to their faults (if any) according to contracts and relevant laws.

Chapter VIII

STATE MANAGEMENT OF CONSTRUCTION INVESTMENT COSTS

Article 32.The Ministry of Construction

The Ministry of Construction shall perform the unified state management of construction investment costs and shall:

1. Guide in detail the contents, and methods of determining and managing, construction investment costs, including preliminary total construction investment, total construction investment,construction cost estimates, work construction cost estimates, cost estimates of construction bidding packages, construction norms, work construction prices, work construction investment ratio and general construction prices of structure components, project management and construction investment consultancy expenses, construction price indexes, measurement of construction volumes, adjustment of total construction investment, adjustment of construction cost estimates; determination of prices of construction materials, prices of construction labor (including also consultants), market prices of construction machine shifts and equipment; conversion of construction investment funds, and control of construction investment costs.

2. Issue construction norms, norms of expenses; shrinkage norms and basic data for calculating machine shift costs and expenses for hiring construction machinery and equipment; work construction investment ratio and general construction prices of structure components; national and regional (inter-provincial) construction price indexes and other techno-economic norms. Regularly review and summarize the results of review, adjustment and supplementation of norms for issuance once every 2 years.

3. Assume the prime responsibility for the building, instruction and operation of databases on the system of construction norms and prices.

4. Inspect and examine the implementation of regulations on management of construction investment costs.

5. Prescribe the management of construction investment costs of construction works under the national target programs on sustainable poverty reduction and building a new countryside.

Article 33.The Ministry of Planning and Investment

To assume the prime responsibility for, and coordinate with related agencies in, formulating plans on investment funds for projects in conformity with their approved implementation plans and submit them to competent authorities for approval in accordance with the Law on Public Investment.

Article 34.The Ministry of Finance

1. To guide the payment and settlement of work construction investment funds. To prescribe the management and use of revenues from project management activities of owners and management units of projects using state budget funds.

2. To inspect and examine the payment and settlement of construction investment funds of completed works or projects.

Article 35.Ministries managing specialized construction works and provincial-level People’s Committees

1. Ministries and provincial-level People’s Committees shall, based on the Ministry of Construction-guided methods of making construction norms, make and issue construction norms applicable to specialized particular tasks of their ministries and localities after reaching agreement with the Ministry of Construction.

2. Provincial-level People’s Committees shall guide the making and management of construction investment costs; fully and periodically  publicize prices of construction materials, unit prices of construction labor, construction machine shift prices, rates for hiring construction machine and equipment, construction price indexes; issue work construction unit prices in conformity with prices in their local markets and examine the implementation of regulations on management of construction investment costs in their localities.

Chapter IX

IMPLEMENTATION PROVISIONS

Article 36.Transitional provisions

1. For ongoing construction investment projects approved before the effective date of this Decree, construction investment cost management (including also the adjustment of total investment and construction cost estimates) must comply with the Government’s Decree No. 32/2015/ND-CP of March 25, 2015, on management of work construction investment costs.

2. For construction investment projects already formulated and appraised but not yet approved, or already approved but not yet implemented, construction investment cost management must comply with this Decree; the adjustment of the structure of cost items in the total investment approved under this Decree shall be decided by investment deciders on the condition of ensuring the project schedule and management efficiency. For jobs and bidding packages for which contracts have been signed, the signed contracts shall apply.

Article 37.Organization of implementation

1. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, heads of political organizations, socio-political organizations and socio-political-professional organizations, and related organizations and individuals shall implement this Decree.

2. The Ministry of Construction shall assume the prime responsibility for, and coordinate with related ministries and sectors in, guiding the implementation of this Decree.

Article 38.Effect

1. This Decree takes effect on October 1, 2019.

2. The Government’s Decree No. 32/2015/ND-CP of March 25, 2015, on management of work construction investment costs, ceases to be effective on the effective date of this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC