Percentage-based method for preservation costs abolished from July 1, 2026

One of the notable changes introduced by Circular No. 40/2026/TT-BXD, issued on June 28, 2026, is the removal of the provision on determining construction work preservation costs by applying percentage (%) norms to construction costs and equipment costs on an annual basis.

Specifically, under Clause 1, Article 3 of Circular No. 40/2026/TT-BXD, construction work preservation costs shall be determined by preparing a cost estimate that includes the cost of performing preservation work, other costs, and contingency costs (if any).

The cost of performing preservation work shall be determined based on the quantities and unit prices of construction work preservation activities.

In addition, Clause 3 Article 3 provides that other costs included in the construction work preservation cost (if any) comprise the costs of preparing the cost estimate, verification of the cost estimate, construction supervision consultancy, preparation of bidding dossiers and dossiers of request, evaluation of bid dossiers, appraisal of bidding dossiers, appraisal of contractor selection results, and other costs related to construction work preservation, which shall be determined by percentage (%) norms or by preparing a cost estimate in accordance with law. Clause 4 Article 3 further provides that contingency costs (if any) shall be determined at not more than 5% of the total cost of performing preservation work and other costs.

Meanwhile, Clause 1 Article 3 of Circular No. 14/2021/TT-BXD provided that the cost of annual periodic maintenance activities was determined by applying percentage (%) norms to construction costs and equipment costs. Construction and equipment costs were determined based on the final value of the construction work or on investment capital rates announced by competent authorities. At the same time, the cost of annual periodic maintenance activities must not exceed the percentage (%) norms specified in Appendix I to the Circular.

Accordingly, from July 1, 2026, the method for determining construction work preservation costs changes from the percentage-based approach to preparing a cost estimate based on the quantities and unit prices of construction work preservation activities.

Besides providing guidance on construction work preservation costs, Circular No. 40/2026/TT-BXD also prescribes the determination of construction work repair costs, costs for other activities in construction work maintenance plans, and promulgates standardized forms for cost summaries and cost estimates for uniform application.

Circular No. 40/2026/TT-BXD takes effect on July 1, 2026, and Circular No. 14/2021/TT-BXD is repealed.