Circular 14/2023/TT-BXD amend Circular 11/2021/TT-BXD on determination and management of construction investment costs

CIRCULAR

Amending and supplementing a number of articles of the Minister of Construction’s Circular No. 11/2021/TT-BXD of August 31, 2021, guiding a number of provisions on determination and management of construction investment costs^[1]

Pursuant to the June 18, 2014 Construction Law; and the June 17, 2020 Law Amending and Supplementing a Number of Articles of the Construction Law;

Pursuant to the Government’s Decree No. 52/2022/ND-CP of August 8, 2022, defining the functions, tasks, powers and organizational structure of the Ministry of Construction;

Pursuant to the Government’s Decree No. 10/2021/ND-CP of February 9, 2021, on management of construction investment costs (below referred to as Decree No. 10/2021/ND-CP);

At the proposal of the Director of the State Authority of Construction Economics;

The Minister of Construction promulgates the Circular amending and supplementing a number of articles of the Minister of Construction’s Circular No. 11/2021/TT-BXD of August 31, 2021, guiding a number of provisions on determination and management of construction investment costs.

Article 1. To amend and supplement a number of articles of the Minister of Construction’s Circular No. 11/2021/TT-BXD of August 31, 2021, guiding a number of provisions on determination and management of construction investment costs

1. To amend and supplement Article 8 as follows:

“Article 8. Management and announcement of construction prices under Clause 2, Article 26 of Decree No. 10/2021/ND-CP

1. Work construction unit prices announced by provincial-level People’s Committees under Clause 2, Article 26 of Decree No. 10/2021/ND-CP serve as a basis for determination and management of work construction investment costs in localities. Work construction unit prices announced by provincial-level People’s Committees shall be determined on the basis of construction norms issued by competent agencies and prices of the cost components specified in Clauses 3, 4 and 5 of this Article at the time of determination. Prices of cost components include construction material price, construction labor unit price, and construction machinery shift and equipment price.

2. Construction material prices, construction labor unit prices and machinery shift and construction equipment prices shall be regularly announced by provincial-level Departments of Construction under Clause 2, Article 26 of Decree No. 10/2021/ND-CP and Clauses 3, 4 and 5 of this Article.

3. Management and announcement of construction material prices:

a/ Announced construction material prices must conform to market prices, quality and origin standards, and capacity and scope of material supply at the time of announcement. An announced list of construction materials shall be selected from the list of construction materials available in the system of norms issued by a competent agency and the list of construction materials available in the market.

b/ Provincial-level Departments of Construction shall assume the prime responsibility for, and coordinate with related agencies in, organizing survey, collection of information and determination of construction material prices in localities; make announcements of construction material prices according to Form No. 01 provided in Appendix VIII to this Circular; and send announcement results together with e-data files (made according to a set form) to the Ministry of Construction for monitoring, management and updating to the database under Clause 3, Article 29 of Decree No. 10/2021/ND-CP.

c/ In case of necessity, provincial-level Departments of Construction shall announce construction material prices on a monthly basis for construction materials with price fluctuations to meet requirements of the management of construction investment costs. The deadline for announcement of construction material prices in a quarter or a month is the 15^th of the first month of the subsequent quarter or the 10^th of the subsequent month, respectively.

4. Management and announcement of construction labor unit prices:

a/ Construction labor unit prices announced in localities must conform to construction labor prices in the labor markets of such localities, and the nature and characteristics of jobs of construction workers; and must be inclusive of wages and wage-based allowances depending on the nature and characteristics of construction production and some expenses payable by workers under regulations. Expenses payable by workers under regulations include social insurance, health insurance and unemployment insurance premiums, trade union dues and some other payables.

b/ Workday unit prices of construction workers shall be determined for the law-prescribed working time (8 hours per day and 26 days per month) for different groups of workers directly engaged in construction production and suitable to occupational skills for different grades and ranks of workers in the system of norms promulgated by competent state agencies.

c/ Lists of groups, grades and ranks of construction workers and methods of determination of construction labor unit prices are provided in the Circular guiding methods of determination of techno-economic indicators and quantity takeoff of works.

d/ Provincial-level Departments of Construction shall assume the prime responsibility for, and coordinate with related agencies in, carrying out or hiring capable consultants to carry out surveys, collect information, and refer to the bracket of construction labor unit prices announced by the Ministry of Construction in order to determine construction labor unit prices in localities; make announcements of construction labor unit prices according to Form No. 02 provided in Appendix VIII to this Circular; and send announcement results together with e-data files (made according to a set form) to the Ministry of Construction for monitoring, management and updating to the database under Clause 3, Article 29 of Decree No. 10/2021/ND-CP.

dd/ The deadline for announcement of construction labor unit prices in a year is January 15 of the subsequent year.

5. Management and announcement of construction machinery shift and equipment prices:

a/ Announced construction machinery shift and equipment prices must conform to category, capacity, major technical specifications, nature and characteristics of each type of machinery or equipment. An announced list of construction machinery and equipment shall be selected from the list of construction machinery and equipment available in the system of norms promulgated by a competent state agency and the list of construction machinery and equipment available in the market.

b/ Construction machinery shift and equipment prices shall be determined for every work shift (8 hours) of machinery and equipment as prescribed by law and must conform to waste norms and basic data for calculation of machinery shift prices promulgated by the Ministry of Construction and conform to the list of construction machinery and equipment available in the system of norms promulgated by a competent state agency.

c/ Construction machinery shift and equipment prices are inclusive of all or some of expense items such as depreciation expense, repair expense, fuel and energy expense, expense for machinery and equipment operators, and other expenses for machinery. Construction machinery shift and equipment prices are exclusive of the expenses specified at Point b, Clause 6, Article 4 of this Circular.

d/ Waste norms and basic data for determination of machinery shift prices and methods of determination of construction machinery shift and equipment prices are provided in the Circular guiding methods of determination of techno-economic indicators and quantity takeoff of works.

dd/ Provincial-level Departments of Construction shall assume the prime responsibility for, and coordinate with related agencies in, carrying out or hiring capable consultants to carry out surveys, collect information, and refer to historical costs of machinery shift announced by the Ministry of Construction in order to determine construction machinery shift and equipment prices in localities; make announcements of construction machinery shift and equipment prices according to Form No. 03 provided in Appendix VIII to this Circular; and send announcement results together with e-data files (made according to a set form) to the Ministry of Construction for monitoring, management and updating to the database under Clause 3, Article 29 of Decree No. 10/2021/ND-CP.

e/ The deadline for announcement of construction machinery shift and equipment prices in a year is January 15 of the subsequent year.

6. Enterprises manufacturing and supplying construction materials or supplying construction labor; enterprises supplying or leasing construction machinery and equipment in localities; project owners and contractors winning bids for construction investment projects shall provide information on prices of cost components to serve price announcement by provincial-level Departments of Construction under Clause 2 of this Article.”

2. To amend and supplement Article 9 as follows:

“Article 9. Determination of work construction prices

1. Work construction prices are inclusive of detailed construction unit prices and general construction prices. Work construction prices shall be determined under Clauses 2 and 3, Article 24 of Decree No. 10/2021/ND-CP and guided in Appendix IV to this Circular.

2. Project owners shall use the system of work construction prices specified in Clauses 1 and 2, Article 26 of Decree No. 10/2021/ND-CP and Clauses 1 and 2, Article 8 of this Circular as a basis for determination and management of construction investment costs. In case of determination of work construction prices according to detailed construction unit prices or general construction prices based on construction norms, construction material prices, construction labor unit prices and construction machinery shift and equipment prices shall be determined under Clauses 3, 4 and 5 of this Article.

3. Construction material prices:

a/ Construction material prices announced by competent state agencies under Clause 3, Article 8 of this Circular serve as a basis for determination of work construction prices.

b/ In case construction materials are not included in price announcements or are included in price announcements but their types are not conformable to standards or technical regulations, quality requirements, supply capacity and other specific conditions for different projects and works, construction material prices used for determination of work construction prices shall be collected, summarized, analyzed, evaluated and selected on the basis of referring to information on construction material prices as guided at Point b, Section 1.2.1.1 in Appendix IV to this Circular. The selection of construction material prices shall be carried out in an objective and transparent manner to ensure project efficiency. 

c/ It is encouraged to choose environment-friendly construction materials made with economical use of mineral resources and energy upon the formulation of feasibility study reports and construction designs and determination of construction investment costs for works and projects, while ensuring investment efficiency and meeting projects’ requirements.

d/ In case projects require the use of special construction materials that are not common in the market or the use of imported materials, such requirement shall be accompanied by specific commentaries in prefeasibility study reports, feasibility study reports, techno-economic reports, and construction design commentaries.

dd/ Criteria that need to be taken into consideration upon the selection of construction material prices for determining work construction prices must comply with Point a, Section 1.2.1.1 in Appendix IV to this Circular.

e/ Methods of determination of prices of construction materials transported to construction sites must comply with Section 1.2.1.2 in Appendix IV to this Circular.

4. Construction labor unit prices:

a/ Construction labor unit prices announced by competent state agencies under Clause 4, Article 8 of this Circular serve as a basis for determination of work construction prices.

b/ In case construction labor unit prices announced by competent state agencies are not conformable to specific characteristics of jobs, works or projects, project owners shall organize surveys and determine construction labor unit prices by the methods specified in the Circular guiding methods of determination of techno-economic norms and quantity takeoff of works for application upon the determination of work construction prices. In the course of determination of construction labor unit prices, provincial-level Departments of Construction shall provide guidance on correctness and appropriateness of bases for and methods of such determination when project owners so request.

c/ Project owners shall send dossiers of results of the determination of construction labor unit prices under Point b of this Clause to provincial-level Departments of Construction for monitoring and management; such dossiers must show bases for, and methods and results of, the determination of construction labor unit prices, and forms (if any) required by such methods; provincial-level Departments of Construction shall summarize and report them to the Ministry of Construction on an annual basis.

5. Construction machinery shift and equipment prices:

a/ Construction machinery shift and equipment prices announced by competent state agencies under Clause 5, Article 8 of this Circular serve as a basis for determination of work construction prices.

b/ In case construction machinery shift and equipment prices have not yet been announced by competent state agencies or have been announced but remain unconformable to use requirements and construction conditions of works or projects, project owners shall organize surveys and determine construction machinery shift and equipment prices by the methods specified in the Circular guiding methods of determination of techno-economic indicators and quantity takeoff of works for application upon the determination of work construction prices. In the course of determination of construction machinery shift and equipment prices, provincial-level Departments of Construction shall provide guidance on correctness and appropriateness of bases for and methods of such determination when project owners so request.

c/ Project owners shall send dossiers of results of the determination of construction machinery shift and equipment prices under Point b of this Clause to provincial-level Departments of Construction for monitoring and management; such dossiers must show bases for, and methods and results of, the determination of construction machinery shift and equipment prices, and forms (if any) required by such methods; provincial-level Departments of Construction shall summarize and report them to the Ministry of Construction on an annual basis.

6. For a work constructed in 2 or more provincial-level administrative units, its owner shall determine work construction prices under Clause 3, Article 26 of Decree No. 10/2021/ND-CP, ensuring convenience in the determination of costs and expenses, thrift and efficiency, and suitability to capacity to supply resources under implementation plans.”

Article 2. To amend and supplement a number of appendices to Circular No. 11/2021/TT-BXD as provided in the Appendix to this Circular

Article 3. Implementation provisions

This Circular takes effect on February 15, 2024.

For the Minister of Construction
Deputy Minister
BUI HONG MINH

* The Appendix to this Circular is not translated.