CIRCULAR

PROVIDING INSTRUCTIONS ABOUT APPROACH FOR DETERMINATION OF COSTS OF FORMULATION AND IMPLEMENTATION OF ARCHITECTURE MANAGEMENT REGULATIONS

Pursuant to the Government's Decree No. 81/2017/ND-CP dated July 17, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Construction;

Pursuant to the Government’s Decree No. 85/2020/ND-CP dated July 17, 2020, elaborating on certain articles of the Law on Architecture;

Upon the request of the Director of the State Authority of Construction Economics and the Director of the Institute of Construction Economics;

The Minister of Construction issues the Circular providing instructions about the approach for determination of costs of formulation and implementation of architecture management regulations.

Article 1. Scope and subjects of application

1. This Circular provides guidance on the approach for determination of costs of formulation and implementation of regulations on architecture management according to the provisions of the Government’s Decree No. 85/2020/ND-CP dated July 17, 2020, elaborating on implementation of several articles of the Law on Architecture.

2. Entities and persons using the state budget's funds shall apply this Circular for determination and management of costs of formulation and implementation of architecture management regulations.

Article 2. Approach for determination of costs of formulation and implementation of architecture management regulations

1. Cost of formulation of architecture management regulations shall be calculated according to the following formula:

Where:

Cqc: Cost of formulation of architecture management regulations; unit: million dong;

Nt: Norm of cost of formulation of architecture management regulations issued in Appendix I hereto; unit: million dong/ha;

Qdt: Dimensional quantity of the area requiring formulation of architecture management regulations; unit: Ha;

Ki: Adjustment coefficient of cost of formulation of architecture management regulations issued in Appendix I hereto;

n: Number of cost-adjustment coefficients.

2. Cost of formulation of architecture management regulations defined in clause 1 of this Article is the maximum cost paid for formulation of architecture management regulations, excluding value-added tax. Value-added tax may be included in accordance with relevant regulations.

3. Cost of formulation of architecture management regulations excludes the cost of compilation of the list of architectural structures of value. Cost of compilation of the list of architectural structures of value shall be calculated in accordance with clause 4 of Article 3 herein.

4. In case where the dimensional quantity of the area where architectural management regulations are established falls within the range between two quantity values specified in Appendix I of this Circular, the norm of cost of the formulation of architecture management regulation shall be determined as follows:

Where:

Nt: Norm of costs of formulation of architecture management regulations; unit: million dong/ha;

Gt: Dimensional quantity of the area requiring formulation of architecture management regulations; unit: ha;

Ga: Dimensional quantity of the area requiring formulation of higher-level architecture management regulations; unit: ha;

Gb: Dimensional quantity of the area requiring formulation of lower-bound architecture management regulations; unit: ha;

Na: Norm of cost of formulation of architecture management regulations; unit: million dong/ha;

Nb: Norm of cost of formulation of architecture management regulations commensurate with Gb; unit: million dong/ha;

5. In case where the quantity of the area requiring the formulation of the architecture management regulations is larger than that specified in this Circular or the cost determined according to the norm is not suitable for the requirements for the formulation of architecture management regulations, the cost of formulation of architectural management regulations shall be determined by the cost estimate made according to the guidance in Appendix II to this Circular. The preparation and approval of a cost estimate must be consistent with the contents, quantity and requirements of the formulation of architecture management regulations and other relevant regulations.

6. The cost of implementation of the architecture management regulations shall be determined by an estimate relevant to the work of implementation of the architecture management regulations and other relevant regulations.

Article 3. Determination of costs of formulation, review and implementation of architecture management regulations

1. Costs of formulation of architecture management regulations must be inclusive of investigation and survey costs; costs paid for participants in making regulations; costs of purchase of documents, data and maps of all kinds; stationery; equipment depreciation costs; travel and accommodation costs; storage costs; costs of conferences, seminars and some other related costs.

2. Costs of formulation of architecture management regulations are determined on the basis of the dimensional quantity, the cost norm promulgated in Appendix I to this Circular and adjustment coefficients, if any.

3. In case of adjustment of the approved architecture management regulations, costs of making the adjustment of the adjusted architecture management regulations shall be determined by the cost estimate, but must not exceed 70% of the cost of formulation of the equivalent new architecture management regulations determined according to the provisions of this Circular. The cost estimate shall be made according to the instructions given in Appendix II hereto.

4. Costs of compilation of the list of architectural structures of value or addition of architectural structures of value to the approved list of architectural structures of value shall be determined according to the cost norms promulgated in Appendix I hereto. Costs of review and adjustment of the approved list of architectural structures of value shall be defined as 20% of costs of compilation of the list of architectural structures of value determined according to the regulations laid down herein.

5. In case where a professional architecture agency under the control of the People's Committee of a province or district is assigned to directly formulate the architecture management regulations, the cost of formulation of the regulations on architecture management shall be determined by the cost estimate suitable to the required scope, contents and progress of the work of formulation of regulations and the manner of execution by the professional architecture agency, but not exceeding 80% of the cost of formulation of architecture management regulations determined according to the similar norm prescribed in this Circular. The costs of implementation of the professional architecture agency shall be managed and used in accordance with relevant laws.

6. Costs of review of the architecture management regulations, review of the list of architectural structures of value refer to direct expenditures on the review work, including direct payment of remunerations to internal and external persons and entities participating in the review work; costs of seminars, workshops or consultative meetings attended by relevant units; costs of cooperation with other units in conducting an on-site survey during the review process. Costs of review of architecture management regulations, review of the list of architectural structures of value shall be defined as 5% of costs of formulation of architecture management regulations, costs of compilation of the corresponding list of architectural structures of value that are determined under the provisions of this Circular.

7. Costs of announcement of architecture management regulations shall be defined as 2% of the costs of formulation of the corresponding architecture management regulations that are determined under the provisions of this Circular.

8. General and administrative costs and expenses for formulation of architecture management regulations are the costs paid for activities of regulatory authorities during the process of formulation of regulations, such as payments to experts or officers working according to the dual employment regime, costs of seminars, workshops, business travel, office supplies and stationery and other activities necessary for performing administrative works related to formulation of architecture management regulations. General and administrative costs and expenses for formulation of architecture management regulations shall be defined as 6% of the costs of formulation of the corresponding architecture management regulations that are determined under the provisions of this Circular.

Article 4. Transitional clause

1. As for the work of formulation of construction management regulations performed under the contract signed before the effective date of this Circular, contractual terms and conditions shall be observed.

2. As for the work of formulation of architecture management regulations of which the cost estimate is approved, if the bidder selection round is not held yet, or the bidder for the work is already selected but the contract is under negotiation before conclusion, regulations of this Circular shall apply.

Article 5. Entry into force

This Circular is entering into force as of September 17, 2021.

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