DECREE

MANAGEMENT OF CONSTRUCTION INVESTMENT COST

Government's Decree No. 10/2021/ND-CP dated February 09, 2021 on management of construction investment cost, which comes into force from February 09, 2021 is amended by:

Government’s Decree No. 35/2023/ND-CP dated June 20, 2023 on amendments to some Articles of Decrees in field of state management of the Ministry of Construction, which comes into force from June 20, 2023.

Pursuant to the Law on Government Organization dated June 19, 2015; the Law on amendments to some Articles of Law on Government Organization and Law on Local Government Organization dated November 22, 2019;

Pursuant to the Construction Law dated June 18, 2014; the Law on amendments to some Articles of the Construction Law dated June 17, 2020;

Pursuant to the Law on Investment dated June 17, 2020;

Pursuant to the Law on Public Investment dated June 13, 2019;

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Pursuant to the Law on Bidding dated November 26, 2013;

At the request of the Minister of Construction;[1]

The Government promulgates Decree on management of construction investment cost.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

1. This Decree provides for management of construction investment cost for projects utilizing public investment funding, non-public investment state capital, investment projects in public-private partnerships (hereinafter referred to as “PPP projects”), including: preliminary total investment, total investment, construction estimates, construction contract package values, construction norms, construction prices, project management and construction consultancy cost; payment for and finalization of construction contracts; reimbursement and statement of construction costs; rights, obligations and responsibilities of investment deciders, investors, building contractors, advisory contracts for advisory contractors for management of construction investment cost.

2. Management of construction investment cost for projects utilizing official development assistance (ODA), concessional loans of foreign donors shall comply with international agreements; agreements on ODA loans, concessional loans entered into effect; this Decree and regulations on management and use of ODA loans and concessional loans of foreign donors.

Article 2. Regulated entities

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2. Other organizations and individuals shall refer to this Decree for management of construction investment cost for projects other than those under Clause 1 of this Article.

Article 3. Principles of management of construction investment cost

1. Management of construction investment cost shall comply with Article 132 of Law on Construction and Clause 50 Article 1 of Law on amendments to Law on Construction, and conform to each type of funding source, investment form, implementation method, project execution plans and relevant law provisions.

2. Specifying and exercising rights and responsibilities of regulatory agencies, investment deciders, and agencies specialized in construction; rights and obligations of investors, organizations and individuals related to management of construction investment cost satisfactory to construction investment procedures under Clause 1 Article 50 of Law on Construction.

3. The Government regulates, provides guidelines and inspects implementation of regulations and law on management of construction investment cost; regulates affairs necessary to enable investors and relevant entities to adopt and refer to during management of construction investment cost, including: construction norms, construction prices, construction investment rates, output price indices; construction material costs, construction machinery and equipment cost per shift, construction personnel unit price; information and data on construction costs of projects and constructions; methods of determining, managing construction investment cost, construction quantity takeoff, and controlling construction cost, norms, prices, investment rate and output price indices.

4. Specific projects and constructions shall comply with Decree on elaboration of management of construction investment and specific mechanisms prescribed by Government, decisions of the Prime Minister to determine and manage construction investment cost.

5. With regard to projects and constructions serving national defense and security, entitlement, procedures for appraisal of total investment cost in construction investment feasibility reports, construction investment economic-technical reports, and entitlement, procedures for approval and appraisal of construction estimates in construction design implemented after fundamental design shall comply with regulations of the Minister of National Defense and the Minister of Public Security.

6. Projects and construction works under national target programs shall adopt principles and methods of determining construction investment cost under this Decree and relevant law provisions satisfactory to characteristics and conditions of construction under national target programs.

7. Management of construction investment cost of overseas projects and constructions shall conform to principles under Decree on elaboration of management of construction investment cost.

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PRELIMINARY TOTAL INVESTMENT, TOTAL CONSTRUCTION INVESTMENT

Article 4. Determination, appraisal and approval for preliminary total investment

1. Preliminary total investment refers to estimated investment costs of projects in construction investment pre-feasibility reports. Preliminary total investment includes: compensation, assistance and relocation costs (if any); construction cost; equipment cost; project management cost; construction investment and consultancy cost; other costs; backup costs.

2. Preliminary total investment is estimated on the basis of scale, capacity or capability according to preliminary design of projects and construction investment rates or data on costs of similar projects in terms of construction type, grade, scale, capacity or capability, characteristics of implemented projects with analysis and assessment to adjust shift in market price depending on building site and including other necessary costs of projects.

3. Appraisal and approval for preliminary total construction investment shall be performed simultaneously with appraisal and approval for construction investment pre-feasibility reports according to regulations and law on public investment, investment in form of public-private partnership, management and use of state capital in manufacturing and business in enterprises and other relevant law provisions.

Article 5. Total construction investment

1. Total construction investment refers to total construction investment costs of projects identified and satisfactory to fundamental design and other details under construction investment feasibility reports.

2. Total investment includes compensation, assistance and relocation costs (if any); construction cost; equipment cost; project management cost; construction investment and consultancy cost; other costs; backup costs and is prescribed as follows:

a) [2] Compensation, assistance and relocation costs include compensation costs for land, houses, constructions on land, assets attached to land, assets on water and other compensation costs as per the law; assistance costs when the government performs land appropriation; relocation costs; costs for organizing compensation, assistance and relocation; land use and rental costs during construction period and other costs related to the use and repurposing of land, water resources, marine resources according to regulations of law (if any); costs for repositioning and repaying technical infrastructure invested for construction serving land clearance (if any) and other relevant costs;”.

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c) Equipment costs include cost for purchasing construction and technology equipment; administrative cost for equipment purchase (if any); cost for purchasing copyrights of software serving construction and technology equipment (if any); training and technology transfer costs (if any); costs for processing, manufacturing equipment to be processed (if any); cost for installing, experimenting, calibrating; cost for conducting test operation of equipment based on technical requirements (if any); transportation costs; insurance; tax and fees; other relevant costs;

d) Project management costs refer to costs necessary to organize management of implementation and implement management affairs from project preparation, project execution to conclusion of construction, bringing project constructions into operation and settlement of construction investment capital and are elaborated under Article 30 of this Decree;

dd) Construction investment consultancy costs refer to costs necessary to perform construction investment consultancy affairs from project preparation, project execution to conclusion of construction, bringing project constructions into operation and settlement of construction investment capital and are elaborated under Article 31 of this Decree;

e) Other costs include costs necessary to execute construction investment projects, include: costs for clearing and disarming mines, explosive ordnances; costs for moving specific construction machinery and devices to and from construction sites; costs for guaranteeing traffic safety during construction period; costs for returning technical infrastructure damaged by construction period to its original state; costs for material storage; costs for constructing sheltering structures for machine, machine foundation, electrical and compressed air supply systems, on-site water supply systems, installing and/or dismantling machines; construction insurance costs during construction period; costs for registering international standards and monitoring construction deformation processes; costs for accounting, inspection and approval of investment capital settlement; costs for examining acceptance inspection during construction period and at completion of constructions and work items performed by agencies specialized in construction or councils established by Prime Minister; conducting scientific and technology research, applying and utilizing new materials related to projects; initial working capital for construction investment for business purposes, loan interests during construction period; costs for conducting unloaded and loaded test operation for technology and manufacturing lines before transfer (other than salvageable product value); costs for appraising construction investment feasibility reports, construction investment economic-technical reports; resource taxes, fees and charges as per the law and other necessary costs to execute construction investment projects not specified under Points a, c, d, and dd of this Article;

g) Backup costs include costs for additional work load and inflation that occurs during project execution.

3. In case projects only require preparation of construction investment economic-technical reports, total construction investment shall include construction estimates according to Article 11 of this Decree, compensation, assistance, relocation costs (if any) and relevant costs of projects. Construction estimates are identified under Article 12 of this Decree.

Article 6. Determination of total construction investment

1.  Total construction investment is determined by using following methods:

a) Determination according to construction load based on fundamental design and other requirements of projects;

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c) Determination according to costs of similar projects and constructions;

d) Combination of methods under Points a, b, and c of this Clause.

2. Method specified under Point a Clause 1 of this Article shall serve as the basic method for determining total construction investment for projects, constructions with fundamental design eligible for determining quantity of work, groups and type of work, structural components, construction components and respective construction costs.

3. Total construction investment is determined by using the method specified in Point a Clause 1 of this Article:

a) Compensation, assistance and relocation costs are determined on the basis of compensation, assistance and relocation solutions of projects and relevant government policies;

b) Construction costs are determined on the basis of work load and construction affairs; groups and type of construction affairs, structural components, construction components, respective construction costs and other relevant costs;

c) Equipment costs are determined on the basis of quantity, amount, type of equipment or equipment systems according to technology, technical solutions, selected equipment, equipment price in conformity with market price and other relevant costs;

d) Project management costs are determined under Article 30 of this Decree;

dd) Construction investment consultancy costs are determined under Article 31 of this Decree;

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g) Backup costs for additional work are determined by percentage of costs under Points a, b, c, d, dd, and e of this Clause. Percentage for backup costs for inflation is determined based on temporal length of projects, project execution plans and output price indices suitable for construction type taking into account domestic and international price fluctuation.

4. Total construction investment is determined by using the method specified in Point b Clause 1 of this Article:

Total construction investment is determined on the basis of quantity, area, capacity or capability according to publicized fundamental design and respective construction investment rate in conformity with construction type and grade with assessment, conversion and calculations in terms of date on which total construction investment is produced, project location, addition of other necessary costs not included in construction investment rates depending on specific conditions of projects, constructions.

5. Total construction investment is determined by using the method specified in Point c Clause 1 of this Article:

Total construction investment is determined on the basis of quantity, area, capacity or capability according to fundamental design and data on costs of executed projects, constructions with similar type, grade, scale or operational capability. Cost-related data shall be converted, calculated in terms of date on which total construction investment is produced, project location and added with other necessary costs in conformity with specific conditions of projects and construction.

6. According to level of detail of fundamental design of projects, publicized construction investment rates, data on costs of similar projects and constructions, 2 or 3 methods under Points a, b, and c Clause 1 of this Article shall be combined to determine total construction investment.

Article 7. Appraisal of total construction investment

1. Appraisal of total construction investment is a detail within construction investment feasibility reports, construction investment economic-technical reports.  Entitlement to appraisal of total construction investment shall comply with Law on Construction and Decree on elaboration of management of construction investment projects.

2. Details for appraisal of total construction investment performed by agencies specialized in construction under Point g Clause 2 Article 58 of Law on Construction and amendments thereto under Clause 15 Article 1 of Law on amendments to Law on Construction are follows:

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b) Conformance of total construction investment to approved total preliminary investment; methods of determining total construction investment;

c) Conformance of total construction investment under Article 5 of this Decree to project contents and requirements;

d) Compliance with regulations and law on application, reference of construction norms systems, construction prices, other necessary tools issued by regulatory authorities, and application, reference of cost-related data of similar projects, constructions to determine total construction investment.

3. Details for appraisal of total construction investment performed by agencies, organizations or individuals authorized by investment deciders under Point a Clause 3 Article 56 and Point d Clause 1 Article 57 of Law on Construction and amendments thereto under Clauses 13 and 14 Article 1 of Law on amendments to Law on Construction are as follows:

a) Adequacy and legitimacy of application for appraisal of total construction investment; examination of inspection results of total construction investment of consulting organizations (if any);

b) Results of finalization and revision of application for appraisal of total construction investment based on recommendations of agencies specialized in construction under Clause 2 of this Article (if any) and explanations;

c) Conformance and adequacy of determination of quantity or scale, capacity or capability serving calculation in total construction investment compared with fundamental design of projects;

d) Determination of total construction investment in such a way to ensure adequacy and legitimacy and conform to design, construction conditions, market price and project execution plans;

dd) Analysis of reasons for increase, decrease and assessment of investment effectiveness assurance of projects according to total construction investment which is determined post-appraisal.

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5. Regarding projects that only require construction investment economic-technical reports, investment deciders shall appraise details under Clauses 3 and 4 Article 13 of this Decree.

6. Inspection serving appraisal of total construction investment shall comply with regulations on inspection serving project appraisal under Decree on elaboration of regulations on management of construction investment projects.

7. Costs for organizations and individuals participating in appraisal shall be extracted from fees, charges for appraisal of construction investment feasibility reports.

8. The Ministry of Construction shall regulate fees for appraising and examining construction investment feasibility reports, construction investment economic-technical reports. The Ministry of Finance shall prescribe fees for appraising construction investment projects.

Article 8. Approval for total construction investment

1. Approval for total construction investment is specified under decisions on construction investment. Entitlement to decision on construction investment shall conform to Article 60 of Law on Construction and amendments thereto under Clause 17 Article 1 of Law on amendments to Law on Construction.

2. Approved total constructions investment refers to the maximum cost for execution of construction investment projects.

Article 9. Revision of total construction investment

1. Approved total construction investment shall be revised according to Clause 5 Article 134 of Law on Construction and Point dd Clause 18 Article 1 of Law on amendments to Law on Construction.

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Article 10. Appraisal and approval for costs for project preparation

1. Costs for project preparation include costs for construction survey; preparation and appraisal of construction investment pre-feasibility reports, approval for investment guidelines (if any); preparation and appraisal of construction investment feasibility reports, construction investment economic-technical reports and other necessary affairs related to project preparation.

2. Agencies and organizations assigned to prepare projects or investors (if investors have been identified) shall organize preparation and appraisal of project preparation estimates under Clause 1 of this Article, except for cases under Clauses 3 and 4 of this Article.

3. With regard to national important projects utilizing public investment capital, preparation, appraisal and approval of project preparation estimates under Clause 1 of this Article shall conform to regulations and law on public investment.

4. Regarding estimates of costs for hiring foreign consultants for affairs under Clause 1 of this Article, entitlement to appraisal and approval for estimates shall conform to Clause 4 Article 32 of this Decree.

5. Project preparation estimates under Clause 1 of this Article shall be included in total construction investment after being approved.

Chapter III

CONSTRUCTION ESTIMATES

Section 1. CONSTRUCTION ESTIMATES

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1. Construction estimates refer to all expected costs necessary and identified according to construction design implemented after fundamental design or technical drawing design in case projects only require construction investment economic-technical reports.

2. Construction estimates include construction costs, equipment costs, project management costs, construction investment consultancy costs, other costs and backup costs.  Costs above are elaborated under Points b, c, d, dd, e, and g Clause 2 Article 5 of this Decree, other than construction investment consultancy costs and other costs for the whole projects.

3. Regarding projects with multiple constructions, investors shall determine total estimates to manage construction investment costs when necessary. Total estimates include construction estimates, consultancy costs, other costs, and backup costs for the whole projects.

Article 12. Determination of construction estimates

1. Construction estimates are determined according to quantity calculated from construction design implemented after fundamental design or technical drawing design in case projects only require construction investment economic-technical reports, technical guidelines, affair requirements, plans for implementation, construction conditions, construction solutions, construction norms, construction prices, output price indices and other relevant law provision adopted depending on specific construction conditions. Costs within construction estimates are determined according to Clauses 2, 3, 4, 5, 6, and 7 of this Article.

2. Construction costs include direct costs, indirect costs, pre-assessed taxable income and value-added tax (VAT) and are determined as follows:

a) Direct costs (including material costs, personnel costs, construction machinery and equipment costs) are determined according to specific construction quantity and unit price, and combined construction prices, type of construction operations, structural or component units of constructions.

In case direct costs are determined according to specific construction quantity and unit price, quantity shall be determined according to construction affairs and operation; specific construction unit price shall be determined according to Clause 2 Article 24 of this Decree.

In case direct costs are determined according to construction quantity and combined prices of construction type, affairs, constructions components or structures, the quantity shall be determined depending on construction type, structural or component units; prices of construction type, affairs, construction components or structures shall be determined under Clause 3 Article 24 of this Decree.

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c) Pre-assessed taxable income is determined by percentage;

d) VAT as per the law.

3. Equipment costs are determined as follows:

a) Equipment purchase costs are determined according to quantity, type of equipment based on (technology, construction) design, approved list of equipment in projects and respective purchase prices;

b) Costs for processing and manufacturing equipment (if any) are determined by preparing estimates on the basis of quantity of equipment to be processed, manufactured and respective unit prices for processing and manufacturing; on the basis of processing, manufacturing contracts, price notice of manufacturers, processors or prices for processing, manufacturing similar equipment;

c) Remaining costs for equipment according to Point c Clause 2 Article 5 of this Decree are determined by preparing estimates or on the basis of cost norms prescribed by regulatory authorities.

4. Project management costs are determined under Article 30 of this Decree.

5. Construction investment consultancy costs are determined under Article 31 of this Decree.

6. Other costs are determined on the basis of price prescribed by regulatory authorities or estimate preparation.

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Article 13. Examination and appraisal of construction estimates

1. Appraisal of construction estimates shall be implemented together with appraisal of construction design implemented after fundamental design according to Decree on elaboration of regulations on management of construction investment projects.

2. Entitlement to appraisal of construction estimates is implemented according to Law on Construction and Decree on elaboration of management of construction investment projects.

3. Details for appraisal of construction estimates performed by agencies specialized in construction under Point d Clause 2 Article 83a of Law on Construction and amendments thereto under Clause 26 Article 1 of Law on amendments to Law on Construction are follows:

a) Adequacy and legitimacy of application for appraisal of construction estimates; legal basis for determination of construction estimates;

b) Conformity of construction estimates with approved total construction investment; methods of determining construction estimates;

c) Conformity of construction estimate details under Article 11 of this Decree with project contents and requirements;

d) Compliance with regulations and law on application, reference of construction norms systems, construction prices, other necessary tools issued by regulatory authorities; application, reference of cost-related data of similar projects, constructions to determine construction estimates;

dd) List of new estimate indicators, revised estimate indicators (if any) and methods of determining; list of indicators to be surveyed during construction process.

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a) Adequacy of dossiers on construction estimates for appraisal; inspection of examination results of construction estimates of consulting organizations (if any);

b) Results of finalization and addition of application for appraisal of construction estimates (if any) according to recommendations of agencies specialized in construction for cases in which construction estimates shall be appraised by agencies specialized in construction under Clause 3 of this Article (if any) and explanation;

c) Conformity and adequacy of determination of construction work load, type and quantity of equipment in construction estimates compared with design;

d) Determination of construction estimates in such a way to ensure adequacy and legitimacy and conform to total construction investment, construction technical and technology requirements, construction conditions, construction solution, construction progress and market price;

dd) Analysis and assessment of level, cause of increase, decrease of costs compared with construction estimates applied for appraisal;

e) With regard to projects utilizing non-public investment state capital and not requiring appraisal performed by agencies specialized in construction, investors shall appraise details under Clause 3 of this Article and Points a, b, c, d, and dd of this Clause.

5. Details for appraisal of construction estimates for constructions under PPP projects.

a) With regard to constructions under PPP projects utilizing public investment: agencies specialized in construction shall appraise details under Clause 3 of this Article; investors shall appraise shall appraise details under Clause 4 of this Article and details under PPP project contracts;

b) Regarding constructions not utilizing public investment capital under PPP projects: investors shall appraise details under Clauses 3 and 4 of this Article and details under PPP project contracts.

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7. Examination serving appraisal of construction estimates shall conform to Decree on elaboration of management of construction investment projects.

8. Costs for organizations and individuals participating in appraisal shall be extracted from fees and charges for appraisal of construction estimates.

9. The Ministry of Construction prescribes costs for appraisal of construction estimates. The Ministry of Finance prescribes fees for appraising construction estimates.

Article 14. Approval for construction estimates

1. Entitlement to approval for construction estimates shall conform to Article 82 of Law on Construction and amendments thereto under Clauses 24 and 25 Article 1 of Law on amendments to Law on Construction.

2. Investors shall approve estimates for preparation affairs to prepare construction design after fundamental design and general costs for the whole projects.

3. Decisions on approval for construction estimates and cost estimates under Clause 2 of this Article shall be sent to investors.

Article 15. Revision of construction estimates

1. Approved construction estimates shall be revised according to Clause 4 Article 135 of Law on Construction.

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3. Entitlement to appraisal and approval for revised construction estimates shall conform to regulations on entitlement to appraisal and approval for revised construction design implemented after fundamental design under Decree on elaboration of regulations on management of construction investment projects.

4. In case revised construction estimates exceed approved estimates but they do not exceed approved total construction investment, investors shall organize revision and report to investment deciders for acceptance prior to approval.

5. In case revised estimates do not exceed approved estimates but alter structure of costs in total construction investment, investors shall organize revision, approval, report to investment deciders and be responsible for revision results.

Section 2. CONSTRUCTION CONTRACT PACKAGE ESTIMATES

Article 16. General regulations on construction contract package estimates

1. Construction contract package estimates (hereinafter referred to as “contract estimates”) are all costs necessary for executing contract package, determined for each contract package and satisfactory to contractor selection plans prior to organization of contractor selection.

2. Contract estimates are determined for the following contract packages:

a) Construction contract package;

b) Equipment procurement contract package;

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d) Construction investment consultancy contract package;

dd) Mixed contract package.

Article 17. Determination of contract estimates

1. Contract estimates are determined on the basis of costs of each contract package and satisfactory to design, scope, nature, characteristic and specific conditions of contract package.

2. Regarding front end engineering design (FEED) projects for implementation of engineering, procurement and construction (EPC) contracts, contract estimates are determined on the basis of costs within contract package determined on the basis of FEED design.

3. With regard to projects and constructions permitted by investment deciders to implement construction design after fundamental design according to each construction contract package and each project execution phase, contract estimates are determined on the basis of costs within scope of respective contract package and construction design. Costs within contract estimates are determined as costs under construction estimates under Article 12 of this Decree, satisfactory to scope, nature, characteristics and specific conditions of each contract package.

4. As for projects with approved construction estimates, investors shall determine contract estimates on the basis of costs within scope of contract package under approved construction estimates if necessary.

5. Backup costs in contract estimates shall conform to form of contracts in contract package specified under contractor selection plans.

Article 18. Examination, appraisal and approval for contract estimates

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2. Investors shall approve contract estimates under Clauses 2, 3, and 4 Article 17 of this Decree to replace contract package prices under contractor selection plans according to bidding laws.

3. Investors shall appraise and approve contract estimates under Point d Clause 2 Article 16 of this Decree. In case foreign consultants are hired, entitlement to appraisal and approval for estimates for contracts foreign consultants shall conform to Clause 4 Article 32 of this Decree.

4. According to characteristics of contract package, revision of costs under contract estimates specified under Clauses 2 and 3 Article 17 of this Decree shall be implemented similar to revision of construction estimates under Article 15 of this Decree

Article 19. Construction contract package price

1. Construction contract package price refers to price of construction contract package approved under contractor selection plans serving as the basis for contractor selection. Contract package price includes all adequate costs necessary to execute construction contracts, including backup costs, fees, charges, and taxes.

2. Contract package price shall be updated on bid opening day according to bidding law if necessary.

Chapter IV

CONSTRUCTION NORMS, CONSTRUCTION PRICES AND OUTPUT PRICE INDICES

Section 1. CONSTRUCTION NORMS

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1. Construction norm system includes economic-technical norms and cost norms. Economic-technical norms include basic norms and estimate norms.

2. Basic norms include norms on use of materials, labor capacity, construction machinery and equipment capacity in conformity with technical requirements, construction regulations, and standards and are used to determine or revise estimate norms.

3. Estimate norms

a) Estimate norms are norms on necessary depreciation of materials, human resources, construction machinery and equipment in conformity with technical requirements, construction conditions and specific construction measures for completion of a unit of construction quantity;

b) Estimate norms are adopted and consulted in order to prepare construction estimates and serve as the basis for determining construction prices, preparing and managing construction investment costs.

4. Cost norms include norms expressed in percentage and norms expressed in numeric values. Cost norms serve as the basis for determination of construction prices, cost estimates of affairs, costs in construction investment including indirect costs, pre-assessed taxable income, project management costs, construction investment consultancy costs and other costs.

5. Estimate norms for specific construction operations of sectors, local administrative divisions are norms for affairs not specified under construction norm system regulated by the Ministry of Construction and only occur in constructions under management of sectors or local governments.

6. The Ministry of Construction shall organize construction, issue construction norms for general use on a nationwide scale. Ministries having jurisdiction over specialized construction works shall organize construction operations, issue estimate norms for specific construction operations of sectors, and People’s Committees of provinces shall organize construction operations, issue estimate norms for specific construction operations of local administrative divisions.

7. Ministries having jurisdiction over specialized construction works, People’s Committees of provinces shall prepare plans, organize development of estimate norms under Clause 5 of this Article, send to Ministry of Construction and request for feedback on methods and basis for developing norms, conformity of calculation results of depreciation components prior to issuance.

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9. Construction norm system under this Article shall be managed by code system according to the Minister of Construction.

Article 21. Determination of new estimate norms and revision of estimate norms for application to structures

1. Determination of new estimate norms for structures shall be implemented for construction operations not specified elsewhere or construction operations that utilize new construction technology, construction solutions, or construction conditions that are not specified under construction norm systems issued by competent authorities.

2. Revision of estimate norms shall be implemented for construction operations specified under construction norm system issued by competent authorities but not conforming to technical design, requirements, construction conditions and/or construction solutions.

3. Determination of new estimate norms and revision of estimate norms shall conform to regulations of the Minister of Construction.

4. During preparation of construction estimates, determination and management of new estimate norms and revised estimate norms under Clauses 1 and 2 of this Article shall be implemented as follows:

a) Organizations and individuals preparing construction estimates shall be responsible for preparing lists of new estimate norms and estimate norms that require revision to meet specific structure requirements and organizing determination of norm depreciation in conformity with technical design, requirements, construction conditions, expected construction solutions to serve preparation of unit price and determination of construction estimates;

b) Agencies specialized in construction shall appraise relevant details under Point d Clause 3 Article 13 of this Decree;

c) Investors shall consider and decide use of revise estimate norms and/or new estimate norms for structures as the basis for determining construction prices.

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a) Investors shall organize recalibration of contents of norms (including applicable regulations, affair components, depreciation components, unit of measurement, norm values) on the basis of surveys and data collection during practical construction process;

b) Norm determination results shall be sent to agencies specialized in construction to serve review and completion of construction norm systems under Article 20 of this Decree for the purpose of update to the database under Article 28 of this Decree.

6. In case investors make request, the Ministry of Construction provides guidelines and remarks for new estimate norms whereas agencies which issue norms shall provide guidelines and remarks for revised estimate norms under Clauses 4 and 5 of this Article.

7. Investors may hire cost management and consultancy organizations that are capable according to Decree on elaboration of regulations on management of construction investment projects to determine and appraise norms under Clause 5 of this Article.

Article 22. Review and update of construction norm system issued by competent regulatory agencies

1. The Ministry of Construction, ministries having jurisdiction over specialized construction works and People’s Committees of provinces shall organize review and provide guidelines on application and reference of construction norm systems issued and publicized before effective date hereof according to the following principles:

a) Completing review, annulling inappropriate norms and issuing norms that do not require revision before June 30, 2021;

b) Organizing review, determining norms that require revision, adding and issuing norms before December 31, 2021;

c) During the period of reviewing and revising norms, the Ministry of Construction, ministries having jurisdiction over specialized construction works and People’s Committees of provinces shall be responsible for providing guidance on application and reference of norms that they have issued within competence and other necessary affairs to prepare and manage construction investment costs.

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3. The Ministry of Construction is responsible for organizing, expediting review and update of construction norm systems and issuing regulations, guidelines for implementation of review and update of construction norms.

4. Ministries having jurisdiction over specialized construction works and People’s Committees of provinces shall review, update and issue estimate norms under Clause 6 Article 20 as follows:

a) Determining annual lists, making plans for reviewing norms and sending them to the Ministry of Construction for monitoring and examination during implementation;

b) Assigning agencies specialized in construction affiliated to organizations that review and hire organizations and individuals capable for operating according to Decree on elaboration of regulations on management of construction investment projects to review, determine new norms and revised norms and request competent authorities to issue these norms as per the law;

c) Deciding issuance of norms after consulting the Ministry of Construction according to Clause 7 Article 20 of this Decree and sending to Ministry of Construction for consolidation and update onto database.

5. Agencies specialized in construction within their competence shall consolidate development results of norms under Clauses 4 and 5 Article 21 of this Decree and norms under Clause 6 of this Article and send to the Ministry of Construction (in case of new estimate norms) and agencies that issue norms (in case of revised estimate norms) to serve review, consideration and decision to update norm systems.

6. Organizations and individuals are encouraged to organize determination of new estimate norms and revised estimate norms by themselves, and send results to agencies specialized in construction to serve state management affairs.

Article 23. Expenditure on review, update, development and revision of construction norms

1. Expenditure on review, update of construction norms implemented by Ministry of Construction, ministries having jurisdiction over specialized construction works and People’s Committees of provinces include expenditure on plan preparation, review organization; review, determination, appraisal; update of new norms and revised norms. Such expenditure shall be covered by annual budget.

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Section 2. CONSTRUCTION PRICES AND OUTPUT PRICE INDICES

Article 24. Construction prices

1. Construction prices include specific construction unit price and mixed construction prices and serve as the basis for determining total construction investment and construction estimates.

a) Specific construction unit price is determined for construction operations;

b) Mixed construction prices are determined by group, type of construction operations, structural or component units of constructions.

2. Specific construction unit price of constructions is determined on the basis of construction norms, prices of construction materials, components, personnel, construction machinery and equipment and other necessary cost factors satisfactory to price market of construction sector at a definite point in time and other relevant law provisions, on the basis of construction unit price issued by People’s Committees of provinces or on the basis of market price or similar prices of implemented constructions.

3. Mixed construction price is determined on the basis of combining specific construction unit price of a unit of measurement of operation, structural or component unit according to prices issued by competent authorities, identified on the basis of market price or similar prices in implemented constructions.

Article 25. Construction investment rates

1. Construction investment rates are costs necessary for a unit of measurement by area, volume, length, capacity or capability of structures by design and serve as the basis for determining preliminary total investment and total construction investment.

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Article 26. Management of construction prices and construction investment rates

1. The Ministry of Construction shall provide guidelines for determining construction prices, construction investment rates and publicize mixed construction prices, construction investment rates periodically.

2. People’s Committees of provinces shall publicize construction unit price of local administrative divisions; decentralize and authorize Departments of Construction to publicize construction price information in provinces according to Points a and b of this Clause as follows:

a) Publicizing prices of construction materials and equipment on a quarterly basis or earlier if necessary;

b) Publicizing unit price of construction personnel, construction machinery and equipment per shift, construction machinery and equipment rental on an annual basis or earlier if necessary.

3. Investors shall employ construction price systems under Clauses 1 and 2 of this Article as the basis for determining total construction investment, construction estimates and managing construction investment costs or organizing determination of construction prices satisfactory to technical requirements, construction conditions, constructions solutions and specific plans of constructions.

4. Investors may hire organizations and/or individuals that provide advice on management of construction investment costs and are capable of operating according to Decree on elaboration of regulations on management of construction investment to perform tasks or parts of tasks related to determination and appraisal of construction prices under Clause 3 of this Article.

5. Expenditure on collecting figures, determining and publicizing construction prices and information on prices and construction investment rates under Clauses 1 and 2 of this Article shall be allocated from annual budget.

Article 27. Output price indices

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2. Output price indices include construction prices by construction type and cost compositions (including price index of construction works, price index of equipment, and price index of other costs), cost factors (including price index of building materials, price index of labor, price index of building equipment) and price index of some major materials.

3. Development and issuance of output price indices shall be implemented as follows:

a) The Ministry of Construction provides guidelines for determination of output price indices; determine and publicize national output price indices on a yearly basis;

b) Departments of Construction shall organize determination of output price indices in provinces using methods provided by Ministry of Construction (including all price indices under Clause 2 of this Article) as the basis for enabling People’s Committees of provinces to publicize or decentralize, assign Departments of Construction to publicize price indices on a quarterly basis, annual basis or earlier if necessary and send to the Ministry of Construction.

4. In case output price indices are utilized to revise construction contract value, for constructions that are not specified under list of output price indices publicized by the Ministry of Construction or People’s Committees of provinces, investors shall organize determination of output price indices using methods provided by the Ministry of Construction and send to the Ministry of Construction (for constructions implemented in at least 2 provincial administrative divisions) or People’s Committees of provinces (for constructions implemented in provincial administrative division) for remarks about conformity of method of determining output price indices, adequacy and legitimacy of determination of output price indices.

5. Investors may hire organizations and/or individuals that provide advice on cost management and are capable of operating according to Decree on elaboration of regulations on management of construction investment to calculate output price indices under Clause 4 of this Article.

6. Expenditure on collecting data, determining and publicizing output price indices under Clause 3 of this Article shall be covered by annual budget.

Section 3. DATABASE ON CONSTRUCTION NORMS, CONSTRUCTION PRICES AND OUTPUT PRICE INDICES

Article 28. Database on construction norms, construction prices and output price indices

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a) Information and data on construction norms, construction prices, construction investment rates, output price indices issued or publicized by competent authorities;

b) Database on construction investment projects and construction contracts collected via investigations, surveys or provided by organizations, individuals on the basis of cooperation, information sharing and periodic reporting regimes as per the law;

c) Database on prices of construction services, construction products, construction materials and equipment, and other relevant information provided by organizations, individuals operating in construction sector or via investigation, survey.

2. The Ministry of Construction is responsible for developing, managing and operating database on a nationwide scale which serves as contact point for databases of specialized and local ministries having jurisdiction over specialized construction works; providing information and data in database for state management affair purposes and at request of organizations, individuals to prepare and manage construction investment costs as per the law.

3. Ministries having jurisdiction over specialized construction works and People’s Committees of provinces shall be responsible for developing, managing and operating database to serve state management affairs regarding construction investment costs in sector and local governments.

4. Principles of developing and managing database:

a) Database shall be synced and compliant with regulations and law; serve state management affairs and meet socio-economic development demands;

b) Information and data prior to being updated on database shall be examined, reviewed, assessed and classified accordingly;

c) Collection and addition of data and information shall prevent repetition of tasks; include close cooperation in collecting information, data; and maximize currently available information and data;

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dd) Agencies, organizations and individuals shall be legally responsible for information and data that they have provided for database.

Article 29. Management of database

1. The Ministry of Construction is responsible for developing, managing, operating and controlling database on a nationwide scale:

a) Develop Regulations on managing, extracting and utilizing database; issue and manage database login accounts; control contents that are updated, revised and uploaded on database;

b) Provide guidelines for contents and methods of developing database (including collecting, consolidating, processing, updating, storing information and data);

c) Provide guidelines for extracting and utilizing database;

d) Develop and finalize system of codes, software applications for management of database.

2. Ministries having jurisdiction over specialized construction works are responsible for consolidating and providing estimate norms on specialized construction operations; construction prices, construction material prices, human resource prices, specialized construction machinery and equipment and sending to the Ministry of Construction for update onto database.

3. People’s Committees of provinces shall be responsible for consolidating and providing estimate norms on specialized constructions of local administrative divisions; local construction prices, construction material prices, human resource prices, specialized construction machinery and equipment, output price indices and sending to the Ministry of Construction for update onto database.

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5. Expenditure on developing, managing, operating database and collecting, consolidating, processing, updating information shall be allocated from annual budget and other legally mobilized funding sources.

Chapter V

PROJECT MANAGEMENT COSTS AND CONSTRUCTION INVESTMENT CONSULTANCY COSTS

Article 30. Project management costs

1. Project management costs shall be used for organizing implementation and performing following tasks:

a) Organizing management of implementation of: supervising construction survey; selecting construction designs or construction design measures; compensating, assisting and relocating within responsibilities of investors; preparing and appraising construction feasibility reports or construction economic-technical reports; preparing and appraising construction design implemented after fundamental design and construction estimates; selecting contractors in construction operations; controlling quality, quantity, progress, construction prices and construction contracts; managing construction information system; collecting and providing information serving management of construction investment costs at request of competent authorities; ensuring occupational safety and hygiene of structures; determining new estimate norms, revising estimate norms; determining construction prices, output price indices; examining quality of materials, components, construction products, equipment installed in structures; accrediting structure components, work items, structures and conducting experiments specialized in construction sector at request; controlling construction investment costs; preparing preliminary environmental impact assessment reports, environmental impact assessment reports, surveying and monitoring environment during construction progress according to regulations and law on environmental protection; converting construction investment once structures are completed, inspected for acceptance and transferred into use; inspecting for acceptance, paying, setting contracts; paying and settling construction investment; supervising and assessing investment; inspecting for acceptance and transferring structures; initiating construction, inaugurating (if any), advertising and organizing management of implementation of other necessary tasks serving project management;

b) Performing the following tasks: supervising, assessing investment; appraising construction designs implemented after fundamental design and appraising construction estimates; determining construction contract package estimates (in case construction estimates have been approved) and performing other necessary tasks within responsibilities of investors.

2. Project management costs include salaries of project managers; wages for workers under contracts; allowances; bonuses; collective benefits; contributions (social insurance; medical insurance; unemployment insurance; union fees; other contributions as per the law for individuals eligible for receiving payments from projects); science and technology application, training and improvement of project managers; payment of public services; office supplies; information, communication and publicity; organization of conferences related to projects; working fees; hiring, repair, procurement of assets serving project management; other costs and backup costs.

3. Project management costs are maximum costs for managing projects depending on approved length, scope of work of projects and determined on the basis of percentage or by preparing estimates in conformity with project management methods, project length, project management scale and characteristics.  Project management costs shall be managed on the basis of estimates determined on an annual basis in conformity with project management tasks, affairs and relevant policies. Project management costs shall only be revised when there are changes to project management scope, project execution progress, or project revision.

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5. In case general contractors conclude EPC contracts for project management affairs under responsibilities of investors, general contractors shall partially benefit from project management costs conforming to project management affairs, workload assigned by investors and agreed upon under EPC contracts.

6. Total project management costs for investors and project management costs for project consultants and general contractors under Clauses 4 and 5 of this Article must not exceed project management costs determined and approved as per the law.

Article 31. Construction investment consultancy costs

1. Construction investment consultancy affairs include:

a) Developing missions, construction survey solutions, design missions; executing construction surveys, supervising construction surveys; producing construction investment pre-feasibility reports (if any), investment guideline proposal (if any), construction investment feasibility reports or construction investment economic-technical reports;

b) Appraising construction investment pre-feasibility reports (if any), construction investment feasibility reports or construction investment economic-technical reports; appraising technology design of projects (if any); appraising compensation, assistance, relocation solutions; proposing architecture solutions; designing construction; appraising construction designs, construction estimates;

c) Producing, appraising EOI request, prequalification document, bidding documents, soliciting documents, assessing EOI response, prequalification application, bid package and proposal to select construction contractors; appraising contractor selection results in construction sector; supervising construction process and equipment installation;

d) Developing, appraising construction norms, construction prices, output price indices; appraising traffic safety; applying BIM model;

dd) Providing project management consultancy (in case consultants are hired); conducting experiments in construction sector; controlling quality of materials, structural components, construction products, equipment installed in structures at request of investors (if any); controlling quality of construction components, work items, structures (if any), supervising, assessing construction investment projects (in case consultants are hired);

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g) Converting construction investment after structures are completed, inspected for acceptance and transferred into use (if any);

h) Other relevant consultancy affairs.

2. Construction investment consultancy costs include: costs for consultants (salaries, bonuses, allowances, collective interest, social insurance, health insurance and unemployment insurance contributions, union fees, other payments as per the law for individuals performing consulting activities in projects); costs for science technology application, management of construction information system; costs for public services, office supplies, information, communication; costs for hiring, repairing, procuring assets serving project consulting affairs (if any); management costs of consulting organizations; other costs; pre-assessed taxable income; VAT and backup costs. Costs for construction survey and experiments specialized in construction shall include costs under Clause 2 Article 12 of this Decree and other relevant costs (if any).

3. Construction investment consultancy costs shall be determined by cost norms issued by the Ministry of Construction or by preparing estimates on the basis of scope of consulting affairs, workload to be implemented, execution plans of contract package and regulations on policies issued by the government.

4. Approved construction investment consultancy costs are maximum costs for consultancy affairs for construction investment and only revised when changes to affairs, conditions, or consulting progress occur. Construction investment consultancy costs shall be managed via contracts for construction investment consultancy.

5. In case investors, boards for management of construction investment projects that are capable as per the law executing consultancy affairs, may add costs for said affairs to project management costs.

6. Costs for hiring foreign consultants for consultancy affairs shall conform to Article 32 of this Decree.

Article 32. Costs for hiring foreign consultants

1. Investment deciders shall decide to hire foreign consultants according to regulations and law on bidding.

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3. Costs for hiring foreign consultants are determined according to estimates or database on costs for hiring foreign consultants of similar projects and structures in Vietnam; Cost estimates for hiring foreign consultants are all costs necessary for completion of construction consulting services, including: costs on experts, management costs, other relevant costs, pre-assessed taxable income, backup costs and payable taxes as per the law.

4. Cost estimates for hiring foreign consultants shall be appraised, presented to investment deciders for approval by specialized agencies affiliated to investment deciders. In case of projects that the Prime Minister decides investment in, superior supervisory agencies of investors are assigned to organize appraisal and approval.

5. Methods of determining costs for hiring foreign consultants shall conform to regulations of the Minister of Construction.

Chapter IV

PAYMENT, SETTLEMENT OF CONSTRUCTION CONTRACTS AND PAYMENT, SETTLEMENT OF CONSTRUCTION INVESTMENT

Article 33. Payment, settlement of construction contracts

1. Payment and settlement of construction contracts shall conform to Decree on elaboration of construction contracts.

Article 34. Payment of construction investment

1. Payment of construction investment and deadline therefor:

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b) Projects utilizing non-public investment state capital and PPP projects shall conform to relevant regulations and law.

2. Investors or legal representatives thereof shall be responsible for value applied for payment under payment applications as per the law; agencies paying construction investment are not responsible for accuracy of value applied for payment under corresponding applications of investors or legal representatives thereof. If errors are found in payment applications during payment process, agencies paying construction investment shall inform investors or legal representatives thereof in writing for revision.

3. Agencies paying construction investment and investors are prohibited from developing regulations contradictory to regulations and law on payment of construction investment.

Article 35. Settlement of construction investment

1. Construction investment projects shall be settled in terms of construction investment after being transferred into use or terminated at written request of competent authorities.

2. Investment capital for settlement shall be within total approved or revised investment as per the law.

3. Investment capital for settlement refers to the entire legitimate cost required in construction process to bring project structures into use.  Legitimate costs are all costs within the scope of approved projects, designs, estimates; construction contracts signed as per the law, including approved amendments thereto. PPP projects shall conform to regulations and law on investment in form of public-private partnerships.

4. Contractors shall be responsible for preparing documents on settlement of contracts signed with investors as per the law on construction contracts which serve as the basis for settling investment capital.

5. Investors shall be responsible for settling construction investment within total approved investment of projects; preparing documents on settlement of construction investment and conversion of construction investment and requesting investment deciders to approve within 9 months from the date on which acceptance records of structures are signed and structures are transferred into use.  Regarding independent work items or structures within projects with multiple structures to be transferred into use, in case immediate settlement is required, investors shall report to investment deciders for consideration and decision.

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7. Investors shall be responsible for dealing with public debts and finalizing project accounts at agencies paying investment capital within 6 months from the date on which decisions on approval for settlement of capital of completed investment project are issued. In case completed projects with approved settlement have not been assigned with adequate capital, investors shall report to investment deciders and relevant agencies to deal with public debts and finalize project accounts as per the law.

8. As for construction investment projects utilizing public investment capital, after the end of the fiscal year, the investors shall make annual settlements as prescribed by the Ministry of Finance.

9. Investors that fail to perform settlement in a timely manner according to Clause 5 of this Article shall incur penalties according to regulations and law on imposition of penalties for administrative violations in construction investment.

10. Entitlement to approval for settlement of construction investment:

a) With regard to projects of national importance and other important projects in which investment is decided by the Prime Minister, superior authorities of investors shall approve cost statements of component projects funded by public investment capital and component projects funded by non-public investment state budget;

b) With regard to remaining projects, individuals capable of approving settlement of construction investment or authorizing approval for settlement of construction investment of completed projects shall decide investment;

c) PPP projects shall conform to regulations and law on investment in form of public-private partnerships.

Chapter VII

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

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1. Complying with regulations on rights and responsibilities of investment deciders under Article 72 of Law on Construction and Clause 22 Article 1 of Law on amendments to Law on Construction and entitlement under this Decree and relevant law provisions.

2. Regulating contract package value under plans for selecting contractors, types of contracts, forms of contracts.

Article 37. Rights and obligations of investors

1. Complying with regulations and law on rights and obligations of investors under Article 68 of Law on Construction and entitlement under this Decree and other relevant law provisions.

2. Accepting recommendations in terms of changing materials, construction materials, construction solutions, technical requirements at request of design consultants or construction contractors while satisfying technical, aesthetic, quality, progress, safety, environmental protection requirements according to signed construction contracts satisfactory to regulations and law on construction contracts and project objectives.

3. Closely managing and using funding sources of projects for the right purposes; preventing construction investment costs from exceeding total construction investment, and guaranteeing project progress and effectiveness.

4. Performing construction investment consultancy affairs if capable as per the law.

5. Providing data of projects at request of regulatory agencies; cooperating or organizing collection of cost management information data at the request of regulatory agencies.

6. Advancing, paying and settling contracts according to contracts signed with contractors.

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8. Paying fine from project management funding sources if imposed with penalties for administrative violations in construction investment.

Article 38. Rights and obligations of consulting contractors for management of construction investment costs

1. Consulting contractors have rights and obligations prescribed under consulting contracts for management construction investment costs under Decree on elaboration of management of construction investment projects and other relevant law provisions.

2. Requesting investors to provide information and data related to assigned consultancy tasks;

3. Being responsible for contents, quality, progress of consultancy affairs under their charge; providing project cost management information and data at request of regulatory agencies and investors.

4. Having their consultancy protected by intellectual property rights as per the law.

5. Refusing requests of investors contradicting regulations and law

6. Paying damages for failure to comply with regulations and law on management of construction investment costs and contract infringement which damages investors.

Article 39. Rights and obligations of construction contractors

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2. Deciding estimate norms, construction prices and other relevant costs when determining bidding prices.

3. Proposing and reaching agreements with investors on construction norms and construction prices of additional affairs according to construction contracts in accordance with regulations and law on management of construction investment costs and construction contracts.

4. Cooperating with investors in organizing surveys to determine revised norms and new norms during construction period (if any) according to Point a Clause 5 Article 21 of this Decree.

5. Providing data of projects at request of regulatory agencies; cooperating or organizing collection of information and data related to construction investment costs at request of regulatory agencies.

6. Paying damages for failure to comply with regulations and law on management of construction investment costs and contract infringement which damages investors.

Chapter VIII

STATE MANAGEMENT OF CONSTRUCTION INVESTMENT COST

Article 40. Ministry of Construction

1. Being responsible for unifying state management regarding construction investment cost.

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3. Issuing construction norms; publicizing construction investment rates, mixed construction prices, national construction price indices, norms on depreciations and basic data to determine machinery cost per shift. Organizing review on a regular basis, consolidating norm review, revision results and conducting issuance as per the law.

4. Taking charge of organizing development, guidelines and operating database on construction norms, construction prices and output price indices.

5.  Inspecting compliance with regulations and law on management of construction investment costs.

Article 41. Ministry of Planning and Investment

1. Taking charge and cooperating with relevant entities in appraising origin and ability to allocate capital for construction investment utilizing public investment capital; consolidating and presenting mid-term and annual public investment plans to the Government, the Prime Minister.

2. Organizing supervision and assessment of investment, examining and inspecting projects utilizing public investment capital as per the law.

Article 42.  Ministry of Finance

1. [3] Providing guidance on final settlement of non-public investment state capital. Regulating management and use of revenues generated from project consultancy and management affairs of investors and boards for management of projects utilizing public investment capital.”.

2. Inspecting payment and settlement of construction investment cost and completed projects.

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1. Ministries having jurisdiction over specialized construction works

a) According to methods of determining construction norms prescribed by the Ministry of Construction, organizing development and issuing construction norms for specific construction operations;

b) Periodically reviewing construction norm system that they have issued and sending new constructions norms, revised construction norms to the Ministry of Construction.

2. The Ministry of National Defense regulates methods of determining cost norms on clearing and disarming mines, explosive ordnances after consulting the Ministry of Construction.

3. People’s Committees of provinces

a)  Providing guidelines on preparing and managing construction investment; examining implementation of regulations on management of construction management cost in local administrative divisions;

b) According to methods of determining construction norms prescribed by the Ministry of Construction, organizing development and issuing construction norms for specific construction operations of local administrative divisions;

c) Periodically reviewing construction norm system that they have issued and sending new constructions norms, revised construction norms to the Ministry of Construction for monitoring and management;

d) Publicizing construction unit price of local administrative divisions; publicizing or decentralizing, authorizing Departments of Construction to publicize output price indices; decentralizing, authorizing Departments of Construction to publicize construction materials, construction equipment, construction personnel unit price, construction machinery and equipment cost per shift, construction machinery and equipment rental;

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Chapter IX

IMPLEMENTATION PROVISIONS

Article 44. Transitional provisions

1. With regard to construction investment projects presented for appraisal before January 01, 2021 according to 2014 Law on Construction without receiving appraisal results of total construction investment before the effective date hereof, appraisal affairs shall continue according to Law on Construction 2014 and guiding documents; subsequent management of construction investment cost shall conform to this Decree.

2. Construction investment projects with appraisal results of total construction investment that have not been approved before the effective date of this Decree shall not require another instance of appraisal; subsequent management of construction investment shall conform to this Decree

3. As for construction investment projects approved before the effective date of this Decree where none of the tasks in execution phase have been implemented (for cases in which contractors who have not issued bidding documents, requesting documents are required), subsequent management of construction investment shall conform to this Decree.

4. As for construction investment projects approved before the effective date hereof where one or several tasks in execution phase are being or have been implemented, subsequent management of construction investment for tasks that have not been implemented is as follows:

a) Details for appraisal and entitlement to appraisal and approval for construction investment shall conform to this Decree and Decree on elaboration of management of construction investment projects;

b) Determination and management of construction investment costs (other than those under Point a of this Clause) shall conform to regulation and law on management of construction investment costs applicable to the projects;

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5. Construction norms issued by competent agencies shall continue to be applied to determine construction investment according to regulations and law on management of construction investment costs applicable to projects until norm systems under Points a and b Clause 1 Article 22 of this Decree are issued by competent agencies and come into effect.

6. Construction price and output price index systems issued by competent agencies before the effective date hereof shall continue to be applied to determine construction investment until construction prices and output price index systems are publicized according to Articles 26 and 27 of this Decree. People’s Committees of provinces shall organize update and provide guidelines on using construction unit price when norm systems under Points a and b Clause 1 Article 22 of this Decree are issued by competent agencies.

7. Methods of determining construction investment issued before the effective date hereof shall continue to be applied to projects whose tasks in preparation phase are being implemented and projects under Clauses 1, 2, and 3 of this Article until methods under Clause 2 Article 40 of this Decree come into effect.

8. Update of construction investment according to construction norms, construction prices, and methods of determining construction prices issued by competent agencies and coming into effect according to this Decree shall be implemented as follows:

a) Total construction investment that has been approved or appraised does not require other instances of appraisal or approval. Investors shall determine construction estimates according to construction norms, construction prices, methods of determining construction investment issued, publicized as per the law;

b) Construction estimates that have been approved or appraised do not require other instances of appraisal or approval.

c) As for contract packages that have not issued bidding documents, requesting documents before the date on which construction norms, construction prices, methods of determining construction investment are issued and come into effect, investors shall update contract package estimates to determine contract package values under approved plans for selecting contractors to serve as the basis for selecting contractors as per bidding laws;

d) Regarding contract packages that have issued bidding documents, requesting documents but have not closed the bidding, investors shall consider and decide update of contract package estimates to determine contract package values to serve as the basis for selecting contractors as per bidding laws. In case bid is closed, investors shall comply with bidding documents, written request, bid envelop, written suggestion; do not update price of contract packages;

dd) If necessary, investment deciders, investors shall decide another instance of update, appraisal, approval for total construction investment under Point a of this Clause; construction estimates under Point b of this Clause within their competence;

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Article 45. Implementation

1. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces and central-affiliated cities, heads of political organizations, socio-political organizations, socio-political-occupational organizations and relevant organizations, individuals are responsible for implementation of this Decree.

2. The Ministry of Construction shall take charge and cooperate with relevant ministries in being responsible for providing guidelines for implementation of this Decree.

Article 46. Entry into force [4]

This Decree comes into effect from the date of signing and replaces Decree No. 68/2019/ND-CP dated August 14, 2019 of the Government on management of construction investment cost./.

CONFIRMED BY

PP. MINISTER
DEPUTY MINISTER




Bui Hong Minh

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[1] Government’s Decree No. 35/2023/ND-CP dated June 20, 2023 on amendments to some Articles of Decrees in field of state management of the Ministry of Construction is promulgated pursuant to:

“The Law on Government Organization dated June 19, 2015; the Law on amendments to some Articles of Law on Government Organization and Law on Local Government Organization dated November 22, 2019;

The Law on Promulgation of Legislative Documents dated June 22, 2015; the Law on amendments to the Law on Promulgation of Legislative Documents dated June 18, 2020;

The Law on Urban Planning dated June 17, 2009;

The Law on Judicial Expertise dated June 20, 2012; the Law on amendments to the Law on Judicial Expertise dated June 10, 2020;

The Construction Law dated June 18, 2014; the Law on amendments to some Articles of the Construction Law dated June 28, 2020;

The Law on Housing dated November 25, 2014;

The Law on Real Estate Trading dated November 25, 2014;

The Law on Architecture dated June 13, 2019;

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The Law on Product and Goods Quality dated November 21, 2007;

The Law on Investment dated June 17, 2020;

The Law on Public – Private Partnership Investment dated June 18, 2020;

The Law on amendments to some Articles concerning planning of 37 Laws dated November 20, 2018;

The Law on amendments to certain Articles of the Law on Public Investment, the Law Public-Private Partnership Investment, the Law on Investment, the Law on Housing, the Law on Procurement, the Law on Electricity, the Law on Enterprises, the Law on Special Excise Duties and the Law on Civil Judgment Enforcement dated January 11, 2022;

At the request of the Minister of Construction;”

[2] This Point is amended by Clause 1 Article 10 of Government’s Decree No. 35/2023/ND-CP dated June 20, 2023 on amendments to some Articles of Decrees in field of state management of the Ministry of Construction, which comes into force from June 20, 2023.

[3] This Clause is amended by Clause 2 Article 10 of Government’s Decree No. 35/2023/ND-CP dated June 20, 2023 on amendments to some Articles of Decrees in field of state management of the Ministry of Construction, which comes into force from June 20, 2023.

[4] Clause 1 Article 17 of Government’s Decree No. 35/2023/ND-CP dated June 20, 2023 on amendments to some Articles of Decrees in field of state management of the Ministry of Construction stipulates:

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