CIRCULAR

AMENDMENTS TO 04 CIRCULARS RELATED TO CONSTRUCTION COST MANAGEMENT

Pursuant to the Law on Construction dated June 18, 2014;

Pursuant to the Law on amendments to the Law on Construction dated June 17, 2020;

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. 68/2019/ND-CP dated August 14, 2019 on construction cost management;

Implementing the Government’s Resolution No. 84/NQ-CP dated May 29, 2020 on tasks and solutions for dealing with difficulties in business operations, promoting disbursement in public investment and ensuring public order and safety during Covid-19 epidemic;

Implementing the Government’s Resolution No. 108/NQ-CP dated July 17, 2020 on some tasks and solutions for dealing with difficulties in the process of implementing the Government’s Decree No. 68/2019/ND-CP dated August 14, 2019 on construction cost management;

At the request of the Director of the Construction Economics Department;

The Minister of Construction hereby promulgates a Circular on amendments to the Circular No. 09/2019/TT-BXD dated December 12, 2019 of the Minister of Construction on instructions about determination and management of construction investment costs, the Circular No. 10/2019/TT-BXD dated December 26, 2019 of the Minister of Construction promulgating construction norms, the Circular No. 11/2019/TT-BXD dated December 26, 2019 of the Minister of Construction on guidelines on determination of cost per shift of construction machinery and equipment and the Circular No. 15/2019/TT-BXD dated December 26, 2019 of the Minister of Construction providing instructions on calculation of unit labor costs in the building and construction sector.

Article 1. Amendments to the Circular No. 09/2019/TT-BXD dated December 12, 2019 of the Minister of Construction on instructions about determination and management of construction investment costs

1. The following shall be added before “- Các chi phí khác (nếu có)” ("- Other costs (if any) in Point d Clause 1 of Article 3:

 “Depending on the specific conditions of specific construction projects, works or construction contract package, other costs may be supplemented with one or more of the following additional costs: costs moving specialized machinery and equipment to and out of the construction site; costs of ensuring traffic safety in service of construction (if any); costs of restoration of technical infrastructure affected by construction; costs of storage of materials; costs of construction of cover structures for machinery, machinery foundations, electricity, compressed air and water supply systems at construction sites, installation and dismantlement of several machines (such as cement mixers, asphalt mixer plants, mobile cranes, tower cranes, other building machines and equipment of similar nature).”.

2. Clause 2 of Article 6 is amended as follows:

“2. The power to appraise total construction investment is specified in Clause 3 Article 6 of the Decree No. 68/2019/ND-CP. For projects only requiring the economic-technical reports, the power to carry out appraisal is specified in Clause 13 Article 1 and Point a Clause 2 Article 3 of the Law on amendments to the Law on Construction.”.

3. Clause 2 of Article 7 is amended as follows:

“2. Approved total construction investment shall be adjusted according to Article 7 of the Decree No. 68/2019/ND-CP. The adjusted total construction investment includes approved total construction investment and increased or reduced total construction investment.”.

4. Clause 2 of Article 12 is amended as follows:

“2. The power to appraise and approve construction estimates is specified in Clauses 3 and 4 Article 10 of the Decree No. 68/2019/ND-CP. To be specific:

a) Regarding lump sum turnkey contract package estimates and mixed contract package estimates (EPC, EC, EP, PC), the package estimates must be appraised and approved by the investment decision maker prior to contractor selection.

b) Where necessary, the investment decision maker shall consider authorizing the investor to appraise and approve the cost estimate together with the survey task.

c) If the estimated costs of tasks performed to prepare engineering designs and construction drawings are expressed as a percentage (%) or included in a detailed estimate in accordance with regulations and have been within the approved total investment, they are not required to be re-appraised or re-approved.”.

5. Clause 1 of Article 14 is amended as follows:

“1. The construction contract package value is all the costs necessary for executing a contract. The costs of the construction contract package value are specified in Clause 2 Article 10 of this Circular.”.

6. Article 15 is amended as follows:

“Article 15. Use of cost contingency

Cost contingency shall be used as prescribed in Clause 4 Article 7, Clause 4 Article 11 and Clause 4 Article 12 of the Decree No. 68/2019/ND-CP. During the process of executing a construction contract, the investor shall decide to use the amount of cost contingency approved by the investment decision maker upon determining and updating the construction contract package value.”.

7. The following in some Points and Clauses of Articles 3, 8, 14 and 15 are repealed:

a) “(đối với trường hợp phải thuê chuyên gia cùng thực hiện)” (in case experts are hired to collaborate in performing these tasks) in Point d Clause 1 of Article 3 is repealed.

b) “Căn cứ vào điều kiện cụ thể của từng dự án, công trình, gói thầu xây dựng chi phí gián tiếp có thể bổ sung một số chi phí gián tiếp khác gồm: chi phí di chuyển máy, thiết bị thi công đặc chủng đến và ra khỏi công trường; chi phí bảo đảm an toàn giao thông phục vụ thi công (nếu có); chi phí hoàn trả hạ tầng kỹ thuật do bị ảnh hưởng khi thi công xây dựng (nếu có); chi phí kho bãi chứa vật liệu (nếu có); chi phí xây dựng nhà bao che cho máy, nền móng máy, hệ thống cấp điện, khí nén, hệ thống cấp nước tại hiện trường, lắp đặt, tháo dỡ một số loại máy (như trạm trộn bê tông xi măng, trạm trộn bê tông nhựa, cần trục di chuyển trên ray, cần trục tháp, một số loại máy, thiết bị thi công xây dựng khác có tính chất tương tự)” (“Depending on the specific conditions of specific construction projects, works or construction contract package, indirect costs may be supplemented with additional indirect costs: costs moving specialized machinery and equipment to and out of the construction site; costs of ensuring traffic safety in service of construction (if any); costs of restoration of technical infrastructure affected by construction (if any); costs of storage of materials (if any); costs of construction of cover structures for machinery, machinery foundations, electricity, compressed air and water supply systems at construction sites, installation and dismantlement of several machines (such as cement mixers, asphalt mixer plants, mobile cranes, tower cranes, other building machines and equipment of similar nature”) in Point b Clause 2 of Article 8.

c) Clauses 3, 4 and 6 of Article 14.

d) Clause 3 of Article 17.

8. Some contents of the Appendices 2, 3 and 9 enclosed with the Circular No. 09/2019/TT-BXD are amended by the Appendix I enclosed herewith.

Article 2. Amendments to the Circular No. 10/2019/TT-BXD dated December 26, 2019 of the Minister of Construction promulgating construction norms

Some construction norms promulgated together with the Circular No. 10/2019/TT-BXD are amended by the Appendix II enclosed herewith.

Article 3. Amendments to the Circular No. 11/2019/TT-BXD dated December 26, 2019 of the Minister of Construction on guidelines on determination of cost per shift of construction machinery and equipment

1. Clause 2 of Article 4 is amended as follows:

“2. Machinery cost per shift does not include cost of construction of cover structures for machinery, machinery foundation, electricity, water and compressed gas supply systems and other constructions serving installation and test operation of some types of machines namely cement mixers, asphalt mixer plants, mobile cranes and equivalent equipment. Separate estimates for such costs shall be prepared depending on construction methods and accounted for in other costs of construction estimates.”.

2. Some contents of the Appendices 1 and 2 enclosed with the Circular No. 11/2019/TT-BXD are amended by the Appendix III enclosed herewith.

Article 4. Amendments to the Circular No. 15/2019/TT-BXD dated December 26, 2019 of the Minister of Construction providing instructions on calculation of unit labor costs in the building and construction sector

Clause 2 of Article 7 is amended as follows:

“2. People's Committees of provinces and central-affiliated cities shall consult instructions given herein to direct Departments of Construction to take charge of and cooperate with relevant entities and units in conducting surveys or hiring qualified consultants to survey and collect information and refer to the range of unit labor costs published by the Ministry of Construction to publish or authorize publication of unit labor costs every month or quarter or upon change of unit labor costs on the construction market to form a basis for estimating and managing construction costs within provinces.”.

Article 5. Implementation clause

1. This Circular comes into force from September 05, 2020. The Circular No. 01/2017/TT-BXD dated February 06, 2017 of the Minister of Construction shall cease to have effect from the effective date of this Circular.

2. Grandfather clauses:

a) Regarding the construction contract package of which bidding documents or request for proposal has been issued but for which bid has been closed before the effective date of this Circular, the investment decision maker shall consider deciding to apply regulations hereof to execute it.

b) Regarding the construction contract package for which bid has been closed before the effective date of this Circular, it shall be executed according to the bidding documents, request for proposal, bid or proposal./.

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