Circular No. 01/2015/TT-BXD guiding the determination of labor unit prices in construction investment cost management

CIRCULAR

Guidelines for determining unit prices of labor in cost management of construction investment projects

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Pursuant to Decree No. 62/2013/NĐ-CP dated June 25, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Construction;

Pursuant to the guidance opinion of the Prime Minister at the Government Office's notification No. 5724/VPCP-KTTH dated July 29, 2014 on the system of wage grades for direct production workers, determining the unit price of labor applied in investment construction cost management according to the Labor Code 2012 and guiding documents for implementing the Law;

Considering the proposal of the Director of the Construction Economy Department and the Director of the Construction Economics Institute;

The Minister of Construction issues this Circular guiding the determination of unit prices of labor in cost management of construction investment projects.

Article 1. Scope of Regulation

This Circular guides the determination of the unit price of labor in investment construction cost management.

Article 2. Applicability

1. Agencies, organizations, and individuals related to the management of investment construction costs for projects funded by state budget capital and state capital outside the budget; projects implemented under the forms: Build-Operate-Transfer (BOT), Build-Transfer-Operate (BTO), Build-Transfer (BT), Public-Private Partnership (PPP) contracts managed by state administrative agencies shall apply the provisions of this Circular.

2. It is encouraged that agencies, organizations, and individuals related to the management of investment construction costs using other sources of funds apply the provisions of this Circular.

Article 3. Principles for Determining and Adjusting Unit Prices of Labor

1. Unit prices of labor determined according to the guidelines of this Circular shall comply with the following principles:

a) In accordance with the skill level according to the wage grade in the construction project cost estimate standard system.

b) In accordance with the market wage level for construction workers in each locality but not lower than the minimum regional wage rate prescribed by the Government.

c) In accordance with the characteristics and nature of work of construction workers.

d) To meet the requirements for paying certain expenses that employees must pay according to regulations (social insurance, health insurance, unemployment insurance, and other expenses).

2. The unit price of labor as guided by this Circular is used to determine the total investment construction cost, construction estimate, etc., for the competent authority to approve as the basis for determining the tender price, organizing the selection of contractors in construction investment activities according to the laws on bidding and investment construction cost management.

3. The unit price of labor as guided by this Circular will be adjusted when there is a fluctuation in the market wage level for construction workers in the labor market.

Article 4. Determination of Unit Prices of Labor

The unit price of labor is determined according to the following formula:

Where:

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_NC: unit price of labor calculated for one day of direct production work.

-_NC: the entry-level wage to determine the unit price of labor for one day of direct production work. This wage includes additional wages, allowances for mobility, regional allowances, unstable production allowances, and takes into account market factors published in Appendix 1 attached to this Circular.

- Central agencies of political-social organizations;_CB: the wage coefficient according to the wage grade of direct production workers published in Appendix 2 attached to this Circular.

- t: 26 working days in a month.

State-owned enterprises that have been assigned by the Ministry of Agriculture and Rural Development to conduct offshore wind power project surveys before the effective date of this Circular shall continue to implement according to the assigned documents; any new matters arising after the effective date of this Circular shall be implemented in accordance with the provisions of this Circular.

1. Provincial People's Committees, municipal people's committees directly under the Central Government shall, based on the guidance of this Circular, direct the organization and determination of the unit price of labor, and publish it as the basis for establishing and managing investment construction costs.

2. The entry-level wage (L_NC) published in Appendix 1 of this Circular will be announced and adjusted by the Ministry of Construction when there is a fluctuation in the market wage level for construction workers in the labor market compared to the unit price of labor determined according to the guidance of this Circular.

Article 6. Transitional Provisions

1. For the unit price of labor included in the total investment construction cost, construction estimate already approved before the effective date of this Circular, the investor shall decide on the application of the provisions of this Circular. For construction contracts signed before the effective date of this Circular, they shall be implemented according to the terms of the signed contract.

2. For some construction investment projects currently applying special wage levels and certain allowances permitted by authorized agencies, they shall continue to be implemented until the completion of the investment and the project is put into operation.

Article 7. Effective Date

1. This Circular takes effect from May 15, 2015.

2. During the implementation period, if there are difficulties, agencies, organizations, and individuals are requested to report to the Ministry of Construction for consideration and resolution./.