Circular No. 02/2020/TT-BXD Amending and Supplementing Certain Articles of Four Related Circulars on Construction Investment Cost Management

CIRCULAR

Amending and supplementing certain đa) The specialized department as stipulated in Clause 2, Article 14 of Decree No. 127/2007/NĐ-CP dated August 1, 2007, issued by the Government detailing a number of articles of the Law on Standards and Technical Regulations; of 04 Circulars related to the management of construction investment costs

Pursuant to the Construction Law on June 18, 2014;

Pursuant to the Law amending and supplementing certain articles of the Construction Law on June 17, 2020;

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

Pursuant to Decree No. 68/2019/NĐ-CP dated August 14, 2019 of the Government on the management of construction investment costs;

Implementing Resolution No. 84/NQ-CP dated May 29, 2020 of the Government on tasks and solutions to continue removing difficulties for production and business operations, promoting disbursement of public investment capital, and ensuring social order and safety in the context of the COVID-19 pandemic;

Implementing Resolution No. 108/NQ-CP dated July 17, 2020 of the Government on some tasks and solutions to remove difficulties and obstacles in the implementation of Decree No. 68/2019/NĐ-CP on the management of construction investment costs;

Article 1. Amending and supplementing certain articles of Circular No. 11/2021/TT-BXD dated August 31, 2021, issued by the Minister of Construction guiding certain contents on determining and managing construction investment costs

The Minister of Construction hereby promulgates this Circular amending and supplementing certain articles of Circular No. 09/2019/TT-BXD dated December 26, 2019 of the Minister of Construction guiding the determination and management of construction investment costs, Circular No. 10/2019/TT-BXD dated December 26, 2019 of the Minister of Construction promulgating construction norms, Circular No. 11/2019/TT-BXD dated December 26, 2019 of the Minister of Construction guiding the determination of machine and equipment construction work prices, and Circular No. 15/2019/TT-BXD dated December 26, 2019 of the Minister of Construction guiding the determination of construction labor unit prices.

Article 1. Amending and supplementing certain articles of Circular No. 09/2019/TT-BXD dated December 26, 2019 of the Minister of Construction guiding the determination and management of construction investment costs

1. Supplementing before the content “- Other expenses (if any)” at Point d Clause 1 Article 3 as follows:

"Based on specific conditions of each project, works, and construction tender packages, other expenses may be supplemented with one or more of the following expenses: Expenses for moving special construction machinery and equipment to and from the site; expenses for ensuring traffic safety during construction; expenses for restoring technical infrastructure affected by construction; expenses for material storage; expenses for constructing shelters for machines, machine foundations, electrical systems, air compressors, water supply systems at the site, and installation and dismantling of certain types of machines (such as cement concrete mixing plants, asphalt concrete mixing plants, rail-mounted cranes, tower cranes, and other similar construction machinery and equipment)."

2. Amending and supplementing Clause 2 Article 6 as follows:

"2. The authority to review the total investment cost shall be carried out according to the provisions at Clause 3 Article 6 of Decree No. 68/2019/NĐ-CP. For projects that only require the preparation of an economic and technical report, the authority to review shall be carried out according to the provisions at Clause 13 Article 1 and Point a Clause 2 Article 3 of the Law amending and supplementing certain articles of the Construction Law."

3. Amending and supplementing Clause 2 Article 7 as follows:

"2. Adjustments to the approved total investment cost shall be carried out according to the provisions of Article 7 of Decree No. 68/2019/NĐ-CP. The adjusted total construction investment includes the approved total construction investment and the value of adjustments (increase or decrease)."

4. Amending and supplementing Clause 2 Article 12 as follows:

"2. The authority to review and approve the construction budget shall be carried out according to the provisions at Clause 3 and Clause 4 Article 10 of Decree No. 68/2019/NĐ-CP, with some specific contents as follows:

1. For turnkey tender package budgets and mixed tender packages (EPC, EC, EP, PC), the tender package budget must be organized for review and approval by the Investment Decision Maker before selecting contractors.
2. In cases where necessary, the Investment Decision Maker may consider delegating the review and approval of the survey cost budget together with the survey task to the Project Owner.

c) For the budget of preparatory works for technical design and construction drawings design, which is determined as a percentage (%) or detailed budget according to regulations and has been reviewed and approved within the total investment, there is no need for re-review and re-approval."

5. Amending and supplementing Clause 1 Article 14 as follows:

"1. The price of a construction tender package is the total necessary cost to implement the tender package. The contents of the expenses of the price of a construction tender package are stipulated in Clause 2 Article 10 of this Circular."

6. Amending and supplementing Article 15 as follows:

“Article 15. Use of Contingency Costs

The use of contingency costs shall be carried out in accordance with the provisions of Clause 4, Article 7, Clause 4, Article 11, and Clause 4, Article 12 of Decree No. 68/2019/NĐ-CP. During the implementation of construction contracts, the Project Owner decides on the use of contingency costs within the scope of contingency costs that have been approved by the Investment Decision Maker when determining and updating the construction package tender price.

7. Repeal certain contents at some points and clauses of Article 3, Article 8, Article 14, and Article 17 as follows:

a) Repeal the phrase “(in cases where it is necessary to hire experts to carry out together)” in Point d, Clause 1, Article 3.

b) Repeal the content “Based on the specific conditions of each project, construction works, and construction package tenders, indirect costs may include additional indirect costs such as: transportation costs for special construction machinery to and from the construction site; traffic safety assurance costs for construction purposes (if applicable); infrastructure restoration costs due to construction impacts (if applicable); material storage yard costs (if applicable); construction costs for shelters covering machines, machine foundations, power supply systems, air compressors, water supply systems at the site, and installation and dismantling of certain types of machinery (such as cement concrete mixing plants, asphalt concrete mixing plants, rail-mounted cranes, tower cranes, and other similar construction machinery)” in Point b, Clause 2, Article 8.

c) Repeal Clause 3, Clause 4, and Clause 6 of Article 14.

d) Repeal Clause 3 of Article 17.

8. Amend and supplement certain contents of Appendices No. 2, 3, and 9 issued together with Circular No. 09/2019/TT-BXD in Appendix I issued together with this Circular.

Article 2. Amend and supplement certain articles of Circular No. 10/2019/TT-BXD dated December 26, 2019, issued by the Minister of Construction on construction norms

Amend and supplement certain construction norms issued together with Circular No. 10/2019/TT-BXD in Appendix II issued together with this Circular.

Article 3. Amend and supplement certain articles of Circular No. 11/2019/TT-BXD dated December 26, 2019, issued by the Minister of Construction guiding the determination of machine and construction equipment rates

1. Amend and supplement Clause 2 of Article 4 as follows:

“2. Machine rates do not include costs for construction works such as shelters for machines, machine foundations, power supply systems, water supply systems, air compressors, and other construction works carried out at the site to support the installation and trial operation of certain types of machinery such as cement concrete mixing plants, asphalt concrete mixing plants, rail-mounted cranes, and similar equipment. These costs are separately estimated according to construction methods and included in other costs of the project budget.”

2. Amend and supplement certain contents of Appendices No. 1 and 2 issued together with Circular No. 11/2019/TT-BXD in Appendix III issued together with this Circular.

Article 4. Amend and supplement certain articles of Circular No. 15/2019/TT-BXD dated December 26, 2019, issued by the Minister of Construction guiding the determination of labor rates for construction

Amending and supplementing Clause 2 of Article 7 as follows:

“2. Provincial People's Committees, directly under the Central Government, based on the guidance of this Circular, direct the Department of Construction to take the lead and coordinate with relevant agencies and units to survey or hire consultants with sufficient capacity to conduct surveys and collect information, referring to the average labor rate for construction published by the Ministry of Construction, to publish or authorize the publication of labor rates for construction on a monthly, quarterly, or ad-hoc basis when there are changes in labor costs in the construction market, serving as a basis for establishing and managing investment construction costs in their respective areas.”

Article 5. Implementation Provisions

1. This Circular takes effect from the date of / /2020. Circular No. 01/2017/TT-BXD dated February 6, 2017, issued by the Minister of Construction guiding the determination and management of construction survey costs, ceases to be effective from the date this Circular comes into force.

2. Transitional provisions:

a) For construction packages that have issued tender documents but have not yet closed bids before the effective date of this Circular, the Investment Decision Maker shall consider and decide on the application of the provisions of this Circular for implementation.

b) For construction packages that have already closed bids before the effective date of this Circular, they shall be implemented according to the contents of the tender documents, request for proposals, bid documents, and proposal documents./.