CIRCULAR

Guidelines for determining and managing planning costs

for construction planning and urban planning

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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 Decree No. 37/2010/NĐ-CP dated April 7, 2010 of the Government on the preparation, review, approval, and management of urban planning;

Pursuant to Decree No. 44/2015/NĐ-CP dated May 6, 2015 of the Government detailing certain contents regarding construction planning;

At the proposal of the Director of the Institute of Construction Economics and the Director of the Department of Construction Economics;

The Minister of Construction issues this Circular guiding the determination and management of planning costs for construction planning and urban planning.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the determination and management of costs for construction planning and urban planning, including: regional construction planning, general urban planning, urban district planning, detailed urban planning, specialized technical infrastructure urban planning, special function area construction planning, and rural construction planning.

Article 2. Applicability

1. This Circular applies to organizations and individuals using state budget funds or state funds outside the budget to determine and manage costs for construction planning and urban planning.

2. It is encouraged for organizations and individuals using other sources of funds to apply the provisions of this Circular to determine and manage planning costs for construction planning and urban planning.

Article 3. Principles for determining costs

1.  Costs for construction planning and urban planning must be accurately calculated and appropriate to the characteristics, nature, and requirements of each type of planning work.

2. The cost standards published in the Appendix attached to this Circular are for reference and use during the establishment and management of costs for construction planning and urban planning. In cases where the scale of the planning project falls between two scales published in the Appendix, the interpolation method shall be used to determine the cost standard.

3. Costs shall be determined by budget estimates for projects establishing construction planning or urban planning with a larger scale than those published and for construction planning and urban planning tasks without published cost standards in this Circular, where applying the costs accompanying this Circular is inappropriate.

PART II

COST DETERMINATION CONSTRUCTION PLANNING

AND URBAN PLANNING

Article 4. Determination of costs for establishing planning projects

1. The costs determined according to the cost standards for establishing construction planning and urban planning projects (hereinafter referred to as establishing planning projects) published in this Circular include all necessary expenses to complete the establishment of the planning project. When determining the costs for establishing planning projects according to the standards, value-added tax must be added.

2. Costs for establishing planning projects are determined as follows:

a) Costs for establishing regional construction planning projects are determined based on the scale of the planned area, population density of the region, and the cost standards in Table 1 - Appendix 1.

b) Costs for establishing general urban planning projects are determined based on the forecasted population within the planning period as stated in the approved planning task (excluding population forecasts for the vision period) and the cost standards in Table 2 - Appendix 1.

c)  Costs for establishing urban district planning projects are determined based on the scale of the planned area and the cost standards in Table 3 - Appendix 1.

d) The cost for preparing the detailed urban planning scheme is determined based on the scale of the planned area and cost standards in Table 4 - Appendix 1.

đ) Costs for establishing separate urban design projects are determined by budget estimates but not exceeding 1.5 times the cost calculated according to the detailed urban planning cost standards at a scale of 1/500 corresponding to the area of the urban design project.

e) Costs for establishing specialized technical infrastructure planning projects for centrally-administered cities are calculated as a percentage in Table 5 - Appendix 1 relative to the costs for establishing general urban planning projects.

g) Costs for establishing general construction planning projects for special function areas are determined based on the scale of the planned area and the cost standards in Table 6 - Appendix 1.

h)  Costs for establishing urban district construction planning projects for special function areas are determined based on the scale of the planned area and the cost standards in Table 7 - Appendix 1.

i) Costs for establishing detailed construction planning projects for special function areas are determined based on the scale of the planned area and the cost standards in Table 8 - Appendix 1.

k) Costs for establishing general construction planning projects for communes are determined based on the forecasted population within the planning period as stated in the approved planning task (excluding population forecasts for the vision period) and the cost standards in Table 9 - Appendix 1.

l) The cost for preparing the detailed planning scheme for rural residential areas is determined based on the scale of the planned area and cost standards in Table 10 - Appendix 1.

3. Costs for adjusting planning projects are determined by budget estimates, specifically as follows:

a) In cases of partial adjustment of planning projects: the costs are determined based on the content of the work to be adjusted.

b) In cases of comprehensive adjustment of planning projects but the scope of adjustment does not exceed the area or population of the project already approved, the maximum cost for adjusting regional construction planning projects, general urban planning projects, and detailed urban planning projects shall not exceed 70% of the cost for establishing new planning projects; the maximum cost for adjusting urban district planning projects shall not exceed 50% of the cost for establishing new planning projects.

If the scope of adjustment exceeds the area and population of the project already approved, the maximum cost for adjusting the planning project shall not exceed 100% of the cost for establishing a new planning project.

4. Costs for establishing underground space construction planning projects; specialized technical infrastructure planning projects with inter-regional, inter-provincial, or inter-urban characteristics, and other construction planning projects are determined by budget estimates.

5. For projects establishing planning that require costs to be determined by budget estimates, the content of the budget estimate is determined according to the guidelines in Appendix 2. The budget estimate must be based on the approved planning task by the competent authority.

Article 5. Determining costs for preparing planning tasks, reviewing planning tasks, reviewing planning projects, managing business of planning preparation, and some other works

1. The cost of preparing planning tasks shall be calculated according to the percentage standard set out in Table 11 of Appendix 1 relative to the cost of preparing planning projects.

2. The cost of reviewing planning tasks shall be determined at 20% of the cost of preparing planning tasks.

3. The cost of reviewing planning projects shall be calculated according to the percentage standard set out in Table 11 of Appendix 1 relative to the cost of preparing planning projects. In particular, the cost of hiring organizations and experts (including foreign organizations and experts) to provide feedback on planning projects for review purposes (if applicable) shall be determined based on the supplementary budget outside the cost of reviewing construction planning projects calculated according to the percentage standard set out in Table 11.

4. The cost of managing business of planning preparation shall be calculated as a percentage of the cost of preparing planning projects. The standard cost of managing business of preparing planning projects shall be determined in Table 11 of Appendix 1. In cases where the management business of preparing urban planning covers a region or a special city area, the cost of managing business of planning preparation shall be calculated according to the standard and adjusted with a factor K=2.

5. The cost of organizing opinions from agencies, organizations, and community representatives shall be determined based on the budget but shall not exceed 2% of the cost of preparing planning projects.

6. The cost of publishing planning projects shall be determined based on the budget but shall not exceed 3% of the cost of preparing planning projects.

7. The cost of making planning models shall be calculated according to the cost standard set out in Table 12 of Appendix 1 and multiplied by the area of the planning model.

Article 6. Determining other related costs

1. The cost of preparing planning projects shall be determined according to the standard which does not include the cost of performing the following works:

a) Preparing the planning assignment.

b) Construction surveys serving the preparation of the planning scheme.

c) Purchasing or preparing topographic maps for planning project preparation.

d) Other works serving the preparation of planning projects.

2. The cost of managing business of planning preparation shall be determined according to the standard which does not include the cost of performing the following works:

a) Hiring organizations and experts to provide feedback on planning projects or specialized seminars for providing feedback on planning projects, if applicable.

b) Organizing opinions from agencies, organizations, and community representatives to contribute to planning projects, if applicable.

c) Marking boundary stakes according to the plan on the ground.

d) Announcing approved planning projects.

e) Hiring organizations or individuals to advise on the preparation and review of planning cost estimates.

g) Other works serving the management business of preparing planning projects.

3. The cost of performing the works specified in points 1 and 2 of this Article shall be determined based on the budget (as guided in Appendix 2) or according to current relevant regulations and guidelines.

Article 7. Determining costs for hiring foreign consultants to prepare planning

Hiring foreign consulting organizations or individuals to prepare planning must comply with regulations related to hiring foreign consultants in construction activities in Vietnam. The cost of hiring foreign consulting organizations or individuals to prepare planning shall be determined based on the budget but shall not exceed the following levels:

1. In cases where domestic consulting organizations lead and cooperate with foreign consulting experts to prepare planning tasks and planning projects: The cost of hiring domestic consulting organizations and foreign consulting experts shall not exceed 1.5 times the cost of preparing planning tasks and planning projects as stipulated in this Circular.

2. In cases where domestic consulting organizations and foreign consulting organizations cooperate to prepare planning tasks and planning projects: The cost of hiring domestic consulting organizations and foreign consulting organizations shall not exceed 2.5 times the cost of preparing planning tasks and planning projects as stipulated in this Circular.

3. In cases where foreign consulting organizations undertake all work for preparing planning tasks and planning projects: The cost of hiring foreign consulting organizations shall not exceed 3.5 times the cost of preparing planning tasks and planning projects as stipulated in this Circular.

Chapter III

MANAGEMENT OF PLANNING COSTS

AND URBAN PLANNING

Article 8. Management of planning preparation costs

1. The agency assigned the task of managing the business of planning preparation shall be responsible for managing the planning preparation costs and other related work costs economically and effectively. During the cost management process, the agency assigned to manage the business of planning preparation may hire organizations or individuals with sufficient experience and capacity to prepare and review the planning cost estimates.

2. Costs for hiring consultants to prepare planning tasks and planning projects shall be managed through contracts. Planning contracts shall be determined based on the results of selecting contractors, negotiating, and signing contracts. The content of the planning consultancy contract must comply with relevant laws on contracts; in which the provisions regarding the price of the contract, bases for adjusting the contract price (if any), number of advance payments, contract payments, and products that need to be completed must be clearly specified.

3. The agency assigned the task of managing the business of planning preparation shall be responsible for managing the planning preparation costs according to the content of the contract and relevant regulations.

Article 9. Management of costs related to the preparation of planning projects

1. Business management costs for planning preparation are the limits of costs for activities of the agency managing the planning preparation process. The agency managing the business of planning preparation shall be responsible for managing these costs according to relevant regulations.

2. In cases where planning tasks are prepared by state management agencies, the planning task preparation costs are determined by the budget estimate and managed according to the financial mechanism applicable to state management agencies.

3. The costs for reviewing planning projects shall be managed according to approved budgets. Payment of costs for reviewing the preparation of planning projects must comply with the regulations of the competent authority.

Article 10. Authority to review and approve budget estimates for planning costs

1. The approving authority for planning projects or the authorized authority organizing the review and approval of the budget estimates for planning task preparation, planning project preparation, and costs for implementing related works.

2. The Ministry of Construction, People's Committees of provinces and centrally governed cities organize the review and approval of budget estimates for planning task preparation, planning project preparation, and costs for implementing related works for projects they organize within the Prime Minister's approval authority.

Chapter IV

IMPLEMENTATION

Article 11. Transitional provisions

1. For planning tasks being implemented under contracts, payment of planning preparation costs must be based on the contents of the signed contracts.

2. For planning works that have organized the selection of contractors for planning and are currently in the contract negotiation process, the competent authority approving the planning project preparation costs decides to apply the provisions of this Circular to determine the contract value.

3. For planning works that have approved cost estimates but have not yet organized the selection of contractors, the competent authority approving the planning project preparation costs decides to apply the provisions of this Circular to adjust the costs if necessary.

Article 12. Effectiveness

This Circular takes effect from June 1, 2017.

Circular No. 01/2013/TT-BXD dated February 8, 2013, guiding the determination and management of construction planning and urban planning costs, ceases to be effective from the date this Circular takes effect.

During implementation, if there are any difficulties, organizations and individuals are requested to send their opinions to the Ministry of Construction for consideration and resolution.