Circular No. 07/2009/TT-BXD guides the investment construction costs for the Son La Hydropower Project, including contents such as other direct costs, material transportation costs, processing norms, and temporary housing costs. This circular takes effect from the date of signing and applies to the Son La Hydropower Project.
Scope of application
Construction units, project sponsors, and construction contractors of the Son La Hydropower Project
Key points
- are construction units, project sponsors, and contractors who determine other direct costs in the construction project budget such as labor force relocation, labor safety, water pumping, silt removal, and material testing. The rate of other direct costs is 6.5% for underground construction work and 2% for surface construction work.
- shall not determine costs that do not fall under other direct costs such as initial investment for technical systems, ventilation, electricity, water supply and drainage, and construction service traffic. The rate for these costs is 2% for main works and 1.5% for other works.
- shall determine other direct costs, general costs, and pre-tax income included in the price of extracted materials at the Son La Hydropower Project. Specific rates are 1.5% for other direct costs, 2.5% for general costs, and 3% for pre-tax income.
- shall determine material transportation costs to the construction site based on the type of material, transportation plan, and supply location. These costs are negotiated and agreed upon between the project sponsor and contractor.
- may use large panel formwork for the Son La Hydropower Project with dimensions of 1.5 x 2 meters or larger.
🌐 Social impact of this document
- Positive impact: Helps construction units and project sponsors have a basis for accurately determining costs, ensuring rationality and efficiency in project management.
- Negative impact: May impose additional financial burdens on construction units due to compliance with many specific regulations.
❓ Frequently asked questions
What is the rate of other direct costs?
Other direct costs are determined as follows: 6.5% for underground construction work and 2% for surface construction work.
How are material transportation costs to the construction site determined?
Transportation costs are determined based on the type of material, transportation plan, and supply location. The project sponsor and contractor negotiate and agree on these costs.
What are the rates of other direct costs, general costs, and pre-tax income included in the price of extracted materials?
Specific rates are as follows: 1.5% for other direct costs, 2.5% for general costs, and 3% for pre-tax income.
When does this Circular apply to the Son La Hydropower Project?
This Circular takes effect 45 days after the date of signing and applies to the Son La Hydropower Project.
How are temporary housing costs at the construction site for living and construction management determined?
These costs are calculated based on the necessary needs of the project, according to the approved overall layout and total progress of the project by the competent authority, but shall not exceed 2% of the estimated construction cost value of the project.
Full text
CIRCULAR
Guidelines on Certain Aspects of Establishing and Managing Construction Investment Costs for the Son La Hydropower Project
_____________________________
Pursuant to Decree No. 17/2008/NĐ-CP dated February 4, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Construction;
Pursuant to Decision No. 207/2004/QĐ-TTg dated December 11, 2004 of the Prime Minister on the issuance of management mechanisms and implementation of the Son La Hydropower Project;
Pursuant to Decision No. 11/2007/QĐ-TTg dated January 23, 2007 of the Prime Minister on amending and supplementing certain provisions regarding the management mechanism and implementation of the Son La Hydropower Project issued together with Decision No. 207/2004/QĐ-TTg dated December 11, 2004;
Pursuant to the directives of the State Steering Committee for the Son La Hydropower Project in Notification No. 44/TB-BCĐNN dated November 3, 2008, Notification No. 49/TB-BCĐNN dated December 4, 2008, Notification No. 01/TB-BCĐNN dated January 5, 2009, Notification No. 05/TB-BCĐNN dated February 5, 2009, and Notification No. 11/TB-BCĐNN dated March 5, 2009;
The Ministry of Construction hereby provides guidelines on certain aspects of establishing and managing construction investment costs for the Son La Hydropower Project as follows:
I- GENERAL PROVISIONS
1. This Circular guides certain aspects of establishing and managing construction investment costs for the Son La Hydropower Project including:
1.1. Other direct costs in the construction project budget estimate;
1.2. Costs not included in other direct costs in the construction project budget estimate;
1.3. Other direct costs, common costs, and pre-tax income included in the material price at the Son La Hydropower Project site;
1.4. Transportation costs of materials to the construction site;
1.5. Labor rates, installation, dismantling of large formwork panels for hydraulic works;
1.6. Construction costs of temporary housing at the construction site for living and construction management;
1.7. Other cost items outside those mentioned above in the total investment ceiling, total budget estimate, and project budget estimate of the Son La Hydropower Project implemented according to Decision No. 207/2004/QĐ-TTg and Decision No. 11/2007/QĐ-TTg of the Prime Minister and corresponding state regulations during each period.
2. Principles for Establishing and Managing Costs
The establishment and management of construction investment costs for the Son La Hydropower Project shall be carried out in accordance with Decision No. 207/2004/QĐ-TTg, Decision No. 11/2007/QĐ-TTg of the Prime Minister, relevant state regulations during each period, and must ensure the project's investment objectives and effectiveness, accuracy, completeness, and suitability with actual conditions and objective requirements of the project.
II- SPECIFIC PROVISIONS
1. Other direct costs in the construction project budget.
These are costs for necessary tasks directly serving construction work such as moving labor forces within the construction site (excluding transportation costs from temporary housing at the construction site to the construction site), labor safety, environmental protection for workers and surrounding environment, water pumping costs, silt removal, material testing, etc., which cannot be determined from design drawings. The amount of other direct costs is determined as follows:
1.1. For construction work inside tunnels, other direct costs (including operation costs, regular maintenance costs for water supply, drainage, ventilation, power supply, and traffic services for tunnel construction) are calculated at 6.5% of the total material costs, labor costs, and construction machinery costs in the construction project budget estimate.
1.2. For construction work outside tunnels, other direct costs are calculated at 2% for main projects and 1.5% for other projects based on the total material costs, labor costs, and construction machinery costs in the construction project budget estimate.
2. Costs not included in other direct costs in the construction project budget estimate (determined by preparing a cost budget according to design, scale, test plan, and approved transportation plan).
2.1. Initial investment costs for technical water systems for construction work.
2.2. Initial investment costs for ventilation, lighting, electrical, drainage, and traffic systems serving construction work inside tunnels for tunnel construction work.
2.3. Initial investment costs for water pumping, drainage of foundation pits immediately after river diversion and flood prevention, and 0.4kV power systems serving construction work.
2.4. Regular costs for drainage of foundation pits immediately after river diversion and flood prevention.
2.5. Costs for transporting construction forces to the project site; costs for dismantling, transporting, and installing cranes over 200 tons within the construction site; maintenance of traffic systems serving construction within the construction site; operation costs of the power system from the point of connection to the project power grid to the final substation of the project (metering point for electricity purchase).
2.6. Costs for waste and wastewater treatment in temporary housing areas at the construction site.
2.7. Additional testing costs for roller-compacted concrete (RCC) construction testing.
3. Other direct costs, common costs, and pre-tax income included in the material price at the Son La Hydropower Project site.
For materials such as sand, gravel, sticky soil, and filter materials produced by construction units for project construction, the ratio of other direct costs, common costs, and pre-tax income is applied to calculate the product selling price. The specific ratios of other direct costs, common costs, and pre-tax income are determined as follows:
3.1. Other direct costs calculated at 1.5% of material costs, labor costs, and construction machinery costs.
3.2. Common costs calculated at 2.5% of construction machinery costs.
3.3. Pre-tax income calculated at 3% of direct costs and common costs.
A consolidated budget estimate table for production material costs is attached as an appendix to this Circular.
4. Determination of material transportation costs to the construction site.
Transportation costs are determined based on the type of material, transportation plan, supply location, road category, and local freight rates. The investor and contractor negotiate and agree on transportation costs to apply.
5. Regarding the quota for processing, installation, dismantling of large formwork panels for hydraulic works projects for use.
Large formwork panels for hydraulic works are formworks with dimensions of one panel measuring 1.5 x 2 meters or larger.
6. Costs for temporary housing at the construction site for residence and construction management (including transportation costs for construction workers from the temporary housing to the construction site, and regular maintenance and repair costs) shall be calculated based on the necessary requirements of the project, according to the overall layout and total progress of the project approved by the competent authority, but shall not exceed 2% of the estimated construction cost of the project.
III. IMPLEMENTATION
This Circular takes effect 45 days from the date of signature and applies to the Son La Hydropower Project. Completed project components and works that have been settled will not apply this Circular. Any difficulties encountered during implementation should be reported to the Ministry of Construction for study and resolution./.
Download
The original file of this document is being updated. Please read the full text and check back later.
Relations map
Click a document to open. A red border = a relation that changes validity.
Translations
This document is available in the following languages: