Decree No. 10/2021/NĐ-CP on management of construction investment costs

DECREE

On the management of construction investment costs

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Pursuant to the Law on the Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on the Organization of the Government and the Law on the Organization of Local Administration dated November 22, 2019;

Pursuant to the Construction Law dated June 18, 2014; the Law Amending and Supplementing Certain Provisions of the Construction Law dated June 17, 2020;

Pursuant to the Investment Law dated June 17, 2020;

Pursuant to the Public Investment Law dated June 13, 2019;

Pursuant to the Law on Public-Private Partnership dated June 18, 2020;

Pursuant to the Bidding Law dated November 26, 2013;

At the proposal of the Minister of Construction;

The Government promulgates this Decree on the management of construction investment costs.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Decree stipulates the management of construction investment costs for projects using public investment capital, state capital outside public investment, and public-private partnership (PPP) projects, including: preliminary total construction investment cost, total construction investment cost, construction budget, bidding price for construction works; construction norms, construction work prices, project management fees and construction investment consulting fees; payment and settlement of construction contracts, payment and settlement of construction investment capital; rights and responsibilities of the investment decision-making body, rights and obligations of the investor, construction contractor, and consulting contractor in the management of construction investment costs.

2. Management of construction investment costs for projects using official development assistance (ODA) funds and preferential loans from foreign donors shall be carried out in accordance with international treaties; agreements on ODA funds and preferential loans that have been signed; provisions of this Decree and laws on the management and use of ODA funds and preferential loans from foreign donors.

Article 2. Applicability

1. This Decree applies to agencies, organizations, and individuals related to the management of construction investment costs for projects using public investment capital, state capital outside public investment, and PPP projects.

2. Organizations and individuals may refer to the provisions of this Decree to manage construction investment costs for projects not covered by paragraph 1 of this Article.

Article 3. Principles of management of construction investment costs

1. Management of construction investment costs must ensure the principles prescribed in Article 132 of the Construction Law and Clause 50 of Article 1 of the Law Amending and Supplementing Certain Provisions of the Construction Law, in accordance with each source of capital for construction investment, form of investment, implementation method, project implementation plan, and relevant laws.

2. Clearly define and strictly implement the rights and responsibilities of state administrative agencies, the investment decision-making body, specialized agencies on construction; rights and obligations of investors, organizations, and individuals related to the management of construction investment costs, in accordance with the procedures for implementing construction investment as prescribed in Clause 1 of Article 50 of the Construction Law.

3. The State shall issue, guide, and inspect the implementation of laws on the management of construction investment costs; prescribe necessary tools for investors and related subjects to apply and refer to in managing construction investment costs, including: construction norms, construction work prices, investment capital rates, construction price indices; building material prices, machinery and equipment rental prices, construction labor unit prices; information and data on construction investment costs of projects and construction works; methods for determining and managing construction investment costs, quantity measurement, cost control, construction norms, construction work prices, investment capital rates, construction price indices.

4. Special construction projects shall apply the provisions of the Decree detailing certain contents on project management and special mechanisms as prescribed by the Government and decisions of the Prime Minister to determine and manage construction investment costs.

5. Construction projects serving national defense, security, and judicial purposes, the authority and procedures for reviewing the total construction investment cost in the feasibility study report for investment construction, economic and technical report for investment construction, the authority and procedures for reviewing and approving the construction budget in the detailed design after basic design shall be implemented in accordance with the regulations of the Minister of National Defense and the Minister of Public Security.

6. Projects under National Target Programs shall apply the principles and methods for determining construction investment costs prescribed in this Decree and relevant laws, suitable to the characteristics and conditions of implementing works under the Program.

7. Construction projects abroad shall implement construction investment management according to the principles prescribed in the Decree detailing certain contents on project management.

Chapter II

PRELIMINARY TOTAL CONSTRUCTION INVESTMENT COST, TOTAL CONSTRUCTION INVESTMENT COST

Article 4. Determination, Review, and Approval of Preliminary Total Investment Cost for Construction

1. The preliminary total investment cost for construction is the estimated construction investment cost of the project included in the Feasibility Study Report before Detailed Design. The contents of the preliminary total investment cost include: compensation, support, and resettlement costs (if applicable); construction costs; equipment costs; project management costs; construction investment consulting costs; other costs; contingency costs.

2. The preliminary total investment cost for construction is estimated based on the scale, capacity, or service capability according to the preliminary design scheme of the project and the unit capital investment cost for construction or cost data from similar projects regarding type, level of construction, scale, capacity, or service capability, nature of the project already implemented, with analysis and evaluation to adjust the conversion to market prices suitable for the construction location, supplementing necessary additional costs of the project.

3. The review and approval of the preliminary total investment cost for construction shall be carried out concurrently with the review and approval of the Feasibility Study Report for Construction Investment in accordance with the laws on public investment, public-private partnership investment, management and use of state capital for production and business at enterprises, and other relevant laws.

Article 5. Contents of Total Investment Cost for Construction

1. The total investment cost for construction is the entire construction investment cost of the project determined in accordance with the basic design and other contents of the Feasibility Study Report for Construction Investment.

2. The contents of the total investment cost for construction include: compensation, support, and resettlement costs (if applicable); construction costs; equipment costs; project management costs; construction investment consulting costs; other costs; contingency costs, and are specified as follows:

a) Compensation, support, and resettlement costs include: land compensation costs, house compensation costs, compensation costs for structures on land, attached assets to land, surface water, and other compensation costs as prescribed; support amounts when the State recovers land; resettlement costs; organization costs for compensation, support, and resettlement; land use costs, land rental costs during the construction period (if applicable); relocation and restoration costs for infrastructure technical facilities that have been invested in and constructed for land clearance (if applicable), and other related costs;

b) Construction costs include: costs for constructing project works and sub-works; temporary and auxiliary construction works for construction services; demolition costs for buildings not within the scope of demolition work for land clearance already included in compensation, support, and resettlement costs;

c) Equipment costs include: procurement costs for construction equipment and technology equipment; management costs for equipment procurement (if applicable); software licensing fees for use with construction equipment and technology equipment (if applicable); training and technology transfer costs (if applicable); manufacturing and processing costs for equipment requiring manufacturing and processing (if applicable); installation, testing, calibration costs; trial operation costs for equipment according to technical requirements (if applicable); transportation, insurance, tax, and other fees; related costs;

d) Project management costs are necessary costs for organizing the implementation and performing project management tasks from the project preparation stage, implementation stage to the completion of construction and commissioning of the project works and final settlement of construction investment capital, detailed provisions are set forth in Article 30 of this Decree;

đ) Construction investment consulting costs are necessary costs for performing construction investment consulting tasks from the project preparation stage, implementation stage to the completion of construction and commissioning of the project works and final settlement of construction investment capital, detailed provisions are set forth in Article 31 of this Decree;

e) Other costs include necessary costs for implementing the construction investment project, including: mine clearance and explosive removal costs; costs for moving special construction machinery to and from the site; traffic safety assurance costs for construction services; costs for restoring infrastructure affected during construction; material storage costs; costs for building protective shelters for machines, machine foundations, power supply systems, compressed air systems, water supply systems at the site, installation and dismantling of certain types of machines; construction period project insurance costs; international quality inspection, deformation monitoring of the project; auditing, verification, and approval of final settlement of construction investment capital; inspection of acceptance work during construction and upon completion of sub-works and works by specialized construction authorities or councils established by the Prime Minister; scientific research and application of new materials related to the project; initial working capital for construction investment projects aimed at business purposes, interest during the construction period; costs for non-load and load trial operations of production lines and production processes before handover (excluding recovered product value); costs for reviewing the Feasibility Study Report for Construction Investment, Technical and Economic Report for Construction Investment; resource taxes, fees, and charges as prescribed, and other necessary costs for implementing the construction investment project not covered under points a, b, c, d, đ of this Article;

g) Contingency costs include costs for unexpected quantities and work and costs for price escalation factors during the implementation of the project.

3. For projects only requiring the preparation of a Technical and Economic Report for Construction Investment, the total investment cost for construction includes the construction project budget estimate as stipulated in Article 11 of this Decree, compensation, support, and resettlement costs (if applicable), and related costs calculated collectively for the project. The construction project budget estimate is determined in accordance with the provisions of Article 12 of this Decree.

Article 6. Determination of Total Investment Cost for Construction

1. The total investment cost for construction shall be determined according to the following methods:

a) Method of determining from the quantity of construction works calculated based on the basic design and other necessary requirements of the project;

b) Method of determining based on the unit cost of construction investment;

c) Method of determining from data on costs of similar projects and works that have been implemented;

d) Combination of the methods prescribed in points a, b, and c of this Clause.

2. The method prescribed in point a of Clause 1 of this Article is the basic method for determining the total investment cost for construction for projects and works with a basic design sufficient to determine the quantities of construction tasks, groups, types of construction work, structural units, parts of the works, and corresponding construction prices.

3. Determining the total investment cost for construction according to the method prescribed in point a of Clause 1 of this Article shall be carried out as follows:

a) Compensation, support, and resettlement costs shall be determined based on the compensation, support, and resettlement plan of the project and relevant state policies;

b) Construction costs shall be determined based on the volume of construction work and tasks; groups, types of construction work, structural units, or parts of the works and corresponding construction prices, and related costs;

c) Equipment costs shall be determined based on the volume, quantity, type of equipment, or system of equipment according to the selected technology, technical equipment plan, suitable market purchase price of equipment, and related costs;

d) Project management costs shall be determined according to Article 30 of this Decree;

đ) Construction investment consulting costs shall be determined according to Article 31 of this Decree;

e) Other costs shall be determined by applying a percentage rate (%) or by preparing a budget estimate. Costs for mine clearance and explosive disposal shall be determined according to regulations of the Minister of National Defense;

g) Contingency costs for unexpected volumes and tasks shall be determined by applying a percentage (%) on the total items of costs prescribed in points a, b, c, d, đ, and e of this Clause. Specifically, the percentage rate for contingency costs for inflation factors shall be determined based on the duration of the project implementation, project implementation plan, and construction price index appropriate to the type of construction works, taking into account domestic and international price fluctuations.

4. Determining the total investment cost for construction according to the method prescribed in point b of Clause 1 of this Article shall be carried out as follows:

The total investment cost for construction shall be determined based on the volume, area, capacity, or service capability according to the basic design and published unit cost of construction investment corresponding to the type and level of the works, with an assessment, conversion, and calculation regarding the time of establishing the total investment cost for construction, the location of implementing the project, and supplementing other necessary costs of the project not included in the unit cost of construction investment, suitable to the specific conditions of the project and works.

5. Determining the total investment cost for construction according to the method prescribed in point c of Clause 1 of this Article shall be carried out as follows:

The total investment cost for construction shall be determined based on the volume, area, capacity, or service capability according to the basic design and data on costs of similar projects and works that have been implemented with the same type, level, scale, capacity, or service capability. The cost data used need to be converted and calculated regarding the time of establishing the total investment cost for construction, the location of implementing the project, and supplementing other necessary costs suitable to the specific conditions of the project and works.

6. Based on the level of detail of the basic design of the project, the published unit cost of construction investment, data on costs of similar projects and works that have been implemented, two or all three methods prescribed in points a, b, and c of Clause 1 of this Article shall be combined to determine the total investment cost for construction.

Article 7. Examination and Appraisal of Total Investment Cost for Construction

1. The appraisal of total investment cost for construction is a component of the appraisal of the Feasibility Study Report for Investment Construction and the Economic and Technical Report for Investment Construction. The authority to appraise the total investment cost for construction shall be carried out in accordance with the provisions of the Construction Law and the Decree detailing certain contents on project management for investment construction.

2. The detailed content of the appraisal of the total investment cost for construction by specialized agencies on construction is stipulated in point g, Clause 2, Article 58 of the Construction Law, amended and supplemented in Clause 15, Article 1 of the Law Amending and Supplementing Certain Provisions of the Construction Law, as follows:

a) The completeness and legality of the documents submitted for the appraisal of the total investment cost for construction; legal bases for determining the total investment cost for construction;

b) The conformity of the total investment cost for construction with the preliminary total investment cost for construction that has been approved; methods for determining the total investment cost for construction;

c) The conformity of the content of the total investment cost for construction prescribed in Article 5 of this Decree with the contents and requirements of the project;

d) Compliance with legal regulations on the application and reference to the construction normative system, construction work prices, other necessary tools issued and announced by competent state authorities, and the application and reference to data on costs of similar projects and works to determine the total investment cost for construction.

3. The detailed content of the appraisal of the total investment cost for construction by the agency or organization, individual entrusted by the investor to lead the appraisal is stipulated in point a, Clause 3, Article 56 and point d, Clause 1, Article 57 of the Construction Law, amended and supplemented in Clauses 13 and 14, Article 1 of the Law Amending and Supplementing Certain Provisions of the Construction Law, as follows:

a) The completeness and legality of the documents submitted for the appraisal of the total investment cost for construction; checking the results of the examination of the total investment cost for construction by the consulting organization (if any);

b) The completion and supplementation of the documents submitted for the appraisal of the total investment cost for construction according to the recommendations of the specialized agency on construction stipulated in Clause 2 of this Article (if any) and explanations;

c) The conformity and completeness of the determination of quantity or scale, capacity, service calculation in the total investment cost for construction compared to the basic design of the project;

d) Determining the value of the total investment cost for construction ensuring accuracy and comprehensiveness in accordance with regulations, consistent with design requirements, construction conditions, market price levels, and implementation plans of the project;

đ) Analyzing the reasons for increases or decreases and evaluating the assurance of project investment efficiency according to the determined total investment cost for construction after appraisal.

4. For projects using state capital outside public investment not falling under the objects prescribed in point c, Clause 1, Article 58 of the Construction Law, amended and supplemented in Clause 14, Article 1 of the Law Amending and Supplementing Certain Provisions of the Construction Law, the investor shall appraise the contents prescribed in Clauses 2 and 3 of this Article.

5. For projects requiring only the preparation of the Economic and Technical Report for Investment Construction, the investor shall appraise the contents prescribed in Clause 3 and 4 of Article 13 of this Decree.

6. The examination serving the appraisal of the total investment cost for construction shall be carried out in accordance with the provisions on examination serving the appraisal of projects in the Decree detailing certain contents on project management for investment construction.

7. Costs for organizations and individuals participating in the appraisal shall be deducted from the fees and costs for appraising the Feasibility Study Report for Investment Construction and the Economic and Technical Report for Investment Construction.

8. The Ministry of Construction shall stipulate the costs for appraising and examining the Feasibility Study Report for Investment Construction and the Economic and Technical Report for Investment Construction. The Ministry of Finance shall stipulate the fees for appraising construction investment projects.

Article 8. Approval of the total investment ceiling for construction

1. Approval of the total investment ceiling for construction is a component of the construction investment decision. The authority to decide on construction investment is stipulated in Article 60 of the Construction Law, amended and supplemented in Clause 17, Article 1 of the Law Amending and Supplementing Certain Provisions of the Construction Law.

2. The approved total investment ceiling for construction is the maximum cost to implement the construction investment project.

Article 9. Adjustment of the total investment ceiling for construction

1. The approved total investment ceiling for construction may be adjusted according to the provisions of Clause 5, Article 134 of the Construction Law and Point đ, Clause 18, Article 1 of the Law Amending and Supplementing Certain Provisions of the Construction Law.

2. The adjusted total investment ceiling for construction includes the unadjusted portion of the total investment ceiling and the adjusted portion. Contents related to the adjusted portion of the total investment ceiling for construction must be appraised in accordance with the provisions of Article 7 of this Decree. The authority to appraise and approve the adjusted total investment ceiling for construction shall be implemented in accordance with the regulations on the authority to appraise and approve the adjusted project as stipulated in the Decree detailing certain contents regarding the management of construction investment projects.

Article 10. Appraisal and approval of project preparation costs

1. Project preparation costs include expenses for conducting the following tasks: construction survey; preparation and appraisal of the Feasibility Study Report for Investment Construction, approval of the investment orientation (if applicable); preparation and appraisal of the Detailed Feasibility Study Report for Investment Construction, Economic and Technical Report for Investment Construction, and other necessary tasks related to project preparation.

2. The agency or organization entrusted with the task of preparing the project or the investor (in cases where the investor has been determined) shall organize the preparation, appraisal, and approval of the project preparation cost estimate as stipulated in Clause 1 of this Article, except for the cases specified in Clauses 3 and 4 of this Article.

3. For national key projects using public investment funds, the preparation, appraisal, and approval of the project preparation cost estimate as stipulated in Clause 1 of this Article shall be carried out in accordance with the laws on public investment.

4. For the cost estimate of hiring foreign consultants to perform the tasks specified in Clause 1 of this Article, the authority to appraise and approve the cost estimate shall be carried out in accordance with the provisions of Clause 4, Article 32 of this Decree.

5. The project preparation cost estimate as stipulated in Clause 1 of this Article, after being approved, shall be updated into the total investment ceiling for construction.

Chapter III

CONSTRUCTION ESTIMATE

Section 1

CONSTRUCTION ESTIMATE

Article 11. Content of the construction project cost estimate

1. The construction project cost estimate is the total anticipated cost necessary for constructing the project, determined based on the detailed design following the basic design or construction drawings in cases where the project only requires the preparation of the Economic and Technical Report for Investment Construction.

2. The content of the construction project cost estimate includes: construction costs, equipment costs, project management costs, investment consulting costs, other costs, and contingency costs. These cost items are detailed in Points b, c, d, đ, e, g of Clause 2, Article 5 of this Decree, except for investment consulting costs and other costs that are calculated collectively for the entire project.

3. For projects with multiple works, the investor shall determine the total cost estimate for managing construction investment costs if necessary. The total cost estimate includes the construction work cost estimates and collective investment consulting costs, other costs, and contingency costs for the entire project.

Article 12. Determination of Construction Project Budget Estimate

1. The construction project budget estimate shall be determined based on calculated quantities from detailed design following the basic design or construction drawing design in cases where the project only requires preparation of an Investment Technical and Economic Report, technical guidelines, work requirements to be implemented, implementation plans for the project, construction conditions, construction methods of the project, construction norms, construction prices, construction price indices, and other relevant provisions applied in accordance with the specific conditions of implementing the project. The cost items in the construction project budget estimate shall be determined in accordance with the provisions of Clauses 2, 3, 4, 5, 6, and 7 of this Article.

2. Construction costs include direct costs, indirect costs, pre-tax income, and value-added tax, which are determined as follows:

a) Direct costs (including material costs, labor costs, machinery and equipment construction costs) are determined based on quantities and detailed unit prices of construction or based on quantities and combined unit prices of groups, types of construction works, structural units, or parts of the project.

In the case where direct costs are determined based on quantities and detailed unit prices of construction: quantities are determined based on construction tasks and works; detailed unit prices of construction are determined as prescribed in Clause 2 of Article 24 of this Decree.

In the case where direct costs are determined based on quantities and combined unit prices of groups, types of construction works, structural units, or parts of the project: quantities are determined in accordance with the group types of construction works, structural units, or parts of the project; unit prices of works, groups of construction works, structural units, parts of the project are determined as prescribed in Clause 3 of Article 24 of this Decree.

b) Indirect costs include general costs, temporary housing costs for living and construction management, and costs for certain tasks whose quantities cannot be determined from the design. Indirect costs are determined based on percentage rates as prescribed.

c) Pre-tax income is determined based on percentage rates.

d) Value-added tax is determined according to the regulations.

3. Equipment costs are determined as follows:

a) Equipment procurement costs are determined based on quantities, types, and categories of equipment from the design (technology, construction), approved equipment list in the project, and corresponding purchase prices.

b) Equipment fabrication and manufacturing costs (if applicable) are determined by preparing a budget based on the quantities and types of equipment required for fabrication and manufacturing and corresponding fabrication and manufacturing unit prices; according to fabrication and manufacturing contracts, quotations from production and supply units, or based on similar fabrication and manufacturing unit prices of completed projects.

c) Other costs under equipment costs as prescribed in Point c, Clause 2, Article 5 of this Decree are determined through budget preparation methods or based on cost norms issued by competent state agencies.

4. Project management costs are determined in accordance with Article 30 of this Decree.

5. Construction investment consulting costs are determined in accordance with Article 31 of this Decree.

6. Other costs are determined based on cost norms issued by competent state agencies or through budget preparation methods.

7. Contingency costs include contingency costs for additional quantities and tasks and contingency costs for price escalation factors, calculated as a percentage of the total costs specified in Clauses 2, 3, 4, 5, and 6 of this Article. Specifically, the percentage rate for contingency costs for price escalation factors is determined based on the construction period of the project according to the project implementation plan, construction price indices suitable for the type of construction project, and taking into account domestic and international price fluctuations.

Article 13. Examination and Review of Construction Project Budget Estimates

1. The review of construction project budget estimates shall be conducted concurrently with the review of the detailed design phase following the basic design, as stipulated in the Decree detailing certain aspects of project investment construction management.

2. The authority to review construction project budget estimates shall be carried out in accordance with the Law on Construction and the Decree detailing certain aspects of project investment construction management.

3. The contents of the review of construction project budget estimates by specialized agencies on construction, as prescribed in point d, Clause 2, Article 83a of the Law on Construction, supplemented in Clause 26, Article 1 of the Law amending and supplementing certain articles of the Law on Construction, include:

a) The completeness and legality of the documents submitted for the review of construction project budget estimates; legal bases for determining the construction project budget estimates;

b) The consistency of the construction project budget estimates with the approved total investment amount; methods for determining the construction project budget estimates;

c) The consistency of the contents of the construction project budget estimates as stipulated in Article 11 of this Decree with the contents and requirements of the project;

d) Compliance with legal provisions regarding the application and reference to construction normative systems, construction project costs, and other necessary tools issued and announced by competent state authorities; regarding the application and reference to data on costs of similar projects and other necessary tools to determine the construction project budget estimates;

đ) The list of new budget estimate norms, adjusted budget estimate norms (if any), and determination methods; identification of the list of norms that need to be organized for survey during the construction process.

4. The contents of the review of construction project budget estimates by the project investor, as prescribed in point c, Clause 1, Article 83 of the Law on Construction, amended and supplemented by Clause 25, Article 1 of the Law amending and supplementing certain articles of the Law on Construction, include:

a) The completeness of the construction project budget estimate documents submitted for review; checking the results of the examination of the construction project budget estimates by the consulting organization (if any);

b) The completion and supplementation of the documents submitted for the review of the construction project budget estimates (if any) according to the recommendations of the specialized agency on construction as stipulated in Clause 3 of this Article (if any) and explanations provided;

c) The consistency and completeness of the determination of the volume of construction work, types and quantities of equipment calculated in the construction project budget estimates compared to the design;

d) Determination of the value of the construction project budget estimates ensuring accuracy and comprehensiveness as prescribed; consistency with the total investment amount; consistency with technical and construction technology requirements, construction conditions, construction methods, project schedule, and market prices;

đ) Analysis and evaluation of the degree and reasons for increases or decreases in cost items compared to the proposed construction project budget estimates;

e) For projects using state capital outside public investment not required to be reviewed by the specialized agency on construction, the project investor reviews the contents stipulated in Clause 3 of this Article and points a, b, c, d, đ of this clause.

5. Contents of the review of construction project budget estimates for PPP construction projects:

a) For construction projects under PPP component projects using public investment capital: the specialized agency on construction reviews the contents stipulated in Clause 3 of this Article; the project investor reviews the contents stipulated in Clause 4 of this Article and the contents stipulated in the PPP project contract;

b) For construction projects not using public investment capital under PPP projects: the project investor reviews according to the contents stipulated in Clauses 3 and 4 of this Article and the contents stipulated in the PPP project contract.

6. The project investor reviews the budget costs for preparatory works to prepare the detailed design following the basic design and common costs for the entire project. In cases where these budget costs have been approved in the total investment amount, the project investor considers and decides on re-examination if necessary. In cases of hiring foreign consultants, the authority to review and approve the budget costs for hiring foreign consultants shall be implemented in accordance with Clause 4, Article 32 of this Decree.

7. The examination serving the review of construction project budget estimates shall be carried out in accordance with the Decree detailing certain aspects of project investment construction management.

8. Costs for organizations and individuals participating in the review shall be deducted from the fees and costs of reviewing construction project budget estimates.

9. The Ministry of Construction shall prescribe the costs for examining construction project budget estimates. The Ministry of Finance shall prescribe the fees for reviewing construction project budget estimates.

Article 14. Approval of Construction Project Budget Estimate

1. The authority to approve construction project budget estimates as prescribed in Article 82 of the Construction Law, amended and supplemented by Clause 24 and 25 of Article 1 of the Law Amending and Supplementing Certain Provisions of the Construction Law.

2. The investor shall approve the budget estimate for costs related to preparatory works for implementing the detailed design following the basic design and the total costs for the entire project.

3. The decision approving the construction project budget estimate and the budget estimate as stipulated in Clause 2 of this Article shall be sent to the investment decision-maker.

Article 15. Adjustment of Construction Project Budget Estimate

1. The approved construction project budget estimate may be adjusted according to the provisions of Clause 4 of Article 135 of the Construction Law.

2. The adjusted construction project budget estimate includes the unadjusted construction project budget estimate portion and the adjusted construction project budget estimate portion. Contents related to the adjusted construction project budget estimate portion must be reviewed in accordance with the provisions of Article 13 of this Decree.

3. The authority to review and approve the adjusted construction project budget estimate shall be implemented in accordance with the regulations on the authority to review and approve adjustments to the detailed design following the basic design as prescribed in the Decree detailing certain contents regarding project investment construction management.

4. In cases where the adjusted construction project budget estimate exceeds the approved budget estimate but does not exceed the approved total investment ceiling, the investor shall organize the adjustment, report to the investment decision-maker for approval before approving it.

5. If the adjustment of the budget estimate does not exceed the approved budget estimate but changes the structure of cost items within the total investment ceiling, the investor shall organize the adjustment, approve it, report to the investment decision-maker, and bear responsibility for the results of the adjustment.

Section 2

BUDGET ESTIMATE OF CONSTRUCTION TENDER PACKAGE

Article 16. General Provisions on Budget Estimate of Construction Tender Package

1. The budget estimate of the construction tender package (hereinafter referred to as the budget estimate of the tender package) is the total necessary costs to implement each tender package, determined in accordance with the plan to select contractors prior to organizing the selection of contractors.

2. The budget estimate of the tender package is determined for the following tender packages:

a) Construction work tender package;

b) Equipment procurement tender package;

c) Equipment installation tender package;

d) Investment consulting tender package;

e) Mixed tender package.

Article 17. Determination of Budget Estimate of Tender Package

1. The budget estimate of the tender package is determined based on the cost items within the scope of each tender package, consistent with the design, scope, nature, characteristics, and specific conditions of the tender package.

2. For projects implementing a comprehensive engineering design (FEED) to implement the design, procurement of materials and equipment, and construction contract (EPC), the budget estimate of the tender package is determined based on the cost items within the scope of the tender package defined based on the FEED design.

3. For projects and works permitted by the investment decision-maker to implement detailed design following the basic design in phases according to each construction tender package and each phase of the implementation plan of the project, the budget estimate of the tender package is determined based on the cost items within the scope of the tender package and the corresponding detailed design. Cost items in the budget estimate of the tender package are determined like the cost items in the construction project budget estimate prescribed in Article 12 of this Decree, consistent with the scope, nature, characteristics, and specific conditions of each tender package.

4. For projects that have been approved for construction project budget estimates, if necessary, the investor shall determine the budget estimate of the tender package based on the cost items within the scope of the tender package in the approved construction project budget estimate.

5. The contingency reserve in the budget estimate of the tender package is determined in accordance with the form of the contract used for the tender package recorded in the plan to select contractors.

Article 18. Reviewing, assessing, and approving the tender package budget estimate

1. The reviewing and assessing of the tender package budget estimate as stipulated in Clause 2 and 3 of Article 17 of this Decree shall be carried out in accordance with the construction project budget estimate as provided for in Article 13 of this Decree.

2. The investor shall approve the tender package budget estimate as stipulated in Clause 2, 3, and 4 of Article 17 of this Decree to replace the tender package price in the plan for selecting contractors in accordance with the laws on bidding.

3. The investor shall independently assess and approve the tender package budget estimate as stipulated in Point d of Clause 2 of Article 16 of this Decree. In cases where foreign consultancy services are hired, the authority to assess and approve the foreign consultancy tender package budget estimate shall be implemented in accordance with Clause 4 of Article 32 of this Decree.

4. Depending on the characteristics of the tender package, the adjustment of cost items in the tender package budget estimate as stipulated in Clause 2 and 3 of Article 17 of this Decree shall be carried out in accordance with the regulations on adjusting the construction project budget estimate as provided for in Article 15 of this Decree.

Article 19. Tender Package Price

1. The tender package price for construction is the value of the construction tender package approved in the plan for selecting contractors as the basis for selecting contractors. The construction tender package price includes all necessary costs calculated accurately and sufficiently to implement the construction tender package, including contingency funds, fees, charges, and taxes.

2. The tender package price may be updated before the bid opening date in accordance with the laws on bidding if necessary.

Chapter IV

CONSTRUCTION RATES, CONSTRUCTION PROJECT PRICES, AND CONSTRUCTION PRICE INDEXES

Section 1

CONSTRUCTION RATES

Article 20. Construction Rate System

1. The construction rate system consists of economic-technical rates and cost rates. Economic-technical rates include basic rates and budgetary rates.

2. Basic rates consist of material usage rates, labor productivity rates, machine and equipment productivity rates determined in accordance with technical requirements, construction standards, and norms, and are used to determine or adjust budgetary rates.

3. Budgetary rates

a) Budgetary rates are the necessary consumption levels of materials, labor, machines, and construction equipment determined in accordance with technical requirements, construction conditions, and specific construction methods to complete a unit volume of construction work;

b) Budgetary rates are applied and referenced to prepare budget estimates, serving as the basis for determining construction project prices, and forming the foundation for establishing and managing construction investment costs.

4. Cost rates include percentage-based rates and value-based rates. Cost rates serve as the basis for determining construction project prices, budget estimates for certain types of work, and costs in construction investments such as indirect costs, pre-tax income, project management costs, construction investment consulting costs, and other cost items.

5. Specialized industry-specific and local construction work budgetary rates are rates for works not covered in the construction rate system issued by the Ministry of Construction and only appear in specialized construction projects managed by the industry or at the local level.

6. The Ministry of Construction organizes the development and issuance of construction rates for nationwide use. Specialized construction project management ministries organize the development and issuance of specialized industry-specific construction work budgetary rates, while provincial People's Committees organize the development and issuance of local specialized construction work budgetary rates.

7. Specialized construction project management ministries and provincial People's Committees develop plans and organize the development of budgetary rates as stipulated in Clause 5 of this Article, sending them to the Ministry of Construction for comments on the method and basis for developing rates, the appropriateness of the calculation results of consumption components before issuance.

8. The application and reference to the construction rate system shall be carried out in accordance with Clause 3 of Article 136 of the Construction Law amended and supplemented by Clause 51 of Article 1 of the Law Amending and Supplementing Certain Provisions of the Construction Law.

9. The construction rate system stipulated in this Article shall be managed according to the code system as prescribed by the Minister of Construction.

Article 21. Determining new budget norms, adjusting budget norms for application to construction projects

1. The determination of new budget norms for construction projects shall be carried out for construction works that have not been specified or have been specified but use new construction technologies, construction methods, and construction conditions not provided in the system of construction norms issued by competent state agencies.

2. Adjusting budget norms shall be carried out for construction works that have been specified in the system of construction norms issued by competent state agencies but are not suitable with design requirements, technical requirements, construction conditions, and construction methods of the project.

3. The determination of new budget norms and the adjustment of budget norms shall be implemented in accordance with the regulations of the Minister of Construction.

4. During the preparation of construction budgets, the determination and management of new budget norms and adjusted budget norms as stipulated in Clause 1 and 2 of this Article shall be carried out as follows:

a) Organizations and individuals preparing construction budgets shall be responsible for compiling a list of new budget norms and budget norms requiring adjustment to meet the specific requirements of the project and organizing the determination of normative costs consistent with design requirements, technical requirements, construction conditions, and planned construction methods to serve the preparation of unit prices and the determination of construction budgets;

b) Specialized agencies on construction shall review relevant contents in accordance with point d, Clause 3, Article 13 of this Decree;

c) Project sponsors shall examine and decide on the use of adjusted budget norms and new budget norms for the project as the basis for determining construction prices.

5. During the construction process, project sponsors shall organize surveys to determine new budget norms and adjusted budget norms as stipulated in Clause 4 of this Article as follows:

a) Rechecking the contents of the norms (including applicable provisions, work components, cost components, units of measurement, norm values) based on surveys and data collection from actual construction processes;

b) The results of determining the norms shall be sent to specialized agencies on construction for review and completion of the system of construction norms as stipulated in Article 20 of this Decree to update into the database system as stipulated in Article 28 of this Decree.

6. In cases where project sponsors request, the Ministry of Construction shall provide guidance and opinions on new budget norms, and the agency issuing the norms shall provide guidance and opinions on adjusted budget norms as stipulated in Clauses 4 and 5 of this Article.

7. Project sponsors may hire consulting organizations with sufficient qualifications as prescribed in the Decree detailing certain aspects of investment project management to determine and review the norms as stipulated in Clause 5 of this Article.

Article 22. Reviewing and updating the system of construction norms issued by competent state management agencies

1. The Ministry of Construction, specialized ministries managing construction works, and provincial People's Committees shall organize reviews and guide the application and reference to construction norms issued and announced before the effective date of this Decree according to the following principles:

a) Completing the review and revocation of norms that are no longer appropriate, and issuing norms that do not require adjustment before June 30, 2021;

b) Organizing surveys to determine norms that need adjustment and supplementation and issuing them before December 31, 2021;

c) During the organization of reviews, surveys, and adjustments of norms, the Ministry of Construction, specialized ministries managing construction works, and provincial People's Committees shall be responsible for guiding the application and reference to norms they have issued and announced within their authority and other necessary tools to prepare and manage construction investment costs.

2. The system of construction norms issued by the Ministry of Construction, specialized ministries managing construction works, and provincial People's Committees must be reviewed and updated every three years from the date of issuance of the norms or earlier if necessary.

3. The Ministry of Construction shall be responsible for organizing and urging the review and updating of the entire system of construction norms and issuing regulations and guidelines for the implementation of the review and updating of construction norms.

4. Specialized ministries managing construction works and provincial People's Committees shall implement the review, updating, and issuance of budget norms as stipulated in Clause 6 of Article 20 as follows:

a) Determining the list and planning annual reviews of norms and sending them to the Ministry of Construction for tracking, coordination, and inspection during implementation;

b) Entrusting subordinate specialized agencies on construction to organize reviews, hiring organizations and individuals with sufficient qualifications for business and practice as prescribed in the Decree detailing certain aspects of investment project management to carry out reviews and determine new norms and adjusted norms, submitting them to the competent authority for issuance according to regulations;

c) Deciding on the issuance of norms after receiving opinions from the Ministry of Construction as stipulated in Clause 7 of Article 20 of this Decree and sending them to the Ministry of Construction for consolidation and updating into the database.

5. Specialized agencies on construction at different levels shall compile the results of establishing norms as stipulated in Clauses 4 and 5 of Article 21 of this Decree and the norms as stipulated in Clause 6 of this Article and send them to the Ministry of Construction (for new budget norms) and the agency issuing the norms (for adjusted budget norms) to serve the review, examination, and decision-making for updating the system of norms.

6. Encouragement is given to organizations and individuals to independently determine new budget norms and adjusted budget norms and submit the results to specialized agencies on construction for serving state management tasks.

Article 23. Budget for reviewing, updating, and establishing and adjusting construction norms

1. The budget for reviewing and updating construction norms carried out by the Ministry of Construction, specialized ministries managing construction projects, and provincial People's Committees includes planning costs, organizing reviews; surveys, determination, and verification; updating new norms and adjusted norms. This budget is allocated from the annual state budget.

2. The budget for establishing new construction norms and adjusting construction norms as stipulated in Clause 4 and Clause 5 of Article 21 of this Decree shall be included in the investment cost of construction projects.

Section 2

CONSTRUCTION WORK PRICES AND CONSTRUCTION PRICE INDEXES

Article 24. Construction work prices

1. Construction work prices consist of detailed unit prices and comprehensive construction prices, serving as the basis for determining the total investment cost and construction estimates.

a) Detailed unit prices are determined for individual construction tasks;

b) Comprehensive construction prices are determined based on groups or types of construction tasks, structural units, or parts of the project.

2. Detailed unit prices for construction works are determined based on construction norms, material and component prices, labor costs, machinery and equipment rental prices, and other necessary cost factors consistent with the market price level at the time of construction project implementation and relevant regulations, or according to the detailed unit prices announced by the provincial People's Committee, or determined based on market prices or similar prices from completed projects.

3. Comprehensive construction prices for projects are determined based on the aggregation of detailed unit prices for a single unit of work within a group of tasks, structural units, or parts of the project, according to the prices published by competent authorities or determined based on market prices or similar prices from completed projects.

Article 25. Investment capital per unit of construction

1. Investment capital per unit of construction is the necessary cost for a unit of measurement based on area, volume, length, capacity, or service capability of the project as designed, serving as the basis for preliminary determination of the total investment cost.

2. Investment capital per unit of construction includes: construction costs; equipment costs; project management costs; construction investment consulting costs; certain other cost items, and value-added tax on the aforementioned costs. Investment capital per unit of construction does not include contingency costs and costs for implementing certain types of work specific to the project.

Article 26. Management of construction work prices and investment capital per unit of construction

1. The Ministry of Construction guides methods for determining construction work prices and investment capital per unit of construction and publishes comprehensive construction prices and investment capital per unit of construction periodically.

2. Provincial People's Committees announce local detailed unit prices for construction works; delegate and authorize the Department of Construction to publish information about construction prices in their province according to points a and b of this clause as follows:

a) Prices of various construction materials and equipment: announced quarterly or earlier when necessary;

b) Labor unit prices for construction, machinery and equipment rental prices, and construction machinery leasing prices: announced annually or earlier when necessary.

3. Project sponsors use the construction work pricing system specified in Clauses 1 and 2 of this Article as the basis for determining the total investment cost, construction estimates, and managing investment costs, or organize the determination of construction work prices suitable for technical requirements, construction conditions, construction methods, and specific implementation plans of the project.

4. Project sponsors may hire organizations or individuals with the required qualifications to provide consulting services for managing investment costs to perform tasks or parts of tasks related to determining and verifying construction work prices as stipulated in Clause 3 of this Article.

5. The budget for collecting data, determining, and announcing construction work prices, and information on prices and investment capital per unit of construction as stipulated in Clauses 1 and 2 of this Article is allocated from the annual state budget.

Article 27. Construction Price Index

1. The construction price index is an indicator reflecting the degree of fluctuation in construction prices over time, serving as a basis for determining and adjusting preliminary total investment costs for construction, total construction investment costs, construction budgets, construction tender prices, construction contract prices, converting investment capital for construction projects, and managing construction investment costs.

2. The construction price index includes construction price indices by type of project, by cost structure (including construction work price index, equipment price index, other cost price index), cost factors (including construction material price index, construction labor price index, machinery and construction equipment price index), and price indices of key materials.

3. The establishment and publication of the construction price index shall be carried out as follows:

a) The Ministry of Construction guides the method for determining the construction price index; determines and publishes the national construction price index annually.

b) The Construction Departments organize the determination of the construction price index within their provincial jurisdiction according to the method guided by the Ministry of Construction (including all price indices specified in Clause 2 of this Article) as a basis for the Provincial People's Committee to publish or delegate authority to the Construction Department to publish quarterly, annually, or earlier when necessary; at the same time sending to the Ministry of Construction for monitoring and management.

4. In cases where the construction price index is used to adjust construction contract prices, for projects not included in the list of construction price indices published by the Ministry of Construction or the Provincial People's Committee, the project sponsor shall organize the determination of the price index according to the method guided by the Ministry of Construction, send to the Ministry of Construction (for construction projects along routes spanning two or more provincial administrative units) or the Provincial People's Committee (for construction projects within the province) for comments on the suitability of the method for determining the construction price index, the accuracy and reasonableness of the determination of the price index.

5. The project sponsor may hire organizations or individuals with the required qualifications to manage construction costs, as stipulated in the Decree detailing certain contents regarding construction project management, to calculate the construction price index as provided in Clause 4 of this Article.

6. The funds for collecting data, determining, and publishing the construction price index as provided in Clause 3 of this Article shall be allocated from the annual state budget.

Section 3

DATABASES ON CONSTRUCTION STANDARDS, PROJECT COSTS, AND CONSTRUCTION PRICE INDEXES

Article 28. System of databases on construction standards, project costs, and construction price indexes

1. The system of databases on construction standards, project costs, and construction price indexes (referred to as the database system) is a component of the national information and database system for construction activities under the Construction Law, including:

a) Information and data on construction standards, project costs, investment capital rates, and construction price indexes issued or announced by competent state agencies;

b) Databases on construction investment projects and construction contracts collected through surveys or provided by organizations and individuals under the information sharing mechanism and regular reporting systems prescribed by law;

c) Databases on construction service prices, construction product prices, construction material and equipment prices, and other related information provided by construction organizations and individuals or obtained through surveys.

2. The Ministry of Construction is responsible for establishing, managing, and operating the database system nationwide, serving as the central point connecting specialized construction project management ministry databases and local databases; providing information and data in the database system to serve state management tasks and the requirements of organizations and individuals for setting up and managing construction investment costs as prescribed by law.

3. Specialized construction project management ministries and provincial people's committees are responsible for establishing, managing, and operating the database system to serve state management tasks concerning construction investment costs in their respective fields and localities.

4. Principles for establishing and managing the database system:

a) The database system must ensure synchronous connectivity and compliance with legal provisions; timely serve state management tasks and meet socio-economic development needs;

b) Information and data must be reviewed, evaluated, and classified appropriately before being updated into the database system;

c) The collection and supplementation of information and data must avoid duplication and overlap of tasks; there must be close cooperation in collecting information and data; maximum utilization of existing information and data sources;

d) Information and data that have been processed and updated according to regulations in the database system have legal value equivalent to paper files and documents;

đ) Agencies, organizations, and individuals bear legal responsibility for the information and data they provide and update to the database system.

Article 29. Management of the Database System

1. The Ministry of Construction shall be responsible for establishing, managing, operating, and comprehensively controlling the database system nationwide:

a) Establishing regulations on management, exploitation, and use of the database system; issuing and managing login accounts to access the database system; monitoring content updated, adjusted, and posted within the database system;

b) Guiding the content and methods for building databases (including data collection, synthesis, processing, updating, and storage);

c) Guiding the exploitation and use of the database system;

d) Building and perfecting coding systems and application software to manage the database system.

2. Sectoral construction management ministries shall be responsible for compiling and providing specific budget rates for specialized construction works; construction costs, material costs, labor costs, machinery and equipment costs, and construction price indices of their respective sectors to the Ministry of Construction for updating into the database system.

3. Provincial People's Committees shall be responsible for compiling and providing specific budget rates for local specialized construction works; construction costs, material costs, labor costs, machinery and equipment costs, and construction price indices within their jurisdictions to the Ministry of Construction for updating into the database system.

4. Decision-makers of projects using public investment capital or state capital outside public investment shall be responsible for directing project sponsors to submit relevant information and data on construction investment costs of projects under their management to the Ministry of Construction for updating into the database system.

5. Funding for the establishment, management, operation of the database system, and the collection, synthesis, processing, and updating of information shall be allocated from annual state budgets and other legitimate funding sources.

Chapter V

PROJECT MANAGEMENT AND INVESTMENT CONSULTATION FEES

Article 30. Project Management Fees

1. Project management fees shall be used to organize and carry out the following tasks:

a) Organizing and supervising the implementation of tasks such as construction site survey supervision; selecting architectural design or choosing architectural design options; compensation, support, and resettlement work under the responsibility of the project sponsor; preparing and reviewing feasibility studies or economic-technical investment construction reports; preparing and reviewing detailed construction designs and construction estimates; selecting contractors in construction activities; managing quality, quantity, schedule, construction costs, and construction contracts; managing construction information systems; collecting and providing data to serve cost management according to the requirements of competent authorities; ensuring labor safety and environmental hygiene; determining new construction cost estimates and adjusting construction cost estimates; determining construction prices and construction price indices; inspecting construction materials, components, products, and installed equipment; testing parts, sections, and entire constructions according to requirements; controlling construction investment costs; preparing preliminary environmental impact assessments, environmental impact assessments, monitoring, and supervising the environment during construction according to environmental protection laws; converting completed construction investment after acceptance and handover for use; acceptance, payment, and settlement of contracts; payment and settlement of construction investment; investment supervision and evaluation; acceptance and handover of construction; groundbreaking, inauguration (if applicable), publicity, and organizing the implementation of necessary tasks to serve project management;

b) Carrying out tasks such as investment supervision and evaluation; reviewing detailed construction designs and construction estimates; determining tender estimates (in cases where construction project estimates have been approved) and performing other necessary tasks under the responsibility of the project sponsor.

2. The contents of project management fees include salaries of project management staff; wages paid to workers under contracts; allowances; bonuses; collective welfare; contributions (social insurance; health insurance; unemployment insurance; trade union fees, and other deductions as prescribed by law for individuals receiving salaries from the project); applying science and technology, training to enhance the capabilities of project management staff; paying public service fees; office supplies; information, publicity, and communication; organizing meetings related to the project; travel expenses; renting, repairing, purchasing assets for project management; other costs and contingency costs.

3. Project management fees are the maximum costs for managing a project consistent with the approved time frame and scope of work, determined based on percentage standards or by preparing estimates suitable for the organizational form of project management, project duration, scale, and characteristics of project management tasks. Project management fees are managed based on annual estimates consistent with project management tasks and related policies. Project management fees can only be adjusted when there are changes in the scope of project management tasks, project implementation schedules, or project adjustments.

4. In cases where project management consulting services are hired, project management consulting fees shall be determined by preparing estimates based on the content and volume of project management tasks agreed upon between the project sponsor and the consulting organization in the project management consulting contract.

5. In cases where the general contractor implements certain project management tasks under the responsibility of the project sponsor through an EPC contract, the general contractor shall be entitled to a portion of the project management fees corresponding to the scope and volume of project management tasks assigned by the project sponsor and agreed upon in the general contracting contract.

6. The total project management costs for works carried out by the project sponsor and the project management costs performed by consulting firms and general contractors pursuant to Clauses 4 and 5 of this Article shall not exceed the project management costs determined and approved as prescribed.

Article 31. Investment Construction Consulting Costs

1. Investment construction consulting services include:

a) Preparing tasks, preparing technical survey plans for construction, preparing design tasks; conducting construction surveys, supervising construction surveys; preparing Preliminary Feasibility Study Reports on investment construction (if applicable), Proposals for Investment Orientation (if applicable), Feasibility Study Reports on investment construction or Economic-Technical Reports on investment construction;

b) Reviewing Preliminary Feasibility Study Reports on investment construction (if applicable), Feasibility Study Reports on investment construction or Economic-Technical Reports on investment construction; reviewing project technology designs (if applicable); reviewing compensation, support, and resettlement plans; architectural design competitions; construction design; reviewing construction design, construction cost estimates;

c) Preparing, reviewing tender invitation documents, prequalification tender invitation documents, tender invitation documents, request documents, and evaluating tender interest documents, prequalification tender documents, tender documents, proposal documents for selecting contractors in construction activities; reviewing the results of contractor selection in construction activities; supervising construction, supervising equipment installation;

d) Preparing, reviewing construction cost norms, construction project prices, construction project price indices; reviewing traffic safety; applying building information modeling (BIM);

đ) Project management consulting (in cases where consultants are hired); specialized construction testing; inspecting construction materials, components, products, and installed equipment according to the sponsor's requirements (if applicable); inspecting quality parts of projects, project items, entire projects (if applicable); supervising and evaluating construction project investment (in cases where consultants are hired);

e) Preparing preliminary environmental impact assessment reports, environmental impact assessment reports, monitoring and supervising the environment during construction as prescribed by environmental protection laws;

g) Implementing the conversion of construction investment capital after completion, acceptance, handover, and commissioning (if applicable);

h) Other related consulting services.

2. The content of investment construction consulting service costs includes consulting labor costs (wages, wage allowances, bonuses, collective welfare benefits, social insurance contributions, health insurance contributions, unemployment insurance contributions, trade union fees, other deductions as prescribed by law for individuals performing consulting work at the project); costs for applying science and technology, managing construction information systems; costs for paying public services, office supplies, information, and communication; costs for renting, repairing, purchasing assets for consulting services for the project (if applicable); management costs of consulting organizations; other costs; advance tax income; value-added tax and contingency costs. Specifically, construction survey costs and specialized construction testing costs include the cost items prescribed in Clause 2, Article 12 of this Decree and other related costs (if applicable).

3. Investment construction consulting costs are determined based on percentage rates established by the Ministry of Construction or through budget preparation based on the scope of consulting work, the volume of work to be performed, the implementation plan of the tender package, and regulations on systems and policies issued by the state.

4. Approved investment construction consulting costs are the maximum costs for implementing investment construction consulting work and can only be adjusted when there are changes in the scope of work, conditions, and progress of investment construction consulting work. Investment construction consulting costs are managed through construction consulting contracts.

5. In cases where sponsors and project management boards have sufficient capacity as prescribed to perform some investment construction consulting work, the costs for these works shall be supplemented into project management costs.

6. Costs for hiring foreign consultants to perform certain types of consulting work are implemented as prescribed in Article 32 of this Decree.

Article 32. Costs of hiring foreign consultants

1. The investor decision-maker decides on hiring foreign consultants in accordance with the provisions of the law on bidding.

2. The costs of hiring foreign consultants shall be determined in accordance with the type of consulting work based on the number of experts, the level of expertise of the consultants, the working time of the experts, the salary levels of experts from the countries and regions expected to be hired, and other necessary expenses to complete the consulting work.

3. The costs of hiring foreign consultants shall be determined according to the budget estimate or cost database for hiring foreign consultants of similar projects in Vietnam. The budget estimate for the costs of hiring foreign consultants includes all necessary costs anticipated to complete the contracted consulting services, including: expert fees, management costs, related costs, pre-tax income, contingency costs, and taxes payable as prescribed by law.

4. The budget estimate for the costs of hiring foreign consultants shall be reviewed and approved by the specialized agency under the investor decision-maker. In cases where the project is decided upon by the Prime Minister, the superior management agency of the project owner shall organize the review and approval.

5. The method for determining the costs of hiring foreign consultants shall be implemented in accordance with the regulations of the Minister of Construction.

Chapter VI

PAYMENT AND SETTLEMENT OF CONSTRUCTION CONTRACTS AND CAPITAL INVESTMENT PAYMENT AND SETTLEMENT

Article 33. Payment and settlement of construction contracts

The payment and settlement of construction contracts shall be carried out in accordance with the detailed regulations on construction contracts as stipulated in the Decree.

Article 34. Capital investment payment

1. Payment and payment deadlines for capital investment:

a) Projects using public investment capital shall be implemented in accordance with the laws on public investment;

b) Projects using state capital outside public investment, and PPP projects shall be implemented in accordance with relevant laws.

2. The project owner or its authorized representative shall be responsible for the value proposed for payment in the payment request dossier in accordance with the regulations; the capital payment agency shall not be responsible for the accuracy of the proposed payment value in the payment request dossier of the project owner or its authorized representative. During the payment process, if any errors are found in the payment request dossier, the capital payment agency shall notify in writing for the project owner or its authorized representative to supplement and complete the dossier.

3. It is strictly prohibited for the capital payment agency and the project owner to unilaterally establish regulations contrary to the law in the payment of capital investment.

Article 35. Settlement of capital investment

1. After completion and handover for use or permanent cessation when the competent authority issues a stop or termination document, the investment project must settle the capital investment.

2. The settled capital investment must be within the approved total investment limit or adjusted according to the law.

3. The settled capital investment is the entire legitimate cost incurred during the construction investment process to put the project into operation and use. Legitimate costs include all expenses incurred within the scope of the approved project design and budget estimates, and construction contracts signed in accordance with the law, including approved adjustments and supplements. For PPP projects, they shall be implemented in accordance with the laws on public-private partnership investment.

4. The contractor is responsible for preparing the settlement dossier of the signed contract with the project owner in accordance with the law on construction contracts as the basis for settling the capital investment.

5. The project owner is responsible for settling the capital investment within the approved total investment limit of the project; prepare the Capital Investment Settlement Dossier and convert the capital investment for submission to the investor decision-maker for approval no later than nine months from the date of signing the completion acceptance record, handing over the project for operation and use. For independent project components or projects within a multi-project that have been completed and handed over for operation and use, if immediate settlement is required, the project owner shall report to the investor decision-maker for consideration and decision.

6. The settlement audit and approval agency is responsible for conducting the audit and approving the settlement no later than nine months from the date of receiving the complete settlement dossier.

7. The project owner is responsible for resolving debts, closing the project account at the capital payment agency within six months from the date of the settlement approval decision. If the completed project has not been allocated sufficient funds for settlement, the project owner shall be responsible for reporting to the investor decision-maker and relevant agencies to allocate funds to resolve debts and close the project account in accordance with the regulations.

8. For construction investment projects using public investment capital, after the end of the fiscal year, the project owner shall implement the settlement and use of capital investment according to the fiscal year as prescribed by the Ministry of Finance.

9. The project owner who fails to settle the capital investment as prescribed in Clause 5 of this Article shall be handled in accordance with the law on administrative penalties for violations in construction investment activities.

10. Authority to approve settlement of capital investment:

a) For national key projects and other important projects decided by the Prime Minister, the superior management agency of the project owner shall approve the settlement of component projects using public investment capital and component projects using state capital outside public investment;

b) For the remaining projects, the investor decision-maker is the authority to approve the settlement of capital investment or delegate the authority to approve the settlement of capital investment for completed projects;

c) For PPP projects implemented in accordance with the laws on public-private partnership investment.

Chapter VII

RIGHTS, OBLIGATIONS, AND RESPONSIBILITIES OF THE INVESTOR DECISION-MAKER, PROJECT OWNER, AND CONSTRUCTION CONTRACTOR IN MANAGING CONSTRUCTION INVESTMENT COSTS

Article 36. Rights and responsibilities of the investment decision-maker

1. Implement the provisions on the rights and responsibilities of the investment decision-maker as stipulated in Article 72 of the Construction Law and Clause 22, Point 2 of Article 1 of the Law Amending and Supplementing Certain Provisions of the Construction Law, and the authority prescribed in this Decree and other relevant laws.

2. Decide on the bid price in the plan to select contractors, type of contract, and form of contract.

Article 37. Rights and obligations of the project owner

1. Implement the provisions on the rights and obligations of the project owner as stipulated in Article 68 of the Construction Law and the authority prescribed in this Decree and other relevant laws.

2. Approve proposals for changes in materials, construction materials, construction methods, technical requirements proposed by design consultants or construction contractors but must ensure technical, aesthetic, quality, progress, safety, and environmental protection requirements according to the agreements in the signed construction contracts in compliance with the regulations on construction contracts and the project objectives.

3. Strictly manage and use the allocated funds for the project for their intended purposes; control construction investment costs not to exceed the total investment cost as prescribed, ensuring the project's schedule and effectiveness.

4. Perform some investment consulting works if they have the required capacity conditions as prescribed.

5. Provide project data information as requested by state management agencies; coordinate or organize the collection of cost management information as requested by state management agencies.

6. Advance payment, settlement, and final account of contracts according to the provisions in the signed contracts with contractors.

7. Purchase insurance for projects that are required to be insured or authorize contractors to purchase insurance through construction contracts.

8. Pay fines when administratively penalized for violations in investment construction activities from the project management fee.

Article 38. Rights and obligations of consultancy contractors performing cost management work for investment construction

1. Consultancy contractors have the rights and obligations prescribed in the consultancy contract for performing cost management work for investment construction as stipulated in the Decree detailing certain contents on project management and other relevant laws.

2. Request the project owner to provide information and documents related to the assigned consultancy tasks.

3. Be responsible for the content, quality, and progress of consultancy work performed; provide cost management data of the project when requested by state management agencies and the project owner.

4. Be protected under intellectual property rights for consultancy products according to the law.

5. Refuse to perform unlawful requests from the project owner.

6. Compensate for damages due to non-compliance with legal regulations on cost management for investment construction and breach of contract causing damage to the project owner.

Article 39. Rights and obligations of construction contractors

1. Construction contractors have the rights and obligations prescribed in the construction contract and other relevant laws.

2. Determine the budget estimate, construction cost, and related expenses when setting the bid price to participate in bidding.

3. Propose and agree with the project owner on construction norms, construction costs for additional works as stipulated in the construction contract, in accordance with the regulations on cost management for investment construction and the construction contract.

4. Coordinate with the project owner in organizing surveys to determine adjusted norms, new norms during the construction process (if applicable) as prescribed in Point a, Clause 5, Article 21 of this Decree.

5. Provide project data information as requested by state management agencies; coordinate or organize the collection of information and data related to construction investment costs as requested by state management agencies.

6. Compensate for damages due to non-compliance with legal regulations on cost management for investment construction and breach of contract causing damage to the project owner.

Chapter VIII

STATE MANAGEMENT OF INVESTMENT CONSTRUCTION COSTS

Article 40. Ministry of Construction

1. Responsible for unified state management over construction investment costs.

2. Guide on the content, methods for determining and managing, controlling construction investment costs, including preliminary total investment cost estimates, total investment cost estimates, construction budgets, construction norms, construction project prices, investment capital per unit area, construction price indices, construction labor rates, machinery and equipment rental prices, measurement of construction work volumes, conversion of construction investment capital, construction consultancy fees.

3. Issue construction norms; announce investment capital per unit area, comprehensive construction prices, national construction price indices, norms for various expenses, and basic data for calculating machinery rental prices. Organize regular reviews and compile review results to adjust and supplement norms according to regulations.

4. Lead in organizing the establishment, guiding, and operating the database system for construction norms, construction project prices, and construction price indices.

5. Inspect and supervise the implementation of regulations on construction investment cost management.

Article 41. Ministry of Planning and Investment

1. Take the lead and coordinate with relevant units to appraise sources of capital and the ability to allocate capital for construction projects using public investment funds; compile and submit to the Government and Prime Minister the medium-term and annual public investment plans of the country.

2. Implement supervision, evaluation, inspection, and auditing of projects using public investment funds according to the law.

Article 42. The Ministry of Finance

1. Regulations on the management and use of revenues from consulting and project management activities of project sponsors and project management boards using public investment funds.

2. Audit and inspect the settlement and final accounts of construction project investment capital, completed projects.

Article 43. Sectoral Construction Management Ministries and Provincial People's Committees

1. Sectoral Construction Management Ministries

a) Based on the method of establishing construction norms guided by the Ministry of Construction, organize the establishment and issuance of construction norms for specialized construction works within their sectors.

b) Regularly review the system of construction norms issued by themselves and send new construction norms and adjusted norms to the Ministry of Construction for monitoring and management according to regulations.

2. The Ministry of National Defense shall stipulate the method for determining the budget for mine clearance and explosive disposal costs after seeking the agreement of the Ministry of Construction.

3. Provincial People's Committees

a) Guide the establishment and management of construction investment costs; inspect the implementation of regulations on construction investment cost management within their jurisdiction.

b) Based on the method of establishing construction norms guided by the Ministry of Construction, organize the establishment and issuance of construction norms for specialized local construction works.

c) Regularly review the system of construction norms issued by themselves and send new construction norms and adjusted norms to the Ministry of Construction for monitoring and management according to regulations.

d) Announce local construction unit prices; announce or delegate the Department of Construction to announce construction price indices; delegate the Department of Construction to announce material and equipment prices, construction labor rates, machinery and equipment rental prices, and machinery and equipment leasing prices.

e) Allocate annual budget for the establishment, issuance, and announcement of information and data as specified in point b of this clause.

Chapter IX

IMPLEMENTING PROVISIONS

Article 44. Transitional Provisions

1. For investment construction projects that have been submitted for review before January 1, 2021, in accordance with the Construction Law 2014 but have not received a notification of the result of the total investment cost review prior to the effective date of this Decree, the review shall continue to be conducted in accordance with the Construction Law 2014 and the guiding legal documents; subsequent activities related to managing construction investment costs shall be carried out in accordance with this Decree.

2. For investment construction projects that have received a notification of the result of the total investment cost review but have not been approved before the effective date of this Decree, there is no need for re-review; subsequent activities related to managing construction investment costs shall be carried out in accordance with this Decree.

3. For investment construction projects that have been approved before the effective date of this Decree but have not commenced any work in the implementation phase (in cases where a contractor needs to be selected, no tender documents or request documents have been issued), subsequent activities related to managing construction investment costs shall be carried out in accordance with this Decree.

4. For investment construction projects that have been approved before the effective date of this Decree and have already commenced or are currently undertaking one or more works in the implementation phase, the transition regarding the management of construction investment costs for works yet to be implemented shall be as follows:

a) The content of the review, the authority to conduct the review, and the approval of construction investment costs shall be carried out in accordance with this Decree and the Decree detailing certain aspects of project management.

b) The determination and management of construction investment costs (except for the contents mentioned in point a of this clause) shall continue to be carried out in accordance with the current laws on the management of construction investment costs applicable to the project.

c) The application and reference to construction norms shall be carried out in accordance with the provisions of Clause 5 of this Article.

5. The system of construction norms that has been promulgated and published by competent authorities shall continue to be applied and referred to for determining construction investment costs according to the provisions of the laws on the management of construction investment costs applicable to the project until the system of construction norms stipulated in points a and b of Clause 1, Article 22 of this Decree is promulgated and becomes effective by competent authorities.

6. The system of construction prices and construction price indices announced by competent authorities before the effective date of this Decree shall continue to be referenced and used to determine construction investment costs until the system of construction prices and construction price indices is announced in accordance with Articles 26 and 27 of this Decree. Provincial People's Committees shall organize updates and guidance on unit prices of construction works when the system of construction norms stipulated in points a and b of Clause 1, Article 22 of this Decree is promulgated by competent authorities.

7. Methods for determining construction investment costs established before the effective date of this Decree shall continue to be used to determine construction investment costs for projects that are implementing preparatory works and projects specified in Clauses 1, 2, and 3 of this Article until the methods stipulated in Clause 2, Article 40 of this Decree become effective.

8. Updating construction investment costs based on the system of construction norms, construction prices, and methods for determining construction investment costs after their promulgation and publication and becoming effective in accordance with this Decree shall be carried out as follows:

a) A reviewed or approved total construction investment cost does not require re-review or re-approval. The investor shall organize the preparation of the construction budget estimate according to the system of construction norms, construction prices, and methods for determining construction investment costs as prescribed.

b) A reviewed or approved construction budget estimate does not require re-review or re-approval.

c) Tender documents and request documents for tenders that have not been issued before the system of construction norms, construction prices, and methods for determining construction investment costs are promulgated, published, and become effective: the investor shall independently update the tender budget estimate to re-determine the tender price in the approved tender selection plan, serving as the basis for selecting contractors in accordance with the law on bidding.

d) For tenders where tender documents and request documents have been issued but the tender has not yet closed, the investor shall consider and decide on updating the tender budget estimate to re-determine the tender price as the basis for selecting contractors in accordance with the law on bidding. In cases where the tender has already closed, the content of the tender documents, request documents, bid documents, and proposal documents shall be followed; there is no need to update the tender price again.

đ) If necessary, the investment decision-maker and the investor may decide on updating, reviewing, and re-approving the total construction investment cost as stipulated in point a of this clause; and the construction budget estimate as stipulated in point b of this clause within their authority.

e) If updating and re-determining the total construction investment cost, construction budget estimate, and tender construction price as stipulated in points c, d, and đ of this clause results in exceeding the approved total construction investment cost and construction budget estimate, the review and approval of the adjusted total construction investment cost and adjusted construction budget estimate shall be carried out in accordance with the provisions.

Article 45. Implementation Organization

1. Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial and centrally-administered city People's Committees, Heads of political organizations, political-social organizations, occupational political-social organizations, and relevant organizations and individuals shall be responsible for implementing this Decree.

2. The Ministry of Construction shall take the lead and coordinate with relevant ministries and sectors to be responsible for guiding the implementation of this Decree.

Article 46. Effective Date

This Decree takes effect from the date of signature and replaces Government Decree No. 68/2019/NĐ-CP dated August 14, 2019, on the management of construction investment costs.