Circular No. 11/2019/TT-BXD guides the determination of construction machinery rental rates and construction equipment prices.

CIRCULAR

Guidelines for Determining the Cost of Construction Machinery and Equipment

Pursuant to the Construction Law No. 50/2014/QH13 dated June 18, 2014;

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

Decree No. 68/2019/NĐ-CP dated August 14, year 2019 of the Government on qon construction investment cost management;

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

The Minister of Construction issues this Circular guiding the determination of the cost of construction machinery and equipment.

Article 1. Scope of Regulation

This Circular guides the determination of the cost of construction machinery and equipment (hereinafter referred to as the cost of construction machinery) serving as the basis for the preparation and management of construction investment costs.

Article 2. Applicability

1. Agencies, organizations, and individuals related to the preparation and management of construction investment costs for projects using state budget funds, state capital outside the budget, and public-private partnership (PPP) projects as stipulated in Clause 1, Article 2 of the Government Decree No. 68/2019/NĐ-CP dated August 14, 2019 on construction investment cost management (hereinafter referred to as Decree No. 68/2019/NĐ-CP).

2. Encouraging agencies, organizations, and individuals related to the determination and management of construction investment costs for projects using other sources of funding to apply the provisions of this Circular to determine construction investment costs as the basis for fulfilling financial obligations to the State.

Article 3. Principles for determining unit prices of machinery

1. The cost of construction machinery is the average cost determined for one shift of work according to the regulations of construction machinery and equipment.

2. The cost of construction machinery is determined based on the requirements for managing and using construction machinery and equipment, consumption norms for determining the cost of construction machinery, and the local price level.

3. The cost of construction machinery is determined in accordance with the regulations on construction machinery in the construction project estimate norms.

4. The cost of construction machinery for specific projects is determined according to the type of construction machinery used (or planned to be used) for constructing the project in line with the construction organization design, construction methods, construction schedule, and the price level in the construction area.

Article 4. Contents of unit prices of machinery

1. The cost of construction machinery includes all or some of the cost items such as depreciation costs, repair costs, fuel and energy costs, operator labor costs, and other costs of the machine.

2. The cost of construction machinery does not include costs for building shelters for machines, foundations for machines, power supply systems, water supply systems, compressed air systems, and other construction works carried out at the site to serve the installation and trial operation of certain types of machines such as cement concrete mixing plants, asphalt concrete mixing plants, rail-mounted cranes, and similar equipment. These costs are separately estimated according to construction methods and included in the indirect costs of the project estimate.

3. The contents of the costs within the cost of construction machinery are determined appropriately according to the type of machine with the same technology, origin, and main technical specifications.

Article 5. Methods for determining unit prices of machinery

Clause 1. The procedure for determining unit prices of machinery is as follows:

a) Compile a list of construction machinery and equipment;

b) Determine basic information and data to serve the calculation of unit prices of machinery;

c) Calculate and determine unit prices of machinery according to consumption rates and basic data or according to rental unit prices of machinery.

2. Detailed methods for determining the cost of construction machinery are specified in Appendix 1 of this Circular.

3. Consumption norms and basic data for determining the cost of construction machinery are specified in Appendix 2 of this Circular.

Article 6. Management of unit prices of machinery

1. The Ministry of Construction guides the survey method and promulgates consumption norms and basic data for determining the cost of construction machinery.

2. The People's Committee of the province, centrally-run city (hereinafter referred to as the Provincial People's Committee) assigns the specialized agency on construction to determine and submit to the Provincial People's Committee for publication on the provincial or centrally-run city territory on a quarterly or annual basis or when there are significant changes in market prices to serve as the basis for determining the cost of construction machinery for preparing and managing construction investment costs in the locality and report to the Ministry of Construction for monitoring and management.

3. The specialized agency on construction implements or hires consultants with professional capacity as prescribed to carry out part or all of the work of surveying and collecting data to determine the cost of construction machinery, surveying the basic components of the cost of construction machinery. The cost for determining the cost of construction machinery is allocated from the regular budget of the Ministry, sector, province, or centrally-run city.

4. The project investor uses the published cost of construction machinery as the basis for determining the construction project cost. In cases where the construction machinery and equipment are not included in the publication or are already published but are not suitable for the usage requirements and construction conditions of the project, or in cases where the investment project is located in two provinces or centrally-run cities, the investor shall organize the determination of the cost of construction machinery for the project according to the principles and methods prescribed in this Circular, submit it for review and approval by the investment decision-maker for application to the project and send it to the specialized agency of the locality and the Ministry of Construction for management purposes.

5. Consulting contractors preparing construction estimates have the responsibility to propose the cost of construction machinery that has not been published or has been published but is not suitable for the usage requirements and construction conditions of the project to prepare the estimate and ensure the completeness and accuracy of the submitted documentation.

6. Enterprises engaged in the provision and leasing of construction machinery and equipment in the province, investors, and contractors winning bids for construction projects using state capital, PPP projects in the province have the responsibility to provide information on the cost of construction machinery, rental costs, and other information required for the survey, determination, and publication of the cost of construction machinery in the province according to the forms requested by the specialized agency on construction.

Article 7. Transitional Provisions

1. In cases where the total investment amount and construction project budget have been approved before the effective date of this Circular and no construction contract has yet been signed, the investment decision-maker shall decide on adjusting the machinery rates in the total investment amount and construction project budget as the basis for determining the tender package price based on the machinery rates published by the People's Committee of the province to ensure the progress and effectiveness of the project implementation.

2. For construction tender packages that have already signed construction contracts before the effective date of this Circular, they shall be implemented according to the contents of the tender invitation documents, tender submission documents, and the signed construction contracts.

Article 8. Effective Date

1. This Circular takes effect from February 15, 2020.

2. In the course of implementation, if there are difficulties, organizations and individuals shall send their opinions to the Ministry of Construction for consideration and resolution./.