Circular No. 11/2021/TT-BXD guiding certain contents on determining and managing construction investment costs

CIRCULAR

Guidelines on certain aspects of determining and managing construction investment costs

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

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

Pursuant to Decree No. 10/2021/NĐ-CP dated February 9, 2021 of the Government on the management of construction investment costs;

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

The Minister of Construction issues this Circular guiding certain aspects of determining and managing construction investment costs.

Article 1. Scope of Regulation

This Circular guides certain aspects of determining and managing construction investment costs including: preliminary total investment cost for construction, total investment cost for construction, project budget estimate, tender package budget estimate, construction price, construction project price, construction price index, construction investment capital unit cost, conversion of construction investment capital, consulting fees for construction investment.

Article 2. Applicability

This Circular applies to the objects specified in Article 2 of Decree No. 10/2021/NĐ-CP dated February 9, 2021 of the Government on management of construction investment costs (hereinafter referred to as Decree No. 10/2021/NĐ-CP).

Article 3. Preliminary total investment cost for construction, total investment cost for construction

1. The preliminary total investment cost for construction is determined according to Clause 1, Clause 2, Article 4 of Decree No. 10/2021/NĐ-CP and the method guided in Section I of Appendix I of this Circular. In cases where there is no published construction investment capital unit cost data, the preliminary total investment cost for construction is determined based on the cost data of similar completed projects, with necessary adjustments and supplements to other required costs and conversion of costs to be suitable with the construction location, characteristics, and nature of the project, and the time point of determining the preliminary total investment cost for construction.

2. The total investment cost for construction is determined according to Article 6 of Decree No. 10/2021/NĐ-CP, the method guided in Section II of Appendix I of this Circular, and some specific provisions as follows:

a) The basis for determining the total investment cost for construction includes: basic design, applicable standards and specifications, technological and technical solutions, main equipment; architectural and main structural solutions of the project; construction and main material solutions; conditions and implementation plans of the project and other necessary requirements of the project.

b) Some items of costs within the scope of project management costs, consulting fees for construction investment, and other project costs if not yet regulated or lacking sufficient basis for determination shall be estimated in the total investment cost for construction.

3. For projects using official development assistance (ODA) funds and preferential loans from foreign sponsors, additional necessary cost items are supplemented to suit the special characteristics and nature of the construction investment projects funded by these sources in accordance with the relevant international agreements, ODA loan agreements already signed, and related laws.

4. For public-private partnership (PPP) projects, additional necessary cost items are supplemented in accordance with the laws on public-private partnerships.

Article 4. Project Budget Estimate

1. The project budget estimate is determined according to Article 12 of Decree No. 10/2021/NĐ-CP and the method guided in Section 1 of Appendix II of this Circular. The cost items in the project budget estimate include: construction costs, equipment costs, project management costs, consulting fees for construction investment, other costs, and contingency costs.

2. Construction costs in the project budget estimate are determined according to Clause 2, Article 12 of Decree No. 10/2021/NĐ-CP and the method guided in Appendix III of this Circular. Construction costs in the project budget estimate include: direct costs, indirect costs, pre-tax income, value-added tax. Direct costs are determined according to Point a, Clause 2, Article 12 of Decree No. 10/2021/NĐ-CP, detailed guidance in Section I of Appendix III of this Circular, and some specific provisions as follows:

a) Measured quantities, calculated from the detailed design after the basic design according to the Circular guiding the methods for determining economic and technical indicators and measuring quantities of works;

b) Detailed construction unit prices, comprehensive construction prices are determined according to the guidance in Appendix IV of this Circular.

3. Equipment costs in the project budget estimate are determined according to Clause 3, Article 12 of Decree No. 10/2021/NĐ-CP, detailed guidance in Section 1 of Appendix II of this Circular, and some specific provisions as follows:

a) Equipment procurement costs are determined according to the quantity, type, and volume of equipment and corresponding purchase prices. The quantity, type, and volume of equipment are determined from the detailed design after the basic design and the approved equipment list in the project. Purchase prices are determined in line with market prices based on information about equipment prices in the database system of competent state agencies; or quotations from suppliers, manufacturers; or prices of similar equipment regarding capacity, technology, origin in completed projects adjusted appropriately to the calculation period.

b) Equipment manufacturing and processing costs are determined based on the volume, quantity of equipment requiring manufacturing and processing and corresponding manufacturing and processing unit prices suitable with the nature and type of equipment; or information about equipment manufacturing and processing prices in the database system of competent state agencies; or based on quotations for equipment manufacturing and processing from production and supply units; or prices of similar equipment manufacturing and processing in completed projects adjusted appropriately to the calculation period.

c) Equipment procurement management costs (if any); software licensing fees for equipment and technology equipment (if any); training and technology transfer costs (if any); transportation costs; insurance costs; taxes and other related fees, other costs are determined by budget estimates or based on regulations issued by competent state agencies.

d) Equipment installation costs are determined by budget estimates as with construction cost estimates under Clause 2 of this Article.

d) Experimental costs, calibration costs, and trial run costs for equipment according to technical requirements (if any) shall be determined based on a budget estimate consistent with the actual work content.

4. Project management costs in the construction project budget shall be determined in accordance with the provisions of Clause 4, Article 12 and Article 30 of Decree No. 10/2021/NĐ-CP, based on the calculated percentage rate (%) within the total investment ceiling; or by a budget estimate consistent with the approved project management costs within the total investment ceiling. The standard for project management costs is stipulated in the Circular promulgating construction standards.

5. Construction investment consulting costs in the construction project budget shall be determined in accordance with the provisions of Clause 5, Article 12 of Decree No. 10/2021/NĐ-CP and Article 13 of this Circular. Construction investment consulting costs in the construction project budget shall not include consulting costs shared across the entire project.

6. Other costs in the construction project budget as stipulated in Clause 6, Article 12 of Decree No. 10/2021/NĐ-CP and some specific provisions as follows:

a) Other costs in the construction project budget shall be determined based on the percentage rate (%) according to the guidance of the competent authority; or by a budget estimate; or recorded according to the value of signed contracts in compliance with the law; or estimated in the construction project budget consistent with the approved total investment ceiling in cases where there is insufficient basis for determination.

b) Costs for constructing temporary shelters for machines, machine foundations, power supply systems, compressed air systems, water supply systems at the site; installation and dismantling costs for concrete batching plants, asphalt concrete mixing plants, mobile cranes running on tracks, and other similar construction equipment, if not included in the overall project cost, shall be estimated in the other costs of the construction project budget. These costs shall be determined based on a budget estimate consistent with the design, construction methods, and special conditions of the project.

c) Other costs in the construction project budget shall not include interest costs during the construction period; mine clearance and explosive disposal costs; auditing costs; review, approval of final accounts; research and development costs, application and use of new materials related to the project; initial working capital for construction projects aimed at business purposes; costs for unloaded and loaded trial runs of production lines before handover; costs for feasibility study reports, economic and technical investment construction reports; resource taxes, fees, and other related costs shared across the entire project.

7. Contingency costs in the construction project budget shall be determined in accordance with the provisions of Clause 7, Article 12 of Decree No. 10/2021/NĐ-CP, specifically as follows:

a) Contingency costs for additional quantities and works shall be calculated as a percentage (%) of the total construction costs, equipment costs, project management costs, construction investment consulting costs, and other costs.

b) Contingency costs for price escalation factors shall be determined based on the expected duration of the project (measured in quarters or years) and the appropriate construction price index, taking into account domestic and international price fluctuations.

8. The consolidated general budget as stipulated in Clause 3, Article 11 of Decree No. 10/2021/NĐ-CP shall be prepared in accordance with the guidelines set out in Section 3 of Appendix II of this Circular.

9. Adjustments to the construction project budget shall be carried out in accordance with the provisions of Article 15 of Decree No. 10/2021/NĐ-CP and the method provided in Section 4 of Appendix II of this Circular.

Article 5. Components of the budget estimate for the tender package

1. The construction works tender package budget estimate includes one or all of the following cost components: construction costs, related costs, and contingency costs of the tender package.

2. The equipment procurement tender package budget estimate includes one or all of the following cost components: construction and technology equipment procurement costs; equipment processing and manufacturing costs; equipment procurement management costs; software copyright purchase costs for use with the equipment; training and technology transfer costs; transportation costs; related costs, and contingency costs of the tender package.

3. The equipment installation tender package budget estimate includes one or all of the following cost components: installation, testing, and calibration costs; equipment trial run costs according to technical requirements; related costs, and contingency costs of the tender package.

4. The investment consulting tender package budget estimate includes one or all of the following cost components: investment consulting work implementation costs; related costs, and contingency costs of the tender package.

5. The mixed tender package budget estimate (including the tender package defined in Clause 2, Article 17 of Decree No. 10/2021/NĐ-CP): depending on the scope, nature, and specific conditions of the tender package, the mixed tender package budget estimate includes one or all of the cost components of the tender packages mentioned in Clauses 1, 2, 3, and 4 of this Article.

Article 6. Determination of the budget estimate for the tender package specified in Clause 2 and Clause 3, Article 17 of Decree No. 10/2021/NĐ-CP

1. Construction works tender package budget estimate:

a) Construction costs in the construction works tender package budget estimate are determined according to the provisions of Clause 2, Article 4 of this Circular.

b) Based on the specific conditions of the tender package, the construction works tender package budget estimate is supplemented with one or more related costs to perform tasks within the scope of the tender package such as: costs for moving special construction machinery and equipment to and from the site; traffic safety assurance costs for construction purposes; costs for restoring infrastructure affected during construction; material storage costs; costs for constructing protective structures for machinery, machine foundations, power supply systems, compressed air systems, water supply systems at the site; costs for installing and dismantling cement concrete mixing plants, asphalt concrete mixing plants, rail-mounted cranes, tower cranes, certain types of construction machinery and equipment with similar characteristics, and other relevant cost items.

c) Contingency costs in the construction works tender package budget estimate include contingency costs for additional quantities and work, and contingency costs for price escalation factors during the execution of the tender package.

2. Equipment procurement tender package budget estimate:

a) The cost components in the equipment procurement tender package budget estimate are determined according to the provisions of Point a, b, c, Clause 3, Article 4 of this Circular.

b) Based on the specific conditions of the tender package, the equipment procurement tender package budget estimate is supplemented with one or more related costs to perform tasks within the scope of the tender package.

c) Contingency costs in the equipment procurement tender package budget estimate include contingency costs for additional quantities and work, and contingency costs for price escalation factors during the execution of the tender package.

3. Equipment installation tender package budget estimate:

a) Installation, testing, calibration, and equipment trial run costs in the equipment installation tender package budget estimate are determined according to the provisions of Point d, đ, Clause 3, Article 4 of this Circular.

b) Based on the specific conditions of the tender package, the equipment installation tender package budget estimate is supplemented with one or more related costs to perform tasks within the scope of the tender package.

c) Contingency costs in the equipment installation tender package budget estimate include contingency costs for additional quantities and work, and contingency costs for price escalation factors during the execution of the tender package.

4. Investment consulting tender package budget estimate:

a) Consulting costs in the investment consulting tender package budget estimate are determined according to the provisions of Clause 5, Article 4 of this Circular.

b) Based on the specific conditions, the investment consulting tender package budget estimate is supplemented with one or more related costs to perform tasks within the scope of the tender package.

c) Contingency costs in the investment consulting tender package budget estimate include contingency costs for additional quantities and work, and contingency costs for price escalation factors during the execution of the tender package.

5. Mixed tender package budget estimate, tender package specified in Clause 2, Article 17 of Decree No. 10/2021/NĐ-CP: based on the content, nature of each specific tender package to determine the tender package budget estimate including one or all of the cost components specified in Clauses 1, 2, 3, and 4 of this Article.

6. The budget estimates specified in Clauses 1, 2, 3, and 4 of this Article are determined according to the guidelines in Section 2 of Appendix II of this Circular.

Article 7. Determination of the tender package budget as stipulated in Clause 4, Article 17 of Decree No. 10/2021/NĐ-CP.

1. Based on the approved construction project budget, the investor shall independently determine the tender package budget as follows:

a) Determine the scope and content of work to be carried out under the tender package;

b) Determine the components and cost items within the tender package budget according to the scope and content of work to be carried out under the tender package based on the approved construction project budget.

c) Update the quantities, unit prices, and costs of factors in accordance with market prices in the construction area, relevant state policies at the time of determining the tender package budget, technical guidelines, and specific requirements of the tender package for the cost components and items determined in Point b, Clause 1 of this Article.

2. Other related costs of the tender package shall be determined in accordance with Point b, Clause 1, Point b, Clause 2, Point b, Clause 3, and Point b, Clause 4 of Article 6 of this Circular, consistent with the specific conditions and nature of the tender package and the approved construction project budget.

3. The contingency reserve in the tender package budget shall be determined as the contingency reserve in the construction project budget prescribed in Section 1 of Appendix II of this Circular and must ensure that the total contingency reserve of the tender package budgets does not exceed the contingency reserve in the approved construction project budget.

2. Construction material prices, construction labor unit prices, machinery and equipment construction prices are published periodically by the Department of Construction in accordance with Clause 2, Article 26 of Decree No. 10/2021/NĐ-CP and the provisions of Clauses 3, 4, and 5 of this Article.

b) The Construction Department shall take the lead and coordinate with relevant agencies to conduct surveys, collect information, determine material prices in the locality; publish according to Model 01 of Appendix VIII of this Circular; send the publication results along with electronic data files (in a unified format) to the Ministry of Construction for monitoring, management, and updating into the database as stipulated in Clause 3, Article 29 of Decree No. 10/2021/NĐ-CP.

a) Published construction material prices must be consistent with market prices, quality standards, origin, supply capacity, and scope at the time of publication. The list of published construction materials is selected based on the list of construction materials in the quota system issued by the competent authority and the list of construction materials available in the market.

c) In case of necessity, the Department of Construction may publish construction material prices monthly for those types of construction materials with fluctuations to meet the requirements of construction investment cost management. The date of publishing construction material prices quarterly is before the 15th day of the first month of the next quarter, and monthly is before the 10th day of the following month.

b) The daily wage rate of construction workers is determined for the working hours specified (8 hours/day, 26 days/month) based on the group of direct production workers, consistent with their skill levels according to the worker grades in the normative system issued by state authorities.

a) Construction labor unit prices published in the locality must be consistent with construction labor market prices in the region, suitable for the characteristics and nature of construction labor tasks; including wages and allowances according to the characteristics of construction production and some expenses that employees must pay according to regulations. Expenses that employees must pay according to regulations include: social insurance, health insurance, unemployment insurance, trade union fees, and other expenses.

b) The daily wage rate of construction labor is determined for the specified working hours (8 hours/day, 26 days/month) for groups of direct production workers, consistent with skill levels according to the worker's rank in the quota system issued by the competent state authority.

c) The list of construction labor worker groups and ranks and the method of determining construction labor unit prices are detailed in the Circular guiding the determination of economic and technical indicators and volume measurement of construction projects.

d) The Department of Construction shall take the lead and coordinate with relevant agencies: implement or hire consultants with sufficient qualifications to conduct surveys, collect information, refer to the framework of construction labor unit prices announced by the Ministry of Construction to determine construction labor unit prices in the locality; publish according to Form 2 of Appendix VIII of this Circular; send the announcement results to the Ministry of Construction for monitoring and management along with an electronic data file (Microsoft Excel file) to update into the database system in accordance with Clause 3, Article 29 of Decree No. 10/2021/NĐ-CP.

a) Published machinery and equipment rental prices must be consistent with the type, capacity, key technical indicators, and characteristics of each type of machine and equipment. The list of machines and equipment to be published is selected based on the list of machines and equipment included in the normative system issued by state authorities and the list of machines and equipment available in the market.

b) Machinery and equipment rental prices are determined for a working shift (8 hours) of machines and equipment, consistent with consumption norms and basic data for calculating machinery rental prices issued by the Ministry of Construction, consistent with the list of machines and equipment in the normative system issued by state authorities.

a) Machinery and equipment construction prices published must be consistent with type, power, key technical indicators, and characteristics and nature of each machine and equipment. The list of published machinery and equipment for construction is selected based on the list of machinery and equipment for construction in the quota system issued by the competent state authority and the list of machinery and equipment for construction available in the market.

c) Machinery and equipment construction prices include all or some cost items such as depreciation costs, repair costs, fuel and energy costs, operator labor costs, and other costs of the machine. Machinery and equipment construction prices do not include the costs mentioned in Point b, Clause 6, Article 4 of this Circular.

Consumption quotas, basic data for determining machinery and equipment construction prices, and the method of determining machinery and equipment construction prices are guided in the Circular guiding the determination of economic and technical indicators and volume measurement of construction projects.

e) The time for publishing machine prices and construction equipment prices annually shall be before January 15 of the following year.

6. Enterprises producing and supplying construction materials, construction labor; enterprises operating and leasing machinery and equipment for construction in the locality; investors and contractors winning bids in construction investment projects have the responsibility to provide information about cost factor prices to serve the Department of Construction in publishing prices as stipulated in Clause 2 of this Article.

1. Construction project prices include detailed unit prices and comprehensive project prices. Construction project prices are determined in accordance with the provisions of Clause 2 and Clause 3, Article 24 of Decree No. 10/2021/NĐ-CP and detailed guidance provided in Appendix IV of this Circular.

3. Material Prices:

a) Material prices published by competent state authorities in accordance with Clause 3 of Article 8 of this Circular serve as the basis for determining construction project prices.

b) In cases where construction materials are not included in the published prices or are included but the prices are not appropriate, the construction material prices for determining construction project prices shall be implemented in accordance with the guidance provided in Section 1.2.1 of Appendix IV of this Circular.

c) It is encouraged to select construction materials that conserve mineral resources, save energy, and are environmentally friendly when preparing feasibility studies, design plans, and determining investment costs for projects, but such selection must ensure investment efficiency and meet project requirements.

d) In cases where projects require the use of special construction materials that are not commonly available on the market or imported materials, specific explanations must be provided in the Preliminary Feasibility Study Report, Feasibility Study Report, Economic and Technical Report, and Design Explanation.

4. Unit Prices for Construction Labor:

a) Unit prices for construction labor published by competent state authorities in accordance with Clause 4 of Article 8 of this Circular serve as the basis for determining construction project prices.

b) In cases where the unit price of construction labor published by competent state authorities does not match the characteristics of the work, project, or investment, the investor shall organize surveys to determine the unit price of construction labor according to the method prescribed in the Circular guiding the determination of economic and technical indicators and volume stripping of construction works for decision-making when determining construction project prices. During the process of determining the unit price of construction labor, the Department of Construction shall provide guidance on the accuracy and appropriateness of the basis and methods for determining the unit price of construction labor when requested by the investor.

c) The investor shall submit the documentation of the results of determining the unit price of construction labor at point b of this clause to the Department of Construction for monitoring and management; the documentation of the results of determining the unit price of construction labor submitted to the Department of Construction must reflect the basis, method, result of determining the unit price of construction labor, and any forms (if applicable) according to the prescribed method; annually, the Department of Construction will compile and report to the Ministry of Construction.

5. Machine Prices and Construction Equipment Prices:

a) Machine prices and construction equipment prices published by competent state authorities in accordance with Clause 5 of Article 8 of this Circular serve as the basis for determining construction project prices.

b) In cases where the machinery shift price and construction equipment price have not been published by competent state authorities or have been published but are not suitable for usage requirements and construction conditions of the project, the investor shall organize surveys to determine the machinery shift price and construction equipment price according to the method prescribed in the Circular guiding the determination of economic and technical indicators and volume stripping of construction works for decision-making when determining construction project prices. During the process of determining the machinery shift price and construction equipment price, the Department of Construction shall provide guidance on the accuracy and appropriateness of the basis and methods for determining the machinery shift price and construction equipment price when requested by the investor.

c) The investor shall submit the documentation of the results of determining the machinery shift price and construction equipment price at point b of this clause to the Department of Construction for monitoring and management; the documentation of the results of determining the machinery shift price and construction equipment price submitted to the Department of Construction must reflect the basis, method, result of determining the machinery shift price and construction equipment price, and any forms (if applicable) according to the prescribed method; annually, the Department of Construction will compile and report to the Ministry of Construction.

6. For construction projects built across two or more provincial administrative units, the investor shall organize the determination of construction project prices in accordance with the provisions of Clause 3, Article 26 of Decree No. 10/2021/NĐ-CP to facilitate cost determination, save and improve project efficiency, and align with the supply capacity of resources according to implementation plans.

Article 10. Construction Price Index

1. The construction price index published by the competent state agency according to Clause 3, Article 27 of Decree No. 10/2021/NĐ-CP must ensure timeliness, objectively reflect market price fluctuations during the selected period; exclude compensation costs, support, and resettlement expenses, interest during the construction period, and initial working capital for business operations. The unit of measurement for the construction price index is percentage (%).

2. The selection of project categories to determine and publish the construction price index should be based on management requirements, regulations on project management, construction investment cost management, and characteristics of project types in the locality. The number of representative projects for calculating the construction price index for projects in the selected category shall not be less than three projects.

3. The cost structure used to determine the construction price index must be compiled from statistical data and must comply with the cost structure stipulated in construction investment cost management regulations and remain fixed until there is a change in the base year as provided for in Point a, Clause 5 of this Article.

4. Selection of input cost factors to determine the construction price index:

a) Representative input cost factors for determining the construction price index include costs related to types of materials, labor, and main construction machinery for the project or type of project; and these factors must be selected according to the principle that the total weight of costs for these types of materials, labor, and main construction machinery must account for more than 80% of the corresponding material, labor, and construction machinery costs of the project. The list of materials for determining the construction price index must be consistent regarding type, specifications, and brand. The list of construction labor for determining the construction price index must be consistent regarding group and skill level. The list of machines and equipment for construction for determining the construction price index must be consistent regarding type and capacity.

b) The prices of construction materials, unit prices of construction labor, and machine and equipment rental prices are determined according to Clause 2, Article 8 and the provisions at Point b, Clause 3, Point b, Clause 4, and Point b, Clause 5 of this Circular.

5. Base year and publication time of the construction price index by the competent state agency:

a) The base year is 2020, and the comparison period is the publication time of the construction price index compared to the base year. The Ministry of Construction will stipulate the time for changing the base year for localities to adjust accordingly.

b) For construction price indices published quarterly, the publication time is before the 15th day of the first month of the following quarter. For annual construction price indices, the publication time is before the 15th day of January of the following year.

c) In cases where it is necessary to publish the construction price index monthly, the competent state agency shall consider and decide to meet the requirements of construction investment cost management and adjustment of construction contracts' prices in the locality. The publication time of the monthly construction price index is before the 10th day of the following month.

6. Based on the project list and the method for determining the construction price index specified in the Circular guiding the method for determining economic and technical indicators and measuring work volume, and the provisions in Clauses 1, 2, 3, 4, and 5 of this Article, the Department of Construction shall organize the determination of the construction price index as the basis for publication as stipulated in Point b, Clause 3, Article 27 of Decree No. 10/2021/NĐ-CP.

7. Determination of the construction price index to adjust contract prices as stipulated in Clause 4, Article 27 of Decree No. 10/2021/NĐ-CP shall be as follows:

a) The type of construction price index selected for calculating adjustments to construction contract prices must be consistent with the type of construction price index stipulated in Clause 2, Article 27 of Decree No. 10/2020/NĐ-CP and agreed upon in the contract.

b) The cost structure for determining the construction price index must comply with the regulations stipulated in the Circular guiding adjustments to construction contract prices and the Circular specifying the method for determining economic and technical indicators and measuring work volume.

c) Selection of input cost factors to determine the construction price index as stipulated in Clause 4 of this Article.

d) The base year and comparison period for determining the construction price index must be based on agreements in the contract and the progress of contract implementation, ensuring compliance with the law on construction contracts.

Article 11. Construction Investment Capital Output

2. The construction investment capital output prescribed in Clause 2, Article 25 of Decree No. 10/2021/NĐ-CP is published annually and does not include costs for certain tasks according to specific project requirements, including:

a) Compensation, support, and resettlement costs;

b) Interest on loans during the implementation period for projects using borrowed funds;

c) Initial working capital for construction projects aimed at production and business purposes;

d) Contingency costs for unexpected work volume and price escalation factors during the project implementation period;

đ) Certain costs with specific characteristics for each project such as environmental impact assessment and handling project impacts on the environment; international quality inspection, deformation monitoring of structures; quality inspection costs; special foundation reinforcement; foreign consultancy fees; other specific costs.

3. The construction investment capital output is determined based on collected data, calculations from actual conditions; or from existing database systems; or a combination thereof. The method for determining the construction investment capital output is guided by Circular guiding the methods for determining economic and technical indicators and measuring construction volumes.

Article 12. Conversion of Construction Investment Capital

1. Conversion of construction investment capital involves converting various items of investment costs including: compensation, support, and resettlement costs (if applicable), construction costs, equipment costs, project management costs, construction investment consultancy costs, and other costs settled at the time of handover for operation. The conversion of construction investment capital must reflect all investment costs already incurred by the construction project at the time of conversion. The report on the conversion of construction investment capital is prepared together with the settlement documents for submission to the investment decision-maker for approval.

2. The conversion of construction investment capital is carried out for projects and works with a construction period exceeding two years from the start of construction to the completion acceptance date.

3. The method for converting construction investment capital and the template for reporting the results of the conversion of construction investment capital are implemented in accordance with the guidance provided in Appendix VII of this Circular.

Article 13. Construction Investment Consultancy Costs

1. Construction investment consultancy costs are determined in accordance with Article 31 of Decree No. 10/2021/NĐ-CP and the following specific provisions:

a) Construction investment consultancy costs are determined based on the percentage rate specified in the Circular promulgating construction norms.

b) For consultancy work without norms or with existing norms that are not suitable, consultancy costs are determined based on a budget consistent with the required work content, as guided in Section II of Appendix VI of this Circular.

c) For certain consultancy work on construction investment carried out before determining the total construction investment cost and construction project budget, consultancy costs are determined based on approved values; or consultancy contracts signed in compliance with the law.

đ) Construction survey costs are determined in accordance with the guidance provided in Appendix V of this Circular.

2. Foreign consultancy fees for certain types of construction investment consultancy work are determined in accordance with Article 32 of Decree No. 10/2021/NĐ-CP and relevant laws, in line with international practices. The method for preparing budgets for foreign consultancy fees is guided in Section III of Appendix VI of this Circular.

Article 14. Effective Date

1. This Circular takes effect from October 15, 2021

2. This Circular replaces: Circular No. 09/2019/TT-BXD dated December 26, 2019 issued by the Minister of Construction guiding the determination and management of construction investment costs; Circular No. 11/2019/TT-BXD dated December 26, 2019 issued by the Minister of Construction guiding the determination of machinery and equipment rental rates; Circular No. 14/2019/TT-BXD dated December 26, 2019 issued by the Minister of Construction guiding the determination and management of construction price indices; Circular No. 15/2019/TT-BXD dated December 26, 2019 issued by the Minister of Construction guiding the determination of construction labor unit prices; Circular No. 16/2019/TT-BXD dated December 26, 2019 issued by the Minister of Construction guiding the determination of project management and construction investment consultancy costs; Circular No. 18/2019/TT-BXD dated December 26, 2019 issued by the Minister of Construction guiding the conversion of construction investment capital; Circular No. 02/2020/TT-BXD dated July 20, 2020 issued by the Minister of Construction amending and supplementing several articles of four related Circulars concerning the management of construction investment costs./.