Decree No. 112/2009/ND-CP on Management of Construction Investment Costs

DECREE

On the management of construction investment costs for projects

______________________

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Construction Law dated November 26, 2003;

Considering the proposal of the Minister of Construction,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of application

This Decree applies to organizations and individuals related to the management of construction investment costs for projects using 30% or more state capital.

It is encouraged that organizations and individuals related to the management of construction investment costs for projects using less than 30% state capital apply the provisions of this Decree.

Article 2. Scope of Regulation

This Decree stipulates the management of construction investment costs including: total investment amount; project budget; construction norms and prices; capacity conditions; rights and responsibilities of the investment decision-maker, project owner, and contractor in managing construction investment costs; settlement and finalization of state-funded construction investment costs, including state budget funds, official development assistance, state development credit funds, state-guaranteed credit funds, and other state investment funds.

For projects utilizing official development assistance (ODA) funds, if international treaties to which Vietnam is a party have different regulations on the management of construction investment costs compared to the provisions of this Decree, such treaties shall be followed.

Article 3. Principles of Construction Investment Cost Management

1. The management of construction investment costs (hereinafter referred to as cost management) must ensure the objectives and effectiveness of construction investment projects and be consistent with market economic mechanisms.

2. Cost management shall be conducted on a project-by-project basis, in accordance with the stages of construction investment projects, design phases, types of funding sources, and state regulations.

3. The total investment amount and project budget must be estimated according to the prescribed methods, covering all cost items and matching the duration of the construction period. The total investment amount is the maximum cost that the project owner is permitted to use for constructing the project.

4. The State performs its function of cost management through issuing, guiding, and inspecting the implementation of regulations concerning cost management.

5. The project owner bears full responsibility for cost management from the investment preparation stage until the completion and commissioning of the project for operation.

6. The provisions of this Decree and the construction investment costs approved by the investment decision-maker or project owner in accordance with this Decree serve as the basis for organizations with oversight functions to conduct inspections, audits, and reviews of construction investment costs.

Chapter II

TOTAL INVESTMENT AMOUNT FOR CONSTRUCTION PROJECTS

Article 4. Content of Total Investment Amount for Construction Projects

1. The total investment amount for construction projects (hereinafter referred to as total investment amount) is the estimated cost of the project determined according to Clause 1 of Article 5 of this Decree. The total investment amount serves as the basis for the project owner to plan and manage capital during the implementation of construction projects.

2. The total investment amount includes: construction costs; equipment costs; compensation, support, and resettlement costs; project management costs; construction investment consulting costs; other costs; and contingency costs.

3. The costs included in the total investment amount are specified as follows:

a) Construction costs include: costs for constructing buildings and sub-projects; demolition costs for existing structures; land leveling costs; temporary construction costs for auxiliary facilities serving construction; temporary housing at the construction site for living and construction management.

b) Equipment costs include: costs for purchasing technological equipment; training and technology transfer costs (if applicable); installation, testing, and calibration costs; transportation and insurance costs; taxes and related fees.

c) Compensation, support, and resettlement costs include: costs for compensating houses, structures, and attached assets on land according to prescribed compensation rules; other compensation costs; support costs when the state reclaims land; resettlement costs; organization costs for compensation, support, and resettlement; land usage costs during the construction period (if applicable); infrastructure construction costs (if applicable).

d) Project management costs include expenses for organizing and implementing project management from project initiation to completion, acceptance, and commissioning, as well as monitoring and evaluating investment projects.

đ) Construction investment consulting costs include: survey, project planning, design, construction supervision, and other related consulting costs.

e) Other costs include: working capital during trial production for business-oriented construction projects; interest during the construction period; and other necessary costs.

g) Contingency costs include: costs for unexpected work volumes and costs for price escalation factors during the project implementation period.

Article 5. Establishing the Total Investment Ceiling

1. The total investment ceiling shall be determined according to one of the following methods:

a) Calculating based on the basic design, where construction costs are calculated based on the main quantities from the basic design, other quantities estimated, and market-appropriate construction prices; equipment costs are calculated based on the quantity and type of equipment suitable for the technological design, market equipment prices, and other factors (if any); compensation, support, and resettlement costs are calculated based on the project's required compensation, support, and resettlement volumes and relevant state regulations; project management costs, investment consulting construction costs, and other costs are determined by preparing a budget estimate or temporarily calculating them as a percentage (%) of the total construction cost and equipment cost; contingency costs are determined in accordance with Clause 3 of this Article;

For projects requiring only an economic-technical report, the total investment ceiling simultaneously serves as the project budget and compensation, land clearance, and resettlement costs (if applicable). The project budget is calculated based on quantities from the construction drawing design and the provisions of Article 9 of this Decree.

b) Calculating based on the area or capacity usage of the project and the comprehensive construction price according to structural components, area, and functional usage (hereinafter referred to as the comprehensive construction price), the corresponding investment capital for constructing the project at the time of project preparation, adjusted and supplemented with costs not included in the comprehensive construction price and investment capital to determine the total investment ceiling;

c) Calculating based on data from similar projects with comparable economic-technical indicators that have been implemented. When applying this method, the data of similar projects must be converted to the time of project preparation and adjusted for cost items not yet determined in the total investment ceiling;

d) Combining the options prescribed in points a, b, and c of Clause 1 of this Article.

2. The preliminary total investment ceiling for projects requiring an investment report and projects applying the turnkey contract form shall be estimated based on the investment capital rate or costs of similar completed projects and cost factors affecting the total investment ceiling according to the length of the construction period.

3. Contingency costs for additional work volumes are calculated as a percentage (%) of the total costs specified in points a, b, c, d, đ, and e of Clause 3 of Article 4 of this Decree. Contingency costs for inflation factors are calculated based on the length of the construction period and the annual construction price index appropriate to the type of construction project, taking into account domestic and international price fluctuations.

Article 6. Reviewing and Approving the Total Investment Ceiling

1. Reviewing the total investment ceiling is part of the review of the investment construction project, including the following contents:

a) The appropriateness of the method for determining the total investment ceiling with the characteristics, technical nature, and technological requirements of the investment construction project;

b) The completeness, rationality, and suitability of the cost items in the total investment ceiling with actual market requirements;

c) Determining the value of the total investment ceiling ensuring the efficiency of the construction project investment.

2. The investment decision-maker organizes the review of the total investment ceiling or hires organizations or individuals with sufficient qualifications as stipulated in Chapter V of this Decree to conduct cost management reviews (hereinafter referred to as cost management organizations or individuals). Review fees or review costs are included in the total investment ceiling. Organizations and individuals conducting the review and cost management review of the total investment ceiling are responsible under the law for the rationality and accuracy of the review results.

3. The total investment ceiling is recorded in the investment decision approved by the investment decision-maker.

Article 7. Adjustment of Total Investment Ceiling

1. The approved total investment ceiling may only be adjusted in cases where the project is adjusted according to the provisions of Clause 2, Article 1 of the Law Amending and Supplementing Certain Provisions of Laws Related to Construction Investment, which changes the total investment ceiling (increase or decrease).

2. The investor decision-maker decides on the approval of the adjusted total investment ceiling. In cases where the adjusted total investment ceiling does not exceed the previously approved total investment ceiling and does not change the location, scale, or objectives of the project, the investor may decide independently and bear responsibility for the approval of the adjusted total investment ceiling.

3. The portion of the adjusted total investment ceiling that differs from the previously approved total investment ceiling must be reviewed or examined by an organization before approval.

4. If the adjustment of the total investment ceiling as stipulated in Clause 1 of this Article increases the scale (group) of the project, the management of the project will still be carried out according to the scale (group) of the project that was approved prior to the adjustment.

Chapter III

CONSTRUCTION ESTIMATE

Article 8. Contents of the construction estimate

1. The construction project budget estimate (hereinafter referred to as the project budget estimate) is determined based on specific construction projects and serves as the basis for the investor to manage construction investment costs.

2. The project budget estimate is established based on the quantity of work determined according to technical design or construction drawing design, the tasks to be performed for the project, and the construction cost unit price, and necessary percentage-based costs (hereinafter referred to as cost rate standards) required to implement the workload and tasks.

3. The contents of the project budget estimate include: construction costs; equipment costs; project management costs; construction investment consulting costs; other costs and contingency costs.

Article 9. Preparation of Project Budget Estimate

1. The project budget estimate is prepared as follows:

a) Construction costs are established for the main construction project, major sub-projects, and specific works within the project and are determined by preparing a budget estimate (construction cost budget estimate). For auxiliary projects, temporary construction projects, construction costs are determined by preparing a budget estimate; temporary housing and construction site management costs are determined by cost rate standards.

The construction cost budget estimate includes direct costs, common costs, pre-tax income, value-added tax, and temporary housing and construction site management costs. The construction cost budget estimate can be determined either by individual cost items or by consolidating all cost items.

The construction cost budget estimate is prepared using one of the following methods:

- The method of volume and complete construction unit prices;

- The method of total material, labor, and machinery consumption volumes and corresponding pricing tables;

- The method of construction cost rates with similar economic and technical indicators that have been implemented;

- Other appropriate methods based on the nature and characteristics of the construction project.

b) Equipment costs in the project budget estimate include procurement costs, including training and technology transfer costs (if applicable); installation costs, testing and calibration costs, and other related costs (if applicable);

Procurement costs are determined based on the quantity and type of equipment needed to purchase and manufacture, and the purchase or manufacturing price of the equipment. Training and technology transfer costs, installation costs, testing and calibration costs, and other related costs (if applicable) are determined by preparing a budget estimate.

c) Project management costs include necessary expenses for the investor to organize project management. Project management costs are determined by cost rate standards or by preparing a budget estimate.

d) Construction investment consulting costs include costs for consulting on investment project preparation, surveying, designing, reviewing, supervising construction, managing costs, and other related consulting costs. Construction investment consulting costs are determined based on national published cost rate standards or by preparing a budget estimate.

The monthly salary of the consulting expert when preparing the monthly budget estimate is determined based on the basic salary, social security costs, management costs, profit, and other average market allowances or those published by the state. In cases where a specific consulting organization has been identified, it is based on the actual salary, social security costs, management costs, profit, and other allowances in the audited financial report or confirmed by the tax and finance authorities or similar contracts signed or being executed in the most recent year of that consulting organization, and the annual wage inflation rate to calculate and determine.

đ) Other costs include costs not specified in Points a, b, c, and d of Clause 1 of this Article and are determined by preparing a budget estimate or cost rate standards.

e) Contingency costs for unforeseen work volumes are calculated as a percentage (%) of the total costs specified in Points a, b, c, d, and đ of Clause 1 of this Article. Contingency costs for inflation factors are calculated based on the length of the construction period and the annual construction price index suitable for the type of construction project.

2. For projects requiring only an economic and technical report, the total investment ceiling is simultaneously the project budget estimate. In this case, the project budget estimate includes compensation and resettlement land clearance costs (if applicable).

3. For projects with multiple construction projects, the investor may establish a total project budget estimate to serve cost management purposes. The total project budget estimate is determined by summing up the budget estimates of each project and related costs within the project.

Article 10. Examination and Approval of Project Budget

1. The project investor shall organize the examination of the project budget before approval. The examination contents include:

a) Checking the consistency between the main quantities of the budget and the design quantities;

b) Verifying the correctness and reasonableness of the application and implementation of construction unit prices, cost ratio norms, consulting service budgets, and other cost item budgets in the project budget;

c) Determining the value of the project budget.

2. In cases where the project investor does not have the necessary conditions and capacity to examine, they may hire organizations or individuals with sufficient conditions, capacity, and professional experience to review the project budget. Organizations and individuals conducting the review of the project budget shall be responsible under the law and to the project investor for the results of the review.

3. The project investor shall approve the project budget (except for projects that only require the preparation of economic-technical reports, which will be approved by the investment decision-maker) after examination or review and shall be responsible under the law for the results of approving the project budget. The approved project budget serves as the basis for determining the tender package price, the construction price, and is the basis for negotiating and signing contracts, and making payments to contractors in cases of designated bidding.

Article 11. Adjustment of Project Budget

1. The project budget may be adjusted in the following cases:

a) The cases stipulated in Clause 1 of Article 7 of this Decree.

b) Cases where changes or additions to the design are permitted without contravening the basic design or changes to the cost structure within the project budget but not exceeding the total investment amount of the project already approved, including contingency costs.

2. Adjusted project budgets shall be determined using direct offset methods, adjustment factor methods, construction price index adjustment methods, and other methods. The value of the adjustment according to the cases specified in Clause 1 of this Article shall be determined separately when added to the adjusted budget (if applicable).

3. The project investor shall organize the examination and approval of the adjusted project budget. For projects that only require the preparation of economic-technical reports, if the value of the adjusted project budget does not exceed the value of the previously approved project budget by the investment decision-maker, the project investor shall organize the examination and approval themselves; if it exceeds the previously approved project budget value, the project investor shall report to the investment decision-maker before organizing the examination of the budget and submitting it to the investment decision-maker for approval.

Chapter IV

CONSTRUCTION NORMS AND CONSTRUCTION PRICES OF PROJECTS

Article 12. Construction Norms

1. Construction norms include economic-technical norms and cost ratio norms.

2. Economic-technical norms specify the necessary consumption levels of materials, labor, and construction machinery to complete a unit volume of construction work.

3. Cost ratio norms are used to determine the costs of certain types of work and costs in construction investment, including: project management, construction investment consulting, site preparation, general costs, direct other fees, temporary housing for living and on-site construction management, pre-tax income, and some other works and costs.

Article 13. Establishment and Management of Construction Norms

1. The Ministry of Construction shall guide the method for establishing construction norms and publish such norms.

2. Based on the method for establishing construction norms as stipulated in Clause 1 of this Article, ministries and provincial People's Committees shall organize the establishment and publication of construction norms for specific tasks of their respective sectors and localities.

3. For construction works that already exist within the published system of construction norms but are not suitable with construction methods, conditions, or technical requirements of the project, the project owner, contractor, and consulting organizations may adjust those norms to be appropriate for application to the project.

4. For new construction works not included in the published system of construction norms, the project owner, contractor, and consulting organizations shall base on technical requirements, construction conditions, and the method for establishing norms guided by the Ministry of Construction to establish norms or apply similar construction norms from other projects.

5. The project owner may hire consulting organizations with sufficient capacity and experience to implement the establishment, adjustment, and verification of construction norms as prescribed in Clauses 3 and 4 of this Article. Consulting organizations shall bear responsibility under the law and to the project owner for the rationality and accuracy of the established construction norms.

6. In cases where construction norms established according to the provisions of Clauses 3 and 4 of this Article are used to set unit prices in tender packages funded by state budget and using direct award procedures, the project owner shall report to the investment decision-maker for review and approval (for construction projects under investment projects decided by the Prime Minister, the Minister of the relevant sector or the Chairman of the provincial People's Committee shall decide).

Article 14. System of Construction Project Prices

1. The system of construction project prices includes unit prices of construction projects and composite construction prices. Unit prices of construction projects are established for specific construction projects. Composite construction prices are compiled from unit prices of construction projects.

2. The system of construction project prices is used to determine construction costs within the total investment ceiling and project estimates.

Article 15. Establishment of Unit Prices for Construction Projects

1. Unit prices for construction projects are established based on market prices or necessary consumption rates of materials, labor, and construction machinery required to complete a unit volume of construction work and related cost factors specific to the project as follows:

a) Construction material prices are determined in accordance with standards, types, and quality of materials used for specific construction projects. Construction material prices are based on market prices provided by organizations with supply functions, quotations from manufacturers, information from suppliers, or prices applied to other projects with similar standards and quality. Construction material prices at the construction site are calculated according to the method for establishing unit prices for construction projects;

b) Construction labor prices are determined based on accurate calculation of labor wages and in line with the prevailing labor market wage levels in each region, categorized by profession;

c) Machinery and equipment rental prices are determined according to specific projects and in accordance with the method guided by the Ministry of Construction or prevailing market rental rates for machinery.

2. For construction projects (including those funded by ODA) requiring the use of foreign labor, imported materials, imported construction equipment, and other special requirements, unit prices for construction shall include additional costs based on actual conditions and special requirements of the project.

Article 16. Management of Construction Project Pricing

1. The project investor shall organize the establishment of construction unit prices and comprehensive construction pricing based on the method for establishing construction unit prices, technical requirements, and specific construction methods of the project, serving as the basis for determining the total investment amount and construction project budget estimates to manage costs.

2. Investors of construction projects may hire organizations or individuals with sufficient qualifications and experience to provide consulting services for tasks or parts of tasks related to the establishment of construction project pricing. Consulting organizations and individuals must bear legal responsibility before the law and the project investor regarding the rationality and accuracy of the construction project pricing they establish.

3. Provincial People's Committees shall announce labor prices, machinery and equipment rental prices commonly applied according to the method guided by the Ministry of Construction, and construction labor prices within their province as a reference for establishing construction unit prices.

Article 17. Construction Price Index

1. The construction price index reflects the degree of fluctuation in construction project pricing over time and serves as the basis for determining, adjusting the total investment amount, construction project budget estimates, construction contract prices, and managing construction investment costs.

2. The construction price index is determined according to the type of project, cost factors, cost structure, main building materials, region, and is published at different time points. The Ministry of Construction publishes the construction price index and the method for constructing the construction price index.

3. For special construction projects not included in the construction price index announced by the Ministry of Construction, investors may hire consulting organizations with sufficient qualifications to determine the construction price index for the project according to the method for constructing the construction price index announced by the Ministry of Construction as the basis for establishing, adjusting the total investment amount, construction project budget estimates, construction contract prices, and managing construction investment costs. Consulting organizations are responsible for the accuracy and rationality of the provided construction price indices.

Chapter V

QUALIFICATIONS OF ORGANIZATIONS AND INDIVIDUALS PROVIDING COST MANAGEMENT CONSULTING SERVICES

Article 18. General Provisions on Qualifications of Organizations and Individuals Providing Cost Management Consulting Services

1. Organizations and individuals providing consulting services for the following cost management tasks must have sufficient qualifications as prescribed:

a) Establishing and reviewing the total investment amount;

b) Evaluating the effectiveness of construction investment projects;

c) Determining investment capital efficiency indicators, norms, construction unit prices, construction price indices;

d) Measuring construction work quantities;

đ) Establishing and reviewing construction project budget estimates;

e) Determining tender package prices, construction contract prices in construction activities;

g) Controlling construction project costs;

h) Preparing payment and settlement documents for contracts;

i) Preparing payment and settlement documents for construction investment capital.

2. The qualifications of cost management consulting organizations are reflected in two levels and are determined based on the number of individuals holding Construction Valuation Engineer certificates within the organization.

3. The qualifications of cost management consulting individuals are reflected in the form of Construction Valuation Engineer certificates.

4. Individuals who are civil servants working in administrative state agencies related to cost management and meeting the conditions stipulated in this Decree shall be issued Construction Valuation Engineer Certificates; the practice of consulting by civil servants must comply with the regulations on civil servants;

5. Cost management consulting organizations specified in this Decree include organizations that only perform specific tasks in cost management and other consulting organizations with functions to perform tasks related to cost management and meet the qualification conditions as prescribed.

Article 19. Construction Cost Estimation Engineer Certificate

1. The Construction Cost Estimation Engineer Certificate shall be issued to individuals meeting the conditions stipulated in Article 20 of this Decree.

2. The Construction Cost Estimation Engineer Certificate is divided into Class 1 and Class 2 certificates according to a unified model and is valid throughout the country.

3. The Construction Cost Estimation Engineer Certificate is issued by the Director of the Department of Construction. The Director of the Department of Construction is responsible for organizing the issuance of the Construction Cost Estimation Engineer Certificate in accordance with the provisions of this Decree published on the local electronic information website.

Article 20. Conditions for Issuing the Construction Cost Estimation Engineer Certificate

1. Conditions for issuing the Class 2 Construction Cost Estimation Engineer Certificate:

a) Having full civil capacity, not prohibited from practicing by a competent authority's decision, not under criminal prosecution, or serving a prison sentence;

b) Holding a diploma from a college level or higher in economics, economic-engineering, engineering, or economics bachelor’s degree issued by legitimate organizations in Vietnam or abroad and currently engaged in cost management work;

c) Possessing a certificate confirming completion of training and vocational upgrading in construction cost estimation as prescribed by the Ministry of Construction;

d) Having participated in construction activities for at least five years since the date of graduation. In cases with a construction economics major diploma, the period of construction activity must be at least three years;

đ) Having carried out at least five tasks specified in Clause 1 of Article 18 of this Decree.

2. Conditions for issuing the Class 1 Construction Cost Estimation Engineer Certificate:

a) Holding a Class 2 Construction Cost Estimation Engineer Certificate;

b) Having continuously participated in cost management activities for at least five years since obtaining the Class 2 Construction Cost Estimation Engineer Certificate;

c) Having completed advanced training courses and vocational upgrading in cost management and investment construction mechanisms and policies;

d) Having led the implementation of at least five tasks specified in Clause 1 of Article 18 of this Decree.

3. In cases where an individual requests issuance of a Class 1 Construction Cost Estimation Engineer Certificate without having a Class 2 Construction Cost Estimation Engineer Certificate, the applicant must have continuously participated in cost management activities for at least ten years and led the implementation of at least five tasks specified in Clause 1 of Article 18 of this Decree.

4. Vietnamese and foreign individuals holding a Construction Cost Estimation Engineer Certificate or equivalent documents issued by legitimate foreign organizations that remain valid may be recognized to provide consulting services for cost management tasks in Vietnam. For foreign organizations and individuals, prior to providing consulting services for cost management tasks, they must obtain a business license and a work permit in accordance with Vietnamese law.

Article 21. Qualification Conditions for Organizations and Individuals Providing Consulting Services for Cost Management

1. Organizations providing cost management consulting services must meet the following conditions:

a) Class 1 Cost Management Consulting Organization: having at least five individuals within the organization who hold a Class 1 Construction Cost Estimation Engineer Certificate;

b) Class 2 Cost Management Consulting Organization: having at least three individuals within the organization who hold a Class 2 Construction Cost Estimation Engineer Certificate or one individual who holds a Class 1 Construction Cost Estimation Engineer Certificate.

2. Independent individuals providing cost management consulting services must meet the following conditions:

a) Holding a Construction Cost Estimation Engineer Certificate;

b) Registering business operations for consulting services in accordance with the law.

Article 22. Scope of Activities of Consulting Organizations and Individuals for Cost Management

1. Scope of activities of cost management consulting organizations:

a) Level 1 cost management consulting organization: shall provide consultancy services for cost management tasks of national key projects, group A, B, and C projects, and construction works that only require preparation of economic-technical reports.

b) Level 2 cost management consulting organization: shall provide consultancy services for cost management tasks as those provided by level 1 consulting organizations, except for the tasks specified in points a, b, and g of Clause 1, Article 18 of this Decree for national key projects;

c) For organizations not meeting the conditions to be classified: shall provide consultancy services for cost management tasks of construction works that only require preparation of economic-technical reports.

2. Scope of activities of independent individuals engaged in cost management consulting:

a) Individuals with a Level 1 Construction Cost Engineer certificate may perform:

- Providing consultancy services for one or several cost management tasks of national key projects (excluding the tasks specified in points a, b, and g of Clause 1, Article 18 of this Decree); group A projects;

- Providing consultancy services for all cost management tasks of group B and C projects and construction works that only require preparation of economic-technical reports.

b) Individuals with a Level 2 Construction Cost Engineer certificate may perform:

- Providing consultancy services for cost management tasks as those performed by individuals with a Level 1 Construction Cost Engineer certificate, excluding the tasks specified in points a, b, and g of Clause 1, Article 18 of this Decree for group A and B projects;

- Providing consultancy services for all cost management tasks of group C projects and construction works that only require preparation of economic-technical reports.

3. For investment construction projects in areas with difficult socio-economic conditions, individuals holding a diploma from a technical, economics, or economics-technical college or higher, and having a training certificate issued by training institutions as stipulated in Clause 1, Article 23 of this Decree, may provide consultancy services for cost management tasks of group C projects and construction works that only require preparation of economic-technical reports.

4. Individuals with a Construction Cost Engineer certificate but who have not registered their business operations for cost management consulting as required by law may perform cost management tasks but shall not sign reports or audit results of cost management tasks as specified in Clause 1, Article 18 of this Decree.

Article 23. Management of Training and Issuance of Construction Cost Engineer Certificates

1. Training and refresher courses for construction cost valuation must meet the following conditions:

a) Possess a Business Registration Certificate or Decision on Establishment for entities without a Business Registration Certificate as prescribed by law; have functions and responsibilities for training and refresher courses in fields related to cost management;

b) Have teaching programs and materials consistent with the framework program issued by the Ministry of Construction;

c) Have at least three affiliated instructors with professional qualifications and teaching experience that meet the requirements of the framework program issued by the Ministry of Construction and have at least seven years of experience in cost management.

2. The Ministry of Construction shall uniformly manage state administration over training and refresher courses for construction cost valuation, issuance of Construction Cost Engineer certificates; guide contents related to the framework program for training and refresher courses for construction cost valuation and procedures for issuing Construction Cost Engineer certificates.

3. The Department of Construction shall be the authority to review applications for issuance of Construction Cost Engineer certificates at the local level; organize the issuance, replacement, and reissuance of Construction Cost Engineer certificates, handle complaints and denunciations related to training management and issuance of Construction Cost Engineer certificates within its jurisdiction; organize inspections of training institutions, and refuse to recognize or revoke training and refresher course certificates issued by institutions that do not meet the conditions for issuance.

Chapter VI

RIGHTS AND RESPONSIBILITIES OF THE INVESTMENT DECISION MAKER, PROJECT OWNER, AND CONTRACTOR IN COST MANAGEMENT FOR CONSTRUCTION INVESTMENTS

Article 24. Rights and responsibilities of the Investment Decision Maker

1. The Investment Decision Maker has the following rights and responsibilities:

a) Ensure sufficient investment capital to pay for the project, works according to the approved time frame and progress;

b) Organize the review or decide to hire organizations or individuals with sufficient capacity conditions to audit the total investment cost of construction projects;

c) Approve the total investment cost together with the approval of the project and adjusted total investment cost in accordance with regulations;

d) Decide to apply new norms not yet included in the published norm system or norms already included in the published construction norm system but not suitable for the construction methods, construction conditions, or technical requirements of the project to establish unit prices in tender packages using state budget funds under the direct assignment tender form;

đ) Decide on contract pricing forms and tender package pricing in construction activities;

e) Approve the final account of the project investment capital;

g) Other rights and responsibilities related to cost management in accordance with current laws;

2. Depending on the scale and nature of the project, the Investment Decision Maker may be authorized or delegated to subordinate agencies to directly perform one or more tasks within their responsibility;

Article 25. Rights and responsibilities of the Project Owner

1. The Project Owner is fully responsible for managing the construction investment costs of the project;

2. The Project Owner has the following rights and responsibilities:

a) Organize the preparation of the investment project for construction and provide guidance, requirements, and investment capital limits as the basis for project preparation. Select design options, technology, equipment, and main building materials to submit to the Investment Decision Maker for consideration and approval;

b) Be permitted to adjust and approve the adjusted total investment cost in cases where the structure of cost items in the total investment cost is adjusted or in cases of adjusting the total investment cost as stipulated in Clause 1, Article 7 of this Decree without exceeding the approved total investment cost;

c) Organize the preparation, review, and approval of the construction project estimate;

d) Organize the preparation and decision to apply new norms not yet included in the published norm system or apply and use adjusted norms or similar construction norms from other projects except those specified in Clause 6, Article 13 of this Decree;

đ) Decide on the application and use of construction material prices, labor prices, machinery and construction equipment prices as the basis for establishing construction unit prices and construction project estimates; refer to prices published by relevant organizations, quotations from manufacturers, supplier price information, or prices applied to similar standard and quality projects and market price levels to apply to the project;

e) Propose the selection of contract pricing forms and tender package pricing in construction activities to the Investment Decision Maker;

g) Include capital, payment, and final settlement of contracts according to schedule and provisions in contracts signed with contractors;

h) Organize the control of construction investment costs in accordance with regulations;

i) Decide and take responsibility for the accuracy and reasonableness of the proposed value for the settlement agency and the investment capital settled for the contractor;

k) Be permitted to hire organizations or individuals to advise on cost management to carry out cost management tasks and bear legal responsibility for selecting these advisory organizations or individuals;

l) Have the right to claim compensation or file a lawsuit with the Administrative Court or Economic Court for compensation for damages caused by delays in the settlement of investment capital;

m) Approve or reject proposals, changes in construction methods, and technical requirements proposed by the contractor. Control changes during the construction process that relate to changes in construction investment costs or accelerate the implementation progress of the construction project;

n) Other rights and responsibilities related to cost management in accordance with current laws.

Article 26. Rights and responsibilities of cost management consulting contractors

1. Implement cost management consulting services according to their capacity and scope of operation as prescribed.

2. Request the project owner to pay costs as stipulated in the signed contract; be entitled to payment of interest on delayed payments, and have the right to claim compensation or initiate administrative or economic court proceedings for damages caused by the project owner's delayed settlement.

3. Bear legal responsibility before the law and the project owner for the results of cost management activities and compensate for damages caused to the project owner (if any) as stipulated in the signed contract.

4. Purchase professional liability insurance.

5. Shall not disclose information and documents related to cost management activities without permission from the project owner or competent authority.

6. Other rights and responsibilities related to cost management as prescribed by current laws.

Article 27. Rights and responsibilities of construction contractors

1. Determine rates, unit prices, and other costs related to the bid price when participating in bidding.

2. During the construction phase, change construction methods after obtaining approval from the project owner or their representative to expedite progress, ensure quality, and labor safety based on the value stipulated in the signed contract.

3. Propose and agree with the project owner on rates and unit prices for additional works arising during the construction process.

4. Independently use temporary housing construction funds for living and managing construction at the site, and directly cover other expenses for construction service activities.

5. Have the right to request payment of interest on delayed payments; be compensated for losses due to delayed land handover and other losses not attributable to the contractor.

6. The contractor shall bear responsibility for compensating the project owner and related parties for damages caused by the contractor's fault in failing to meet the specified construction schedule (if any).

7. Other rights and responsibilities related to cost management as prescribed by current laws.

Chapter VII

PAYMENT AND SETTLEMENT OF CONSTRUCTION INVESTMENT FUNDS

Article 28. Payment of Construction Contracts

Advance payments, settlements, and payment documentation for construction contracts shall be carried out in accordance with the provisions of the Government Decree on Contracts in Construction Activities.

Article 29. Capital Investment Payment for Construction Projects

1. Within seven working days from the date of receiving complete payment documentation as prescribed, the capital investment payment agency shall be responsible for making capital investment payments based on the payment requests of the project owner or their lawful representative, based on the assigned capital plan.

2. The project owner is responsible for the unit prices, quantities, and values proposed for payment in the payment request documentation; the capital investment payment agency does not bear responsibility for the unit prices, quantities, and values proposed for payment in the payment request documentation of the project owner or their lawful representative. During the payment process, if any errors are found in the payment request documentation, the capital investment payment agency shall notify in writing for the project owner or their lawful representative to supplement and complete the documentation.

3. Strictly prohibit capital investment payment agencies and project owners from unilaterally establishing regulations contrary to the law in capital investment payment procedures.

Article 30. Finalizing Construction Investment Capital

1. All construction projects funded by state capital must finalize their construction investment capital upon completion.

2. The finalized investment capital includes all legitimate expenses incurred during the investment process to put the project into operation and use. Legitimate expenses are those carried out within the scope of the approved project, design, and budget estimates, including adjustments and supplements according to signed contracts, in compliance with legal regulations. For construction projects funded by the state budget, the finalized investment capital must be within the approved total investment ceiling by the competent authority.

3. The investor is responsible for preparing the finalization report on construction investment capital to submit to the investment decision-maker for approval no later than twelve months for national key projects and Group A projects, nine months for Group B projects, and six months for Group C projects from the date of project completion and commissioning. Six months after the finalization capital approval decision for completed projects, the investor is responsible for settling debts and closing the project account at the capital settlement agency.

For independent works or parts thereof that are completed and put into use within a construction investment project, the finalization shall be carried out according to the requirements of the investment decision-maker.

4. Authority to Approve Finalization of Investment Capital:

a) For national key projects and other important projects decided by the Prime Minister to invest in:

- The Minister of Finance approves the finalization of projects using state budget funds; may delegate or decentralize approval of finalization for projects under their authority.

- The Project Owner shall approve the final settlement of component projects not using state budget capital.

b) For remaining projects: the investment decision-maker is the authorized person to approve the finalization of investment capital. For projects with delegated investment decisions, the investment decision-maker specifies the procedures for approving the finalization of investment capital.

Chapter VIII

STATE MANAGEMENT OF CONSTRUCTION PROJECT INVESTMENT COSTS

Article 31. Ministry of Construction

The Ministry of Construction is the agency responsible for unified state management of construction project investment costs and is responsible for:

1. Guiding methods for establishing and managing construction project investment costs; guiding methods for measuring construction volumes, machine rates, and construction equipment prices, adjusting construction budgets, construction price indices, construction duration, cost control in construction investments; guiding training and professional development in construction valuation and managing issuance of Construction Valuation Engineer certificates.

2. Publishing construction standards, project management cost pricing, and construction investment consulting fees, investment capital per unit of construction, construction price indices, and other relevant indicators.

3. Inspecting and supervising the implementation of regulations on managing construction project investment costs.

Article 32. Ministry of Finance

1. Guiding payment and finalization of construction investment capital.

2. Setting fee collection levels and guiding management and use of project evaluation fees and Construction Valuation Engineer certification fees.

3. Inspecting and supervising payments and finalizations of projects funded by the state budget.

Article 33. Ministries and Provincial People's Committees

1. Ministries and Provincial People's Committees shall establish and publish construction cost norms for specific tasks within their ministries or localities based on the method for establishing construction cost norms guided by the Ministry of Construction. They shall send to the Ministry of Construction annually the construction cost norms published during that year for monitoring and management.

2. Provincial People's Committees shall guide, establish, manage construction costs, and inspect the implementation of regulations on managing construction investment costs within their jurisdictions.

Chapter IX

IMPLEMENTING PROVISIONS

Article 34. Transitional Provisions

1. For investment construction projects approved before this Decree takes effect but not yet commenced or are under way, the management of construction costs shall be carried out according to the provisions of Decree No. 99/2007/NĐ-CP dated June 13, 2007, and Decree No. 03/2008/NĐ-CP dated January 7, 2008, of the Government regarding amendments and supplements to certain articles of Decree No. 99/2007/NĐ-CP on Managing Construction Investment Costs.

In cases where construction cost management is conducted according to the provisions of this Decree, the project investor shall report to the investment decision-maker for consideration and decision.

2. For investment construction projects that have been established and reviewed but not yet approved before this Decree takes effect, the reviewed construction investment costs need not be reviewed again; the management of construction costs after project approval shall be carried out according to the provisions of this Decree.

Article 35. Implementation

1. This Decree shall take effect from February 1, 2010, and revoke the provisions on managing construction investment costs set forth in Decree No. 99/2007/NĐ-CP dated June 13, 2007, of the Government on Managing Construction Investment Costs and Decree No. 03/2008/NĐ-CP dated January 7, 2008, of the Government on Amending and Supplementing Certain Articles of Decree No. 99/2007/NĐ-CP.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally-run city People's Committees, Heads of political organizations, political-social organizations, occupational political-social organizations, Chairpersons of State Economic Groups, State Corporations, and related organizations and individuals shall be responsible for implementing this Decree.

3. The Ministry of Construction shall lead and coordinate with related ministries and sectors to assume responsibility for guiding the implementation of this Decree./.