Circular No. 12/2008/TT-BXD guiding the establishment and management of construction survey costs

CIRCULAR

Guidelines for the establishment and management of construction survey costs

________________________

Pursuant to Decree No. 17/2008/NĐ-CP dated February 4, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Construction.

Pursuant to Decree No. 99/2007/NĐ-CP dated June 13, 2007 of the Government on the Management of Construction Investment Costs; Decree No. 03/2008/NĐ-CP dated January 7, 2008 of the Government amending and supplementing certain articles of Decree No. 99/2007/NĐ-CP dated June 13, 2007 of the Government on the Management of Construction Investment Costs;

The Ministry of Construction hereby provides guidelines for the establishment and management of construction survey costs as follows:

1.  GENERAL PROVISIONS

1.1. Management of construction survey costs includes: management of standard rates, budget estimates for construction survey costs, and construction survey prices.

1.2. Construction survey costs encompass all necessary expenses required to complete construction survey work in accordance with technical standards for construction surveys issued by the State.

1.3. Construction survey costs established according to these Circulars serve as the basis for managing investment costs for construction projects.

2.  METHODS FOR ESTABLISHING BUDGET ESTIMATES FOR CONSTRUCTION SURVEY COSTS

Depending on the specific nature and conditions of the project, the Project Owner may establish budget estimates for construction survey costs using different methods such as: determining based on quantities and unit prices of construction surveys; applying cost data from similar construction surveys that have been completed under comparable technical requirements and implementation conditions.

2.1. Method for establishing budget estimates for construction survey costs based on quantities and unit prices of construction surveys:

Budget estimates for construction survey costs (hereinafter referred to as survey budget estimates) may include various cost items and can be determined using the following formula:

2.1.1. Quantities of each type of survey work:

The quantities of each type of survey work are determined according to the appropriate technical survey plan suitable for the survey location and conditions, and approved by the Project Owner.

2.1.2. Unit prices of each type of survey work:

Unit prices of each type of survey work include direct costs (material costs, labor costs, machine and equipment usage costs), common costs, and pre-tax income.

Unit prices of each type of survey work are determined using the following formula:

                                            G

ti_i = (C_{+  P} )  x  (1 +  L_i: Unit price of type i survey work;_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.})                           (1)

Wherein:

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_i : Direct cost for one unit quantity of type i survey work;

Ministry of Science and Technology: The Minister and Deputy Ministers, agencies and units under the Ministry;_ti   : Common cost for one unit quantity of type i survey work;

- P_i  : Pre-tax income.

-_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.}These factors are calculated as follows:

2.1.2.1. Direct costs (C

Direct costs for one unit quantity of type i survey work include material costs, labor costs, and direct construction machinery usage costs, and are determined using the following formula:_ti) :

                                            C

mi_ti TTĐ_FUNCTION ĐMT_{Depreciation of fixed assets in year i of the project} ĐMT_{: Direct material cost for one unit quantity of type i survey work;}                                       (2)

Where:

Ministry of Science and Technology: The Minister and Deputy Ministers, agencies and units under the Ministry;_FUNCTION : Direct labor cost for one unit quantity of type i survey work;

Ministry of Science and Technology: The Minister and Deputy Ministers, agencies and units under the Ministry;_{Depreciation of fixed assets in year i of the project} : Direct machine and equipment usage cost for one unit quantity of type i survey work;

Ministry of Science and Technology: The Minister and Deputy Ministers, agencies and units under the Ministry;_{Vietnamese language domain names} a/ Direct material costs (C

Direct material costs may apply material costs in construction survey prices published by provincial/municipal People's Committees where the project is located or determined using the following formula:_FUNCTION) :

: Proportion of auxiliary materials relative to main materials for type i survey work;

                                  (3)

Where:

- K_{: Ratio norm of auxiliary materials to main materials for the i-th type of survey work;} : Consumption rate of material j for one unit quantity of type i survey work;

- M_{: Consumption norm of material j for one unit volume of the i-th type of survey work;} j

Clause 2. The total cost to process one ton of solid waste (Z) is determined according to the following formula:_{: Price of material j (excluding VAT) at the site.} Material prices at the survey site are determined in accordance with the construction site location. Material prices are based on local published prices, manufacturer quotations, supplier information, or prices applied to similar projects under comparable conditions.

b/ Direct labor costs (C

=  N_{Depreciation of fixed assets in year i of the project}) :

• N

mi_{Depreciation of fixed assets in year i of the project}   ´ L_i: Consumption rate of working days for one unit quantity of type i survey work;_i                                               (4)

Where:

- N_i : Daily wage of workers performing type i survey work.

-_iSurvey daily wages are calculated based on the principle of accurately and sufficiently paying wages, additional wage allowances, and wage supplements based on the minimum wage level set by competent state authorities to ensure wages for workers taking into account the prevailing market wage levels in each region and specific working conditions of the project.

c/ Direct machine and equipment usage costs (C

Direct machine and equipment usage costs may apply machine costs in construction survey prices published by provincial/municipal People's Committees where the project is located or determined using the following formula:_{Vietnamese language domain names}) :

: Proportion of other machines relative to the main machine for type i survey work;

                                 (5)

Where:

- K_{Vietnamese language domain names}: Number of shifts of the main machine q for one unit quantity of type i survey work;

- The Office of Legal Document Supervision (Ministry of Justice);_{: Number of shifts of the main machine q for one unit volume of the i-th type of survey work;} Survey machine shift prices (including rental prices): are calculated according to Circular No. 07/2007/TT-BXD dated July 25, 2007 of the Ministry of Construction guiding the method for determining machine and equipment shift prices for application to projects or from local published machine and equipment shift price lists.

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_q The shift price of survey machines can apply the local published machine and equipment shift price list or rental prices, or calculated according to the method of determining the shift price of construction machines and equipment issued by the Ministry of Construction for application to the project. Machine costs do not include operator labor costs.

2.1.2.2. Common costs (P

2.1.2.2. General expenses (P_i) :

                                            P_i =    C_ni   x K_{: Ratio norm of auxiliary materials to main materials for the i-th type of survey work;}                                           (6)

Where:

Ministry of Science and Technology: The Minister and Deputy Ministers, agencies and units under the Ministry;_{Depreciation of fixed assets in year i of the project} : Direct machine and equipment usage cost for one unit quantity of type i survey work;

- K_{: Ratio norm of auxiliary materials to main materials for the i-th type of survey work;} : The general survey cost rate is calculated at 70%.

2.1.2.3. Pre-tax income (L_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.}) : Is equal to 6% of direct costs (C_ti) and common costs (P_i).

2.1.3. Cost of developing plans and reporting survey results :

The cost of developing plans and reporting survey results is calculated at 5% based on the value of the total volume of each type of survey work multiplied by the unit price corresponding to each type of survey work.

2.1.4. Temporary accommodation costs :

Temporary accommodation costs are calculated at 5% based on the value of the total volume of each type of survey work multiplied by the unit price corresponding to each type of survey work.

2.1.5. Costs for troop and equipment relocation :

Depending on the specific conditions of each technical survey plan (special survey work, small volume of survey work...), the Investor decides and estimates the costs for troop and equipment relocation and other costs in the survey construction cost estimate accordingly.

2.1.6. Value-added tax rate :

The value-added tax rate applicable to survey construction work is as prescribed by current regulations.

2.1.7. Contingency costs :

Contingency costs are the costs set aside for unexpected work volumes and inflation factors during the survey construction period, determined at a maximum of 10% of the survey construction costs after value-added tax.

2.2. Method for determining the survey construction cost estimate based on applying data from previously conducted survey costs of similar projects :

          Applying data from previously conducted survey costs of similar projects with similar technical requirements and implementation conditions to determine the survey construction cost estimate for the project under calculation involves considering the volume of work, implementation conditions, and price adjustment factors based on similar survey conditions, methods, and implementation time.

3. MANAGEMENT OF SURVEY CONSTRUCTION COSTS

3.1. Management of survey construction budget standards :

Survey construction budget standards are published by the Ministry of Construction.

Ministries and provincial People's Committees base on the method of establishing standards according to the guidance of the Ministry of Construction to organize the establishment and publication of standards for special survey construction works of ministries and localities not included in the published Survey Construction Budget Standards of the Ministry of Construction.

For new survey construction works not included in the published standards or already included but not suitable for the project (applying different standards, procedures, regulations from current provisions), the Investor bases on technical requirements, construction methods, construction conditions, and the method of establishing standards to organize the establishment and adjustment of standards for these survey works as the basis for determining survey construction costs.

New survey construction standards not included in the published sets of standards, before being applied to establish unit prices, prepare estimates, and for payment of packages using state budget funds under the sole-source procurement method, the Investor reports to the Investment Decision Maker for review and decision. For construction projects under investment projects decided by the Prime Minister, the Minister, head of a ministry equivalent to a ministry, head of a government agency, Chairman of the provincial People's Committee, Chairman of economic groups, and Chairman of the State-owned enterprise management council make the decision.

The Investor organizes or hires competent and experienced consulting organizations to guide the establishment, supplementation, or adjustment of survey standards for those standards that need adjustment or need to be newly established as mentioned above. Consulting organizations are responsible for the rationality and accuracy of the standards they establish.

The Investor decides on the application and implementation of published or supplemented, adjusted, or newly established survey standards to prepare and manage survey construction costs for projects.

For projects extending along routes or built across multiple provinces, the Investor decides on the application and implementation of published or supplemented, adjusted, or newly established survey standards to prepare and manage survey construction costs for projects.

Ministries and provincial People's Committees regularly send the published survey construction standards of the year to the Ministry of Construction for monitoring and management.

3.2. Management of survey construction prices :

Provincial People's Committees direct the Department of Construction to base on this Circular and the specific situation of the locality to guide the establishment of survey construction unit prices, organize the establishment, and submit to the provincial People's Committee for publication of survey construction prices for projects.

The Investor bases on the nature and specific conditions of the project and the guidance of this Circular to organize the establishment and decide on the application or implementation of survey unit prices to prepare survey construction estimates for the project.

4. IMPLEMENTATION ORGANIZATIONS

4.1. Provincial People's Committees direct the Department of Construction to take the lead in coordinating with relevant departments to establish and publish survey construction prices, material prices, labor prices, and survey construction machinery rental prices suitable for the specific conditions of the local market as a basis for managing survey construction costs; At the same time, report to the Ministry of Construction for monitoring, management, and inspection.

4.2. Provincial People's Committees base on the guidance of this Circular and related documents to guide and stipulate the application of survey construction prices for projects using local state budget funds.

4.3. Implementation of the transition according to Point 2 of Article 1 of Decree No. 03/2008/NĐ-CP dated January 7, 2008, amending and supplementing some articles of Decree No. 99/2007/NĐ-CP dated June 13, 2007 of the Government on the Management of Construction Project Investment Costs, specifically:

For construction survey works of projects approved before the effective date of this Circular, the establishment and management of construction survey costs shall be carried out in accordance with the guidance provided in Circular No. 14/2005/TT-BXD dated August 10, 2005, issued by the Ministry of Construction. In cases where it is necessary to implement the provisions of this Circular, the Investment Decision Maker shall consider and decide; specifically, for investment projects decided by the Prime Minister, such decisions shall be made by the Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial People's Committees, Chairpersons of economic groups, and Chairpersons of State-owned enterprise management boards.

For projects not yet approved, the establishment and management of construction survey costs shall be carried out in accordance with the guidance provided in this Circular.

4.4. In cases where foreign consultancy services are hired to carry out construction survey work, they shall be implemented in accordance with Decision No. 131/2007/QĐ-TTg dated August 9, 2007, issued by the Prime Minister on the issuance of regulations on hiring foreign consultancy services in construction activities in Vietnam; and Circular No. 09/2007/TT-BXD dated November 2, 2007, issued by the Ministry of Construction guiding the determination and management of costs for hiring foreign consultancy services in construction activities in Vietnam.

This Circular shall take effect fifteen days from the date of publication in the Official Gazette and shall replace Circular No. 14/2005/TT-BXD dated August 10, 2005, issued by the Ministry of Construction, which provides guidance on the establishment and management of construction survey costs.

During implementation, if any issues that require supplementation or amendment are discovered, the relevant ministries, localities, and units are requested to promptly reflect them to the Ministry of Construction for study and resolution./.