Circular No. 14/2005/TT-BXD guiding the establishment and management of construction survey costs

CIRCULAR

Guidelines for the preparation and management of construction survey costs

Pursuant to the Construction Law No. 16/2003/QH11 dated November 26, 2003 of the National Assembly, session 4;

Pursuant to the Government Decree No. 16/2005/NĐ-CP dated February 7, 2005 on Management of Investment Construction Projects;

Pursuant to the Government Decree No. 36/2003/NĐ-CP dated April 4, 2003 on the functions, tasks, powers, and organizational structure of the Ministry of Construction.

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

1. General Provisions

1.1. Construction survey costs encompass all expenses necessary to complete survey work according to the national survey procedures and regulations. The construction survey costs established in accordance with this Circular serve as the basis for managing investment construction project costs.

1.2. Construction survey costs for investment construction projects funded by state budget funds, state development credit funds, state-guaranteed credit funds, and state-owned enterprise development funds must be determined in accordance with this Circular.

1.3. It is encouraged that investment construction projects using other sources of funding apply the provisions of this Circular to prepare and manage construction survey costs.

2. Method for preparing the estimated construction survey costs

The estimated construction survey costs are determined based on the following formula:

The above factors are determined as follows:

2.1. Volume of each type of survey work:

The volume of each type of survey work is determined based on the approved survey outline and technical plan by the project sponsor.

2.2. Unit price of each type of survey work:

The unit price of each type of survey work is determined as follows:

G_{international} = (C_ti + P_{international}) x (1 + L₁) (1)

Where:

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_{international}: Unit price of survey work type i;

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

- P_{international}: Common cost for one unit volume of survey work type i;

-₁: Pre-tax income.

These factors are calculated as follows:

2.2.1. Direct costs:

C_ti TTĐ_vi ĐMT_{Depreciation of fixed assets in year i of the project} ĐMT_{Vietnamese language domain names} (2)

Where:
- C_ti: Direct costs

- C_vi: Direct material costs for one unit volume of survey work type i;

- C_{Depreciation of fixed assets in year i of the project}: Direct labor costs for one unit volume of survey work type i;

- C_{Vietnamese language domain names}: Direct machinery and equipment usage costs for one unit volume of survey work type i;

a. Direct material costs:

                        n

C_vi = (1 + K_pi)   S    M_ij x Z_{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.} (3)

                      j=1

Where:

Ministry of Science and Technology: The Minister and Deputy Ministers, agencies and units under the Ministry;_vi: Direct material costs for one unit volume of survey work type i;

- M_pi: Proportion rate of auxiliary materials relative to main materials for survey work type i as prescribed;

- M_ij: Consumption quota of material type j for one unit volume of survey work type i as prescribed;

Clause 2. The total cost to process one ton of solid waste (Z) is determined according to the following formula:_{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.}: Price of material type j (excluding value-added tax) delivered to the site according to the survey material price list published by the provincial/municipal People's Committee or market prices at the construction site.

b. Direct labor costs:

C_{Depreciation of fixed assets in year i of the project} = N_{international} x L_{international} (4)

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 labor costs;

- N_{international}: Labor consumption quota for one unit volume of survey work type i as prescribed;

-_{international}: Daily wage rate for survey work type i according to the survey labor price list published by the provincial/municipal People's Committee.

c. Direct machinery and equipment usage costs:

C_{Vietnamese language domain names} = (1 + K_{Vietnamese language domain names}) S_iq x G_q (5)

Wherein:

Ministry of Science and Technology: The Minister and Deputy Ministers, agencies and units under the Ministry;_{Vietnamese language domain names}: Direct machinery and equipment usage costs;

- K_{Vietnamese language domain names}: Proportion rate of other machines relative to the main machine for survey work type i as prescribed;

- The Office of Legal Document Supervision (Ministry of Justice);_iq: Machine operation quota of type j for one unit volume of survey work type i as prescribed;

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_q: Price of machine operation of survey machine type q according to the machine operation price list published by the provincial/municipal People's Committee.

2.2.2. Common costs:

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_{international} TTĐ_{Depreciation of fixed assets in year i of the project} x K_pi

Where:

- "5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_{international} : Common costs;

- C_{Depreciation of fixed assets in year i of the project} : Labor costs;

- signing and implementing Agreements_pi: Common cost quota for survey work calculated at 70%.

2.2.3. Pre-tax income: Equal to 6% of direct costs and common costs.

2.3. Survey plan preparation and report writing costs:

Survey plan preparation and report writing costs are calculated at a ratio of 5% of the total volume of each type of survey work multiplied by the unit price of each type of survey work corresponding.

2.4. Temporary accommodation costs: Temporary accommodation costs are calculated at 5% of the total volume of each type of survey work multiplied by the unit price of each type of survey work corresponding.

2.5. Value-added tax rate: The value-added tax rate applicable to construction survey work according to current regulations.

3. Management of construction survey costs

3.1. Management of construction survey cost estimates:

Construction survey cost estimates are issued and uniformly applied throughout the country by the Ministry of Construction. For survey works not covered by existing standards or new types of survey work (using different standards, procedures, regulations, new equipment, new construction methods, or different geological and topographical conditions), the project sponsor and the survey contractor shall determine the cost estimates based on technical requirements, construction methods, construction conditions, and construction methods to establish cost estimates for these survey works or apply similar cost estimates from other projects as a basis for determining actual construction survey costs under tendering procedures. These cost estimates must be submitted to the Construction Department where the project is located, the Ministry of Construction, and the relevant industry ministry for monitoring and inspection. In cases of direct assignment, the project sponsor must submit these cost estimates to the relevant industry ministry or the Construction Department where the project is located for agreement with the Ministry of Construction to issue and apply them.

Provincial/Municipal Construction Departments and industry ministries are responsible for collecting cost estimates not included in the current cost estimate system annually and submitting them to the Ministry of Construction for research and issuance as supplements.

3.2. Management of construction survey unit prices:

The unit price for construction survey is established based on the budget estimate norms for surveys issued by the Ministry of Construction or agreed upon issuance. The Department of Construction shall take the lead in coordinating with relevant departments to establish and report to the People's Committee at the provincial level for the publication of tables of material prices, labor costs, and survey machinery rates that are suitable to the specific conditions of the local market, serving as a basis for establishing unit prices and adjusting survey cost estimates. The unit price for construction survey in the province is established based on the following:

- The table of survey material prices delivered to the site is determined according to the guidelines of the Ministry of Finance and the Ministry of Construction regarding the announcement and control of construction material prices within the field of investment in construction.

- The table of construction survey labor costs is determined based on the minimum wage, the level of survey workers, various allowances calculated on top of the minimum wage and the wage level, additional wages, and certain other direct costs allocated to workers as stipulated in Circular No. 04/2005/TT-BXD dated April 1, 2005, of the Ministry of Construction guiding the establishment and management of project investment construction costs.

- The table of construction survey machinery rates is determined according to the guidelines of the Ministry of Construction as set forth in Circular No. 06/2005/TT-BXD dated April 15, 2005, concerning the guidance on methods for establishing machinery and equipment construction rates.

Depending on the specific conditions of the locality, the Chairman of the Provincial People's Committee may decide to supplement labor costs and machinery usage costs for surveys based on the principle that the minimum wage rate does not exceed twice the national minimum wage rate prescribed by the Government when establishing and adjusting the regional survey unit price, while simultaneously sending the results for reporting to the Ministry of Construction.

The transition of the establishment and management of construction survey costs in accordance with the provisions of Circular No. 08/2005/TT-BXD dated May 6, 2005, of the Ministry of Construction.

This Circular takes effect fifteen days after its publication in the Official Gazette and replaces Circular No. 07/2000/TT-BXD dated July 12, 2000, of the Ministry of Construction guiding the establishment of survey unit prices and the management of survey construction costs. All previous regulations contrary to this Circular are hereby abolished.