Circular No. 14/2021/TT-BXD guiding the determination of maintenance costs for construction works

CIRCULAR

Guidelines for determining maintenance costs of construction works

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 the Government Decree No. 06/2021/NĐ-CP dated January 26, 2021 detailing certain provisions on quality management, construction works, and maintenance of construction projects;

In accordance with the proposal of the Director of the Construction Economy Department and the Director of the Construction Economic Institute;

The Minister of Construction issues this Circular to guide the determination of maintenance costs of construction works.

Article 1. Scope of Regulation

This Circular guides the determination of maintenance costs of construction works as prescribed in Article 35 of Decree No. 06/2021/NĐ-CP dated January 26, 2021 of the Government detailing certain aspects concerning quality management, construction activities, and maintenance of construction works (hereinafter referred to as Decree No. 06/2021/NĐ-CP).

Article 2. Applicability

1. This Circular applies to organizations and individuals related to the determination of maintenance costs of construction works funded by state budget recurrent expenditure and non-investment state capital.

2. Organizations and individuals related to the maintenance of construction works funded from other sources may refer to the provisions of this Circular to determine maintenance costs of construction works.

Maintenance costs of construction works are determined based on the budget estimate. The budget estimate for maintenance costs of construction works includes: costs for performing annual regular maintenance tasks, repair costs, consulting service costs for maintenance, other costs, and management costs for maintenance which are the responsibility of the owner or the person managing and using the construction work. The budget estimate for maintenance costs of construction works shall be determined as follows:

1. Costs for performing annual regular maintenance tasks as stipulated at point a, Clause 3, Article 35 of Decree No. 06/2021/NĐ-CP are determined by applying a percentage rate to the construction cost and equipment cost of the construction work; wherein:

a) The construction cost and equipment cost are determined based on the final account value of the construction work and adjusted according to the price level at the time of preparing the maintenance plan. In case there is no final account value of the construction work, the construction cost and equipment cost are determined according to the investment capital per unit of the construction work published by the competent authority.

b) The percentage rate for costs for performing annual regular maintenance tasks is determined in accordance with the guidelines set out in Appendix I attached hereto.

2. Repair costs are determined based on the budget estimate. The budget estimate for repair costs includes costs for repairing the building structure and equipment of the construction work, and other related costs (if any).

3. In cases where the repair costs exceed VND 500 million, the budget estimate for repair costs shall be determined in accordance with the Circular guiding certain aspects of determining and managing investment construction costs issued by the Ministry of Construction.

4. In cases where the repair costs are less than VND 500 million, the budget estimate for repair costs shall be determined as follows:

a) Repair costs are determined based on the volume and unit price of repair work.

For periodic repairs, the volume of repair work is determined based on the design for repair, repair plan, and approved maintenance procedures of the construction work. For emergency repairs, the volume of repair work is determined based on the actual condition of the construction work requiring repair, repair design documents, and other relevant requirements.

The unit price for repair work is determined from the budget estimate repair rates and prices of cost factors, or determined based on market prices or similar prices from completed projects. When the unit price for repair work is determined from the budget estimate repair rates and prices of cost factors, direct costs (material costs, labor costs, machinery and equipment costs) are determined in accordance with the Circular guiding certain aspects of determining and managing investment construction costs issued by the Ministry of Construction. Indirect costs are determined as 10% of the direct costs. Pre-tax income is calculated as a percentage of the direct and indirect costs in the unit price for repair work. The percentage rate for pre-tax income is determined in accordance with the Circular guiding certain aspects of determining and managing investment construction costs issued by the Ministry of Construction. If the unit price for repair work is determined based on market prices or similar prices from completed projects, it may include items of indirect costs and pre-tax income.

b) The total budget estimate for repair costs under VND 500 million is determined in accordance with Table 2.2 in Appendix II attached hereto.

5. In cases where there are emergency repair costs within the planned year, the budget estimate for repair costs shall be determined as follows:

a) For repairs costing VND 500 million or more, the budget estimate for repair costs shall be determined in accordance with Clause 3 of this Article.

b) For repairs costing less than VND 500 million, the budget estimate for repair costs shall be determined in accordance with Clause 4 of this Article.

6. Consulting service costs for maintenance of construction works are determined as follows:

a) For consulting services that have been regulated by the Ministry of Construction in the Circular promulgating construction norms, the costs are implemented in accordance with this Circular.

b) For consulting services such as: monitoring construction works for maintenance purposes; surveys for repair design, testing for consulting maintenance of construction works, and other consulting services guided by the Circular guiding certain aspects of determining and managing investment construction costs issued by the Ministry of Construction, these shall be implemented in accordance with this Circular.

b) For consulting works such as: construction monitoring for maintenance purposes; surveys for repair design; testing for consulting maintenance of construction works, and other consulting works have been guided by the Ministry of Construction in the Circular guiding certain contents on determining and managing construction investment costs, shall be implemented in accordance with the provisions of this Circular.

c) For consulting works such as: drafting, reviewing maintenance procedures for construction projects (in cases where there is no existing maintenance procedure) or adjusting maintenance procedures for construction projects; quality inspection of construction projects serving maintenance work; unscheduled inspections according to requirements; periodic safety assessments of construction projects during operation and use; and other consulting works that apply prescribed norms but are not suitable, the cost shall be determined by preparing a budget estimate.

d) In cases where the repair costs of construction projects reach 500 million VND or more and require the preparation of an economic and technical report or an investment project for repairing the construction project, the consulting costs for repairs shall be included in the total investment limit for construction, or the construction project budget estimate.

7. Other costs as stipulated in point d, Clause 3, Article 35 of Decree No. 06/2021/NĐ-CP shall be determined based on a percentage rate (%) or by preparing a budget estimate in accordance with the guidance of the competent authority.

8. Maintenance management costs falling under the responsibility of the owner or manager/user of the construction project shall be determined as follows:

a) For repairs of construction projects with implementation costs below 500 million VND, the cost shall be determined at 3.5% of the total implementation costs of annual regular maintenance tasks, repair costs of construction projects, consulting costs for maintenance services of construction projects, and other costs as specified in Clauses 1, 2, 6, and 7 of this Article.

b) For repairs of construction projects with implementation costs reaching 500 million VND or more and requiring the preparation of an economic and technical report or an investment project for repairing the construction project, the cost shall be determined at 3.5% of the total implementation costs of annual regular maintenance tasks, consulting costs for maintenance services of construction projects, and other costs as specified in Clauses 1, 6, and 7 of this Article.

9. The review, approval, and adjustment of maintenance costs for construction projects shall be carried out in accordance with the provisions of Clauses 4 and 5, Article 35 of Decree No. 06/2021/NĐ-CP.

Article 4. Effective date

This Circular takes effect from November 1, 2021, and replaces Circular No. 03/2017/TT-BXD dated March 16, 2017, of the Ministry of Construction on guiding the determination of maintenance costs for construction projects./.