Decision No. 15/2001/QD-BXD On Issuing the Cost Standards for Investment Consulting and Construction

Pursuant to …;

Regarding the issuance of cost standards for investment consulting and construction

___________________

 

 

THE MINISTER OF CONSTRUCTION

- Based on Decree No. 15/CP dated March 2, 1993 of the Government stipulating the tasks, powers, and responsibilities for state management of ministries and ministerial-level agencies.

- Based on Decree No. 15/CP dated March 4, 1994 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Construction.

- Based on Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government promulgating the Management Regulations on Investment and Construction and Decree No. 12/2000/NĐ-CP dated May 5, 2000 of the Government amending and supplementing certain provisions of the Management Regulations on Investment and Construction issued together with Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government.

At the proposal of the Director of the Institute of Construction Economics;

Pursuant to …;

Article 1: Issued together with this Decision are the "Cost Standards for Investment Consulting and Construction."

Article 2: This Decision replaces Decision No. 14/2000/QĐ-BXD dated July 20, 2000 of the Minister of Construction regarding the issuance of "Cost Standards for Investment Consulting and Construction" and shall take effect nationwide from July 1, 2001.

Article 3: Ministries, ministerial-level agencies, People's Committees of provinces and centrally governed cities are responsible for implementing this Decision.

 

STANDARDS

COSTS FOR INVESTMENT CONSULTING AND CONSTRUCTION

(Issued pursuant to Decision No. 15/2001/QĐ-BXD dated July 20, 2001 of the Minister of Construction)

Part I:

GENERAL PROVISIONS AND GUIDELINES FOR APPLICATION

1. The cost standards for investment consulting and construction (hereinafter referred to as cost standards for consulting services) set forth in this document serve as the basis for determining costs for investment consulting and construction; these costs are included in the total project budget estimate.

2. Scope and applicability of the cost standards for consulting services:

2.1. Applicability subjects: consulting works of:

- Projects; sub-projects; component projects;

- Bids within the approved bidding plan.

2.2. Scope of application: Projects funded by the following sources:

- State Budget funds;

- State-guaranteed credit;

- State development investment credit;

- State-owned enterprise development investment.

2.3. Costs for consulting services for projects funded by other sources (not specified in Point 2.2) shall be agreed upon by the parties involved in the consulting service contract based on the cost standards for consulting services stipulated in this document. Costs for consulting services for projects fully funded by foreign direct investment (according to the Law on Foreign Investment in Vietnam) shall be agreed upon by the parties involved in the consulting service contract according to international practices.

3. In this document, cost standards for consulting services are prescribed for the following works:

3.1. Preparation of a pre-feasibility study report;

3.2. Preparation of a feasibility study report;

3.3. Preparation of an investment report;

3.4. Project investment review; Technical design review; General estimate review (in cases where experts or consulting organizations are hired to perform these tasks);

3.5. Preparation of tender documents for construction works and analysis of construction tender documents;

3.6. Preparation of tender documents for procurement of materials and equipment and analysis of procurement tender documents;

3.7. Construction supervision;

3.8. Installation supervision.

For other consulting works not covered by the cost standards in this document, the costs for performing such consulting works shall be determined in accordance with Points 14 and 15 of this document.

4. The contents and products of each consulting work mentioned above are stipulated in the following documents:

- For Works 3.1; 3.2; 3.3: in accordance with guidelines issued by the Ministry of Planning and Investment; Works 3.2 and 3.3 include preliminary design.

- For Work 3.4: in accordance with regulations in the Management Regulations on Investment and Construction issued under Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government, Decree No. 12/2000/NĐ-CP dated May 5, 2000 amending and supplementing certain provisions of the Management Regulations on Investment and Construction issued under Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government, and guiding documents issued by the Ministry of Planning and Investment; the Ministry of Construction.

- For Works 3.5; 3.6: in accordance with regulations in the Tendering Regulations issued together with Decree No. 88/1999/NĐ-CP dated September 1, 1999 of the Government, Decree No. 14/2000/NĐ-CP dated May 5, 2000 amending and supplementing certain provisions of the Tendering Regulations issued together with Decree No. 88/1999/NĐ-CP dated September 1, 1999 of the Government, and Circular No. 04/2000/TT-BKH dated May 26, 2000 of the Ministry of Planning and Investment guiding the implementation of the Tendering Regulations issued together with Decree No. 88/1999/NĐ-CP dated September 1, 1999 of the Government.

- For Works 3.7; 3.8: in accordance with guidelines issued by the Ministry of Construction on quality management regulations for construction works.

5. Costs included in the cost standards for investment consulting and construction stipulated in Part II of this document consist of labor costs; material costs; machinery and equipment costs; management costs; training and professional development costs; health insurance, social insurance, and advance tax income.

Additionally, product liability insurance costs (as stipulated in Article 15 and Article 55 of Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government) shall be calculated as an additional 5% of the costs calculated according to the aforementioned cost standards.

6. Cost standards for consulting services are defined according to groups of construction works as follows:

- Group I: Mining works; metallurgy; chemical; mechanical; power; building materials; light industry; seafood processing works; fuel storage tanks; petrochemical and oil refining works; explosive and ammunition storage works.

Group II: Water supply and drainage works; oil and gas pipelines; power transmission lines; transformer stations; telecommunications; signaling; lighting; warehouses not belonging to Group I.

Group III: Agricultural works; fisheries; forestry; water conservancy works.

Group IV: Transportation works: railways; roads; airport runways and aprons; aircraft parking areas; bridge works; traffic intersections; navigation aids; traffic tunnels; ferry terminals; inland waterway ports; seaports; hydraulic works; railway stations and other transportation works.

- Group V: Civil works: residential buildings; hotels; cultural and educational works; medical and sports works; commercial and service works; office buildings; headquarters; and other public works.

7. Cost standards for consulting services are defined as follows:

7.1. The standard for the cost of preparing the preliminary feasibility study report (3.1) is calculated as a percentage (%) of the value of construction works and equipment (excluding VAT) as approved in the preliminary feasibility study report.

7.2. The standard for the cost of preparing the feasibility study report (3.2); investment report (3.3); and project investment appraisal (3.4): is calculated as a percentage (%) of the value of construction works and equipment (excluding VAT) as approved in the feasibility study report (or investment report).

7.3. The standard for costs for the following tasks: technical design review; total budget estimate review (3.4); tender documentation preparation for construction works and bid evaluation for construction works (3.5); construction supervision (3.7): is calculated as a percentage (%) of the construction works budget estimate value (excluding VAT) as approved in the total budget estimate.

7.4. The standard for costs for preparing tender documentation for procurement of materials and equipment and bid evaluation for procurement of materials and equipment (3.6) and installation supervision (3.8): is calculated as a percentage (%) of the equipment budget estimate value (excluding VAT) as approved in the total budget estimate.

8. In cases where investment projects use old materials and equipment, the values mentioned in point 7 (used as the basis to determine the consultancy fee standards) shall be calculated based on the corresponding new material and equipment values. These values must be approved by the authority that approves the preliminary feasibility study report, feasibility study report, technical design, and total budget estimate of the project.

9. Determining the investment and construction consultancy fees:

9.1. The consultancy fee for each task without VAT is determined according to the general formula below:

Ci = Gi x Ni x (ki + 0,05)             (1)

Where:

- Ci: The consultancy fee for the i-th task, unit of measurement: value;

- Ni: The consultancy fee standard for the i-th task as stipulated in Part II of this document; unit of measurement: %. In cases requiring interpolation of Ni, refer to the guidance provided in point 10 of this document.

- Gi: The corresponding value (excluding VAT) used to calculate the consultancy fee for the i-th task as stipulated in point 7 and Part II of this document.

If there is no value as prescribed in point 7, the investor and the parties may temporarily estimate the value Gt. Once the values Gi as prescribed are available, the consultancy fee will be officially determined. During the period before official determination, the advance payment for the consultant who has performed the consultancy work shall not exceed 70% of the consultancy fee determined based on the temporarily estimated Gi.

- 0,05: Product liability insurance cost.

- ki: Adjustment factor for consultancy fee standards and is determined in the following cases:

+ For renovation and repair projects, it is adjusted with a factor k = 1,2;

+ The consultancy fee standard for tasks such as preparing feasibility study reports (investment reports), construction supervision, and equipment installation supervision for projects with an investment amount less than 10 billion VND located in remote areas is adjusted with a factor k = 1,15; for projects built on islands, the factor k = 1,25. This regulation does not apply to infrastructure projects under Program 135 and the program for building commune centers in mountainous and highland regions.

+ For projects with request documents prepared in a foreign language, it is adjusted with a factor k = 1,2.

9.2. The consultancy fee for each task including VAT is calculated as prescribed in point (9.1) plus the corresponding VAT portion. The VAT rate for consultancy services is implemented according to current regulations.

9.3. Table 4 in Part II of this document specifies the consultancy fee standards for hiring experts or organizations to appraise investment projects, technical design reviews, and total budget estimates. Organizations conducting total budget estimate reviews must have sufficient professional capacity regarding norms, unit prices, and construction budgets. In cases where only experts are hired for the above tasks, the expert hiring fee is determined based on the budgeted cost (the content of the expert hiring cost budget is guided in the appendix attached to this document) and submitted for approval by the competent authority for technical design and approved total budget estimate. The expert appraisal fee shall not exceed 60% of the specified consultancy fee.

9.4. The consultancy fee standard for construction supervision and equipment installation supervision is defined according to the construction duration recorded in the investment decision. In cases where the supervision period is extended beyond the prescribed period (not caused by the supervising consultant) resulting in increased construction supervision and equipment installation supervision costs compared to the standard, the supervising consultant is entitled to additional compensation for these increased costs (corresponding to the extended supervision period) according to the general formula below:

Where:

C_k: The additional consultancy fee for construction supervision or equipment installation supervision during the extended supervision period; unit of measurement: value;

C_{For coal-fired thermal power plants where the enterprise holds 100% of the registered capital and uses 100% of its own capital to invest in the project approved by the competent authority, E is determined as 100%;}: The consultancy fee for construction supervision or equipment installation supervision for the prescribed supervision period (as stipulated in this document); unit of measurement: value;

TG_{For coal-fired thermal power plants where the enterprise holds 100% of the registered capital and uses 100% of its own capital to invest in the project approved by the competent authority, E is determined as 100%;}: The prescribed supervision period; unit of measurement: month.

TG_k: The extended supervision period beyond the prescribed period; unit of measurement: month.

10. In cases requiring interpolation of consultancy fee standards, the following general formula shall be applied:

Wherein.

+ Commercial_it: The consultancy fee standard for the i-th task at the required scale of value; unit of measurement: %;

+ G_it: The scale of value for the i-th task requiring the consultancy fee standard; unit of measurement: value;

+ G_ia: The upper limit scale of value for the required consultancy fee standard scale (stipulated in Part II of this document); unit of measurement: value;

+ G_ib: The lower limit scale of value for the required consultancy fee standard scale (stipulated in Part II of this document); unit of measurement: value;

+ Commercial_ia: The consultancy fee standard for the i-th task corresponding to Ga (stipulated in Part II of this document); unit of measurement: %;

+ Commercial_ib: The consultancy fee standard for the i-th task corresponding to Gib (stipulated in this document); unit of measurement: %.

11. In case the project investor or the project management board has sufficient capacity and is permitted by the competent authority to organize the concurrent performance of certain investment consulting and construction works in accordance with current regulations, the project investor or the project management board shall be entitled to recover costs for performing these consulting works according to the budget estimate approved by the agency approving the technical design and total budget estimate, but not exceeding 60% of the prescribed consulting cost rate for the corresponding work.

Where the investors have affiliated investment and construction consulting organizations, they shall be entitled to recover all costs stipulated in this document.

12. In cases where the consulting works for preparing and reviewing projects have been completed in accordance with the contract but the project is not implemented (not due to the fault of the consulting unit), the costs for these consulting works shall be paid according to the signed contract based on the provisions of Clause 3, Article 32 of Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government.

13. The consulting costs for the following works are not included in the cost norms. The actual costs for implementing these works shall be determined by preparing a budget estimate.

13.1. Preparing resettlement plans for projects in Group A; calculating hydraulic networks for the entire region, etc., when approved by the agency approving the project.

13.2. Preparing environmental impact assessment reports required as separate projects in accordance with the regulations of the Ministry of Science and Technology and Environment.

14. Determining costs for other investment and construction consulting works:

14.1. Construction survey costs at the construction survey rates issued by the People's Committees of provinces and centrally-administered cities.

14.2. Design costs for construction projects: in accordance with the construction project design cost norms issued by the Ministry of Construction.

14.3. Project management board costs: in accordance with the circular guiding the preparation and management of construction project costs under investment projects issued by the Ministry of Construction.

14.4. Costs for other investment and construction consulting works such as:

- Final inspection of works conducted by the State Acceptance Council;

- Reviewing investment projects conducted by the State Investment Project Review Council;

- Reviewing technical designs; preparing total estimates for foreign-designed projects;

- Preparing international tender documents and analyzing and evaluating international tender submissions;

- Preparing consultant tender documents and evaluating consultant tender submissions;

- Preparing tender documents and evaluating tender submissions for selecting partners to implement the project;

- Legal advice on construction and economic contracts;

- Project management consulting;

- Establishing unit prices for projects requiring individual unit prices; Converting investment capital;

- Quality testing of construction works; material quality testing for inclusion in the works (if applicable);

- Other consulting works;

The costs for the above consulting works shall be determined by preparing a budget estimate submitted for approval by the agency approving the technical design and total estimate of the project.

15. In cases where consulting works have specific characteristics, if the consulting costs calculated based on the norms are not suitable for the requirements of the consulting works to be performed, the project investor shall prepare a budget estimate for consulting costs to be submitted for approval by the agency approving the technical design and total estimate of the project.

For consulting works not specified in this document, report to the Ministry of Construction for guidance on determining the norms for investment and construction consulting costs.

16. Guidelines for applying the norms for investment and construction consulting costs:

- Consulting works for investment and construction under contracts for consulting services signed before July 1, 2001, which have been completed and accepted prior to that date, shall apply the provisions of previously issued documents on norms for investment and construction consulting costs, and not those of this document.

- Consulting works for investment and construction under contracts for designated bidding or price-adjustable bidding signed before July 1, 2001, shall be handled as follows:

+ If the consulting work is ongoing, the project investor and the consulting organization must determine the volume of consulting work completed before and after July 1, 2001. For the volume of consulting work completed and finished before July 1, 2001, the provisions of previously issued documents on norms for investment and construction consulting costs shall apply. For the volume of consulting work carried out from July 1, 2001 onwards, the provisions of this document shall apply.

+ If the consulting work has not yet commenced, the project investor and the consulting organization shall adjust the consulting service contract to comply with the provisions of this document.

- Consulting works for investment and construction under non-price-adjustable contracts signed before July 1, 2001 shall be executed in accordance with the signed contract.

PART II:

TABLE OF NORMS FOR INVESTMENT AND CONSTRUCTION CONSULTING COSTS

A. COSTS CALCULATED AS A PERCENTAGE OF THE VALUE OF CONSTRUCTION AND EQUIPMENT

Table 1

Some specific provisions for Table 1:

- The cost for preparing the investment report shall be calculated according to the prescribed level but not less than 500,000 VND.

B. COSTS CALCULATED AS A PERCENTAGE OF THE VALUE OF CONSTRUCTION WORKS

Table 2

Some specific provisions for Table 2:

- The proportion of costs for preparing tender documents for construction works and analyzing and evaluating tender submissions for construction works is divided as follows:

+ Preparation of tender documents for construction works: 40%

+ Analysis and evaluation of tender submissions for construction works: 60%

- The cost for preparing tender documents for construction works and evaluating tender submissions for construction works shall be calculated according to the prescribed level but not less than 500,000 VND.

- The norms for supervision costs of telecommunications and postal construction works specified in Table 2 above include supervision of construction works and installation supervision of equipment for these works.

C. COSTS CALCULATED AS A PERCENTAGE OF THE VALUE OF EQUIPMENT TO BE INSTALLED IN THE PROJECT

Table 3

Specific provisions for Table 3:

- The proportion of costs for preparing tender documents for procurement of materials and equipment and analyzing and evaluating tender documents for procurement of materials and equipment is divided as follows:

+ Preparing tender documents for procurement of materials and equipment: 40%

+ Analyzing and evaluating tender documents for procurement of materials and equipment: 60%

- Costs for preparing tender documents and analyzing and evaluating tender documents for procurement of materials and equipment shall be calculated according to the regulations but not less than 500,000 VND.

D. STANDARDS FOR EXPENSES ON ENGAGING EXPERTS OR CONSULTANCY ORGANIZATIONS FOR REVIEWING INVESTMENT PROJECTS: TECHNICAL DESIGN REVIEW; TOTAL ESTIMATE REVIEW

Table number 4

Specific provisions for Table 4:

1. Standards for expenses on reviewing technical designs and total estimates mentioned above shall be adjusted downward by factor k in cases where typical designs or repeated designs within a cluster of buildings or within a project are used, specifically:

a. Typical design:

- First project:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    &

- Project second and subsequent:          k = 0.18

b. Repeated design:

- First project:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

- Project number two: k = 0.36

- Projects number three and onwards: k = 0.18

2. Costs for project investment appraisal, technical design appraisal, and total budget estimate calculated based on norms but not less than 500,000 VND