Circular No. 17/2010/TT-BXD guiding the determination and management of costs for construction planning and urban planning

CIRCULAR

Guidelines for Determining and Managing Planning Costs

Construction and Urban Planning

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

Pursuant to Law on Construction No. 16/2003/QH11 dated November 26, 2003 of the National Assembly of the Socialist Republic of Vietnam;

Pursuant to Law No. 38/2009/QH12 dated June 13, 2009 of the National Assembly of the Socialist Republic of Vietnam amending and supplementing certain articles of laws related to investment in construction projects;

Pursuant to Law on Urban Planning No. 30/2009/QH12 dated June 17, 2009 of the National Assembly of the Socialist Republic of Vietnam;

Pursuant to Decree No. 08/2005/NĐ-CP dated January 24, 2005 of the Government on Construction Planning;

Pursuant to Decree No. 37/2010/NĐ-CP dated April 7, 2010 of the Government on the preparation, review, approval, and management of urban planning.

The Ministry of Construction guides determining and managing planning costs for construction planning and urban planning as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the determination and management of costs for preparing, reviewing construction planning and urban planning determining and managing planning costs for preparing, reviewing, approving construction planning and urban planning including: regional construction planning; overall planning; district planning; detailed planning; rural settlement construction planning; specialized infrastructure technical planning.

Article 2. Applicability

Article 1. Organizations and individuals using state budget funds to implement construction planning and urban planning shall apply the provisions of this Circular to determine and manage planning costs.

Article 2. It is encouraged that organizations and individuals using other funds (not state budget funds) to implement construction planning and urban planning adopt the provisions of this Circular to determine and manage planning costs.

Article 3. When using state budget funds to hire foreign consultants to implement construction planning and urban planning, the determination and management of foreign consultant fees must comply with current regulations.

Article 3. Principles for Determining Planning Costs

Clause 1. Planning costs for construction and urban planning are determined according to the cost standards published in this Circular as the necessary costs to complete all tasks of preparing the assignment, preparing the plan, reviewing the plan, approving the plan, and managing the preparation of the construction and urban planning plan. The contents of these tasks and products required to be completed are stipulated by the Law on Construction, the Law on Urban Planning, and guiding documents implementing these laws.

Clause 2. For planning tasks for construction and urban planning not yet published with cost standards, the costs to perform these tasks are determined by preparing a budget estimate.

Clause 3. In cases where the scale of the planning project falls between two scales published in this Circular, the interpolation method should be used to determine the cost standard. For planning projects larger than those published in this Circular, the cost of preparing the planning project should be determined by preparing a budget estimate.

Clause 4. In cases where construction and urban planning tasks have specific characteristics, if the planning costs for construction and urban planning determined according to the published cost standards in this Circular are not appropriate, a budget estimate should be prepared to determine the costs.

Clause 5. In cases where construction and urban planning work is carried out in mountainous areas and island regions, the planning costs for construction and urban planning are calculated based on the published cost standards adjusted by a factor K = 1.2.

Clause 6. The cost of preparing a planning project is calculated according to the published cost standards and includes items such as: costs for collecting relevant materials; office supplies costs; expert costs; depreciation costs for machines and equipment; management costs; conference costs to approve the results of the planning project; training and professional development costs; social insurance; health insurance; unemployment insurance; professional liability insurance, and pre-tax income but does not include value-added tax. When determining the budget estimate for preparing the planning project according to the published standards, value-added tax must be added according to current regulations.

Chapter II

DETERMINING PLANNING COSTS

Article 4. Determination of costs for establishing planning projects

Clause 1. Costs for preparing various types of planning projects:

Point a) Costs for preparing regional construction planning projects are calculated according to the cost standards published in Table 1 - Appendix issued together with this Circular and multiplied by the scale of the planned area. The costs for preparing regional planning projects already include strategic environmental assessment costs.

b) Costs for preparing rural settlement development planning projects and infrastructure systems at the commune level are calculated based on the cost norms in Table 2 (Annex attached) multiplied by the forecasted population within the planning period as approved in the planning task (or adjusted planning task).

- Costs for preparing the development orientation plan for rural settlement networks and technical infrastructure systems within the commune are calculated according to the cost standards published in Table 2 - Appendix issued together with this Circular and multiplied by the planned population size.

- Costs for preparing the comprehensive spatial architectural and technical infrastructure planning of the commune center and each settlement within the commune are calculated according to the cost standards published in Table 3 - Appendix issued together with this Circular and multiplied by the planned area scale. In cases of preparing new rural town construction planning, a budget estimate should be prepared to determine the costs.

Point c) Costs for preparing general planning projects for high-tech zones, economic zones, tourist areas, and special-function cities are calculated according to the cost standards published in Table 4 - Appendix issued together with this Circular and multiplied by the planned area scale.

Point d) Costs for preparing detailed planning projects for industrial zones are calculated according to the cost standards published in Table 5 - Appendix issued together with this Circular and multiplied by the planned area scale.

Point e) Costs for preparing general urban planning projects are calculated according to the cost standards published in Table 6 - Appendix issued together with this Circular and multiplied by the planned population size of the approved planning year. The costs for preparing general urban planning projects already include urban design costs and strategic environmental assessment costs for the planning project.

Point g) Costs for preparing urban district planning projects are calculated according to the cost standards published in Table 7 - Appendix issued together with this Circular and multiplied by the planned area scale. The costs for preparing urban district planning projects already include urban design costs and strategic environmental assessment costs for the planning project.

h) The cost of preparing detailed urban planning projects is calculated according to the cost standard published in Table 8 - Appendix accompanying this Circular and multiplied by the scale of the planned area. The cost of preparing detailed urban planning projects includes the cost of urban design and the strategic environmental assessment cost of the planning project.

i) The cost of adjusting construction planning projects and urban planning projects is determined at a maximum of 85% of the cost of preparing corresponding planning projects.

2. The costs of preparing the following types of planning projects are determined by preparing a budget estimate:

a) The cost of preparing planning projects for functional zones (such as: heritage conservation planning projects, relic preservation planning projects...).

b) The cost of preparing specialized technical infrastructure planning projects for centrally-administered cities (maximum is 30% of the corresponding general planning).

c) Urban design for certain urban areas that must be prepared as separate projects (maximum is 60% of the corresponding general planning).

d) Other construction planning and urban planning tasks.

3. Determining the costs of preparing planning tasks, reviewing planning projects, and managing the preparation of planning projects:

a) The cost of preparing construction planning and urban planning tasks is calculated according to the percentage published in Table 9 - Appendix accompanying this Circular and multiplied by the cost of preparing the corresponding planning project.

b) The cost of reviewing construction planning and urban planning projects is calculated according to the percentage published in Table 9 - Appendix accompanying this Circular and multiplied by the cost of preparing the corresponding planning project.

c) The cost of managing the preparation of construction planning and urban planning projects is calculated according to the percentage published in Table 9 - Appendix accompanying this Circular and multiplied by the cost of preparing the corresponding planning project. In cases where the management of the preparation of construction planning projects covers a region, inter-regional, or nationwide scope and prepares planning projects for special cities, the cost for the management of the preparation of construction planning and urban planning projects is calculated according to the published standard adjusted by a factor K = 2.

d) The cost of publishing construction planning and urban planning projects is determined by a budget estimate but shall not exceed 5% of the cost of preparing the corresponding planning project.

Article 5. Determining other related costs for preparing planning projects

1. The cost of preparing construction planning and urban planning projects according to the standard published in this Circular does not include the cost of performing the following tasks:

a) Geological and geophysical surveys for planning purposes.

b) Purchasing or preparing topographic maps for planning projects.

c) Hiring consulting organizations or experts for advisory opinions on planning tasks and planning projects for construction and urban planning (if applicable).

d) Marking boundary stakes outside the field according to the planning.

e) Publishing approved planning projects.

g) Other tasks serving the preparation of planning.

2. The cost of performing the above tasks is determined by a budget estimate or according to the regulations and guidelines of state management agencies.

Article 6. Determining the cost of making planning models

1. The cost of making construction and urban planning models is calculated according to the cost standard published in Table 10 - Appendix accompanying this Circular and multiplied by the area of each type of planning model.

2. The cost of making planning models is calculated according to the cost standard published corresponding to the quality of materials used for the models as prescribed. In cases where the quality requirements for materials used in construction and urban planning models are higher than those specified, a budget estimate is prepared to determine the cost of making planning models appropriately.

Article 7. Guidelines for preparing cost estimates

The preparation of cost estimates to determine costs for tasks of developing construction master plans and urban planning without published standard rates shall be carried out according to the guidelines set forth in Part II of this Circular. The cost estimate must be based on the approved outline of the planning task by the competent authority. The approval of the outline and cost estimate for the planning task shall be made by the Master Plan Approver, except as provided for in Clause 2 of Article 10 of this Circular.

Chapter III

MANAGEMENT OF PLANNING COSTS

Article 8. Management of costs for preparing planning schemes

1. The cost estimate is prepared by the agency managing the planning process. The agency managing the planning process is responsible for managing these costs in accordance with relevant regulations.

2. Costs for hiring consultants to prepare construction planning schemes and urban planning schemes are managed through consultancy contracts for planning schemes. Consultancy contracts for planning schemes are determined based on the results of selecting consulting contractors, negotiations, and signing contracts. The contents of consultancy contracts for planning schemes must comply with relevant laws on contracts, including clear provisions on contract prices, price adjustments, advance payments, contract payments, contract modifications (if any), and products to be completed.

3. For costs to adjust construction planning schemes and urban planning schemes, the planning scheme preparation business management agency, together with the planning consultancy organization, is responsible for determining and agreeing on the extent of plan adjustments to accurately determine adjustment costs.

Article 9. Management of costs related to the preparation of planning projects

1. Business management costs for planning are the limits for activities of the agency managing the planning process. The planning scheme preparation business management agency is responsible for managing these costs in accordance with relevant regulations. In cases where the management of planning scheme preparation has specific characteristics, if the business management costs for planning determined according to the cost standards published in this Circular are not suitable, the planning scheme preparation business management agency shall prepare a cost estimate and submit it for approval by the competent authority.

2. Regarding the cost of preparing planning assignments:

a) When the planning assignment is carried out by state management agencies, the cost is determined by the budget estimate according to the financial management mechanism for state management agencies when performing this task.

b) In case of hiring a consulting unit to prepare the planning assignment, the cost of hiring for preparing the planning assignment shall be determined through the planning assignment preparation contract;

3. The cost of reviewing the planning management project shall be managed according to the approved budget estimate. Payment of the review cost for preparing the planning project must comply with relevant regulations of the competent authority.

Article 10. Authority to Approve the Budget Estimate for Planning Preparation Costs

1. The authority approving the cost estimate for implementing planning tasks as stipulated in this Circular is the Master Plan Approver.

2. For planning schemes organized by the Ministry of Construction and approved by the Prime Minister, the Ministry of Construction approves the cost estimate for planning. In cases where planning schemes are organized by provincial People's Committees under the Central Government and approved by the Prime Minister, the provincial People's Committees under the Central Government approve the cost estimate for planning.

Chapter IV

IMPLEMENTATION

Article 11. Transitional provisions

1. Planning tasks being implemented under planning consultancy contracts, if completed before the effective date of this Circular, shall apply the provisions of previously issued documents and not the provisions of this Circular.

2. In cases where planning tasks are still in negotiation and have not been signed, the authority approving the planning scheme decides whether to apply the provisions of this Circular.

Article 12. Effectiveness

This Circular takes effect from November 15, 2010, and replaces the provisions of Decision No. 15/2008/QĐ-BXD dated November 17, 2008, issued by the Minister of Construction on construction planning cost standards.

During implementation, if there are any difficulties, organizations and individuals are requested to send their opinions to the Ministry of Construction for research and resolution./.