Circular No. 190/2015/TT-BTC stipulates the management and use of expenses during the process of selecting contractors for projects funded by state budget funds and government bonds.

MINISTRY OF FINANCE -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
Number: 190/2015/TT-BTC	Hanoi, November 17, 2015

CIRCULAR

REGULATIONS ON THE MANAGEMENT AND USE OF EXPENSES IN THE PROCESS OF SELECTING CONTRACTORS FOR PROJECTS FUNDED BY STATE BUDGET AND GOVERNMENT BONDS

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the State Budget Law No. 01/2002/QH11;

Pursuant to Decree No. 63/2014/NĐ-CP dated June 26, 2014 of the Government detailing the implementation of certain provisions of the Bidding Law on selecting contractors (hereinafter referred to as Decree No. 63/2014/NĐ-CP);

Pursuant to Decree No. 32/2015/NĐ-CP dated March 25, 2015 of the Government on investment construction cost management (hereinafter referred to as Decree No. 32/2015/NĐ-CP);

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Investment Department;

The Minister of Finance issues this Circular stipulating the management and use of expenses in the process of selecting contractors for projects funded by state budget and government bonds.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Circular regulates the management and use of expenses in the process of selecting contractors for projects funded by state budget and government bonds, including:

a) Expenses in the process of selecting contractors,

b) Revenue from selling bidding documents and request for proposal documents,

c) Expenses for the Advisory Board to resolve contractor complaints regarding the selection results.

2. Expenses for publishing bidding information, participating in the national bidding network system, and the management and use of revenues from these activities during the contractor selection process are not within the scope of regulation of this Circular.

Article 2. Applicability

1. Project owners and project management boards managing projects funded by state budget and government bonds (the tenderer).

2. Organizations and individuals participating in the bidding process for contracts funded by state budget and government bonds (the bidder).

3. Other organizations and individuals related to the management, use, payment settlement, inspection, examination, and audit of expenses in the process of selecting contractors for investment projects funded by state budget and government bonds.

4. Encouragement is given for contracts using state funds outside the scope regulated by this Circular to apply the provisions set forth in this Circular.

Article 3. Principles of Management and Use of Expenses in the Process of Selecting Contractors

1. Project owners, project management boards, and other relevant organizations and individuals must ensure that the management and use of expenses in the process of selecting contractors for projects funded by state budget and government bonds are appropriate for their intended purpose, target audience, are economical, and effective.

2. Temporary advances, payments, and final settlements of expenses in the process of selecting contractors must comply with current laws and regulations on the management, use, payment, and final settlement of investment capital sourced from the state budget and government bonds as stipulated in this Circular and other relevant regulations.

Chapter II

SPECIFIC PROVISIONS

Article 4. Expenses in the Selection Process

1. Expenses for preparing interest solicitation documents and preliminary contractor invitation documents.

2. Expenses for preparing bidding documents and request for proposal documents.

3. Expenses for reviewing interest solicitation documents and preliminary contractor invitation documents.

4. Expenses for reviewing bidding documents and request for proposal documents.

5. Expenses for evaluating interest documents and preliminary contractor submission documents.

6. Expenses for evaluating bidding documents and proposal submission documents.

7. Expenses for reviewing the selection results of contractors.

Article 5. Basis for determining costs during the process of selecting contractors

1. Investment decision or project approval decision; decision approving the plan to select contractors;

2. Scale, nature, and budget estimate of the tender package approved by the competent authority;

3. Tender selection cost standards as prescribed in Decree No. 32/2015/NĐ-CP and guiding documents of the Ministry of Construction;

4. For tender packages belonging to projects without construction components, equipment, and without approved cost standards, the Investor and Project Management Board shall prepare a budget estimate to determine the cost level for approval by the competent authority.

Article 6. Preparation of budget estimates, management, and utilization of costs during the process of selecting contractors

1. In cases where the Investor or Project Management Board directly implements:

The Investor or Project Management Board, having sufficient capacity and being approved by the competent authority to self-organize implementation or delegate to organizations or individuals under their own agency, shall manage, utilize, and settle costs according to the guidelines of the Ministry of Finance on managing and utilizing revenues from project management activities of Investors and Project Management Boards.

2. In cases where consultancy services are hired to implement one or all tasks:

Based on the scale, nature of the tender package, and prescribed standards, the Investor and Project Management Board shall organize the selection of consultancy units to perform the contents of the work. The payment level shall be carried out according to the Contract between the Investor, Project Management Board, and the consultancy unit but must ensure that the total cost of selecting contractors including tax (including costs the Investor and Project Management Board undertake themselves) does not exceed the tender selection cost item in the approved budget estimate.

Management, utilization, settlement, and finalization of costs shall be carried out according to current regulations on capital investment management, settlement, and finalization.

Article 7. Preparation of budget estimates, management, and utilization of revenue from selling tender invitation documents and request documents

1. Based on the scale, nature of the tender package, the Investor decides to approve the price for selling one set of tender invitation documents and request documents (including tax) for domestic tenders, but not exceeding VND 2,000,000 for tender invitation documents and VND 1,000,000 for request documents; for international tenders, the price is based on international bidding practices.

2. Contents of expenditure:

Revenue from selling tender invitation documents and request documents, after fulfilling tax obligations as prescribed, shall be allocated for contents serving the organization of bid opening, including:

a) Office supplies expenses (office supplies; office tools and equipment specifically for each bid opening ceremony (if any));

b) Conference expenses (renting conference halls when the agency or unit does not have a suitable venue or has one but cannot accommodate the number of participants; renting projectors and other direct service equipment for conferences; drinking water during meetings; other expenses such as overtime pay, hall decoration, etc.);

c) Information dissemination and communication expenses (telephone charges, postal charges for sending bid opening minutes to participating contractors (if any));

d) Other expenses directly related to organizing the bid opening.

3. Level of expenditure:

The Investor and Project Management Board shall determine the expense levels based on:

a) Current state regulations on expenditure standards for state agencies and public institutions;

b) Internal expenditure rules of the unit (if any);

c) In cases where there are no prescribed standards, expenses shall be determined based on contracts signed with product, goods, or service providers or valid invoices.

4. Budget estimates for revenue and expenditure:

a) Annually, based on the state plan assigned and the tender selection plans for tender packages, the Investor and Project Management Board shall prepare budget estimates for revenue and expenditure from selling tender invitation documents and request documents according to the content in Appendix I attached hereto for approval by the Investor. The decision approving the budget estimate for revenue and expenditure shall follow the model in Appendix II attached hereto.

b) For expenditure items arising before revenue from selling tender invitation documents and request documents is received: the Investor and Project Management Board shall report to the competent authority for permission to advance funds from the project management cost to cover these expenses, which will be reimbursed after receiving revenue from selling tender invitation documents and request documents.

c) During implementation, the Investor and Project Management Board may proactively adjust expenditures within the approved annual budget estimate and bear responsibility for adjusting expenditures within this scope.

5. Finalization of revenue and expenditure:

a) The Investor and Project Management Board shall prepare a finalization report on revenue and expenditure from selling tender invitation documents and request documents according to the model in Appendix III attached hereto for approval by the Investor. The decision approving the finalization of revenue and expenditure shall follow the model in Appendix IV attached hereto.

b) At year-end, any surplus revenue over expenditure, or unspent expenditure items within the approved budget estimate must be remitted to the state budget according to the current state budget classification. In cases where revenue is less than expenditure, the Investor and Project Management Board shall report to the competent authority for permission to use project management costs to offset the difference.

Article 8. Costs for the Advisory Board to resolve contractors' complaints about the selection results

1. In cases where a contractor lodges a complaint regarding the selection result which is resolved by the competent authority, the cost of resolving the contractor's complaint about the selection result shall be paid by the complaining contractor to the permanent working body of the Advisory Board according to the classification specified in Clause 1, Article 119 of Decree No. 63/2014/NĐ-CP. The permanent working body shall perform administrative tasks as stipulated by the Chairman of the Advisory Board, receive and manage the costs submitted by the complaining contractor.

2. The cost for the Advisory Board to resolve contractors' complaints about the selection result is 0.02% of the tender price of the complaining contractor but not less than 1,000,000 VND and not more than 50,000,000 VND.

3. Based on the scale and nature of the tender package, the permanent working body of the Advisory Board shall prepare a budget estimate to determine the cost for the Advisory Board to resolve contractors' complaints about the selection result for each case, ensuring that the expenditure level according to the budget does not exceed the cost submitted by the complaining contractor as determined in Clause 2 of this Article, and submit it for approval by the Chairman of the Advisory Board. The permanent working body shall be responsible for the costs for the Advisory Board to resolve contractors' complaints according to the approved budget.

The expenses include: direct remuneration for members of the Advisory Board to perform their duties, travel expenses, office supplies, translation, printing, meeting fees, and other expenses serving to resolve contractors' complaints; the expenditure levels apply the regulations applicable to state management agencies; receipts for income and expenditure shall be implemented according to the regulations.

4. Upon completion of the case, the Chairman of the Advisory Board shall be responsible for confirming the actual expenditures incurred. Any surplus from income exceeding expenditure (if any) shall be refunded to the complaining contractor.

5. In cases where the contractor's complaint is concluded to be correct, the measures, methods, and time frame for remedying the consequences (if any) must be clearly stated, and at the same time, the permanent working body shall be responsible for reporting to the competent authority to request organizations and individuals with joint liability to pay the complaining contractor an amount equal to the amount the complaining contractor has actually submitted to the Advisory Board.

Chapter III

IMPLEMENTATION

Article 9. Responsibilities of related agencies

1. Responsibilities of the Project Owner and Project Management Board:

a) Bear full responsibility for managing and using costs during the contractor selection process.

b) Implement the preparation of cost estimates during the contractor selection process and the final report on cost usage, submitting them for review and approval by the competent authority; prepare and approve cost estimates for revenue from selling tender documents and request documents; prepare and approve final reports on revenue and expenditure from selling tender documents and request documents.

c) Manage and use costs in accordance with national regulations on managing and utilizing funds from the state budget and government bonds.

2. Responsibilities of the payment agency:

a) Be responsible for controlling and paying costs during the contractor selection process in accordance with regulations on capital investment payments, current financial management systems of the State, and specific provisions in this Circular.

b) Be responsible for reconciling and confirming the expenditures already paid by project owners and project management boards.

3. Responsibilities of the Chairman of the Advisory Board to resolve contractors' complaints about the selection results and the permanent working body of the Advisory Board to resolve contractors' complaints about the selection results:

Manage and use the costs submitted by contractors to the Advisory Board to resolve complaints about the selection results effectively, economically, and in compliance with legal regulations.

4. Responsibilities of Ministries, sectors, and localities:

Regularly inspect the situation of managing and using costs during the contractor selection process for projects funded by the state budget and government bonds within their jurisdiction; take measures to handle violations in managing and using costs during the contractor selection process according to legal regulations.

Article 10. Provisions on implementation

1. This Circular takes effect from January 1, 2016.

2. Ministries, ministerial-level agencies, agencies under the Government, central-level agencies, People's Committees at all levels, and related organizations and individuals are responsible for implementing this Circular.

3. During implementation, if there are difficulties or obstacles, units are requested to report to the Ministry of Finance for consideration and appropriate amendments and supplements.

Place of Receipt: - Office of the General Secretary; - National Assembly's Office; - President's Office; - Central Party Office; - Government Office; - Supreme People's Procuracy; - Supreme People's Court; - State Audit Agency; - Ministries, agencies equivalent to ministries, agencies under the Government; - Central agencies of mass organizations; - State-owned Corporations, State Economic Groups; - Provincial People's Councils, Municipal People's Councils directly under the Central Government; - Departments of Finance, State Treasury provincial, municipalities directly under the Central Government; - Official Gazette; - Ministry of Justice's Legal Documents Inspection Department; - Units under the Ministry of Finance; - Units under the Ministry of Finance; - To be filed: VT, State Treasury. - To be filed: VT, DT (400).

DEPUTY MINISTER DEPUTY MINISTER Do Hoang Anh Tuan

ANNEX I

PROJECT OWNER/PROJECT MANAGEMENT BOARD -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
	………, day month year

ESTIMATE OF REVENUE AND EXPENSES FROM SELLING TENDER DOCUMENTS AND REQUEST DOCUMENTS IN YEAR ...

Name of Project Owner / Project Management Board: …

Unit of measurement: ...

No.	Content	Amount
1	2	3
A	Estimate of revenue from selling tender documents
I	Project ...
1	Tender Package ……
2	Tender Package ……
	……
II	Project ...
	……
B	Estimate of expenses for organizing bid opening:
1	Office supplies expenses, including: office supplies; office equipment and tools used exclusively for each bid opening ceremony (if any);
2	Conference expenses, including: renting conference halls when the agency or unit does not have a venue or has one but cannot accommodate the number of attendees; renting projectors and other equipment directly serving the conference; drinking water during the meeting; other expenses such as overtime pay, hall decoration, etc...
3	Information, publicity, and communication expenses (telecommunication charges, postal charges for sending bid opening minutes to participating contractors (if any));
4	Other expenses directly related to organizing the bid opening

ASSETS (Signature, full name)

RESPONSIBLE ACCOUNTANT (Signature, full name)

HEAD OF THE UNIT (Signature, stamp, full name)

ANNEX II

(APPROVING AUTHORITY) -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
No.: /QD-	………, day month year

Pursuant to …;

Regarding Approval of Revenue and Expense Estimates for Selling Tender Documents and Request Documents

(HEAD OF APPROVING AUTHORITY)

Based on ...

Pursuant to Circular No. ... dated ... issued by the Ministry of Finance on the management and use of costs during the contractor selection process for projects funded by the state budget and government bonds;

Considering the proposal of …

DECISION:

Article 1. Approve the revenue and expense estimates for selling tender documents and request documents for the year ….

Project Owner/Project Management Board…

Unit of measurement: …

No.	Content	Amount
1	2	3
A	Estimate of revenue from selling tender documents
I	Project ...
1	Tender Package…….
2	Tender Package ……
	…….
II	Project ...
	…….
B	Estimate of expenses for organizing bid opening:
1	Office supplies expenses, including: office supplies; office equipment and tools used exclusively for each bid opening ceremony (if any);
2	The conference expenses include: renting a hall when the agency or unit does not have a venue or has one but it cannot accommodate the number of participants; renting projectors and other equipment directly serving the conference; drinking water during the meeting; other expenses such as overtime pay, hall decoration, etc.
3	Information, publicity, and communication expenses (telecommunication charges, postal charges for sending bid opening minutes to participating contractors (if any));
4	Other costs directly related to the organization of bidding work

Article 2. The head of the unit (Project Management Board Director) and relevant units are responsible for implementing this Decision./.

Place of Receipt: - Investor; - Project Management Board... - State Treasury where the account is opened; - To be filed:

HEAD OF THE APPROVING AUTHORITY (Signature, full name, stamp)

ANNEX III

(INVESTOR/PROJECT MANAGEMENT BOARD) -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
	………, day month year

SETTLEMENT OF INCOME AND EXPENSES FROM THE SALE OF BIDDING DOCUMENTS AND REQUEST DOCUMENTS FOR THE YEAR ...

Unit of measurement: …

No.	Content	Approved budget	Request for settlement
1	2	3	4
A	Revenue from selling bidding documents
	Total
I	Project ...
1	Tender package …….
2	Tender Package ……
	…….
II	Project...
	…….
B	Expenses for organizing the tender opening:
	Total
1	Office supplies expenses, including: stationery; office tools and equipment exclusively used for the tender opening ceremony;
2	Conference expenses, including: renting conference halls when the agency or unit does not have a venue or has one but cannot accommodate the number of attendees; renting projectors and other equipment directly serving the conference; drinking water during the meeting; other expenses such as overtime pay, hall decoration, etc...
3	Information, propaganda, and communication expenses (telephone charges, postal charges for sending the minutes of the tender opening to participating bidders (if applicable);
4	Other expenses directly related to organizing the bid opening
C	Excess Income over Expenses (if any)	-
D	Deficit in Income over Expenses must be covered by project management fees (if any)	-

INVESTOR/ PROJECT MANAGEMENT BOARD		NATIONAL TREASURY ….
HEAD OF ACCOUNTING DEPARTMENT (Signature, full name)	HEAD OF THE UNIT (Signature, stamp)	Confirmation: - Amount paid out in the year is: …dong; - Remaining amount is: …. dong;
		RESPONSIBLE FOR PAYMENT (Signature, full name)	HEAD OF THE UNIT (Signature, stamp)

ANNEX IV

(APPROVING AUTHORITY) -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
No.: /QD-	..., Date Month Year

Pursuant to …;

Regarding approval of settlement of income and expenditure from the sale of bidding documents and request documents

(HEAD OF APPROVING AUTHORITY)

Based on ………

Based on Circular No. ... dated ... of the Ministry of Finance stipulating the management and use of expenses during the selection of contractors for projects funded by state budget and government bonds;

Considering the proposal of …

DECISION:

Article 1. Approve the settlement of income and expenditure from the sale of bidding documents and request documents for the year …

Project Owner/Project Management Board…

Unit of measurement: …

No.	Content	Approved budget	Request for settlement
1	2	3	4
A	Revenue from selling bidding documents
	Total
I	Project ...
1	Tender package………
2	Tender Package ……
	………
II	Project...
	………
B	Expenses for organizing the tender opening:
	Total
1	Office supplies expenses, including: stationery; office tools and equipment exclusively used for the tender opening ceremony;
2	Conference expenses, including: renting conference halls when the agency or unit does not have a venue or has one but cannot accommodate the number of attendees; renting projectors and other equipment directly serving the conference; drinking water during the meeting; other expenses such as overtime pay, hall decoration, etc...
3	Information, propaganda, and communication expenses (telephone charges, postal charges for sending the minutes of the tender opening to participating bidders (if applicable);
4	Other expenses directly related to organizing the bid opening
C	Excess Income over Expenses (if any)	-
D	Deficit in Income over Expenses must be covered by project management fees (if any)	-

Article 2. The head of the unit (Project Management Board Director) and relevant units are responsible for implementing this Decision./.

Place of Receipt: - Investor; - Project Management Board…; - State Treasury where the account is opened; - To be filed:

HEAD OF THE APPROVING AUTHORITY (Signature, full name, stamp)