Circular No. 20/2019/TT-BXD guiding the determination and management of planning costs for construction and urban planning.

2. It is encouraged for organizations and individuals using other sources of funds to apply the provisions of this Circular to determine and manage planning costs for construction planning and urban planning.

Article 3. Principles for determining costs

1. Planning costs for construction and urban planning must be accurately calculated and appropriate to the scale of the planning project, characteristics, nature, and requirements of each type of planning work.

2. Planning costs for construction and urban planning determined according to the guidelines in this Circular shall be used to establish and manage planning costs, serving as the basis for organizing public bidding or direct assignment to determine units to carry out planning tasks in accordance with the law.

3. Costs for preparing planning tasks and planning projects (referred to as planning tasks and projects) shall be determined in accordance with the content of the work, progress, and quality requirements as stipulated. The cost of preparing planning projects may be reviewed and adjusted when the State changes tax policies or wage levels affecting the wage level of experts directly impacting the cost of preparing planning projects, or in cases where the implementation period of planning projects is extended not due to the fault of the project preparation unit, then the authority approving the planning project cost estimate shall be responsible for reviewing and adjusting the cost of preparing the planning project appropriately. Any adjustment of the cost of preparing the planning project must be consistent with the source of funding, the form of contract, and relevant legal provisions.

Chapter II

DETERMINATION OF COSTS FOR CONSTRUCTION PLANNING

AND URBAN PLANNING

Article 4. Methods for Determining Planning Costs for Construction and Urban Planning

1. Costs for preparing planning projects and other planning preparation works shall be determined according to the norms specified in the Appendix attached to this Circular. Costs for works determined according to the norms specified in this Circular do not include value-added tax; when determining the planning cost estimate for construction and urban planning, value-added tax must be added according to current regulations.

2. In cases where the scale of the planning project falls between two scales specified in the Appendix attached to this Circular, the cost norm (or percentage) of the planning project shall be determined based on the cost norm (or percentage) of the upper and lower limits of the scale specified in this Circular according to the following interpolation formula:

Where:

- N_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.}: Cost norm (or percentage) to be calculated, unit of measurement: million VND (or percentage);

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.}: Population or area scale of the planning project to be calculated; unit: value;

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_a: Lower limit population or area scale of the planning project to be calculated; unit: value;

: bid price after corrections and adjustments, minus any discount (if applicable) of the lowest bidder among those detailed financial evaluations;_b: Upper limit population or area scale of the planning project to be calculated; unit: value;

- N_a: Cost norm (or percentage) corresponding to G_a; unit of measurement: million VND (or percentage);

- N_b: Cost norm for planning corresponding to G_b; unit of measurement: million VND (or percentage).”

3. The cost norms for construction planning and urban planning of projects with smaller scales than those specified in this Circular shall be determined based on the smallest scale project specified.

4. For projects with larger scales than those specified; or planning works without specified norms or where the norms specified in this Circular are not suitable, the costs shall be determined by estimates. The content of the estimates shall be determined according to the guidelines in Appendix No. 2 attached to this Circular. The estimate for preparing planning projects must be based on the approved planning task by the competent authority.

Article 5. Determination of costs for preparation and review of planning schemes

1. The contents and products of the planning scheme are specified in the Decree detailing certain aspects of planning, the Decree on preparation, review, approval, and management of urban planning, relevant sectoral decrees, and guiding documents.

2. Costs for preparing the planning scheme include the following expenses: expenses for individuals participating in the preparation of the scheme, other expenses (costs for purchasing materials, data, maps, office supplies, planning software (if applicable), depreciation of equipment, travel expenses, accommodation expenses, conference and seminar expenses, and other expenses (if applicable)).

3. The costs for preparing the planning scheme are determined according to the standards set forth in this Circular but do not include costs for performing the following tasks:

a) Preparing the planning assignment.

b) Construction surveys serving the preparation of the planning scheme.

c) Purchasing or preparing topographic maps serving the preparation of the planning scheme (if applicable).

4. The costs for preparing some planning schemes specified in this Circular are determined as follows:

a) The cost for preparing the planning scheme for the construction of a district region or inter-district region is determined based on the scale of area, population density of the planned region, and cost standards in Table 1 - Appendix 1.

b) The cost for preparing the general urban planning scheme is determined based on the scale of area, type of city, and population density of the planning area according to the cost standards in Table 2 - Appendix 1.

c) The cost for preparing the urban zoning planning scheme is determined based on the scale of the planned area and cost standards in Table 3 - Appendix 1.

d) The cost for preparing the detailed urban planning scheme is determined based on the scale of the planned area and cost standards in Table 4 - Appendix 1.

đ) The cost for preparing a separate urban design scheme is determined by budgeting but shall not exceed 1.5 times the cost calculated according to the detailed urban planning cost standard at a scale of 1/500 corresponding to the area of the urban design scheme.

e) The cost for preparing the specialized technical infrastructure planning scheme for centrally-administered cities is budgeted according to the work performed but shall not exceed the cost calculated according to the percentage ratio in Table 5 - Appendix 1 compared to the cost of preparing the general urban planning scheme.

g) The cost for preparing the general planning scheme for functional zones is determined based on the scale of the planned area and cost standards in Table 6 - Appendix 1.

h) The cost for preparing the zoning planning scheme for functional zones is determined based on the scale of the planned area and cost standards in Table 7 - Appendix 1.

i) The cost for preparing the detailed planning scheme for functional zones is determined based on the scale of the planned area and cost standards in Table 8 - Appendix 1.

k) The cost for preparing the general planning scheme for communes is determined based on the forecasted population within the planning period as stated in the approved planning assignment (excluding population forecasts for the long-term vision) and cost standards in Table 9 - Appendix 1.

l) The cost for preparing the detailed planning scheme for rural residential areas is determined based on the scale of the planned area and cost standards in Table 10 - Appendix 1.

m) The cost for preparing the underground space planning scheme and other construction planning schemes is determined by budgeting.

5. The costs for adjusting the planning scheme are specifically determined as follows:

a) In cases where the adjustment is limited to specific parts of the planning scheme: the costs are determined by budgeting based on the content of the work to be adjusted, but shall not exceed 50% of the cost of preparing a new planning scheme.

b) In cases where the adjustment involves the entire planning scheme but does not exceed the scale of area or population of the approved planning scheme, the costs for adjusting the planning scheme are determined by budgeting but shall not exceed 80% of the cost of preparing a new planning scheme.

If the scope of adjustment exceeds the scale of area and population of the approved planning scheme, the maximum cost for adjusting the planning scheme shall not exceed 100% of the cost of preparing a new planning scheme.

6. For planning schemes that require the preparation of planning files using geographic information systems (GIS), the cost for preparing the planning scheme is adjusted with a factor K=1.1.

7. The costs for reviewing the planning scheme are expenses directly allocated to review activities such as paying direct remuneration to individuals and agencies inside and outside the unit involved in the review process; expenses for conferences, seminars, meetings to provide opinions from related units during the review process; coordination with units to cover the costs of on-site surveys of locations with planned projects.

The costs for reviewing the planning scheme are calculated according to the percentage standards in Table 11 - Appendix 1 relative to the cost of preparing the planning scheme. Specifically, the costs for hiring organizations and experts (including foreign organizations and experts) to critique the planning scheme to serve the review process and the costs for on-site survey work to serve the review process (if applicable) are determined by supplementary budgeting outside the review costs for the construction planning scheme calculated according to the percentage standards in Table 11.

Article 6. Determination of costs for preparing planning tasks and reviewing planning tasks

1. The contents of planning tasks are prescribed in the Decree detailing certain aspects of planning construction, the Decree on preparation, review, approval, and management of urban planning, relevant sector-specific decrees, and guiding documents.

2. Costs for preparing planning tasks shall be determined as follows:

a) Costs for preparing planning tasks for regional construction planning of counties and inter-county regions shall be determined based on the scale of area, population density of the planned region, and cost standards set out in Table 1 of Appendix 1.

b) Costs for preparing general urban planning tasks shall be determined based on the scale of area, type of urban area, and population density of the planning area according to the cost standards set out in Table 2 of Appendix 1.

c) Costs for preparing urban district planning tasks shall be determined based on the scale of planned area and cost standards set out in Table 3 of Appendix 1.

d) Costs for preparing detailed urban planning tasks shall be determined based on the scale of planned area and cost standards set out in Table 4 of Appendix 1.

đ) Costs for preparing urban design tasks shall be determined by budget but not exceed 1.5 times the cost of preparing detailed urban planning tasks at a scale of 1/500 corresponding to the area of the urban design project.

e) Costs for preparing specialized technical infrastructure planning tasks for centrally-administered cities shall be prepared according to the work budget but shall not exceed the cost calculated as a percentage in Table 5 of Appendix 1 relative to the cost of preparing general urban planning tasks corresponding to the area.

g) Costs for preparing general construction planning tasks for functional zones shall be determined based on the scale of planned area and cost standards set out in Table 6 of Appendix 1.

h) Costs for preparing urban district construction planning tasks for functional zones shall be determined based on the scale of planned area and cost standards set out in Table 7 of Appendix 1.

i) Costs for preparing detailed construction planning tasks for functional zones shall be determined based on the scale of planned area and cost standards set out in Table 8 of Appendix 1.

k) Costs for preparing general construction planning tasks for communes shall be determined based on the forecasted population size within the planning period as specified in the approved planning task (excluding population forecasts for long-term vision) and cost standards set out in Table 9 of Appendix 1.

l) Costs for preparing detailed construction planning tasks for rural residential areas shall be determined based on the scale of planned area and cost standards set out in Table 10 of Appendix 1.

m) Costs for preparing planning tasks for other types of planning projects shall be determined by preparing a budget.

3. Costs for reviewing planning tasks shall be determined at 20% of the costs for preparing planning tasks.

Article 7. Determination of costs for managing business operations in planning preparation and some other tasks

1. Costs for managing business operations in preparing construction planning projects are costs for activities of the management agency during the planning preparation process such as costs for experts, part-time staff, meeting expenses, travel expenses, materials, office supplies, and other tasks serving the management of business operations in planning preparation as stipulated by laws on revenue management and expenditure regulations.

2. Costs for managing business operations in planning preparation shall be calculated as a percentage of the costs for preparing planning projects. The standard for costs for managing business operations in preparing planning projects is set out in Table 11 of Appendix 1. In cases where the scope of business operations management in construction planning covers a region or inter-regional area and the preparation of general urban planning projects, the costs for managing business operations in planning preparation shall be calculated according to the standard and adjusted with a factor K=2.

3. Costs for managing business operations in planning preparation are determined according to the standard and do not include costs for implementing the following tasks:

a) Hiring organizations or experts to provide feedback on planning projects or organizing specialized seminars to serve the provision of feedback on planning projects.

b) Organizing the collection of opinions from agencies, organizations, and community representatives to contribute to planning projects, if applicable.

c) Marking boundary stakes according to the plan on the ground.

d) Announcing approved planning projects.

e) Hiring organizations or individuals to advise on the preparation and review of planning cost budgets.

g) Organizing competitions to select consulting organizations for planning projects (if applicable).

Other tasks serving the management of business operations in preparing planning projects.

4. Costs for organizing the collection of opinions from agencies, organizations, and community representatives shall be determined by the budgeted cost but shall not exceed 2% of the cost of preparing the corresponding planning project, but not less than 5,000,000 VND (Five million dong).

5. Costs for announcing approved planning projects shall be determined by the budgeted cost but shall not exceed 3% of the cost of preparing the corresponding planning project, but not less than 5,000,000 VND (Five million dong).

6. Costs for making planning models shall be calculated according to the cost standards set out in Table 12 of Appendix 1 and multiplied by the area of the planning model.

7. Costs for organizing competitions to select consulting organizations for planning projects (if applicable) shall be determined by the budgeted cost according to the guidelines in Appendix 2.

Article 8. Determination of costs for hiring foreign consultants to prepare planning

1. The cost of hiring organizations or individuals from abroad to prepare planning shall be determined based on the budget estimate but shall not exceed the following cost levels:

a) In cases where domestic consulting organizations are hired to lead and cooperate with foreign experts to prepare tasks and planning schemes: The cost of hiring domestic consulting organizations and foreign experts shall not exceed 1.5 times the cost of preparing tasks and planning schemes according to this Circular.

b) In cases where domestic consulting organizations and foreign consulting organizations are hired to cooperate in preparing tasks and planning schemes: The cost of hiring domestic consulting organizations and foreign consulting organizations shall not exceed 2.5 times the cost of preparing tasks and planning schemes according to this Circular.

c) In cases where foreign consulting organizations are hired to carry out all work related to preparing tasks and planning schemes: The cost of hiring foreign consulting organizations shall not exceed 3.5 times the cost of preparing tasks and planning schemes according to this Circular.

2. In cases where foreign consulting organizations are hired to prepare tasks and planning schemes for projects with complex and special requirements, and for planning schemes determined by budget estimates prepared according to the guidelines of this Circular, if the cost level for hiring foreign consulting organizations exceeds the limit set forth in Clause 1 of this Article, the competent authority approving the budget estimate for planning costs shall report to the authority approving the planning scheme and make the decision to approve the budget estimate in accordance with regulations.

Chapter III

MANAGEMENT OF PLANNING COSTS

AND URBAN PLANNING

Article 9. Management of planning costs and related costs for preparing planning schemes

1. The agency entrusted with the task of managing the business of planning preparation shall be responsible for managing planning preparation costs and costs of other related works economically and effectively in accordance with relevant regulations.

2. Business management costs for planning preparation are the limits of costs for activities of the agency managing the planning preparation process. During the cost management process, the agency entrusted with the task of managing the business of planning preparation may hire organizations or individuals with sufficient capacity and experience to prepare and review budget estimates for planning costs.

3. If the state management agency prepares the planning task, the cost of preparing the planning task shall be managed according to the financial mechanism applicable to state management agencies.

4. The cost of reviewing planning schemes shall be managed according to the approved budget estimate. Payment of the cost of reviewing planning schemes must be carried out in accordance with relevant laws.

Article 10. Authority to review and approve budget estimates for planning costs

1. The authority approving the planning scheme or the authority authorized to organize the review and approval of budget estimates for the preparation of planning tasks and planning schemes and costs for implementing related works.

2. The Ministry of Construction, Ministries, and People's Committees of provinces and centrally-administered cities shall organize the review and approval of budget estimates for the preparation of planning tasks and planning schemes and costs for implementing related works for schemes they organize and which fall under the Prime Minister's approval authority.

Chapter IV

IMPLEMENTATION

          Article 11. Transitional Provisions

1. For planning tasks being implemented under contracts, payment of planning preparation costs must be based on the contents of the signed contracts.

2. For planning tasks that have had their budget estimates approved but have not yet organized the selection of contractors, or have organized the selection of contractors for planning but are still in the negotiation stage and have not yet signed contracts, the competent authority approving the budget estimate for planning preparation shall consider and decide on the application of provisions of this Circular.

3. For other cases not covered by Clauses 1 and 2 of this Article, the determination of planning preparation costs shall be carried out in accordance with the provisions of this Circular.

Article 12. Effective Date

This Circular takes effect from March 10, 2020, and replaces Circular No. 05/2017/TT-BXD dated April 5, 2017, of the Ministry of Construction guiding the determination and management of planning preparation costs and urban planning costs.

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