Circular No. 45/2011/TT-BGTVT stipulates the costs for traffic safety review for new road construction projects and upgraded, improved projects.

CIRCULAR

Provisions on traffic safety inspection costs for new road construction projects; upgrading and renovation projects

For new road construction projects; upgrading and renovation projects

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On the basis of Decree No. 86/2012/NĐ-CP dated October 19, 2012, issued by the Government detailing and guiding implementation of certain provisions of the Metrology Law;

Pursuant to the Decree No. 11/2010/NĐ-CP dated February 24, 2010 of the Government on management and protection of road infrastructure;

The Minister of Transport hereby promulgates this Circular stipulating the procedures and formalities for dredging and maintaining the maritime channels of Hai Phong and Saigon-Vung Tau managed by the Ministry of Transport, using state budget funds, piloted under the open bidding mechanism with lump-sum contracts ensuring the design standards of the channel routes from 2015 to 2016 based on the dredging and maintenance plans for maritime channels and lump-sum contracts without adjusting the implementation costs.

Pursuant to Decree No. 51/2008/NĐ-CP dated April 22, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Transport;

The Minister of Transport shall stipulate the traffic safety inspection costs for new road construction projects; upgrading and renovation projects as follows:

Article 1. Scope of Regulation

This Circular provides for the establishment and management of traffic safety inspection costs for new road construction projects; upgrading and renovation projects at each stage of investment project planning or economic and technical reports, technical design, or construction drawings and traffic safety inspections before putting the works into operation.

The content of traffic safety inspections shall be carried out in accordance with Circular No. 39/2011/TT-BGTVT dated May 18, 2011, issued by the Minister of Transport guiding the implementation of certain provisions of Government Decree No. 11/2010/NĐ-CP dated February 24, 2010, on the management and protection of road transport infrastructure structures.

Article 2. Applicability

This Circular applies to agencies, organizations, and individuals related to traffic safety inspection activities for new road construction projects; upgrading and renovation projects.

Article 3. Traffic Safety Inspection Costs

1. Traffic safety inspection costs for new road construction projects; upgrading and renovation projects (hereinafter referred to as "traffic safety inspection costs") are all necessary expenses required to complete traffic safety inspection work as prescribed.

2. Traffic safety inspection costs are prepared as a budget estimate and included in the consulting fee item of the total investment ceiling or construction project budget for road projects.

Article 4. Preparation of Budget Estimate for Traffic Safety Inspection Costs

1. The investor has the obligation to organize the preparation or hire a consulting organization with sufficient capacity to prepare the budget estimate for traffic safety inspection costs and manage traffic safety inspection costs in accordance with current laws.

2. The approved budget estimate for traffic safety inspection costs serves as the basis for determining the tender price for traffic safety inspection services, serving as the basis for negotiating and signing contracts, and settling accounts with the consulting contractor in cases of direct award.

Article 5. Contents of the Budget Estimate for Traffic Safety Inspection Costs

1. The budget estimate for traffic safety inspection costs includes:

a) Expert fees;

b) Management fees;

c) Other costs;

d) Prepaid taxable income;

đ) Value Added Tax (VAT);

e) Contingency costs.

2. Expert fees

Expert fees are determined based on the number of experts, the working time of experts, and the salary of experts, specifically:

a) The number of experts and their working time are determined based on specific requirements, workload, progress schedule, and expertise level needed for traffic safety inspections;

Based on the scale, nature of the project, and phase of traffic safety inspections, progress implementation, other factors related to the inspection work, and legal regulations on the qualifications of organizations and individuals conducting traffic safety inspections, the number of experts and their working time are determined.

b) Expert salaries include basic salary, social security costs, other allowances (if applicable), and are determined as follows:

- In cases where the consulting organization for traffic safety inspections has not been identified, the average market rate for expert salaries or the state-announced salary levels are used to determine expert salaries;

- In cases where the consulting organization for traffic safety inspections has been identified, actual salaries of experts, social security costs, allowances (if applicable) from audited financial statements or confirmed by tax authorities, finance departments, or similar contracts signed or being executed in the most recent year by the consulting organization, and annual salary inflation rates are used to calculate and determine expert salaries.

3. Management Fees

Management fees include personnel salaries, operational costs of the consulting organization, office expenses, professional liability insurance for consultants, and other management costs. Management fees are calculated as 45% of expert fees.

4. Other Costs

Other costs include depreciation of equipment, field survey costs, travel expenses, conference and seminar costs, and other necessary costs for traffic safety inspections. These costs are determined according to the following provisions:

a) Equipment depreciation costs are determined based on needs, quantity of equipment, usage period, depreciation period, management and usage rules, fixed asset depreciation rates, and market equipment prices;

b) Field survey costs and travel expenses are determined based on duration, frequency, means of transportation used, current regulations on allowances, and other necessary costs during field surveys;

c) Conference and seminar costs are determined based on the requirements of traffic safety inspection work, anticipated number of conferences and seminars, and conference and seminar cost standards set by the Ministry of Finance;

d) Other necessary costs are determined based on the specific requirements of each project requiring traffic safety inspections.

5. Prepaid Taxable Income

Prepaid taxable income is calculated as 6% of the total expert fees, management fees, and other costs.

6. Value Added Tax

Value-added tax is determined according to the provisions of the Law on Value Added Tax and other tax laws.

7. Contingency Costs

Contingency costs are reserved for unforeseen work and inflation during the implementation of traffic safety inspections. Contingency costs are determined at a maximum of 10% of the total expert fees, management fees, other costs, prepaid taxable income, and value added tax.

The budget estimate for traffic safety inspection costs is compiled according to Appendix No. 1 attached to this Circular.

Article 6. Examination and Approval of the Estimate for Traffic Safety Audit Costs

1. The project owner shall be responsible for organizing the examination and approval of the estimate for traffic safety audit costs in accordance with Articles 10 and 25 of Decree No. 112/2009/NĐ-CP dated December 14, 2009 of the Government on the management of construction investment costs.

2. The content of the examination and approval of the estimate for traffic safety audit costs shall be carried out in accordance with Article 10 of Decree No. 112/2009/NĐ-CP dated December 14, 2009 of the Government on the management of construction investment costs and the provisions of this Circular.

3. The results of the examination of the estimate for traffic safety audit costs must be compiled into an examination report. The format of the examination report for the estimate for traffic safety audit costs is specified in Appendix 2 of this Circular.

Article 7. Adjustment of Budget for Traffic Safety Audit Costs

1. The approved estimate for traffic safety audit costs may be adjusted in the following cases:

a) Supplementing the volume of traffic safety audit work in the following situations:

- Changing, supplementing the basic design, technical design, or construction drawing design that alters the scale of the project or changes the traffic organization plan of the project;

- At the request of the competent authority to supplement traffic safety audit work.

b) Adjusting or changing the cost structure in the approved estimate for traffic safety audit costs.

c) Other cases as prescribed by laws on construction investment and laws on road traffic.

2. The adjusted estimate for traffic safety audit costs shall be determined by adding or subtracting the supplementary estimate from the approved estimate.

3. The project owner shall be responsible for examining and approving the adjusted estimate for traffic safety audit costs in accordance with Decree No. 112/2009/NĐ-CP dated December 14, 2009 of the Government on the management of construction investment costs.

4. The approved adjusted estimate for traffic safety audit costs serves as the basis for adjusting the contract price and tender package price.

5. In cases where the adjustment of the estimate for traffic safety audit costs exceeds the approved total investment ceiling, the project owner must report to the investment decision-maker for consideration and decision.

Article 8. Effectiveness and Responsibility for Implementation

1. This Circular takes effect from August 1, 2011.

2. The Heads of the Ministry's Office, the Inspectorate, the Departments, the Chairmen of the People's Committees of provinces, the Directors of the Vietnam Highway Administration, the Directors of Transport Departments of provinces and centrally governed cities, the Heads of agencies, organizations, and individuals concerned shall be responsible for implementing this Circular./.