Circular No. 54/2005/TT-BNN guiding the adjustment of the budget estimate for construction works under the Agriculture and Rural Development sector

CIRCULAR

Guidelines for adjusting the budget estimate of construction projects

under the Agriculture and Rural Development sector

Pursuant to Circular No. 03/2005/TT-BXD dated March 4, 2005, issued by the Ministry of Construction, guiding the adjustment of the budget estimate of construction projects;

Pursuant to the agreement document No. 1589/BXD-KTTC dated August 9, 2005, of the Ministry of Construction, regarding guidance on adjusting the budget estimate of construction projects under the Agriculture and Rural Development sector;

The Ministry of Agriculture and Rural Development guides the adjustment of the budget estimate of construction projects applying industry-specific norms and unit prices of the Agriculture and Rural Development sector as follows:

I. SCOPE OF ADJUSTMENT

This Circular provides guidelines for adjusting the value of construction project estimates and other costs applying industry-specific norms and unit prices issued by the Ministry of Agriculture and Rural Development.

II. ADJUSTMENT OF THE VALUE OF CONSTRUCTION PROJECT ESTIMATES

1. Adjustment of labor costs:

a) Labor costs in the Norms and Unit Prices for drilling and grouting treatment of water conservancy works, Decision No. 220/1998/QĐ/BNN-XDCB dated December 30, 1998, issued by the Ministry of Agriculture and Rural Development, shall be multiplied by the adjustment factor Knc=2.784

b) Labor costs in the Norms and Unit Prices for drilling and grouting reinforcement of dike quality, Decision No. 13/2001/QĐ/BNN-PCLB dated February 20, 2001, issued by the Ministry of Agriculture and Rural Development, shall be multiplied by the adjustment factor Knc=1.863

2. Adjustment of machinery costs:

a) Machinery costs in the Norms and Unit Prices for drilling and grouting treatment of water conservancy works, Decision No. 220/1998/QĐ/BNN-XDCB dated December 30, 1998, issued by the Ministry of Agriculture and Rural Development, shall be multiplied by the adjustment factor Kmtc=1.24

b) Machinery costs in the Norms and Unit Prices for drilling and grouting reinforcement of dike quality, Decision No. 13/2001/QĐ/BNN-PCLB dated February 20, 2001; Norms for the budget estimate of repair and maintenance dikes and revetments works, Decision No. 65/2003/QĐ-BNN-PCLB dated June 2, 2003; Norms for the production of clay powder used in drilling and grouting reinforcement of dike quality works, Decision No. 64/2003/QĐ-BNN-PCLB dated June 2, 2003, all issued by the Ministry of Agriculture and Rural Development, shall be multiplied by the following adjustment factors:

c) Machinery costs in the construction project estimates prepared according to the machinery and equipment industry-specific budget estimate prices, Decision No. 27/1999/QĐ/BNN-ĐTXD dated February 3, 1999, issued by the Ministry of Agriculture and Rural Development, shall be multiplied by the following adjustment factors:

3. General expenses, income subject to advance tax, and value-added tax:

General expenses, income subject to advance tax, and value-added tax shall be implemented in accordance with current regulations.

III. ADJUSTMENT OF OTHER COSTS IN THE TOTAL PROJECT ESTIMATE

Adjustments to the budget for construction survey costs, investment consulting fees, and construction costs; project management board expenses... shall be carried out in accordance with the guidance provided in Circular No. 03/2005/TT-BXD dated March 4, 2005, issued by the Ministry of Construction.

For other cost items within the specialized norms and unit prices: reinforcement grouting costs for dike bodies; grouting treatment costs for hydraulic structures shall be calculated according to the percentage ratios specified in those Decisions.

IV. IMPLEMENTATION

The application period for the adjustment factors for labor costs and construction machinery costs stipulated in Clause 1 and Clause 2 of Section II of this Circular shall follow the guidance provided in Circular No. 03/2005/TT-BXD dated March 4, 2005, issued by the Ministry of Construction.

The Project Owner, Project Management Board, and Consulting Units shall review the quantities of work within the scope subject to adjustment. The adjusted budget estimate must detail the quantities requiring adjustment, unit prices applied at corresponding time periods permitted for adjustment, along with the calculation bases for such adjustments.

The tender price adjustment file, supplementary bid price approval, submitted for authorized approval must include approved budgets, decisions approving tender results or direct award (with detailed appendices calculating unit prices consistent with the bid price or direct award price), acceptance certificates, payment records for each period, and simultaneously provide the Treasury's payment price certificate for completed quantities.

V. EFFECTIVE DATE

This Circular shall take effect fifteen days after its publication in the Official Gazette and shall replace Circulars No. 101/2003/TT-BNN-XDCB dated September 18, 2003, No. 39/2003/TT-BNN-XDCB dated January 21, 2003, and No. 51/2001/TT-BNN-XDCB dated May 3, 2001.

During implementation, if there are any issues, please submit feedback in writing to the Ministry of Agriculture and Rural Development for study and resolution./.