Decree No. 68/2019/ND-CP on management of construction investment costs

DECREE

On the management of construction investment costs

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Pursuant to the Law organization As promulgated by the Government on 19 the 6 Pursuant to Decree No. 32/2019/NĐ-CP dated April 10, 2019 of the Government on assigning tasks, procurement or tendering for the supply of products and services using state budget from regular operating expenses;15;

On the basis of The Construction Law on 18 the 6 Pursuant to Decree No. 32/2019/NĐ-CP dated April 10, 2019 of the Government on assigning tasks, procurement or tendering for the supply of products and services using state budget from regular operating expenses;14;

Pursuant to the proposal of the Director of the Department of Ethnic Affairs and Religion Propaganda;on The Minister of Construction's resolutionB. LEVELS OF APPROVAL/RECORDING OF REPORTS ON OIL AND GAS RESOURCES AND RESERVES

At the proposal of issues Decree on the management of construction investment costs.

PART I

GENERAL PROVISIONS

Article 1. Scope of application

1. This Decree stipulates the management of construction investment costs for projects using state budget capital, state capital outside the budget, and public-private partnership (PPP) projects regarding preliminary total investment ceiling, total investment ceiling, construction budget estimate, bidding price for construction packages, norms and construction prices, project management costs and construction investment consulting costs; payment and settlement of construction contracts, payment and settlement of construction investment capital; rights, obligations, and responsibilities of the investment decision-makers, investors, construction contractors, and consulting contractors in managing construction investment costs.

2. For construction investment projects using official development assistance (ODA) funds, implementation shall be carried out in accordance with international treaties and domestic laws under the International Treaties Law.

Article 2. Applicability

1. This Decree applies to agencies, organizations, and individuals related to the management of construction investment costs for projects using state budget capital and state capital outside the budget as specified in Clause 1 and Clause 2 of Article 60 of the Construction Law, and PPP projects.

2. Organizations and individuals may apply the provisions of this Decree to manage construction investment costs and determine construction investment costs as the basis for fulfilling financial obligations to the State for projects using other sources of capital.

Article 3. Principles of managing construction investment costs

1. Management of construction investment costs must ensure investment objectives, the effectiveness of approved projects, compliance with the construction investment procedures prescribed in Clause 1 of Article 50 of the Construction Law, the source of capital used, and the form of investment of the project, the method of implementation of the project. Investment construction costs must be accurately calculated for each project, structure, construction package, consistent with design requirements, technical guidelines, construction conditions, project implementation plans, market prices in the construction area, and anticipated price fluctuations during the construction investment process.

2. The State manages construction investment costs through issuing, guiding, and inspecting the implementation of legal regulations; guiding methods for establishing and managing construction investment costs.

3. Investors are responsible for managing construction investment costs from the project preparation stage until the completion of construction and the operation and use of structures, and the settlement of construction investment capital within the approved total investment ceiling of the project including cases where the total investment ceiling is adjusted according to the provisions of Article 7 of this Decree. Investors may hire organizations and individuals with the required qualifications as stipulated in the Decree on Project Investment Management to establish, review, control, and manage construction investment costs.

4. Special construction works classified as state secrets, emergency construction works, and urgent construction works apply the principles, methods for determining construction investment costs, and systems of construction norms, unit prices, and price indices prescribed in this Decree to determine construction investment costs, serving as the basis for determining the value of state assets for these construction works. The examination and approval of construction investment costs for these works shall be carried out in accordance with the regulations on the management of special construction works as stipulated in the Decree on Project Investment Management.

5. Infrastructure construction works under national target programs for sustainable poverty reduction and the new rural construction target program apply the principles and methods for determining construction investment costs prescribed in this Decree and are consistent with the characteristics of the construction works under these programs.

6. Inspections, audits, and reviews of construction investment costs must be conducted based on the grounds, contents, methods, timing, and approaches for determining cost items in the total construction investment ceiling, construction budget estimates, bidding prices for construction packages, construction norm systems, construction prices, and construction price indices that have been agreed upon by the investment decision-makers and investors, consistent with the stages of cost formation as prescribed in this Decree on the management of construction investment costs.

Chapter II

PRELIMINARY TOTAL INVESTMENT COST AND TOTAL INVESTMENT CONSTRUCTION COST

Article 4. Content of preliminary total investment cost and total investment construction cost

1. Preliminary total investment construction cost is the estimated construction investment cost of the project during the preparation stage of the Feasibility Study Report for Investment Construction or the Proposal Report on Investment Orientation for Projects Group B and Group C in accordance with the Public Investment Law. The content of the preliminary total investment construction cost includes the items of costs specified in Clause 2 of this Article.

2. Total investment construction cost is the entire construction investment cost of the project determined in accordance with the basic design and other contents of the Feasibility Study Report for Investment Construction. The content of the total investment construction cost includes compensation, support, and resettlement costs (if applicable); construction costs; equipment costs; project management costs; construction investment consulting costs; other costs and contingency costs for additional work volume and price escalation.

3. For projects that only require the preparation of the Economic and Technical Report for Investment Construction, the total investment construction cost shall include the construction budget as stipulated in Article 8 of this Decree and compensation, support, and resettlement costs (if applicable).

4. The costs of the total investment construction cost are specifically defined as follows:

a) Compensation, support, and resettlement costs include land compensation costs, house compensation costs, compensation costs for structures on land, attached assets to land, surface water compensation costs, and other compensation costs as prescribed; support amounts when the State recovers land; resettlement costs; organization costs for compensation, support, and resettlement; land usage costs, land rental costs during the construction period (if applicable); relocation costs; repayment costs for existing infrastructure technical facilities (if applicable), and other related costs;

b) Construction costs include costs for constructing works and sub-works of the construction project; temporary and auxiliary construction works serving construction; demolition costs for construction works not within the scope of demolition and clearance already included in the compensation, support, and resettlement costs. The structure of construction costs includes direct costs, indirect costs, pre-tax income, value-added tax;

c) Equipment costs include procurement costs for construction equipment and technology equipment; management costs for procurement of construction equipment by contractors; software purchase costs for use with construction equipment and technology equipment of the project (if applicable); training and technology transfer costs (if applicable); non-standard equipment manufacturing and processing costs (if applicable); installation, testing, calibration costs; trial operation costs for equipment according to technical requirements; transportation and insurance costs; taxes and other related fees;

d) Project management costs include costs for organizing and implementing project management activities from the project preparation phase, implementation phase, and completion phase to put the project's works into operation. For public-private partnership (PPP) projects, project management costs include project management costs of competent state agencies, operational costs of project management units under competent state agencies implementing the project, and project management costs of investors;

đ) Construction investment consulting costs include costs for construction survey consulting, preparing the Feasibility Study Report for Pre-feasibility Study, Proposal Report on Investment Orientation for Projects Group B and Group C as prescribed by the Public Investment Law, preparing the Feasibility Study Report or Economic and Technical Report; design costs; construction supervision consulting costs; and other related consulting costs;

e) Other costs include necessary costs for implementing the construction project such as mine clearance costs, explosive material clearance costs; construction project insurance costs during the construction period; project evaluation, design, and construction budget review fees; auditing, verification, final account approval costs, and other necessary costs for implementing the construction project but not covered under points a, b, c, d, đ of Clause 4 of this Article;

g) Contingency costs include costs for additional work volume and price escalation factors during the project implementation period.

Article 5. Determination of preliminary total investment construction cost, total investment construction cost

1. The preliminary total investment construction cost of the project is estimated based on the scale, capacity, or service capability according to the project's preliminary design scheme and the unit investment cost or cost data of similar projects in terms of type, scale, and nature that have been or are being implemented, with analysis and assessment to adjust the conversion to market prices suitable for the construction location, supplemented with other necessary costs of the project.

For projects implemented through a construction contract to undertake all project preparation, design, procurement of materials and equipment, and construction work (hereinafter referred to as the turnkey method), the preliminary total investment must be determined based on the quantity calculated according to the preliminary design combined with other methods to determine the tender package price.

2. The total investment construction cost is determined using the following methods:

a) Method of determining the construction volume calculated according to the basic design, project implementation plan, construction method organization, other necessary requirements of the project, and construction norms, unit prices, relevant systems, and policies;

b) Method of determining from data on costs of similar projects;

c) Method of determining based on investment capital per unit of construction project;

d) Method combining the methods mentioned in points a, b, and c of this clause.

3. The methods prescribed in points b and c of this clause shall only be used for common construction projects.

4. For projects implemented under the design-build-supply-construction contract method (EPC), design and construction contract method (EC), and design-supply contract method (EP), the total investment amount must be determined based on the method mentioned in point a of Clause 2 of this Article combined with another method.

5. Details of the methods for determining the Total Investment Amount shall be guided by the Minister of Construction.

Article 6. Review and Approval of the Total Investment Amount for Construction

1. The review of the total investment amount for construction shall be carried out concurrently with the review of the construction investment project. The content of the review of the total investment amount for construction includes:

a) The completeness and appropriateness of the legal bases for determining the Total Investment Amount;

b) The suitability of the method for determining the total investment amount for construction with the characteristics, nature, technical requirements, and technological requirements of the project;

c) Checking the completeness and appropriateness of the quantities compared to the basic design, implementation plan of the project, construction organization measures, and project requirements; the conformity with state regulations and guidelines regarding the costs used for calculating and determining the costs within the total investment amount for construction;

d) Determining the value of the total investment amount for construction after the review. Analyzing the reasons for increases or decreases and evaluating the assurance of the project's investment effectiveness according to the determined total investment amount for construction after the review.

2. For projects that only require the preparation of an economic-technical report for construction investment, the content of the review shall be carried out as prescribed in Clause 2 of Article 10 of this Decree.

3. Authority for reviewing the total investment amount for construction:

a) National key projects shall be reviewed by the State Appraisal Council established and chaired by the Prime Minister;

b) Projects using state budget funds shall be reviewed by the specialized agency responsible for construction at the appropriate level;

c) For projects using state funds outside the state budget, the review shall be organized by the specialized agency directly under the investor decision-making body;

d) For projects implemented under the public-private partnership (PPP) model, the review shall be organized by the lead unit managing PPP activities under the competent state agency. The specialized agency responsible for construction at the appropriate level shall provide comments on the suitability of the unit prices and norms used to determine the Total Investment Amount of the project, and evaluate the design solutions aimed at reducing construction costs of the project.

4. For projects that only require the preparation of an economic-technical report for construction investment using state budget funds and state funds outside the state budget, the review shall be organized by the specialized agency responsible for construction at the appropriate level.

5. The leading agency for the review may invite organizations and individuals with expertise and experience to participate in the review of the total investment amount for construction or request the investor to select organizations and individuals with the necessary qualifications and capabilities for construction investment cost management as stipulated in the Decree on construction investment project management to conduct a preliminary review of the total investment amount for construction for national key projects, group A projects, or projects with complex technology and high technology to serve as a basis for the review and approval.

6. The content of implementation, funding, and responsibilities of organizations and individuals invited to participate in the review or preliminary review are as follows:

a) Organizations and individuals invited to participate in the review shall carry out the contents required by the leading review agency and bear responsibility for their review results in accordance with the law;

b) The content of the preliminary review of the total investment amount for construction includes all the contents prescribed in Clause 1 of this Article. Organizations and individuals conducting the preliminary review shall report to the leading review agency, the investor, and bear responsibility for their review results in accordance with the law;

c) The costs for organizations and individuals invited to participate in the review of the total investment amount for construction and the costs for the preliminary review of the total investment amount for construction shall be determined based on the cost norms issued by the competent state agency or determined through the preparation of a cost estimate.

7. The investor decision-maker shall approve the total investment amount for construction together with the approval of the project. The approved total investment amount for construction is the maximum cost that the investor is permitted to use to implement the construction investment project. In cases where the total investment amount for construction has a higher value than the preliminary total investment amount, the investor decision-maker shall approve the total investment amount for construction after obtaining the agreement of the investor decision-maker for the investment proposal.

8. The investment project construction feasibility study dossier includes the total investment ceiling dossier for construction projects as stipulated in Clause 2, Article 56 of the Construction Law and the Decree on management of investment project construction dossiers for projects that only require preparation of an Economic and Technical Report. The results of the examination and verification of the total investment ceiling shall be prepared according to the model prescribed by the Ministry of Construction.

9. The budget estimate of works carried out during the investment preparation phase to prepare a Preliminary Feasibility Study Report or an Investment Preparation Report shall be examined and approved by the agency or unit responsible for preparing the investment project. These cost items will be updated into the total investment ceiling of the project after the competent authority decides on the investment policy.

10. The budget estimate of works carried out during the project preparation phase to prepare a Feasibility Study Report shall be examined by the specialized agency under the person deciding on the investment project to serve as the basis for submission to the investment decision-making level for approval of these costs. These cost items will be updated into the total investment ceiling of the project to serve the preparation and management of construction investment costs.

Article 7. Adjustment of the total investment ceiling for construction

1. The approved total investment ceiling for construction may be adjusted in accordance with the provisions of Clause 5, Article 134 of the Construction Law. The adjustment of the total investment ceiling must be carried out together with the adjustment of the investment project and must be organized when additional costs exceed the total investment ceiling. The person deciding on the investment approves the adjusted total investment ceiling for construction along with the adjusted investment project.

2. If the adjusted total investment ceiling increases or decreases compared to the approved total investment ceiling, the adjusted total investment ceiling must be reviewed and approved in accordance with the provisions of Article 6 of this Decree.

3. In cases where only the structure of cost items, including contingency costs due to price adjustments based on the price index increase compared to the price index included in the total investment's cost overrun contingency, is adjusted without exceeding the approved total investment ceiling, the investor organizes the adjustment and submits it to the person deciding on the investment for approval.

4. The person deciding on the investment decides on the use of contingency costs for construction investment projects. The investor decides on the use of contingency costs for projects that only require preparation of an Economic and Technical Report for construction investment.

5. In cases where the total investment ceiling for construction is adjusted in accordance with Clause 1 of this Article, resulting in an increase or decrease in the scale (group) of the project, the project management continues to be implemented according to the scale (group) of the project previously approved before the adjustment. In cases where the adjustment leads to an increase in the scale (group) of the project to a national key project or Group A project, the person deciding on the investment approves the adjusted total investment ceiling after obtaining the consent of the competent authority deciding on the investment policy according to the new scale (group) of the project.

Chapter III

BUDGET ESTIMATE FOR CONSTRUCTION AND TENDER PRICE FOR CONSTRUCTION PACKAGES

Article 8. Content of the construction budget estimate

1. The construction budget estimate is the total anticipated costs at the stage prior to selecting contractors for constructing works, projects, or packages, determined based on the calculated volume from technical design for three-step design, construction drawings for two-step design, or front-end engineering design (FEED) for projects implemented under the EPC, EC, or EP forms, along with work requirements and construction norms and unit prices.

The content of the construction budget estimate includes: construction costs, equipment costs, project management costs, investment consulting costs, other costs, and contingency costs. The contents of these cost items are specified in Points b, c, d, đ, e, and g of Clause 4 of Article 4 of this Decree.

2. For projects with multiple construction works, the investor shall determine the construction budget estimate of the project according to each individual work.

The content of the construction budget estimate for a work includes: construction costs of the work; equipment costs of the work; investment consulting costs for the work; other costs related to the work; and contingency costs of the work.

The construction budget estimate of the project (Total Budget Estimate) includes the sum of the construction budget estimates for each work and project management costs, consulting costs, other costs, and common-related contingency costs of the project.

3. For projects that have been approved by competent authorities for the tender selection plan, the investor shall determine the construction budget estimate of the project according to the construction package budget estimates within the approved tender selection plan. In such cases, the construction budget estimate of the project includes the construction package budget estimates and project management costs, consulting costs, other costs, and common-related contingency costs of the project.

The construction package budget estimate includes:

- Separate construction package budget estimate: construction work package budget estimate; equipment procurement package budget estimate; installation of equipment work package budget estimate; investment consulting work package budget estimate; other cost item package budget estimate;

- Mixed construction package budget estimate: design and construction work package budget estimate (EC); procurement and construction work package budget estimate (PC); design, procurement, and construction work package budget estimate (EPC); project establishment, design, procurement, and construction work package budget estimate (turnkey)...

4. Detailed cost items of the construction budget estimate, construction work budget estimate, and construction package budget estimates shall be carried out in accordance with the regulations of the Minister of Construction.

Article 9. Determination of Construction Budget Estimate

1. The construction budget estimate shall be determined based on the calculated quantities from technical design for three-step design, construction drawing design for two-step design, Front End Engineering Design (FEED) to determine the tender package price for cases implemented under the EPC, EC, EP forms, technical instructions, work requirements that must be carried out for the project and works, project implementation plan, construction conditions, construction methods, construction norms, construction prices applicable to the project and works.

2. The cost items in the construction budget estimate shall be determined as follows:

a) Construction costs include direct costs for materials, labor, construction machinery, which are determined based on the quantities of construction tasks and works measured and calculated from technical design drawings, construction drawing design, technical instructions, work requirements that must be carried out for the works, construction prices of the works, and indirect costs, pre-tax income, value-added tax, which are determined according to the cost norms issued by competent state agencies or determined through the preparation of the budget estimate.

b) Equipment costs include procurement costs for equipment, which are determined based on the quantities, types of equipment from technological design, construction, and corresponding equipment purchase prices; management costs for equipment procurement by the contractor; software license fees for equipment used in the project's works, technological equipment (if any); training and technology transfer costs; manufacturing costs for non-standard equipment (if any); installation, testing, calibration costs; trial operation costs for equipment according to technical requirements and provisions in the contract; transportation, insurance costs; taxes and other related fees, which are determined through the budget estimate or according to cost norms issued by competent state agencies.

c) Project management costs shall be determined in accordance with Clause 3 of Article 21 of this Decree.

d) Investment and construction consulting costs shall be determined in accordance with Clause 3 of Article 23 of this Decree.

đ) Other costs shall be determined based on percentage norms (%) or through the preparation of the budget estimate or estimated costs based on similar projects and works.

e) Contingency costs for unforeseen work volumes shall be calculated as a percentage (%) of the total costs specified in Points a, b, c, d, and đ of this clause. Contingency costs for price escalation factors shall be calculated based on the duration of the construction period of the works according to the project implementation plan and the appropriate construction price index taking into account domestic and international price fluctuations.

3. Detailed methods for determining the construction budget estimate of the project, construction budget estimate of the works, and construction tender package budget estimates shall be carried out in accordance with the guidelines of the Minister of Construction.

Article 10. Review and Approval of Construction Budget Estimates

1. The review of construction budget estimates shall be conducted concurrently with the technical design review or construction drawing design as follows:

a) The construction budget estimate of the project shall be reviewed based on the comprehensive review of the construction budget estimates of each project component, construction tender budget estimates, and other related cost items of the project;

b) In cases where the project has a large scale from Group A upwards, the investment decision maker permits the organization to implement technical design or construction drawing design for each project component or construction tender according to the implementation plan of the project in phases, then the construction budget estimate review of each project component and construction tender budget estimate shall be carried out concurrently with the technical design or construction drawing design review of each project component or construction tender;

c) For hybrid EPC, EC, EP tenders that have signed contracts, the review of construction budget estimates will not be conducted;

d) In cases where hybrid construction tenders EPC, EC, EP determine the construction budget estimate based on Front End Engineering Design (FEED) to serve as the basis for determining the tender price, the review of construction budget estimates shall be conducted based on the budget estimate prepared according to the FEED design.

2. The contents of the review of construction budget estimates, construction project budget estimates, and construction tender budget estimates include:

a) Checking the completeness and appropriateness of legal bases for determining the construction budget estimate;

b) Verifying the consistency between the volume of construction work, types, and quantity of equipment in the budget estimate with the calculated volume, types, and quantity of equipment from the construction design and technology;

c) Verifying the accuracy and reasonableness of applying construction norms, construction prices of the project, and other relevant regulations in determining the cost items of the budget estimate;

d) Determining the value of the budget estimate after review. Evaluating the increase or decrease in cost items, analyzing the reasons for the increase or decrease compared to the proposed construction project budget estimate for review.

3. The authority to review and approve construction budget estimates (including construction project budget estimates and construction tender budget estimates) shall be implemented in accordance with the provisions of the Decree on Project Management for Investment Construction. Specifically, for the budget estimates of preparatory works for technical design and construction drawing design, the specialized agency under the investment decision maker shall conduct the review as the basis for submitting to the investment decision maker for approval of these costs. These cost items will be updated into the construction project budget estimate to serve the preparation and management of investment construction costs.

4. For construction tender budget estimates of hybrid EPC, EC, EP tenders determined according to FEED design as stipulated in Point d Clause 1 of this Article, the authority to review construction tender budget estimates shall be carried out in accordance with Clause 3 of this Article.

5. For projects of national importance, Group A, B, and C projects with complex technology or high technology application, the reviewing agency may invite organizations or individuals to participate in the review of construction budget estimates, or require the investor to select organizations or individuals to conduct a preliminary review of construction budget estimates as the basis for the review and approval. Organizations or individuals invited to participate in the review or selected to conduct the preliminary review must meet the conditions of capacity as prescribed in the Decree on Project Management for Investment Construction.

6. The contents of implementation, expenses, and responsibilities of organizations or individuals participating in the review or preliminary review are stipulated as follows:

a) Organizations or individuals invited to participate in the review shall carry out the contents required by the leading review agency and bear responsibility for their review results in accordance with the law;

b) The contents of the preliminary review of construction budget estimates include all the contents prescribed in Clause 2 of this Article. Organizations or individuals conducting the preliminary review have the responsibility to report to the leading review agency, the investor, and bear responsibility for their preliminary review results in accordance with the law;

c) Expenses for organizations or individuals invited to review construction budget estimates and expenses for the preliminary review of construction budget estimates shall be determined based on the cost standards issued by the competent state agency or determined by the method of preparing cost estimates.

7. The review documents of construction budget estimates belong to the review documents of technical design, construction drawing design, and construction budget estimates as prescribed in the Decree on Project Management for Investment Construction. The results of the review and preliminary review of construction budget estimates shall be prepared according to the model prescribed by the Ministry of Construction.

Article 11. Adjustment of Construction Budget Estimate

1. The approved construction budget estimate may only be adjusted in the following cases:

a) Adjusting the total investment amount for construction;

b) Changing or supplementing the design without contravening the basic design, the adjusted basic design, or changing the cost structure within the construction budget estimate, including the contingency costs due to price adjustments according to the price index increase compared to the price index calculated for the price escalation reserve, but not exceeding the approved total investment amount for construction.

2. The adjusted construction budget estimate must be reviewed and approved in accordance with the provisions of the Law on Construction.

3. In the case where the adjusted construction budget estimate is due to price adjustments according to the price index increase compared to the price index calculated for the price escalation reserve, but does not change the value of the approved construction budget estimate, the project investor shall organize the adjustment and approval after obtaining the consent of the investment decision-maker. For cases within the authority of the investment decision-maker to approve, the investment decision-maker shall approve and bear responsibility for their own adjustment approval.

4. The investment decision-maker decides on the use of the contingency costs in the construction budget estimate. The project investor decides on the use of the contingency costs in the budget estimate of the project established in the Economic and Technical Report.

Article 12. Bid Package Price for Construction

1. The bid package price for construction is the value of the construction bid package approved in the plan for selecting contractors, serving as the basis for implementing the contractor selection process. The bid package price for construction includes all necessary costs accurately calculated to implement the construction bid package.

2. The total investment amount for construction, the construction budget estimate of the project, the construction budget estimate of the works, and the construction bid package budget estimate approved serve as the basis for determining and approving the bid package price for construction. The bid package price for construction is determined specifically as follows:

a) In cases where there is already a construction bid package budget estimate, the bid package price for construction is determined based on the approved construction bid package budget estimate;

b) In cases where there is no construction bid package budget estimate, the bid package price for construction is determined according to the cost structure of the construction bid package budget estimate based on the relevant cost items related to the scope of work of the bid package that have been determined in the total investment amount for construction, the construction budget estimate of the project, and the approved construction budget estimate of the works.

c) Contingency costs in the bid package price for construction are determined in accordance with the form of contract used for the bid package in the plan for selecting contractors.

3. In cases where the actual time of organizing the contractor selection differs from the implementation plan of the project, the project investor must update the bid package price for construction according to the market price level 28 days before the tender opening date. If the updated bid package price for construction is higher than the previously approved bid package price for construction and exceeds the total investment amount for the project, then the project investor must adjust the type and origin of materials and equipment to ensure quality and technical requirements but at a suitable price to avoid exceeding the total investment amount and report to the investment decision-maker for decision.

4. The investment decision-maker decides on the use of contingency fees when determining or updating the bid package price.

5. Detailed methods for determining or updating the bid package price for construction are implemented in accordance with the guidance of the Minister of Construction.

Chapter IV

DETERMINATION OF QUANTITIES AND PRICES FOR CONSTRUCTION PROJECTS

AND CONSTRUCTION PRICE INDEX

Section 1

CONSTRUCTION STANDARDS

Article 13. Economic and technical norms

1. Economic and technical standards include basic standards and construction budget estimate standards.

2. Basic standards include material usage standards, labor productivity standards, machine and construction equipment productivity standards. Basic standards for common construction tasks are determined through market surveys and investigations consistent with construction standards, technical and technological requirements, and construction conditions. Basic standards for construction tasks applying new technology are determined based on the requirements of the technology and its application conditions.

3. Construction budget estimate standards are the necessary consumption levels of materials, labor, machines, and construction equipment determined in accordance with the technical requirements, construction conditions of the project, and specific construction methods to complete a unit volume of construction work.

4. Economic and technical standards serve as the basis for managing construction investment costs.

Article 14. Cost Standards

1. Cost standards include standards expressed as percentages (%), value-based standards, and quantity-based standards for construction investment consulting costs.

2. Cost standards serve as the basis for determining construction prices, cost estimates for certain types of work, and construction investment costs including project management costs, construction investment consulting costs, indirect costs, pre-tax income, and other costs.

Article 15. Management of Construction Cost Standards

1. The method for determining basic standards, construction project budget standards, cost standards, and the agreement on issuing construction cost standards shall be carried out in accordance with the regulations of the Minister of Construction.

2. Based on the method for determining cost standards as stipulated in Clause 1 of this Article, specialized construction management ministries, provincial People's Committees shall organize the determination or hire organizations or individuals with sufficient capacity as prescribed in the Decree on Project Investment Construction Management to determine, adjust, and review cost standards for specific and specialized works of the industry and locality after obtaining the agreement of the Ministry of Construction, and send them to the Ministry of Construction for monitoring and management.

3. Issued construction cost standards serve as the basis for establishing unit prices to determine total investment construction costs, construction budgets, and manage construction investment costs.

4. For construction works not included in the issued construction budget standard system or already included but not suitable for technical requirements, construction conditions, and construction methods, the following procedures shall be implemented:

a) The investor shall organize the determination of new construction project budget standards, adjusted construction project budget standards as the basis for determining construction work unit prices and managing construction investment costs.

Consulting organizations or individuals responsible for preparing budgets and managing costs for projects or tender packages shall have the responsibility to determine new construction project budget standards, adjusted construction project budget standards according to design requirements and specific work, tender package, and project needs, serving as the basis for determining construction budgets, construction project budgets, and tender package construction budgets.

b) For newly determined construction project budget standards or adjusted construction project budget standards, if applying these standards results in lower construction work unit prices than those based on issued standards, the investment decision-maker shall approve their application for the project or work to determine construction budgets, construction project budgets, and tender package construction budgets, and report to the Ministry of Construction for monitoring and management. For construction works under projects decided by the Prime Minister, the Minister of the relevant sector and the Chairman of the Provincial People's Committee shall implement the approval.

c) The investor is responsible for compiling a list of tasks adjusting standards and building new standards not included in the issued standard list, reporting to the competent construction authority at the appropriate level, and organizing the construction of new construction project budget standards during the construction process according to the guidance of the Ministry of Construction. The results of constructing standards will be compiled by the competent construction authority at the appropriate level and sent to the Ministry of Construction as a basis for management. Costs for organizing the construction of standards will be included in the total project investment.

5. Investors may hire consulting organizations with sufficient capacity as prescribed in the Decree on Project Investment Construction Management to establish, adjust, and review construction cost standards as stipulated in Clause 4 of this Article.

6. The construction cost standard system issued by authorized state management agencies shall be reviewed regularly and updated every two years for new standards and adjusted old standards. Review expenses shall be allocated from the state budget.

Section 2

CONSTRUCTION WORK PRICES AND CONSTRUCTION PRICE INDEX

Article 16. Construction Project Cost

1. The construction project cost includes:

a) Detailed unit prices for construction works of the project determined for each construction work item of the project, serving as the basis for preparing the construction budget estimate;

b) Comprehensive construction costs determined according to groups, types of construction works, structural units or parts of the project, serving as the basis for preparing the construction budget estimate and total investment ceiling.

2. Detailed unit prices for construction works of the project are determined based on construction norms, material and supply prices, construction component prices, labor prices, machinery and construction equipment prices, and other necessary cost factors consistent with the market price level in the construction area at the time of determination, or relevant regulations, or based on market prices.

3. Comprehensive construction costs are determined based on the consolidation of detailed unit prices for construction works of the project.

Article 17. Management of Construction Project Costs

1. Methods for determining construction material prices, methods for determining detailed unit prices for construction labor, methods for determining machinery and construction equipment prices under a market mechanism, and basic data for determining machinery and construction equipment prices shall be implemented in accordance with the provisions of the Minister of Construction.

2. Provincial People's Committees issue detailed unit prices for construction projects within their province and periodically publish monthly or quarterly information on market prices for various construction materials and equipment; detailed unit prices for construction labor; machinery prices, rental prices for construction machinery and equipment. Information sources for price announcements are compiled from market surveys; bidding results of investment construction projects within the province; quotations from enterprises operating within the province in the field of production of construction materials and equipment, enterprises engaged in the provision, leasing of construction machinery and equipment, and enterprises engaged in distribution or agency sales for equipment and construction material manufacturers outside the province.

3. Project sponsors and contractors implementing investment construction projects using state budget funds, state capital outside the budget, and public-private partnership (PPP) construction investment projects within the province have the obligation to provide information to local construction management agencies about bid prices in project tender packages as the basis for issuing price notifications.

4. Project sponsors base on the method for determining construction project costs as guided by the Ministry of Construction, technical requirements, construction conditions,
construction measures, and specific implementation plans of the project organize the determination of detailed unit prices for construction works of the project, comprehensive construction costs of the project as the basis for preparing the construction budget estimate, total investment ceiling, and managing construction investment costs.

5. Project sponsors may hire organizations or individuals with the required qualifications as stipulated in the Decree on project management to perform tasks or portions of tasks related to the determination and review of construction project costs.

6. Funds for issuing detailed unit prices for construction, announcing material prices, labor prices, machinery prices, rental and construction equipment prices are allocated from the state budget.

Article 18. Construction Price Index

1. The construction price index is an indicator reflecting the degree of fluctuation in construction prices over time, serving as a basis for determining and adjusting the total investment ceiling for construction, construction project estimates, construction tender prices, construction contract prices, conversion of construction project investment capital, and management of construction investment costs.

2. The construction price index includes the construction price index by type of project, by cost structure (including the construction work price index, the construction equipment price index, the other cost price index), cost factors (including the construction material price index, the construction labor price index, the construction machinery and equipment price index), and the price index of key materials.

3. The method for determining the construction price index and the agreement on the unified construction price index shall be carried out in accordance with the regulations of the Minister of Construction. The provincial People's Committee assigns the specialized agency for construction to determine the construction price index within the province based on the method prescribed by the Minister of Construction (including all indices according to project type, cost structure, and cost factors as stipulated in Clause 2 of this Article) as a basis for the provincial People's Committee to publish periodically monthly, quarterly, and annually, while sending it to the Ministry of Construction for monitoring and management.

4. For projects not included in the list of construction price indices issued by the Ministry of Construction or the provincial People's Committee, the investor shall organize the determination of construction price indices based on the method prescribed by the Ministry of Construction and decide on their application after reaching an agreement with the Ministry of Construction for construction projects spanning two or more provinces, or with the provincial People's Committee for construction projects within a single province.

5. The investor may engage a consulting organization with the required capacity as stipulated in the Decree on construction investment project management to calculate the construction price indices as specified in Clause 4 of this Article as a basis for determining and managing construction investment costs.

6. Funds for collecting data, calculating, and issuing national, regional, and local construction price indices shall be allocated from the annual budget.

Section 3

DATABASE ON BENCHMARKS AND CONSTRUCTION PRICES

AND CONSTRUCTION PRICE INDEX

Article 19. Database Development

1. The database on benchmarks, construction prices, and construction price indices serves as a basis for management, control, and creation of a transparent market for the construction benchmark system, construction prices, and construction price indices.

2. Information in the database on construction benchmarks, construction prices, and construction price indices includes: material usage benchmarks; labor productivity benchmarks; machinery and equipment construction productivity benchmarks; project management and construction investment consulting cost benchmarks; indirect cost benchmarks; comprehensive unit investment capital and construction prices for structural components of projects; construction material unit prices; construction labor unit prices; construction machinery and equipment unit prices; construction price indices.

Article 20. Management of Database

1. The Ministry of Construction shall be responsible for:

a) Establishing, managing, and comprehensively controlling the system of databases on construction norms, construction prices, and construction price indices nationwide;

b) Establishing and perfecting the system of codes, application software systems to manage the database on construction norms, construction prices, and construction price indices;

c) Directing the content and methods for establishing databases; using the management software system for databases; ways to update the database system from specialized construction management agencies, levels of People's Committees, and related subjects.

2. Specialized construction management agencies and provincial-level People's Committees shall be responsible for:

a) Compiling, updating, and controlling the software management system for databases on construction norms, construction prices, and construction price indices within their respective management scope according to the guidelines of the Ministry of Construction;

b) Assigning specialized construction agencies to take the lead and be responsible for conducting market surveys, timely updating information according to their functions and areas of management to compile and update into the database system on construction norms, construction prices, and construction price indices.

3. Project sponsors, project management boards, and related subjects implementing state-funded projects, public-private partnership (PPP) projects shall be responsible for providing tender data, final account data of works and projects to specialized construction agencies at the appropriate level according to the guidelines of the Ministry of Construction to update into the database system on construction norms, construction prices, and construction price indices.

Chapter V

PROJECT MANAGEMENT COSTS AND CONSTRUCTION INVESTMENT CONSULTANCY FEES

Article 21. Project Management Costs

1. Project management costs are necessary expenses for organizing the implementation of project management tasks from the project preparation stage, project execution, and completion of construction to put the project works into operation.

2. The contents of project management costs include salaries of project managers; wages paid to workers under contracts; allowances; bonuses; welfare benefits; contributions (social insurance; health insurance; unemployment insurance; trade union fees, other deductions as prescribed by law for individuals receiving salaries from the project); application of science and technology, management of construction information systems, training to enhance the capacity of project managers; payment for public services; office supplies; information, propaganda, communication; organization of meetings related to the project; travel expenses; rental; repair, purchase of assets serving project management; other costs and contingency costs.

3. Project management costs are determined based on the percentage rate norms issued by the Ministry of Construction or by a budget estimate consistent with the form of project management organization, project implementation time, scale, and characteristics of project management work.

4. In cases where project sponsors hire consultancy for project management for state-funded projects outside the budget and projects with special characteristics, individual projects, then the consultancy management project cost is determined by a budget estimate based on the content and volume of project management work agreed upon between the project sponsor and the consultancy firm in the project management contract.

5. For small-scale renovation and repair projects as stipulated in the Decree on project investment construction management, and projects involving community participation, if the project sponsor uses subordinate specialized machinery to manage, then the project management cost is determined by a budget estimate as provided for in Clause 3 of this Article.

Article 22. Management of Project Management Costs

1. For projects using state capital, public-private partnership (PPP) projects, project management costs determined according to Clause 3 of Article 22 of this Decree are the maximum costs for managing the project in accordance with the project's schedule. Project management costs are managed based on annual budgets that are consistent with the tasks and work of project management being carried out and relevant regulations and policies.

2. In cases where some management tasks at the investment preparation stage are implemented ahead of time and the costs for these tasks have been approved by the competent authority, they shall be included in the project management costs.

3. The standard for project management costs and the method for preparing the budget to determine project management costs shall be implemented in accordance with the provisions of the Minister of Construction.

Article 23. Investment Construction Consulting Costs

1. Investment construction consulting costs are necessary expenses to carry out investment construction consulting tasks from the project preparation phase, implementation phase, and completion phase until the project's works are put into operation.

2. The contents of investment construction consulting task costs include consulting labor costs (wages, allowances, bonuses, welfare benefits, social insurance contributions, health insurance contributions, unemployment insurance contributions, trade union fees, other deductions as prescribed by law for individuals performing consulting tasks at the project); costs for applying science and technology, information system management; costs for paying public services, office supplies, information, and communication; costs for renting, repairing, purchasing assets for project consulting (if any); management costs of consulting organizations; other costs; pre-tax profit; taxes and contingency costs. For construction survey consulting tasks and specialized construction testing tasks, consulting costs include cost items such as construction costs in the construction budget.

3. Investment construction consulting costs are determined based on standards issued by the Ministry of Construction or calculated based on the tender budget according to the scope of consulting tasks, the volume of work to be performed, the implementation plan of the tender package, and national regulations on systems and policies.

4. The costs for hiring foreign consulting experts to perform certain types of consulting tasks are determined based on the tender budget consistent with their level and quality of consulting according to international practices.

5. Standards for investment construction consulting costs (as a percentage and per unit volume) and the method for preparing the budget to determine investment construction consulting costs and costs for hiring foreign consulting experts shall be implemented in accordance with the provisions of the Minister of Construction.

Article 24. Management of Investment Construction Consulting Costs

1. The approved budget for investment construction consulting costs is the maximum cost for carrying out investment construction consulting tasks and can only be adjusted when there are changes in the scope of work, conditions, and progress of the investment construction consulting tasks. Investment construction consulting costs are managed through construction consulting contracts.

2. In cases where the project owner or the Investment Construction Project Management Board has the required capacity according to regulations to carry out certain investment construction consulting tasks, the costs for performing these consulting tasks may be added to the project management costs.

Chapter VI

PAYMENT, SETTLEMENT

CONSTRUCTION PROJECT INVESTMENT CAPITAL

Article 25. Payment of Construction Contracts

The payment of construction contracts shall be carried out in accordance with the detailed regulations on construction contracts stipulated in the Decree.

Article 26. Payment of Investment Capital for Construction Projects

1. Within seven working days from the date of receiving complete payment settlement files as prescribed, the investment capital payment agency shall be responsible for paying the investment capital based on the payment proposal submitted by the project owner or its authorized representative, based on the assigned capital plan.

2. The project owner or its authorized representative shall be responsible for the unit price, quantity, and value proposed for payment in the payment proposal file; the investment capital payment agency shall not be responsible for the unit price, quantity, and value proposed for payment in the payment proposal file of the project owner or its authorized representative. During the payment process, if any errors are discovered in the payment proposal file, the investment capital payment agency shall notify in writing to the project owner or its authorized representative to supplement and complete the file.

3. Strictly prohibited are the establishment by investment capital payment agencies and project owners of provisions contrary to the law in the payment of investment capital for construction projects.

Article 27. Final Settlement of Investment Capital for Construction Projects

1. All construction projects using state budget capital, non-budget state capital, and projects implemented under the public-private partnership (PPP) model must carry out the final settlement of investment capital for construction projects after completion, handover, and commissioning for use, or permanent cessation when the competent authority issues a document to stop or permit termination of the project.

2. The investment costs subject to final settlement must fall within the approved total investment ceiling or adjusted according to the law.

3. The investment costs subject to final settlement include all lawful expenses incurred during the investment and construction process to bring the project into operation and use. Lawful expenses encompass all expenditures made within the scope of the approved project, design, and budget estimates; construction contracts signed in compliance with the law; including adjustments and supplements approved according to regulations and within the appropriate authority. For projects implemented under the PPP model, they shall comply with the regulations on investment under the PPP model.

4. The contractor shall be responsible for preparing the final settlement file for the contract signed with the project owner in accordance with the law on construction contracts.

5. The project owner shall be responsible for preparing the final settlement file for investment capital for construction projects and converting the investment capital for construction projects to submit to the investment decision-maker for approval no later than nine months from the date of signing the completion acceptance record, handover, and commissioning for use.

For independent completed and put into use works or parts thereof belonging to the construction investment project, if immediate final settlement is necessary, the project owner shall report to the investment decision-maker for consideration and decision.

6. The agency responsible for reviewing and approving the final settlement shall be responsible for conducting the review and approval of the final settlement no later than nine months from the date of receiving complete final settlement files as prescribed.

7. The project owner shall be responsible for settling debts, closing the project account at the investment capital payment agency within six months from the date of the final settlement approval decision for the completed project. In cases where the completed project has been approved for final settlement but has not been allocated sufficient funds, the project owner shall be responsible for reporting to the investment decision-maker and relevant agencies to allocate funds to settle debts and close the project account in accordance with regulations.

8. For construction investment projects using state budget capital, after the end of the fiscal year, the project owner shall carry out the final settlement and use of investment capital according to the fiscal year as prescribed by the Ministry of Finance.

9. If the project owner fails to carry out the final settlement as prescribed in Clause 3 of this Article, it shall be handled according to the regulations stipulated in the Decree on administrative penalties for violations in investment construction activities; exploitation, processing, trading of construction materials; production and trading of construction materials; management of technical infrastructure works; real estate trading, housing development, management and use of houses and offices.

10. Authority to Approve Final Settlement of Investment Capital:

a) For national key projects and other important projects decided by the Prime Minister to invest in:

- Assign the superior management agency of the Project Owner to approve the final settlement of component projects using state budget capital;

- The Project Owner shall approve the final settlement of component projects not using state budget capital.

b) For the remaining projects, the investment decision-maker is the person with the authority to approve the final settlement of investment capital or delegate the authority to approve the final settlement of investment capital for completed projects. Projects invested under the PPP model shall comply with the regulations on investment under the PPP model.

Chapter VII

RIGHTS, OBLIGATIONS, AND RESPONSIBILITIES

OF THE INVESTMENT DECISION-MAKER, PROJECT OWNER, AND CONSTRUCTION CONTRACTOR IN MANAGING CONSTRUCTION INVESTMENT COSTS

Article 28. Rights, Obligations, and Responsibilities of the Investment Decision Maker

1. The investment decision maker has the following rights:

a) Approving the budget for costs of works carried out during the project preparation phase to prepare the Feasibility Study Report, budget for preparatory works to prepare technical design, construction drawings design, total investment amount, construction cost estimate, construction tender price, adjusted total investment amount, adjusted construction cost estimate, adjusted construction tender price that increase beyond the total investment amount;

b) Deciding on the use of contingency funds (except in cases where the project only requires the preparation of an Economic and Technical Report);

c) Deciding on the tender price in the plan to select contractors, type of contract, form of contract;

d) Deciding on the method to update the construction tender price in cases where the updated tender price tends to exceed the total construction investment amount;

đ) Approving the implementation of selecting consulting organizations managing construction investment costs with sufficient qualifications as prescribed in the Decree on Project Management to conduct a thorough review of the total investment amount, construction cost estimate as the basis for review and approval;

e) Other rights related to cost management as prescribed by other relevant laws.

2. The investment decision maker has the following obligations:

a) Ensuring adequate investment capital to meet the requirements according to the project implementation plan;

b) In cases where the project does not have sufficient capital allocated to serve disbursement work according to the project schedule, affecting the project implementation plan and the effectiveness of construction investment, the investment decision maker has the obligation to establish a short-term financial mechanism to use other sources of capital, report to the authority approving the investment proposal for approval and apply it so that the project can continue to be implemented according to the plan;

c) Urging the project owner to properly prepare the final account settlement documents for investment capital as prescribed. Organizing the review and approval of the final account settlement for investment capital according to regulations;

d) Other obligations related to cost management as prescribed by other relevant laws.

Article 29. Rights, Obligations, and Responsibilities of the Project Owner

a) Deciding on the use of contingency funds for projects that only require the preparation of an Economic and Technical Report;

b) Hiring consulting organizations managing construction investment costs with sufficient qualifications as prescribed in the Decree on Project Management to carry out the establishment, review, control, and management of construction investment costs;

c) Having the right to claim compensation or initiate legal proceedings under the law to claim compensation for damages caused by the delay in the payment of state budget capital by the disbursement agency;

d) Approving changes in construction methods and technical requirements proposed by contractors but must ensure quality, progress, safety, and environmental protection according to the agreements in the signed contracts. Controlling changes during the construction process related to changes in construction investment costs or accelerating the construction progress;

1. The investor has the following rights:

đ) Approving proposals for changes in materials and construction materials proposed by design consultants or construction contractors but must ensure technical, aesthetic, quality, and construction progress based on the agreements in the signed contracts and the project objectives;

e) Being able to perform some investment advisory tasks when having sufficient qualifications as prescribed;

g) Other rights related to cost management as prescribed by other relevant laws.

2. The project owner has the following obligations:

a) Organizing the establishment of the investment project; submitting to the competent authority for review and approval of the total investment amount, adjusted total investment amount;

b) Organizing the preparation of construction cost estimates, adjusted construction cost estimates for submission to the competent authority for review and approval;

c) Organizing the determination of new construction norms or adjustments of the project, submitting to the competent authority for approval as the basis for managing construction investment costs;

d) Organizing the determination of construction prices; construction price indices for the project, construction tender packages;

đ) Provisionally paying, settling, and finalizing contracts according to the provisions in the signed contracts with contractors;

e) Organizing the control of construction investment costs according to regulations;

g) Deciding and being responsible for the accuracy and reasonableness of the value proposed by the disbursement agency for payment to contractors;

h) Organizing the preparation of the Final Account Report for completed construction investment projects according to the provisions of Article 27 of this Decree;

i) Purchasing insurance for projects that are required to purchase insurance or authorizing contractors to purchase insurance through construction contracts;

k) Other obligations related to cost management as prescribed by other relevant laws;

l) Providing project data information as requested by the state management agency; coordinating or organizing the collection of cost management information as requested by the state management agency.

3. The project owner is responsible before the law in the following cases:

a) Not fulfilling the obligations stipulated in Clause 2 of this Article and other relevant clauses of this Decree except in cases of force majeure;

b) Increasing project costs, causing delays and waste due to the project owner's errors in management, ineffective use of investment capital, and untimely disbursement of capital.

l) Provide project data information as required by state management agencies; coordinate or organize the collection of cost management information as required by state management agencies.

3. The project investor shall be liable under the law in the following cases:

a) Failing to fulfill the obligations set forth in Clause 2 of this Article and other relevant provisions of this Decree, except in cases of force majeure;

b) Increasing project costs, causing the project to be delayed, resulting in losses and waste due to the investor's fault in management work, ineffective use of investment capital, and untimely disbursement of funds.

Article 30. Rights, Obligations, and Responsibilities of the Contractor for Cost Management Consulting Services for Investment Construction Projects

1. The contractor for cost management consulting services for investment construction projects shall have the following rights:

a) To provide consulting services for cost management tasks in accordance with their capacity and scope of operation as prescribed in the Decree on Project Management for Investment Construction Works;

b) To request the project owner and related parties to provide information and documents necessary for the provision of cost management consulting services;

c) Other rights as stipulated in the consulting service contract and other relevant laws.

2. The contractor for cost management consulting services for investment construction projects shall have the following obligations:

a) To perform cost management consulting tasks in accordance with this Decree and other relevant laws;

b) To be responsible under the law and to the project owner for the results of cost management consulting services provided;

c) Not to disclose information and documents related to cost management activities performed by themselves without permission from the project owner or competent authority;

d) To provide cost management data of the project when requested by state management agencies and the project owner;

đ) Other obligations as stipulated in the contract and other relevant laws.

3. The contractor for cost management consulting services shall be liable under the law in the following cases:

a) Failure to fulfill the obligations set out in Clause 2 of this Article and other relevant provisions of this Decree;

b) To compensate for damages caused to the project owner (if any) in accordance with the Contract Law and other relevant laws.

Article 31. Rights, Obligations, and Responsibilities of the Construction Contractor

1. The construction contractor shall have the following rights:

a) To determine construction norms, construction prices, and other related costs when determining bidding prices to participate in bidding;

b) Other rights as stipulated in the contract and other relevant laws.

2. The construction contractor shall have the following obligations:

a) To purchase insurance as prescribed by law;

b) To provide project data as required by state management agencies; to cooperate or organize the collection of cost management information as required by state management agencies;

c) Other obligations as stipulated in the contract and other relevant laws.

3. The construction contractor shall be liable under the law in the following cases:

a) Failure to fulfill the obligations set out in Clause 2 of this Article and other relevant provisions of this Decree;

b) To compensate the project owner and related parties for damages caused by the contractor's fault (if any) in accordance with the contract and relevant laws.

Chapter VIII

STATE MANAGEMENT OF INVESTMENT CONSTRUCTION COSTS

Article 32. Ministry of Construction

The Ministry of Construction is the agency responsible for unified state management of investment construction costs and shall be responsible for:

1. Providing detailed guidance on the content, methods for determining and managing investment construction costs including preliminary total investment estimates, total investment estimates, construction budgets, construction project budgets, construction tender package budgets, construction norms, construction project prices, investment capital rates for construction projects, and comprehensive construction prices for structural components, project management costs, and investment consulting costs, construction price indices, measurement of construction work volumes, adjustment of total investment estimates, and adjustment of construction budgets; determination of construction material prices, construction labor prices (including consulting labor), construction machinery and equipment rental prices according to market mechanisms; conversion of construction investment capital and cost control during construction investment.

2. Issuing construction norms; cost norms; consumption norms and basic data for calculating machinery prices, machinery rental prices, and construction equipment prices; investment capital rates for construction projects and comprehensive construction prices for structural components; national construction price indices, regional (inter-provincial) construction price indices, and other economic-technical indicators. Organizing regular reviews and compiling review results to adjust and supplement norms and issuing them periodically every two years.

3. Leading the establishment, guiding, and operating the database system for construction norms and prices.

4. Inspecting and supervising the implementation of regulations on the management of investment construction costs.

5. Prescribing the management of investment construction costs for construction works under the National Target Program for Sustainable Poverty Reduction and the National Target Program for New Rural Development.

Article 33. Ministry of Planning and Investment

Shall take the lead and coordinate with relevant agencies to develop capital investment plans for projects in accordance with approved implementation plans and submit them to the competent authority for approval in accordance with the Public Investment Law.

Article 34. Ministry of Finance

1. Guide the payment and settlement of construction project investment funds. Prescribe regulations on the management and utilization of revenues from project management activities of investors and project management boards using state budget funds.

2. Inspect and audit the payment and settlement of construction project investment funds, completed projects.

Article 35. Sectoral construction management ministries and provincial People's Committees

1. Ministries and provincial People's Committees shall base on the construction cost estimation methods guided by the Ministry of Construction, organize the development and issuance of construction cost estimates for specialized and specific tasks of their sectors and localities after reaching consensus with the Ministry of Construction.

2. Provincial People's Committees shall guide the establishment and management of construction investment costs; be responsible for fully and timely publishing material prices, labor unit prices, machinery rates, machinery rental rates, and construction price indices; issue construction project unit prices that are consistent with market prices in the locality, and inspect the implementation of regulations on the management of construction investment costs within their jurisdiction.

Chapter IX

IMPLEMENTING PROVISIONS

Article 36. Transitional Provisions

1. For construction investment projects approved before this Decree takes effect and are currently underway, continue to manage construction investment costs (including adjustments to total investment amounts and construction budgets) according to the provisions of Government Decree No. 32/2015/NĐ-CP dated May 23, 2015 on the management of construction investment costs.

2. For construction investment projects that have been established and reviewed but not yet approved, or have been approved but not yet implemented, subsequent activities related to the management of construction investment costs shall be carried out in accordance with the provisions of this Decree; adjustments to the structure of cost items within the approved total investment amount according to the provisions of this Decree shall be decided by the investment decision-maker based on ensuring the project implementation schedule and effectiveness in management work. For works and tender packages that have already signed contracts, they shall be implemented according to the contents of the signed contracts.

Article 37. Implementation

1. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairmen of provincial and centrally-administered city People's Committees, heads of political organizations, political-social organizations, occupational political-social organizations, and other related organizations and individuals are responsible for implementing this Decree.

2. The Ministry of Construction shall take the lead and coordinate with relevant ministries and sectors to be responsible for guiding the implementation of this Decree.

Article 38. Effective Date

1. This Decree shall take effect from October 1, 2019.
2. Government Decree No. 32/2015/NĐ-CP dated March 25, 2015 on the management of construction investment costs shall cease to be effective from the date this Decree takes effect./.