Thông tư 06/2016/TT-BXD

Circular No. 06/2016/TT-BXD dated March 10th 2016, guiding the determination and management of construction investment costs

Nội dung toàn văn Circular 06/2016/TT-BXD determination management construction investment costs


MINISTRY OF CONSTRUCTION
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SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom – Happiness

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No.: 06/2016/TT-BXD

Hanoi, 10 March 2016

 

CIRCULAR

GUIDING THE DETERMINATION AND MANAGEMENT OF CONSTRUCTION  INVESTMENT COSTS

Pursuant to the Law on Construction No. 50/2014/QH13 dated 18/6/2014;

Pursuant to the Decree No. 62/2013/ND-CP dated 25/6/2013 of the Government defining the functions, duties, power and organizational structure of the Ministry of Construction;

Pursuant to the Decree No. 32/2015/ND-CP dated 25/3/2015 of the Government on management of construction  investment costs;

At the request of the Director of Institute of Construction Economics, Director General of Department of Construction Economics, the Minister of Construction issues this Circular guiding the determination and management of construction investment costs.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides detailed instructions on contents, method of determination and management of construction investment costs including the preliminary total construction investment, construction estimate, construction package estimate, construction norm, works construction price, construction price index, machine shift price and constructional equipment.

Article 2. Subjects of application

1. The agencies, organizations and individuals pertaining to the determination and management of construction investment costs of construction investment projects using the capital from the state budget or the off-budget state capital in accordance with the provisions in Clause 1, Article 2 of Decree No. 32/2015/ND-CP dated 25/3/2015 of the Government on management of construction investment costs (referred to as Decree No. 32/2015/ND-CP) and construction investment projects in the form of public-private partnership (PPP).

2. The construction investment projects using other capital are encouraged to apply the provisions of this Circular.

Chapter II

TOTAL CONSTRUCTION INVESTMENT

Article 3. Content of total construction investment

1. The content of total construction investment is in accordance with the provisions in Clause 4, Article 4 of Decree No. 32/2015/ND-CP, in which the project management costs, construction investment consultation costs and other costs are defined as follows:

a) The project management costs include the costs stipulated in Clause 2, Article 23 of Decree No. 32/2015/ND-CP are the necessary costs to implement the project management from the stage of project preparation, implementation and end of construction to put the works of project into operation as follows:

- Making the pre-feasibility study report on construction investment (if any), report on investment policy recommendations (if any), feasibility study report on construction investment or report on economical - technical construction investment;

- Performing duties of construction survey, supervision of construction survey;

- Carrying out the competitive examination, selection of architectural design of works or selection of plan for architectural design of works.

- Implementing the activities of compensation, assistance and relocation is the responsibility of investor;

- Appraising the feasibility study report on construction investment or report on economical - technical construction investment;

- Formulating, appraising, verifying and approving the technical design, construction drawing design and construction estimate;

- Selecting contractor in construction activities;

- Managing quality, volume, progress, constructional costs, construction contract;

- Implementing and managing the works information system;

- Guaranteeing the working safety and environmental hygiene of works;

- Newly establishing or adjusting the construction norm of works;

- Determining the works construction price and works construction price index;

- Testing the construction works quality of state management agency upon completion acceptance;

- Testing the quality of constructional material, structure or products and equipment installed in the works;

- Inspecting the quality of works components, works items and works and testings of specialized construction as required;

- Controlling construction investment costs;

- Converting the works construction investment capital after completion acceptance, handover and operation;

- Making acceptance, payment, contract finalization; making payment and finalization of works construction investment capital.

- Monitoring and evaluating the works construction investment project;

- Making acceptance and handover of works;

- Implementing the commencement and inauguration (if any), propagation and advertising;

- Determining, updating and appraising the  construction package estimate;

- Performing the management activities of competent state agencies (if any);

- Performing other management activities.

b) The construction investment consultation costs including the costs specified in Clause 2, Article 25 of Decree No. 32/2015/ND-CP are the necessary costs to carry out the construction investment consultation from the stage of project preparation, implementation and completion of works construction and operation as follows:

- Formulating the construction survey tasks, implementing the construction survey and monitoring the construction survey;

- Making the pre-feasibility study report on construction investment (if any), report on recommendation of investment policy (if any), feasibility study report on construction investment or report on economical - technical construction investment;

- Verifying the basic design and technological design of project;

- Carrying out the competitive examination and selection of architectural design of construction works;

- Performing the works construction design;

- Verifying the total construction investment, works construction design and construction estimate;

- Preparing and verifying the interest expression documents, pre-selection documents, bidding documents, requirement and assessment docvolument of interest expression documents, bid submission documents and recommendation documents for contractor selection in constructional activities;

- Verifying the contractor selection result in constructional activities;

- Monitoring the construction performance and equipment installation;

- Making report on environmental impact assessment;

- Formulating and verifying the construction norm, works construction price, works construction price index;

- Verifying the traffic safety activities.

- Applying the works information system;

- Controlling the works construction investment costs;

- Giving the advice on management of construction investment costs including the preliminary total construction investment, construction estimate, price of construction package, price of construction contract, construction norm and construction price, payment and finalization of construction contract, payment and finalization of works construction investment capital and other activities;

- Giving the advice on project management (in case of consultant hiring);

- Making testings on specialized construction;

- Testing the quality of constructional materials, structure and products and equipment installed in the works as required by the investor (if any);

- Inspecting the quality of works items and entire works;

- Monitoring and assessing the works construction investment project (in case of consultant hiring);

- Giving the advice on environmental surveying and monitoring;

- Converting the works construction investment capital after completion acceptance, handover and operation;

- Performing other advicing activities;

c) Other cost to carry out the activities, including:

- Demining of bombs and explosives;

- Insurance of works during construction time;

- International quality register and surveying of works deformation;

- Audit, verification and approval for finalization of investment capital;

- Inspection of acceptance during the construction and completion acceptance of works items and works of competent state management agencies;

- Technical and scientific research pertaining to the projects, initial working capital for the construction investment projects for the purpose of business and loan interest during the construction; the costs for trial running with and without load according to the technological process before the handover (excluding the value of products recovered);

- Natural resources taxes, fees and charges in accordance with regulations.

- General items include the cost items specified under Point a, Clause 5, Article 7 of this Circular;

- Costs of other activities.

2. In case of requirement for preliminary determination of total construction investment, the preliminary content of total construction investment is accordance with the provisions in Clause 2, Article 4 of Decree No. 32/2015/ND-CP.

3. For the projects only requiring the formulation of report on economical - technical construction investment, the content of total construction investment is specified in Clause 3, Article 4 of Decree No. 32/2015/ND-CP.

4. For the projects using the official development assistance (ODA), in addition to the contents calculated in the total investment mentioned above, they shall receive other necessary items in accordance with the particularity and nature of construction investment project using this capital in accordance with the relevant current regulations of law ensuring the principle of proper and sufficient calculation in line with the specific conditions and market price level in the area of works construction.

Article 4. Method for determining the total construction investment

1. The total construction investment is determined by one of the methods specified in Clause 2, Article 5 of Decree No. 32/2015/ND-CP as follows:

a) Determined from construction volume calculated by the basic design and other necessary requirements of project.

b) Determined from works construction investment capital.

c) Determined from the data of costs of similar works which were or are implemented.

d) Combining the methods specified under Points a, b and c, Clause 1 of this Article.

2. The preliminary total construction investment is determined under the provisions in Clause 1, Article 5 of Decree No. 32/2015/ND-CP. In case there is no sufficient conditions to determined the size, capacity or service competence according to the preliminary design plan of project or with determination but there is no data of works construction investment announced, the preliminary total construction investment is determined on the basis of data of costs of similar projects of type and grade of works, size, capacity or service competence which implemented or implementing and the other necessary costs are adjusted or added.

3. Some cost items belong to the content of project management costs, construction investment consultation costs and other costs of project if there is no regulation or are not calculated immediately shall be added and estimated to be included in the total construction investment.

4. The method for determining the total construction investment and the preliminary total construction investment is guided in Appendix 01 of this Circular.

Article 5. Appraisal, verification and approval for total construction investment

1. The contents of appraisal, verification and approval for total construction investment are in accordance with the provisions in Article 6 of Decree No. 32/2015/ND-CP.

2. The sample of report on result of appraisal, verification of total construction investment as guided in Appendix 08 of this Circular.

Article 6. Adjustment of total construction investment

1. The total construction investment approved shall be adjusted for the cases specified in Clause 1, Article 7 of Decree No. 32/2015/ND-CP.

2. The addition of contingency costs due to price slippage factors specified in Clause 4, Article 7 of Decree No. 32/2015/ND-CP shall be determined by the investor when the average construction price index of uninterrupted construction indexes announced by the competent state agency from the time of project implementation to the time of adjustment is greater than the construction price index used in the total construction investment approved.

3. For the works not included in the List of construction price indexes announced by the Department of Construction and construction works along the route passing the areas of many provinces and centrally-run cities as stipulated in Clause 4, Article 22 of Decree No. 32/2015/ND-CP, the average construction price index specified in Clause 2 of this Article is determined on the basis of construction price index from the time of project implementation to the time of adjustment based on the method of determination of construction price index as specified in Article 22 of this Circular.

4. The increased value of total construction investment due to addition of contingency costs as specified in Clause 2 and 3 of this Article including the increased value due to additional increased level of construction price index for the volume done to the time of adjustment and the increased value due to degree of change of construction price index (including the expected fluctuation in the market)

5. The appraisal, verification and approval for the total construction investment adjusted must comply with the provisions in Clause 1 and 2, Article 7 of Decree No. 32/2015/ND-CP.

Chapter III

CONSTRUCTION ESTIMATE

Section 1. WORKS CONSTRUCTION ESTIMATE

Article 7. Contents of works construction estimate

1. The works construction estimate as stipulated in Clause 2, Article 8 of Decree No. 32/2015/ND-CP is determined for works, works items, auxiliary works and temporary works in service of construction, particularly the constructional costs include the direct costs, general costs, pre-determined taxable income and value added tax.

- The direct costs include the material costs (including the materials provided by the investor), labor, machine and constructional equipment costs.

- The general costs include the enterprise’s management costs, production operation costs at the construction site, worker service costs, construction service costs at the construction site and some costs in service of enterprise’s other management.

- The pre-determined taxable income is the earnings of construction enterprise –pre-anticipated in the works construction estimate.

- The value added tax in accordance with regulations of the state.

2. The equipment costs of works and works items including the cost items as stipulated under Point b, Clause 2, Article 8 of Decree No. 32/2015/ND-CP.

3. The costs of project management include the cost items as stipulated under Point a, Clause 1, Article 3 of this Circular.

4. The costs of construction investment consultation include the cost items as stipulated under Point b, Clause 1, Article 3 of this Circular. For projects with many works, the costs of construction investment consultation of works construction estimate do not include the costs of construction investment consultation pertaining to the whole project.

5. Other costs in the works construction estimate include the cost items as stipulated under Point c, Clause 1, Article 3 of this Circular, particularly:

a) The costs of general items include:

- Costs of temporary house at the construction site for stay and construction operation;

- Costs of labor safety and environmental protection for the employees at the construction site and ambient setting;

- Costs of material testing of contractor

- Costs of movement of work force within construction site;

- Costs of irregular pumping and dredging;

- Costs of movement of special-use machine and equipment and work force (having skills under the enterprise’s management and long-term labor contract) going in and out of the construction site;

- Costs of traffic safety assurance in service of construction (if any);

- Costs of technical infrastructure restoration due to effect upon works construction (if any).

- Cost of construction of cover house for machine, foundation for machine, power and compressed air supply system and water drainage and supply system at the construction site, installation and dismantlement of some machinery (concrete mixing plant, asphalt mixing plant, overhead crane, tower crane and some other constructional machines and equipment with similar features);

b) The loan interests during the construction shall not be included in the works construction estimate. For the construction investment projects with many works, the other costs in the works construction estimate do not include the costs of demining of bombs and explosives, costs of audit, verification and approval for investment capital finalization, costs of technological and scientific research pertaining to the project; initial working capital for construction investment projects for the purpose of business; costs of trail running with and without load as per the technological procedure before handover (except for recovered product value); fees, charges and other costs calculated for the project.

6. The contingency costs include the contingency costs for the factors of generated work volume and the contingency costs for the price slippage factors during the time of works construction.

Article 8. Method of determining the works construction estimate

1. Determing the constructional costs

The constructional costs can be determined according to each content of cost or aggregation of content of costs by one of the methods specified under Points a and b below.

a) Calculation by volume and price of works construction

- The costs of materials, labor, machine and equipment in the direct costs determined by volume and price of works construction. The volume of construction is determined from the technical design drawing or performance drawing design, technical instructions, requirements for work to be done of the works, works items and price of works construction specified in Article 18 and 19 of this Circular. To synchronize with the estimate of tender package, the construction price for estimate preparation can be the overall construction price.

- The general cost is calculated by the percentage (%) over the direct cost or labor cost in the construction estimate for each type of works as guided in Table 3.7 and 3.8 of Appendix 3 of this Circular. For the works using ODA for international bidding, the general cost is determined by the norm of percentage (%) as stipulated in this Circular and addition of necessary costs as required by the international bidding package to ensure the principle of proper and sufficient calculation.

- The pre-determined taxable income is calculated by the percentage (%) over the direct cost and general cost as guided in Table 3/9 and Appendix 03 of this Circular.

- The value added tax as stipulated by the state.

b) Calculation by waste volume of materials, labor, constructional machines, equipment and respective quotation.

- The costs of materials, labor, constructional machine and equipment in direct cost are determined by the waste volume of material, labor, constructional machines, equipment and respective quotation. The total waste volume of materials, labor, constructional machines, equipment is determined on the basis of waste materials, labor, constructional machines, equipment for each volume of construction of works and works items.

The determination of quotation of materials and constructional machines complies with the provisions in Article 19 of this Circular.

The quotation of waste volume and costs of materials, labor, constructional machine and equipment is determined according to the instructions in Table 3.4 and 3.5, Appendix 03 of this Circular.

- The general costs and the pre-determined taxable income and value added tax are guided under Point a, Clause 1 of this Article.

2. Determining the cost of equipment

a) The cost of equipment is determined by the volume, amount and type of equipment from technological design, construction and purchase price of respective equipment. The purchase price is based on the quotation of provider, manufacturer or market price at the time of calculation or of the works having similar equipment (capacity, technology and origin) which was or is being applied.

For equipment to be manufactured or processed, these costs are determined on the basis of volume and amount of equipment to be manufactured or processed and the price of manufacture and process is consistent with the features and type of equipment under the signed contract of manufacture or processing or based on the quotation of product processing from the manufacturer selected by the investor or the price of production or processing of similar works equipment which was or is being applied.

b) The cost of training and transfer of technology is determined by preparing the estimate depending on specific requirements of works.

c) The cost of installation of equipment, testing, calibration and other relevant costs is determined by preparing the estimate like the estimate of constructional costs.

3. Determining the cost of project management

The cost of project management which is determined on the basis of norm of percentage (%) announced by the Ministry of Construction is used for calculation in the total construction investment or is by way of estimate preparation.

4. Determining the cost of construction investment consultation

a) The consultation cost in the works construction estimate is determined on the basis of norm of percentage (%) announced by the Ministry of Construction or is by way of estimate preparation. Where some activities of construction investment consultation are done before determining the works construction estimate, the estimate is then determined by the value of signed consultation contract in accordance with the regulations of the state.

b) In case of hiring of foreign consultants, the cost of consultation is determined by making the estimate in line with the consultant hiring requirements, the regulations of competent level and international practice. The method of determining the cost of hiring of foreign consultants complies with the guidance of the Ministry of Construction.

5. The other costs are determined on the basis of norm of percentage (%) as guided by the competent agencies or by the estimate preparation or by the value of signed contract in accordance with regulations of law.

For some specialized construction works with particular cost factors, works using ODA, if there are other relevant costs, such costs shall be added to ensure the principle of proper and sufficient calculation of costs, in line with the specific conditions of wokrs and market price level of place of works construction.

6. Determining the contingency cost

a) The contingency cost for the factors of generated work volume is calculated by the percentage (%) over the total costs of construction, cost equipment, project management, cost of construction investment consultation and other costs.

b) The contingency cost for the price slippage factors is determined on the basis of time of works construction (calculated by month, quarter and year), capital arrangement plan and construction price index in line with type of construction works taking into account the possible fluctuation of price in the country and in the world.

7. The method of determining the cost of construction, equipment, project management, construction investment consultation, other costs and contingency cost specified in Clauses 1, 2, 3, 4, 5, 6 of this Article is specified in Appendix 02 of this Circular.

Article 9. Appraisal, verification and approval for works construction estimate

1. The content of appraisal, authority, verification and approval for works construction estimate shall comply with the provisions in Article 10 of Decree No. 32/2015/ND-CP.

2. The form of report on result of appraisal, verification and approval for works construction estimate is guided in Appendix 8 of this Circular.

Article 10. Adjustment of works construction estimate

1. The approved works construction estimate shall be adjusted in cases specified in Clause 1 and 4 and the authority to determine, appraise and approve the adjusted works construction estimate is in accordance with the provisions in Clause 3 and 5, Article 11 of the Decree No. 32/2015/ND-CP.

2. The method of determining the adjusted works construction estimate is guided in Part III of Appendix 2 of this Circular.

Section 2.  CONSTRUCTION PACKAGE ESTIMATE

Article 11. Estimate of construction performance package

1. The content and method of determining the estimate of construction performance package are specified in Article 13 of Decree No. 32/2015/ND-CP.

2. Where the approved works construction estimate is determined on the basis of incomplete detailed works construction unit price, when determining the estimate of construction performance package, it is required to make the aggregation based on the complete detailed works construction unit price in proportion to the volume of construction to be done of the package as stipulated under Point b, Clause 2, Article 13 of Decree No. 32/2015/ND-CP. The incomplete detailed works construction unit price and the complete detailed works construction unit price are specified in Clause 1, Article 18 of this Circular.

3. The cost of general items of construction performance package includes one, some or all costs determined in the approved works construction estimate in line with the range of work, requirements and technical instructions of the package and is determined by the cost norm announced by the competent agency or by estimate preparation. The total cost of general items of the construction performance package must not exceed the cost of general items in the approved works construction estimate.

4. The contingency cost in the construction performance package includes:

a) The contingency cost for the factors of generated volume of work is calculated by the percentage (%) over the total costs of construction and the cost of general items of the construction performance package

b) The contingency cost for the price slippage factors is determined on the basis of time of construction performance of the package and the construction price index is consistent with the type of construction works taking into account the fluctuation of price in the country and in the world.

c) The used percentage (%) whose contingency cost is determined under the Points a and b of this Clause must not exceed the percentage of contingency cost in the approved works construction estimate.

5. The estimate of construction performance package is determined under the instructions in Section 1, Part II, Appendix 2 of this Circular.

Article 12. Estimate of package of procurement of materials and equipment installed in the works

1. The content and method of determining the estimate of package of procurement of materials and equipment installed in the works shall comply with the provisions in Article 14 of Decree No. 32/2015/ND-CP.

2. The cost of installation, testing and calibration of equipment includes the cost items like the estimate of construction performance and is determined by preparaing the estimate according to the method of determining the constructional cost specified in Clause 1, Article 8 of this Circular.

3. The contingency cost in the estimate of package of procurement of materials and equipment installed in the works includes:

a) The contingency cost for factors of generated work volume is calculated by the percentage (%) over the total costs of equipment procurement, costs of training and transfer of technology (if any); costs of installation, testing, calibration, costs of transportation, insurance, taxes and other fees.

b) The contingency cost for the price slippage factors is determined on the basis of time of implementation of the package and the construction price index in line with the type of construction works taking into account the possible fluctuation of price in the country and in the world.

c) The used percentage (%) whose contingency cost is determined under the Points a and b of this Clause must not exceed the percentage of contingency cost in the approved works construction estimate.

4. The estimate of package of procurement of materials and equipment installed in the works is determined in the instructions in Section 2, Part II, Appendix 2 of this Circular.

Article 13. Estimate of construction investment package

1. The content and method of determining the estimate of construction investment package are in accordance with the provisions in Article 15 of Decree No. 32/2015/ND-CP.

2. The cost of expert, management, other costs, pre-determined taxable income, taxes and contingency costs are determined as guided by the Ministry of Construction.

3. The cost of testing of specialized construction is determined by the estimate as per instructions like the method of determining the constructional cost.

4. The contingency cost in the estimate of estimate of construction investment package includes the contingency cost for the factors of generated work volume and the contingency cost for the price slippage factors is calculated by the percentage (%) as guided by the Ministry of Construction but the total percentage (%) of contingency cost must not exceed the percentage % of contingency cost corresponding to each factor of approved works construction estimate.

5. The cost to buy the professional liability insurance of construction investment consultation for the construction design of the construction works from grade II or higher is determined in the other costs of the package. For the construction survey package of the works from grade II or higher, the cost to buy the professional liability insurance of construction investment consultation is the separate cost item of the estimate of package.

6. The estimate of construction investment consultation package is determined according to the instructions in Section 3, Part II, Appendix 02 of this Circular.

Article 14. Estimate of engineering, procurement and construction contract package

1. The estimate of engineering and construction package (EC) is the estimate of work specified in Article 13 and 11 of this Circular.

2. The estimate of procurement and construction package (EC) including the estimate of work is specified in Article 11 and 12 of this Circular.

3. The estimate of Engineering – Procurement – Construction package (EPC) and the project establishment – design – procurement – construction (turnkey package) is specified in Clause 3 and 4, Article 16 of Decree No. 32/2015/ND-CP.

Article 15. Authority to determine, verify, appraise and approve the  construction package estimate

1.The determination, verification, appraisal and approval for the  construction package estimates shall comply with the provisions in Clause 3 and 4, Article 12 of Decree No. 32/2015/ND-CP.

2. The estimate of package which has been approved but the contractor has not yet been selected, the investor shall organize the updating by the price index or the price or other relevant policy benefits or has been approved to replace the approved price of package about 28 days before the time of bid opening.

3. Where the  construction package estimate exceeds the approved works construction estimate, the investor shall report to the investment decider for consideration and decision.

Chapter IV

CONSTRUCTION NORM, WORKS CONSTRUCTION PRICE AND CONSTRUCTION PRICE INDEX

Section 1. CONSTRUCTION NORM

Article 16. System and method of construction norm preparation

1. The construction norm includes the technical – economic norm and cost norm are specified in Article 17 and 18 of Decree No. 32/2015/ND-CP.

2. Method of preparation for norm of works construction estimate:

a) The norm of works construction estimate is formulated according to the following order:

- Making the List of activities, work or construction structure of works expressing the technical and technological requirements, construction conditions, construction methods and determination of consistent calculation unit.

- Determing the work components from the preparation to the completion of activities and work or construction structure of works.

- Calculating and determining the waste of materials, workforce, machine and constructional equipment.

- Establishing the norms on the basis of aggregation of waste of materials, labor and constructional machines.

b) Method of preparation for norm of works construction estimate is guided in the Appendix 05 of this Circular.

3. The cost norm is determined under the guidance of the Ministry of Construction.

Article 17. Management of works construction norm

1. The Ministry of Construction shall announce the norm of construction in accordance with the Article 34 of Decree No. 32/2015/ND-CP for the relevant agencies, organizations and individuals to use, apply, refer to the determination and management of cost of construction investment.

2. The Ministries managing the specialized construction works and the provincial People’s Committee shall, based on the method of determining the construction estimate norm as guided in Appendix 5 of this Circular, develop and make an agreement with the Ministry of Construction on the construction estimate norm for work with particularity or specialized particularity of the Ministries, sectors and localities or not included in the system of construction estimate norms or included in the list but with new technology specified in Clause 1 of this Article for announcing the specialized industries and localities and sending the announced construction estimate norms to the Ministry of Construction for monitoring and management as stipulated in Clause 2, Article 19 of Decree No. 32/2015/ND-CP.

3. The investor shall use, apply and refer to the system of construction estimate norms with the same technology condition and application condition announced or apply the norm of estimate with the same technology condition and application condition in the works which ware or are being applied as a basis for determining the total construction investment, construction estimate and management of cost of construction investment. For the constructional activities included in the announced system of construction estimate norms but not consistent with the technical requirements, construction condition, specific measures of construction of works or not included in the announced system of construction estimate norms, the investor shall adjust and add the norm of construction estimate as stipulated in Clause 4 and 5, Article 19 of Decree No. 32/2015/ND-CP as a basis for calculation of costs of works construction investment.

4. The consultation contractor preparing the construction estimate under the works design shall recommend the norm of construction estimate for new constructional activities or norms to be adjusted or added to prepare the estimate and ensure the completeness of dossier for report to the investor.

Section 2. CONSTRUCTION WORKS PRICE

Article 18. Content and method of setting of construction works price

1. The construction works price includes the detailed construction unit price of works and the general construction price specified in Clause 1, Article 20 of Decree No. 32/2015/ND-CP.

a) The detailed construction unit price is calculated for the specific constructional activities of works including the incomplete detailed construction unit price of works (including cost of materials, labor, constructional machine and equipment) and the complete detailed construction unit price of works (including cost of materials, labor, constructional machine and equipment, general costs and pre-determined taxable income) as a basis for determining the works construction estimate and  construction package estimate.

b) The general construction price is calculated for group and type of constructional activities, structural unit or works component and is aggregated from the detailed construction unit price of works specified under Point a of this Clause, including the incomplete general construction unit price of works (including cost of materials, labor, constructional machine and equipment) and the complete general construction unit price of works (including cost of materials, labor, constructional machine and equipment, general costs and pre-determined taxable income) as a basis for determining the construction estimate and the total construction investment.

2. The method of setting the works construction price is guided in the Appendix 04 of this Circular.

Article 19. Management of price of works construction

1. The provincial People’s Committee assigns the Department of Construction to coordinate with the relevant agencies to determine and announce the price of constructional materials, construction labor unit price, price of machine shift and constructional equipment, construction price index and works construction unit price as a basis for management of works construction price in accordance with the provisions in Clause 2, Article 36 of Decree No. 32/2015/ND-CP.

2. The price of constructional materials must be periodically as per month, quarter; the types of materials generally used must be updated. The price of constructional materials announced must be consistent with the standard of quality, origin and consistent with the market price level at the time of announcement (specify the transportation distance). For the bordering areas between provinces and centrally-run cities, the Departments of Construction need to exchange information before announcement to avoid the great difference.

3. The unit price of construction labor is determined and announced on the basis of guidance of the Ministry of Construction; must be consistent with skill level based on the labor grade in the system of works construction estimate norm; must be consistent with the construction labor price level on labor market of each locality and characteristics and nature of work of construction labor; must meet the requirements for payment of some costs belonging to the employee’s liability for payment under regulations (social insurance, health insurance, unemployment insurance and other payable amounts).

4. The unit price of machine shift and constructional equipment is determined and announced on the basis of guidance of the Ministry of Construction and must be consistent with the local market price level at the time of announcement.

5. Liability for management of works construction price of the investor, the consultation organization on management of cost of construction investment and construction contractor.

a) The investor shall determine and manage the construction price in accordance with the provisions in Article 21 and 31 of Decree No. 32/2015/ND-CP.

b) The consultation organization on management of cost of construction investment shall formulate and verify the price of works construction and management of price of works construction in accordance with the provisions in Clause 2, Article 21 and 32 of Decree No. 32/2015/ND-CP.

c) The construction contractor shall manage the price of works construction in accordance with the provisions in Article 33 of Decree No. 32/2015/ND-CP.

Section 3. CONSTRUCTION PRICE INDEX

Article 20. General regulation on determining the construction price index

1. The construction price index is announced as per type of works and cost structure (including the price index of constructional part, equipment and other costs); the cost factors include the constructional material price index, construction labor price index and constructional machine and equipment price are determined on the basis of List and number of representative works for calculation.

2. The construction price index is averaged in the selected period, excluding the compensation, assistance, relocation and loan interest during the construction, initial working capital for production and business (if any). The calculation unit for construction price index is the percentage (%).

3. The cost structure used to calculate the construction price index must be consistent with the cost structure in accordance with the regulation on management of cost of construction investment; the statistical data must be aggregated and used stably until the change of original time. The structure of price index used for contract payment is determined on the basis of structure of package estimate.

Article 21. Classification of construction price index

1. The construction price indexes are determined by works or type of works, including:

a) The price index by the cost factors includes:

- The price index of constructional materials is the indicator which reflects the price fluctuation of price of constructional materials.

- The price index of works construction labor is the indicator which reflects the price fluctuation of price of works construction labor.

- The price index of works constructional machine and equipment is the indicator which reflects the price fluctuation of works constructional machine and equipment.

b) The price index by the cost structure includes:

- The price index of constructional part is the indicator which reflects the price fluctuation of constructional part of works.

- The price index of equipment is the indicator which reflects the price fluctuation of works equipment.

- The price index of other costs is the indicator which reflects the price fluctuation of some types of cost such as project management, works construction investment consultation

c) The price index by type of works is the indicator which reflects the price fluctuation of each type of construction works.

2. The construction price index announced includes the types of price index in accordance with the provisions of Points a, b and c, Clause 1 of this Article.

3. For the specific works and construction packages, the calculation of the whole or some indexes specified in Clause 1 of this Article shall be based on the purpose and requirements of management of cost and cost structure of package estimate.

Article 22. Method of determining the construction price index

1. The construction price index which is announced is determined in the following order:

a) Determining the time of calculation including the original time and the comparison time.

b) Making the list of price index to be determined and selecting the input elements.

c) Collecting and processing the calculation data.

d) Determining the works construction price index including the determination of cost structure, calculation of price index for each type of input factor, by the cost factor, cost structure and works construction price index.

2. The works construction price index is determined based on the progress and the conditions for work performance to select the original time and the comparison time accordingly. The cost structure determining the price index to adjust the contract price is the cost structure of package price.

3. The construction price index is determined under the instructions in Appendix 07 of this Circular.

Article 23. Management of construction price index

1. The provincial People’s Committee shall allocate the annual budget of localities for assigning the Departments of Construction to perform some activities as follows:

a) Coordinate with the relevant units based on the instructions of this Circular and the fluctuation of construction price of localities to determine in order to promptly announce the construction price index in the areas as stipulated in Clause 2, Article 36 of Decree No. 32/2015/ND-CP.

b) Regularly update and keep the information on price of materials, constructional materials, construction labor, price of machine shift and constructional equipment on the constructional market at localities and send it to the Ministry of Construction on a monthly basis.

c) Announce the construction price indexes every month, quarter and year and send them to the Ministry of Construction for monitoring and management.

2. Based on the method of determining the construction price index as guided in Appendix 7 of this Circular, the investor shall determine the work construction price index in accordance with the provisions in Clause 4, Article 22 of Decree No. 32/2015/ND-CP In case of using the above construction price index to adjust the price of construction contract, the investor shall report to the investment decider for decision. The projects which the Prime Minister decides to invest shall be reported to the Minister or Chairman of provincial People’s Committee or Chairman of State Group or Corporation for decision.

Article 24. Announcement of construction price index

1. The construction price index which is announced includes:

a) The national construction price index which is announced by the Ministry of Construction on a quarterly and annually basis.

b) The construction price indexes specified in Clause 1, Article 21 of this Circular shall be announced by the Department of Construction on a monthly, quarterly and annually basis according to the Tables 7.1, 7.2, 7.3 và 7.4,Part II, Appendix 7 of this Circular.

2. Time of announcement

a) For the construction price indexes announced on a monthly basis, the announcement is done in the second week of the succeeding month.

b) For the construction price indexes announced on a quarterly basis, the announcement is done in the second week of the first month of succeeding quarter.

c) For the construction price indexes announced on a yearly basis, the announcement is done simultaneously with the price index of quarter IV of the year.

Chapter V

PRICE OF MACHINE SHIFT AND CONSTRUCTIONAL EQUIPMENT

Article 25. General provisions on determining the price of machine shift and constructional equipment

1. The price of machine shift and constructional equipment is the average cost determined for one working shift in accordance with the regulation on constructional machine and equipment.

2. The price of machine shift and constructional equipment is determined based on the requirements for management and use of constructional machine and equipment, the waste norms to calculate the price of machine shift and constructional equipment and the price level at localities.

3. The price of machine shift and constructional equipment of specific works is determined in line with the design of construction organization, method of construction organization, type of constructional machine (or expected) used for works construction, progress and price level at the works construction area.

Article 26. Content of cost in price of machine shift and constructional equipment

1. The price of machine shift and constructional equipment includes all or some cost items such as cost of depreciation, repair, fuel, energy, controlling labor and other costs of machine.

2. The price of machine shift and constructional equipment does not include the cost of construction of cover house for machine, foundation for machine, power and compressed air supply system and water drainage and supply system at the construction site, installation and dismantlement of some machinery (concrete mixing plant, asphalt mixing plant, overhead crane, tower crane and some other constructional machines and equipment with similar features);

Article 27. Method of determining the price of machine shift and constructional equipment

1. The price of machine shift and constructional equipment is determined in line with the types of machine of the same technology, origin, essential technical indicators  and in the order as follows:

a) Making the list of constructional machine and equipment;

b) Determining the waste norms to calculate the price of machine shift and constructional equipment.

c) Calculating the price of machine shift and constructional equipment.

2. The method of determining the price of machine shift and constructional equipment is guided in Appendix 06 of this Circular.

Article 28. Management of price of machine shift and constructional equipment

1. The provincial People’s Committee shall assign the Department of Construction, based on the method of determining the price of machine shift and constructional equipment as guided in Appendix 06 of this Circular, to determine and announce the price of machine shift and constructional equipment in the areas of provinces and cities in accordance with the provisions in Clause 2, Article 36 of Decree No. 32/2015/ND-CP as a basis for reference and use when determining the construction price and send it to the Ministry of Construction for monitoring and management.

2. The investor shall use, apply and refer to the price of machine shift and constructional equipment announced as a basis for determining the price of works construction. Where the types of constructional machine and equipment are not included in the announcement or are included but are not consistent with the requirements for use and constructional conditions of works, the investor shall formulate the price of machine shift and constructional equipment as guided in Appendix 06 of this Circular.

3. The consultation contractor making the estimate of construction based on the work construction design shall recommend the price of machine shift and constructional equipment which has not been announced as stipulated in Clause 1 of this Article or has been announced but is not consistent with the requirements for use and constructional conditions of works to make the estimate and ensure the completeness of dossiers and documents for report to the investor.

Chapter VI

IMPLEMENTATION

Article 29. Liability for state management on cost of construction investment

The liability for state management on cost of construction investment of the Ministry of Construction, the Ministry of Finance, the Ministries and the provincial People’s Committees shall comply with the provisions in Articles 34, 35 and 36 of Decree No. 32/2015/ND-CP.

Article 30. Transitional provision

a) The determination and management of cost of construction investment in the transitional period are specified in Clause 1 and 2, Article 37 of Decree No. 32/2015/ND-CP.

b) For the projects which were approved before the effective date of this Circular but have not yet been implemented, they shall apply the provisions of Decree No. 32/2015/ND-CP and this Circular upon adjustment of project.

Article 31. Effect

1. This Circular takes effect from 01/5/2016 and supersedes the Circular No. 04/2010/TT-BXD dated 26/5/2010 guiding the formulation and management of costs of works construction investment, the Circular No. 06/2010/TT-BXD dated 26/5/2010 guiding the method of determining of price of machine shift and constructional equipment and the Circular No. 02/2011/TT-BXD dated 22/02/2011 guiding the method of determining and announcing the construction index of the Ministry of Construction.

2. Any problem arising during the implementation should be promptly reported to the Ministry of Construction for study and settlement.

 

 

 

FOR THE MINISTER
DEPUTY MINISTER




Bui Pham Khanh

 

APPENDIX 1

METHOD OF DETERMINING THE TOTAL CONSTRUCTION INVESTMENT
(Issued with Circular No.
06/2016/TT-BXD dated 10/3/2016 of the Ministry of Construction).

I. TOTAL CONSTRUCTION INVESTMENT

1. Method of determination from the volume calculated by the basic design and other necessary requirements of project.

The total investment of construction investment project is calculated by the following formular:

VTM = GBT,TĐC + GXD + GTB + GQLDA + GTV + GK + GDP (1.1)

In which:

- VTM: total construction investment of project;

- GBT, TĐC: costs of compensation, assistance and relocation;

- GXD: cost of construction;

- GTB: cost of equipment;

- GQLDA: cost of project management;

- GTV cost of construction investment consultation;

- GK: other costs;

- GDP: contingency cost.

1.1. Determining the costs of compensation, assistance and relocation

The costs of compensation, assistance and relocation (GBT, TĐC) are determined by the volume of project to be compensated, assisted and relocated and the current regulations of the state on the price of compensation and relocation at locality where the project is performed with the approval or issuance from the competent level.

1.2. Determining the cost of construction

The cost of construction (GXD) is equal to the total costs of works construction and works items under the project is determined by the following formula:

          (1.2)

In which:

- GXDCTi: cost of construction of ith works or works items under the project (i = 1 ÷ n);

- n: Number of works or works items under the project (except for works as tents for stay and construction operation)

The cost of construction of works or works items is determined by the following formula:

  (1.3)

In which:

- QXDj: volume of group or type of jth constructional activity, structural unit or works part of works or works items under the project (j=1÷m);

- Zj: general constructional cost corresponding to the group or type of jth constructional activity, structural unit or works part of works or works items. The general constructional cost can be the incomplete or complete general constructional cost as guided in Appendix 03 of this Circular.

- T: tax rate of value added tax under the current regulations

1.3. Determining the cost of equipment

Based on the specific conditions, information source and data of project, the cost of equipment of project is determined as follows:

1.3.1. Where the project has detailed information sources and data of works equipment and technological equipment, amount, type, value of each equipment or value of the entire technological line and the price of one ton, unit or the respective entire equipment line, the cost of project equipment (GTB) is equal to the total costs of equipment of works under the project.

The project has information on the synchronous offer price for works equipment or technological equipment of the manufacturer or the equipment provider, the cost of equipment (GTB) of the project can be referred directly from the quotations or the offer price of synchronous equipment on the basis of selecting the lowest price between the manufacturer or equipment provider’s quotations (except for the equipment introduced for the first time and being unique on the market) to ensure the satisfaction of requirements for supply of equipment to the works or the price of equipment with similar capacity, technology and origin on the market at the time of calculation or of the works having similar equipment which was or is being implemented. During the determination of cost of construction investment, the consultation contractor shall consider and evaluate the consistency of price of equipment when using the above quotations.

1.3.2. Where the cost of equipment of project cannot be determined as guided under Point 1.3.1 mentioned above, based on the general information and data on capacity and technical standards of works equipment, technological equipment of works, the cost of equipment of project is determined by the indicator of cost rate of equipment calculated for one capacity unit or service capacity of works by the formula (1.9) under the Point 2.2, Section 2 of this Appendix.

1.3.3. Where the cost of equipment of the project is not determined as guided under Point 1.3.1 and 1.3.2 mentioned above, based on the data of price of similar equipment on the market at the time of calculation or of the works with similar equipment which was and is being implemented.

The cost of equipment of woeks is determined by the method of making the estimate specified in Section 2, Part I of Appendix 02 of this Circular.

1.4. Determining the cost of project management, cost of construction investment consultation and other costs

The cost of project management (GQLDA), cost of construction investment (GTV) consultation and other costs (GK) are determined according to the percentage cost norm as in Sections 3, 4, 5, Part I, Appendix 02 of this Circular or by making the estimate or from the data of similar projects which have been done. In case of estimation, the total of such costs (excluding the loan interest during the time of project implementation and initial working capital) shall not exceed 15% of total constructional costs and cost of project equipment.

The initial working capital (V) (for the business and production projects) and loan interest during the time of project implementation (LVay) (for project using the loan interest), depending on the specific condition, progress and capital allocation plan of each project for determination.

1.5. Determining the contingency cost

The contingency cost (GDP) is determined by the total contingency cost for the factors of generated work volume (GDP1) and the contingency cost due to the price slippage factors (GDP2) by the following formula:

GDP = GDP1 + GDP2                     (1.4)

The contingency cost for the factors of generated work volume (GDP1) is determined by the following formula:

GDP1 = (GBT, TĐC + GXD + GTB + GQLDA + GTV + GK) x kps       (1.5)

In which:

- kps: contingency percentage for volume of work generated, this percentage depends on complexity of works under the project and geological condition of works where the works is built and the percentage is kps10%.

For the construction investment project, only making the report on economical - technical construction investment, kps5%.

The contingency cost due to price slippage factors (GDP2) is determined on the basis of length of time of works construction of the project, capital allocation progress by year, average yearly fluctuation of price of works construction of the last 03 years in line with type of works, by construction area taking into account the fluctuation trend of factors of cost and price in the region and in the world. The contingency cost due to the price slippage factors (GDP2) is determined by the following formula:

      (1.6)

In which:

- T: length of time of implementation of construction investment project, T>1 (year);

- t: ordinal number of capital allocation year under the project implementation plan, t = 1÷T;

- Vt: investment capital before contingency under the plan carried out in tth year;

- LVayt: cost of loan interest of investment capital carried out as planned in tth year;

- IXDCTbq: Construction price index used to calculate the contingency for the price slippage factors is determined by calculating the average of uninterrupted construction price index by the type of works of at least the last 03 years compared with the time of comparison (not taking into account the times of unusual fluctuation of price of material, fuel and constructional materials) by the following formula:

           (1.7)

In which:

T: number of years (nearest year compared with the time of calculation and use to determine IXDCTbq; T3;

In: construction price index of year nth selected;

In+1: construction price index of year n+1;

± IXDCT: the average fluctuation of construction price index by year of works construction compared with the average price slippage of the year which is calculated and is determined on the basis of forecasting of fluctuation trend of factors of costs and price in the region and in the world by the experience of expert.

2. Method of determination by works construction investment capital

Where the total construction investment is determined by scale, power or service capacity based on the basic design, the norm of constructional cost rate (SXD) and equipment cost rate (STB) or the overall construction price can be used to calculate the construction investment cost for each works under the project and the total construction investment is determined by the formula 1.1 of this Appendix.

2.1. Determining the constructional cost

The constructional cost of project (GXD) is equal to the total constructional costs of works, works items or group of constructional activities, structural unit or works part of project determined by the formula (1.2) in Section 1.2, part I of this Appendix. The cost of construction of works, works items or group of constructional activities, structural unit or works part (GXDCT)  is determined by the formula

GXDCT = SXD x P + CCT-SXD           (1.8)

In which:

- SXD: constructional cost rate calculated for one power unit or service capacity announced by the Ministry of Construction or agreed upon for announcement or referred from the data of constructional cost rate of similar projects on type, scale and features of project.

- P: production capacity or service capacity of works, works items or group of constructional activities, structural unit or works part of project.

- CCT-SXD: cost items not yet calculated in the constructional cost rate or in the overall construction unit price calculated for 01 power unit, service capacity of works, works items of the project;

2.2. Determining the cost of equipment

The cost of works equipment and technological equipment of the project (GTB) is equal to the total costs of works equipment and technological equipment of the works under the project. The cost of equipment of works (GTBCT) is determined by the following formula:

GTB = STB x P + CCT-STB   (1-9)

In which:

- STB: cost rate of works equipment and technological equipment calculated for one power unit and service capacity of works is announced by the Ministry of Construction or agreed upon for announcement or referred from the data of constructional cost rate of similar projects on type, scale and features of project.

- P: production power or service capacity of works, works items or group of constructional activities, structural unit or works part of project.

- CCT-STB: cost items not yet calculated in the cost rate of works equipment under the project.

2.3. Determining other costs

The cost of compensation, assistance and relocation; cost of project management, construction investment consultation, other costs and contingency cost are determined in accordance with the instructions in Section 1.1, 1.4, Section 1.5, Part I of this Appendix.

3. Method of determination from data of cost of similar works which were or are being implemented

The similar projects are the projects having similar construction works of the same type, works level, scale, nature of project and power of technological line (for works of production).

Depending on the nature and particularity of similar projects which have been implemented and the information and data of project, it is likely to use one of the following methods to determine the total investment:

3.1. Where there are sufficient information and data on the cost of construction investment of similar works and work items which were or are being implemented, the total investment is determined by the following formula:

V=     (1.10)

In which:

- n: a number of similar works which were or are being implemented;

- i: ordinal number of similar works which were or are being implemented;

- GTti: cost of construction investment of similar works which were implemented ith of investment project (i = 1÷n);

- Ht: coefficient converting the cost to the time of making the construction investment project. The coefficient Ht is determined by the construction price index. The original year of price index must be consistent to use this coefficient.

- Hkv: coefficient converting the cost of construction area. The coefficient Hkv is determined by the expert method based on the comparison of the price level of area where the project investment is being implemented and the price level of area of similar project used for calculation;

- CTti: Costs which have not yet been calculated or have been calculated in the cost of similar works construction or ith works items which were implemented.

In case of adding the necessary costs of the project under calculation but not included in the cost of construction investment or works or works items of similar project, then CTti >0. Where the costs included in the cost of construction investment of works or works item of the similar project but not consistent or unnecessary for the project under calculation, then CTti <>. In case of deduction, CTti­ is multiplied by the coefficients Ht and Hkv.

3.2. If with the data source of cost of construction investment of similar works or works items which were or are being implemented, only the cost of construction and the cost of equipment of works can be determined, it is necessary to convert these costs to the time of project preparation, location of project construction simultaneously add other necessary costs (if any). On the basis of costs of construction, technological equipment and the equipment of works converted, costs of compensation, assistance and relocation, project management, construction investment consultation, other costs and contingency cost are determined similarly in the instructions in Section 1.1, 1.4, Section 1.5, Part I of this Appendix.

4. Method of combination to determine the total construction investment

For the projects having many works, depending on the specific conditions and requirements of the project and source of data, it is likely to apply the combination of above methods to determine the total investment of the works construction investment project.

Table 1.1. AGGREGATION OF TOTAL CONSTRUCTION INVESTMENT

Project: ……………………………..

Unit:...

No.

CONTENT OF COST

 PRE-TAX VALUE

VAT

AFTER-TAX VALUE

[1]

[2]

[3]

[4]

[5]

1

Cost of compensation, assistance and relocation

 

 

GBT,TĐC

2

Cost of construction

 

 

GXD

2.1

Cost of main work construction

 

 

 

2.2

Cost of auxiliary work construction (except for tents)

 

 

 

 

…………………

 

 

 

3

Cost of equipment

 

 

GTB

4

Cost of project management

 

 

GQLDA

5

Cost of construction investment consultation

 

 

GTV

5.1

Cost of making report on feasibility study of construction investment

 

 

 

5.2

Cost of works design and construction

 

 

 

5.3

Cost of construction supervision

 

 

 

 

…………………

 

 

 

6

Other costs

 

 

GK

6.1

Cost of demining of bombs and explosives

 

 

 

6.2

Costs of general items

 

 

 

 

…………………………….

 

 

 

7

Contigency cost (GDP1 + GDP2)

 

 

GDP

7.1

Contigency cost for factors of generated work volume

 

 

GDP1

7.2

Contigency cost for price slippage factors

 

 

GDP2

 

TOTAL (1+2+3+4+5+6+7)

 

 

VTM

 

TABLE MAKER
(Signature, full name)

PERSON IN CHARGE
(Signature, full name)

Certificate of practice of construction valuation grade…., No….

Where the total construction investment does not include all items of cost specified in Table 1.1, the determination is done by items of actual cost of the project.

II. PRELIMINARY TOTAL CONSTRUCTION INVESTMENT

Based on the database from the preliminary design plan of project on scale, power or service capacity, the preliminary total construction investment is estimated as follows:

General formula to calculate the preliminary total construction investment:

VSb = GSbBT, TĐC + GSbXD + GSbTB + GSbQLDA + GSbTV + GSbK + GSbDP      (1.11)

In which:

- VSb: preliminary preliminary total investment of construction investment project;

- GSbBT, TĐC: cost of compensation, assistance and relocation;

- GSbXD: cost of construction;

- GSbTB: cost of equipment;

- GSbQLDA: cost of project management;

- GSbTV: cost of construction investment consultation;

- GSbK: other costs;

- GSbDP: contingency cost.

1. Cost of compensation, assistance and relocation

Based on the expected location and land area to be used for the construction investment project, the estimated cost of compensation, assistance and relocation by the land area to be used and the regulations and policies on land recovery, land compensation and assistance when the State recovers the land at the location of estimated construction of project and other State relevant regulations and policies.

When the volume of compensation, assistance and relocation can be determined, the estimation of cost of compensation, assistance and relocation shall comply with the instructions in Section 1.1, Part I of this Appendix.

2. Cost of construction

2.1. Based on the preliminary design plan of project showing the scale, power or service capacity of works under the project, the cost of construction of the project is estimated as follows:

The cost of construction of the project (GSbXD) is equal to the total costs of construction of works under the project

The cost of construction of works (GSbXDCT) is estimated by the following formula:

GSbXDCT = P x SXD x kĐCXD + CCT-SXD          (1-12)

In which:

- P: Scale, capacity or service capacity of works under the project;

- SXD: constructional cost rate calculated for one power unit or service capacity announced by the Ministry of Construction or agreed upon for announcement or referred from the data of constructional cost rate of similar projects on type, scale and features of project.

- kĐCXD: adjustment coefficient of constructional cost rate is determined by the experience of expert.

- CCT-SXD: items of cost under the project not yet included in the works constructional cost rate

2.2. For the preliminary design plan of the project, only showing the initial ideas on design of works construction, preliminary information on scale, power or service capacity based on the preliminary design plan of the project, the cost of project construction estimated from the data of cost of construction of projects of similar type, scale and features of the project which was or is being implemented shall comply with the instructions in Section 3, Part I of this Appendix.

3. Cost of equipment

3.1. Based on the preliminary design plan showing the scale, power or service capacity of the works under the project, the cost of equipment of the project is estimated as follows:

The cost of equipment of the project (GSbTB)  is equal to the total costs of equipment of works under the project. The cost of equipment of the project (GSbTBCT) is estimated by the following formula: 

GSbTBCT = P x STB x kĐCTB + CCT-STB           (1.13)

In which:

- STB: cost rate of works equipment and technological equipment calculated for one power unit and service capacity of works is announced by the Ministry of Construction or agreed upon for announcement or referred from the data of constructional cost rate of similar projects on type, scale and features of project.

- kĐCTB: adjustment coefficient of works equipment cost rate kĐCTB is determined by the experience of expert.

- CCT-STB: cost items of works not yet included in the cost rate of works equipment.

3.2. For the preliminary design plan, only the preliminary technology and equipment line, the cost of equipment of the project is estimated from the data of constructional cost rate of similar projects on type, scale and features of project which was or is being implemented under the instructions in Section 3, Part I of this Appendix.

4. Cost of project management, cost of construction investment consultation and other costs

The cost of project management(GSbQLDA), cost of construction investment consultation (GSbTV) and other costs (GSbK) are estimated not exceeding 15% of the total cost of construction and cost of equipment of the project.

The estimation rate does not include the cost of loan interest and working capital (if any) of the other costs during the time of project implementation.

5. Contingency cost

This cost is determined in accordance with the provisions under Point 1.5, Section 1 of this Appendix and the estimated cost of unanticipated volume of the project is added.

Table 1.2. PRELIMINARY AGGREGATION OF TOTAL CONSTRUCTION INVESTMENT

Project: …………………………………………….

Unit:......

No.

CONTENT OF COST

PRE-TAX VALUE

VAT

AFTER-TAX VALUE

[1]

[2]

[3]

[4]

[5]

1

Cost of compensation, assistance and relocation

 

 

GSbBT, TĐC

2

Cost of construction

 

 

GSbXD

3

Cost of equipment

 

 

GSbTB

4

Cost of project management

 

 

GSbQLDA

5

Cost of construction investment consultation

 

 

GSbTV

6

Other costs

 

 

GSbK

7

Contigency cost

 

 

GSbDP

 

 TOTAL(1+2+3+4+5+6+7)

 

 

VSb

 

TABLE MAKER
(Signature, full name)

PERSON IN CHARGE
(Signature, full name)

Certificate of practice of construction valuation grade…., No….

 

APPENDIX NO. 2

METHOD OF DETERMINATION OF CONSTRUCTION ESTIMATE
(Issued with Circular No.
06/2016/TT-BXD dated 10/3/2016 of the Ministry of Construction)

I. WORKS CONSTRUCTION ESTIMATE

The works construction estimate is determined by the following formula

GXDCT = GXD + GTB + GQLDA + GTV + GK + GDP        (2.1)

In which:

- GXD: cost of construction;

- GTB: cost of equipment;

- GQLDA: cost of project management;

- GTV: cost of construction investment consultation;

- GK: other costs;

- GDP: contingency cost.

The works construction estimate is aggregated in Table 2.1 of this Appendix.

1. Determining the cost of construction (GXD)

The cost of works construction is the total costs of construction of items of main and auxiliary works (except for temporary works for staying and construction operation), the temporary works in service of construction likely to be determined by each content of cost or aggregate the contents of cost by one of the methods guided in Appendix 03 of this Circular.

2. Determining the cost of equipment (GTB)

The cost of equipment determined by works or works items including the cost of procurement of works equipment and technological equipment, cost of training and transfer of technology (if any); cost of installation, testing, calibration of equipment and other relevant costs are determined by the following formula:

GTB = GMS + GĐT + G (2.2)

In which:

- GMS: cost of procurement of works equipment and technological equipment;

- GĐT: cost of training and transfer of technology;

- G: cost of installation, testing, calibration of equipment;

2.1. The cost of procurement of works equipment and technological equipment is determined by the following formula:

          (2.3)

In which:

- Qi: Quantity or amount of ith equipment (group of equipment) ith (i = 1÷n);

- Mi: price calculated for a unit of quantity or a unit of amount of equipment (group of equipment) ith (i = 1÷n) determined by the following formula:

Mi = Gg + Cvc + CIk + Cbq + T       (2.4)

In which:

- Gg: Price of equipment at the purchasing place (place of manufacture, fabrication or place of equipment supply in Vietnam) or the price calculated for arrival in the ports of Vietnam (for imported equipment) including the cost of design and supervision of equipment manufacture;

- Cvc: Cost of transport of a unit of quantity or a unit of amount of equipment (group of equipment) from the purchasing place or ports of Vietnam transported to the construction site;

- Clk: Cost of storage, open storage or container storage of a unit of quantity or a unit of amount of equipment (group of equipment) in ports of Vietnam for imported equipment;

- Cbq: Cost of maintenance of a unit of quantity or a unit of amount of equipment (group of equipment) at the site;

- T: relevant taxes and fees

For the equipment which does not meet the conditions for price determination by the formula (2.4) mentioned above, it is likely to make estimation on the basis of selection of lowest price between the quotations of the manufacturer or equipment provider (except for the equipment introduced for the first time and being unique on the market) to ensure the satisfaction of requirements for equipment supply for the works or the price of equipment of similar power, technology and origin on the market at the time of calculation or of the works with similar equipment which was or is being implemented. During the determination of cost of construction investment, the consultation contract is responsible for review and evaluation of consistency of equipment price when using the above quotations.

For types of works equipment and technological equipment to be manufactured or processed, the cost is determined on the basis of quantity of equipment to be manufactured or processed and the price of manufacture and processing of one ton (or a calculation unit) in line with nature and type of equipment under the signed contract of production and processing or based on the manufacturer’s quotation of product processing selected by the investor or the price of production and processing of similar equipment of works which were or are being implemented.

2.2. The cost of training and technology transfer is determined by making the estimate depending on the specific features of each project.

2.3. The cost of installation of equipment and cost of testing and equipment calibration is determined by making the estimate like the cost of construction.

The cost of equipment is aggregated in Table 2.2 of this Appendix.

3. Determining the cost of project management (GQLDA)

3.1. The cost of project management is determined by the following formula:

GQLDA = N x (GXDtt + GTBtt)            (2.5)

In which:

- N: norm of percentage (%) of cost of project management in proportion to the scale of installation and equipment of the project (under the instruction of the Ministry of Construction);

- GXDtt: cost of construction of pre-value added tax;

- GTBtt: cost of equipment before value added tax;

3.2. Where the cost of project management determined under the instructions under Point 3.1 mentioned above is not consistent, such cost shall be determined by making the estimate. The method of making the estimate as guided by the Ministry of Construction.

4. Determining the cost of construction investment consultation (GTV)

4.1. The cost of construction investment consultation is determined by the following formula:

      (2.6)

In which:

- Ci: cost of construction investment consultation ith (i=1÷n) is determined by the percentage (%) as guided by the Ministry of Construction;

- Dj: cost of construction investment consultation jth (j=1÷m) is determined by making the estimate as guided by the Ministry of Construction;

4.2. Where some activities of construction investment consultation are implemented before determining the works construction estimate, the cost of construction investment consultation is determined by the value of that signed consultation contract.

5. Determining the other costs (GK)

The other costs are determined by the following formula:

        (2.7)

In which:

- Ci: other costs ith (i=1÷n) are determined by the norm of percentage (%) as guided by the competent agency;

- Dj: other costs jth (j=1÷m) is determined by making the estimate;

- Ek: other costs kth(k=1÷1);

- CHMC: cost of general items

The cost of general items is determined as follows:

CHMC = (CNT + CKKL) x (1+T) + CK  (2.8)

In which:

a) CNT: cost of temporary house at the construction site for stay and construction operation

The cost of temporary house at the construction site for stay and construction operation is the cost to build the temporary house at the construction site or house lease or travel expenses in service of stay and operation of construction of the contractor during the works construction.

The cost of temporary house at the construction site for stay and construction operation is calculated by the percentage of 2% over the cost of construction and installation, testing and calibration of equipment before value added tax for works along the route such as transmission lines, postal communication lines, roads, canals, pipelines and other construction works along the route and equal to 1% for the remaining works.

For other special cases (such as the works with large scale, complexity, at sea, in islands and works using ODA selecting the contractor in the form of international bidding), if the cost items of temporary house at the construction site for stay and construction operation is calculated by the percentage (%) mentioned above is not suiTable, the investor shall, based on the actual conditions, make and approve such cost estimate.

The method of making the estimate for the this cost item is like the method of determining the cost of construction as guided in Appendix 03 of this Circular. The norm of general cost and the pre-determined income are calculated by the civil works.

In case of bidding, such cost items must be calculated in the price of package.

b) CKKL: costs of work of general items but the volume from design cannot be determined including: cost of labor safety and environmental protection for the employees on the construction site and the ambient setting; cost of contractor’s material testing; cost of movement of employees within construction site; cost of irregular pumping and dredging are calculated by the percentage (%) over the cost of construction and cost of installation, testing, calibration of equipment before value added tax specified in Table 2.4 of this Appendix.

c) CK: cost of remaining general items are the cost of movement of special-use constructional machines and equipment and labor force (with skills under the business management) coming and going out of construction site; cost of traffic safety assurance for construction (if any); cost of restoration of technical infrastructure affected by the works construction (if any); cost of storage and open storage of materials (if any), cost of building of cover house for machine, machine foundation, power and compressed gas and water supply and drainage system at the construction site, installation and dismantlement of some machinery (concrete mixing plant, asphalt mixing plant, overhead crane, tower crane and some other constructional machines and equipment with similar features) and are determined by the method of estimate  making or cost estimation.

In case of determination by the estimate, the instructions in the Appendix 03 of this Circular shall apply.

d) T: the prescribed tax rate of VAT.

The estimate of cost of general items is aggregated in Table 2.3 of this Appendix.

6. Determining the contingency cost (GDP)

The contingency cost is determined by 02 factors: cost contingency for the generated volume of work and cost contingency for price slippage factor.

The contingency cost is determined by the following formula :

GDP = GDP1 + GDP2 (2.9)

In which:

- GDP1: contingency cost for the generated volume of work is determined by the following formula:

GDP1 = (GXD + GTB + GQLDA + GTV + GK) x kps                   (2.10)

- kps is the contingency coefficient for the generated volume of work. This percentage rate depends on the complexity of works under the project and the geological condition of works where it is being built and the percentage rate is kps 5%.

- GDP2: contingency cost for the price slippage factors (GDP2) is determined by the following formula:

          (2.11)

In which:

- T: time of works construction determined by (quarter, year);

- t: ordinal number of capital allocation under the work construction plan (t=1÷T);

- GtXDCT: value of works construction estimate before the contingency cost implemented during the tth period;

- IXDCTbq: construction price index used to calculate the contingency for the price slippage factors determined by the formular 1.7 in the Appendix 01 of this Circular.

± IXDCT: average fluctuation of construction price index by the time of works construction compared with the average price slippage of the unit (quarter, year) calculated and determined on the basis of forecasting of fluctuation trend of factors of price and cost in the region and in the world by the expert experience.

Table 2.1. AGGREGATION OF WORKS CONSTRUCTION

Works : ………………………………….

Unit: dong

NO.

CONTENT OF COST

 PRE-TAX VALUE

VAT

AFTER-TAX VALUE

SYMBOL

[1]

[2]

[3]

[4]

[5]

[6]

1

Cost of construction

 

 

 

GXD

1.1

Cost of works construction

 

 

 

 

1.2

Cost of auxiliary work construction (except for tents)

 

 

 

 

 

 

 

 

2

Cost of equipment

 

 

 

GTB

3

Cost of project management

 

 

 

GQLDA

4

Cost of construction investment consultation

 

 

 

GTV

4.1

Cost of works construction design

 

 

 

 

4.2

Cost of construction supervision

 

 

 

 

 

 

 

 

5

Other costs

 

 

 

GK

5.1

Cost of demining of bombs and explosives

 

 

 

 

5.2

Cost of works insurance

 

 

 

 

5.3

Cost of general items

 

 

 

dự toán

 

 

 

 

6

Contingency cost (GDP1 + GDP2)

 

 

 

GDP

6.1

Contingency cost for generated volume of work factors

 

 

 

GDP1

6.2

Contingency cost for price slippage factors

 

 

 

GDP2

 

TOTAL (1+ 2 + 3 + 4 + 5+ 6)

 

 

 

GXDCT

 

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TABLE 2.2 AGGREGATION OF COSTS OF EQUIPMENT

Works: …………………………………………………….

Unit: dong

NO.

CONTENT OF COST

PRE-TAX VALUE

VAT

AFTER-TAX VALUE

SYMBOL

[1]

[2]

[3]

[4]

[5]

[6]

1

Cost of procurement of equipment

 

 

 

GMS

1.1

 

 

 

 

1.2

 

 

 

 

 

 

 

 

2

Cost of training and technology transfer

 

 

 

GĐT

3

Cost of installation, testing and calibration of equipment

 

 

 

G

4

Other relevant costs

 

 

 

GK

 

TOTAL (1+2+3+4)

 

 

 

GTB

 

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TABLE 2.3. AGGREGATION OF ESTIMATE OF COST OF GENERAL ITEMS

Works: …………………………………………………

Unit: dong

NO.

COST ITEMS

PRE-TAX VALUE

VAT

AFTER-TAX VALUE

SYMBOL

[1]

[2]

[3]

[4]

[5]

[6]

1

Cost of building of temporary house at construction site for stay and construction operation

 

 

 

CNT

2

Cost of some work whose volume cannot be determined from the design

 

 

 

CKKL

3

Cost of remaining general items

 

 

 

CK

3.1

Cost of movement of constructional machines and equipment and labor force coming and going out of construction site

 

 

 

 

3.2

Cost of traffic safety guarantee in service of construction

 

 

 

 

3.3

Cost of technical infrastructure restoration due to effect from works construction

 

 

 

 

….

 

 

 

 

 

TOTAL (1+2+3)

 

 

 

CHMC

 

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Table 2.4. COST NORM OF SOME WORK OF GENERAL ITEMS WITHOUT DETERMINATION OF VOLUME FROM DESIGN

(Including the cost items specified under Point b, Clause 5.1 of Appendix No.2 of this Circular))

Unit: %

No.

TYPE OF WORKS

PERCENTAGE (%)

1

Civil works

2.5

2

Industrial works

2.0

As for the construction in hydropower tunnel, pit

6.5

3

Traffic works

2.0

As for the construction in traffic tunnel

6.5

4

Agricultural and rural development works

2.0

5

Technical infrastructure works

2.0

- For construction works having many works items, such works items shall apply the above percentage norm by type of works.

- For works having the cost of construction, installation, testing and calibration of equipment before the value added tax of under 50 (billion dong), the cost norm of som work under the general items but without determination of volume from the design specified in the above Table 2.4 excluding the cost of lab building at the construction site.

- As for the some work under the general items of construction in traffic tunnel, hydropower tunnel or pit including the cost of operation and cost of regular repair of water drainage and supply system, ventilation, power supply in service of construction in tunnel and excluding the costs of initial investment for the system of ventilation, lighting, power, water supply and drainage and traffic in service of construction in tunnel.

- For the hydroelectric and irrigational construction works, the above percentage norm does not include the following costs:

+ Cost of initial investment of technical water system for works construction;

+ Cost of initial investment of water pumping, dredging, pumping of water from foundation pit right after river closure, flood prevention and power syste for construction;

+ Cost of pumping water frm foundation pit right after river closure, flood prevention;

+ Cost of additional testing of construction of roller compacted concrete (RCC).

II. CONSTRUCTION PACKAGE ESTIMATE

1. Construction package estimate

The  construction package estimate is determined by the following formula:

GGTXD = GXD + GHMC + GDPXD (2.12)

In which:

- GGTXD: construction package estimate;

- GXD: cost of construction of  construction package estimate;

- GHMC: cost of general items of construction package;

- GDPXD: contingency cost of  construction package estimate;

a) The cost of construction of  construction package estimate is determined for works, works items, auxiliary works (except for tents), temporary works in service of construction within the range of construction package, including the volume of construction and construction unit price of respective construction work (including the cost of materials, labor, machine, general costs, predetermined taxable income and VAT).

The mthod of determining the cost of construction of package estimate is done under the instructions in Appendix 03 of this Circular.

b) The cost of general items of construction of package includes one, some or all costs determined in the general items in the approved works construction estimate in line with the range of work, technical requirement and instructions of the package.

The method of determining the contents in the cost of general items of the construction package shall comply with the instructions in Section 5, Part I of this Appendix.

c) GDPXD: contingency cost of construction package estimate is determined by 02 factors: cost contingency for the generated work volume factors and for the price slippage factors.

The contingency cost in construction package estimate is determined by the following formula:

GDPXD = GDPXD1 + GDPXD2              (2.13)

In which:

+ QDPXD1: contingency cost for the generated work volume factors of the construction package estimate is determined by the following formula:

GDPXD1 = (GXD + GHMC) x kps         (2.14)

kps is the contingency coefficient for generated work volume, kps 5%.

+ GDPXD2: contingency cost for the price slippage factors of the construction package estimate is determined like the contingency cost for the price slippage factors in the works construction estimate in the formula (2.11) of the Appendix No.02, in which GtXDCT is the cost of construction and the cost of general items of the construction package.

Aggregating the contents of construction package estimate in the Table 2.5 of this Appendix.

2. Estimate of package of material and equipment procurement for installation in the works

The estimate of package of material and equipment procurement for installation in the works is determined by the following formula:

GGTTB = GMS + GĐT + G + GDPTB (2.15)

In which:

- GGTTB: estimate of package of material and equipment procurement for installation in the works

- GMS: cost of procurement of works equipment and technological equipment;

- GĐT: cost of training and technology transfer;

- G: cost of installation of equipment, testing and calibration;

- GDPTB: contingency cost in the estimate of package of material and equipment procurement for installation in the works

a) The estimate of package of material and equipment procurement for installation in the works is calculated and determined based on the work to be done of the package, technical instructions, work volume and price of materials and equipment installed in the works and other relevant costs in line with the time of package estimate determination.

The method of determining the cost contents in the estimate of package of material and equipment procurement for installation in the works (cost of procurement of works equipment and technological equipment; cost of training and technology transfer, cost of equipment installation, testing and calibration) are determined under the instructions in Section 2, Part I of this Appendix

b) The contingency cost of estimate of package of material and equipment procurement for installation in the works is determined by 02 factors: cost contingency for the generated work volume factors and the price slippage factors.

The contingency cost in the estimate of package of material and equipment procurement for installation in the works is determined by the following formula:

GDPTB = GDPTB1 + GDPTB2              (2.16)

In which:

+ GDPTB1: contingency cost for the generated work volume factors of the estimate of package of material and equipment procurement for installation in the works is determined by the following formula:

GDPTB1 = (GMS + GĐT + G + GK) x kps      (2.17)

kps is the contingency coefficient for the generated volume of material and equipment, kps 5%.

+ GDPTB2: contingency cost for the price slippage factors of the estimate of package of material and equipment procurement for installation in the works is determined as for the contingency cost for the price slippage factors in the works construction estimated in the formula (2.11) of the Appendix 2, in which GtXDCT is the cost of procurement of works equipment and technological equipment; cost of training and technology transfer; cost of equipment installation, testing and calibration of the package of material and equipment procurement for installation in the works implemented during the tth period.

Aggregating the contents of estimate of package of material and equipment procurement for installation in the works in the Table 2.6 of this Appendix.

3. Estimate of construction investment consultation

3.1. For the consultation, the percentage or man-month estimate is determined, including: cost of expert, management, other costs, pre-determined taxable income, tax and contingency cost as guided by the Ministry of Construction.

3.2. For the specialized testing consultation, it can be determined like the estimate of cost of construction specified in Section 1, Part II of this Appendix.

Aggregating the contents of estimate of construction investment consultation package like the Table 2.7 of this Appendix.

Table 2.5. AGGREGATION OF CONSTRUCTION PACKAGE ESTIMATE

Project: …………………………

Package: …………………………

Unit: dong

NO.

CONTENT OF COST

PRE-TAX VALUE

VAT

AFTER-TAX VALUE

SYMBOL

[1]

[2]

[3]

[4]

[5]

[6]

1

Cost of construction of package

 

 

 

GXD

1.1

Work A

 

 

 

 

1.2

Work B

 

 

 

 

1.3

 

 

 

 

 

 

 

 

2

Cost of general items

 

 

 

GHMC

2.1

Cost of building of temporary house for stay and construction operation at the construction site

 

 

 

 

2.2

Cost of unknown work volume from the design

 

 

 

 

2.3

Cost of remaining general items

 

 

 

 

...

 

 

 

 

3

Contingency cost (GDPXD1 + GDPXD2)

 

 

 

GDPXD

3.1

Contingency cost for generarated work volume factors

 

 

 

GDPXD1

3.2

Contingency cost for price slippage factors

 

 

 

GDPXD2

 

TOTAL (1+2+3)

 

 

 

GGTXD

 

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Table 2.6. AGGREGATION OF ESTIMATE OF PACKAGE OF PROCUREMENT OF MATERIALS AND EQUIPMENT INSTALLED IN THE WORKS

Project: …………………………….

Package: ………………………….

Unit: dong

NO.

COST ITEMS

 PRE-TAX VALUE

VAT

AFTER-TAX VALUE

SYMBOL

[1]

[2]

[3]

[4]

[5]

[6]

1

Cost of equipment procurement

 

 

 

 

1.1

Cost of technological equipment procurement

 

 

 

 

1.2

Cost of works equipment procurement

 

 

 

 

2

Cost of training and technology transfer

 

 

 

 

3

Cost installation, testing and calibration

 (Determined by making the estimated like the cost of construction, including the cost of general items and other relevant costs)

 

 

 

 

4

Contingency cost (GDPTB1 + GDPTB2)

 

 

 

GDPTB

4.1

Contingency cost for the generated work volume factors

 

 

 

GDPTB1

4.2

Contingency cost for the price slippage factors

 

 

 

GDPTB2

 

TOTAL (1+2+3+4)

 

 

 

GGTTB

 

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Table 2.7. AGGREGATION OF ESTIMATE OF CONSTRUCTION INVESTMENT CONSULTATION PACKAGE

Project: …………………………………..

Package: ……………………………….

Unit: dong

NO.

COST ITEMS

 PRE-TAX VALUE

VAT

AFTER-TAX VALUE

SYMBOL

[1]

[2]

[3]

[4]

[5]

[6]

1

Consultation work A

 

 

 

 

2

Consultation work B

 

 

 

 

...

 

 

 

 

 

TOTAL

 

 

 

GGTTV

 

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III. METHOD OF DETERMINING THE MODIFIED WORKS CONSTRUCTION ESTIMATE

The modified works construction estimate is applied to the case of design change with the approval from the competent level. For the contracted package, the determination of modified works construction estimate only applies to the generated work which must be estimated in accordance with the regulations on management of construction contract and must be consistent with the contents agreed in the construction contract.

The modified works construction estimate (GDC) is determined by the approved works construction estimate (GPD) plus (or minus) the increased (or decreased) value. The increased (or decreased) value is the value of modified estimate of works (GPDC). The modified works construction estimate is determined by the following formula:

GDC = GPD ± GPDC           (2.19)

The part of modified estimate of works is determined by the volume modification factors and the price slippage factors:

GPDC = GPDCm + GPDCi      (2.20)

In which:

- GPDCm: part of estimate of works modified due to the volume modification factors;

- GBSi: part of estimate of works modified due to the price slippage factors;

The modified works construction estimate is aggregated like the Table 2.8 of this Appendix.

1. Part of estimate of works modified due to the volume modification factors

The part of estimate of works modified due to the volume modification factors is determined by the following formula:

GPDCm = GPDCXDm + GPDCTBm + GPDCTVm + GPDCKm               (2.21)

1.1. The part of cost of construction modified due to the volume modification factors (GPDCXDm) is determined by the following formula:

GPDCXDm             (2.22)

In which:

- Qi: volume of construction modified (increased, decreased, generated);

- Di: construction unit price in proportion to the volume of construction modified at the time of adjustment

1.2. The part of modified cost of equipment for the volume modification factors (GPDCTBm)  is determined by the following formula:

GPDCTBm            (2.23)

In which:

- Qj: volume of equipment modified (increased, decreased, generated);

- Dj: unit price of equipment in proportion to the volume of equipment modified at the time of adjustment.

1.3. Part of modified construction investment consultation (GPDCTVm) and the other modified costs GPDCKm) due to the volume modification factors is determined as in Section 4 and 5, Part I of this Appendix in which the volume to be calculated and determined is the part of modified volume (increased, decreased, generated);

2. Part of estimate of works modified due to price fluctuation factors

The part of estimate of works modified due to price fluctuation factors is determined by the following formula:

GPDCi           (2.24)

In which:

- : part of modified cost of construction;

- : part of modified cost of equipment;

2.1. Determining the modified cost of construction

2.1.1. Direct offset method

a) Determining the modified cost of materials (VL)

The part of modified cost of materials (VL) is determined by the total modified cost of each type of material jth (VLj) by the following formula:

               (2.25)

Part of modified cost of jth material is determined by the following formula:

         (2.26)

In which:

- QJiVL: waste of jth material of ith construction in the volume of construction to be modified (i=1÷n);

- CLJVL: difference value of jth material at the time of adjustment compared with the price of constructional materials in the approved estimate;

The price of constructional materials at the time of adjustment is determined on the basis of announcement of price of constructional materials of locality in line with the time of adjustment and the market price level at the place of works contruction. Where the price of constructional materials according to the price announcement of locality is not consistent with the market price level at the place of works contruction and the types of constructional material are not included in the announcement of price of constructional materials of locality, the price of these constructional materials is determined based on the selection of appropriate price between the quotations of the manufacturer or provider of constructional materials (except for the equipment introduced for the first time and being unique on the market) to ensure the satisfaction of demand for use of materials of works on progress, supply volume, quality standards and technical specification of materials or price of type of constructional materials with similar standards and quality which were and are being used in other works.

b) Determining the modified cost of labor

The modified cost of labor is determined by the following formula:

      (2.27)

In which:

- QiNC: waste of labor of ith work in construction volume to be modified (i=n);

- CLiNC: difference value of labor unit price of ith work at the time of adjustment compared with the labor unit price in the approved estimate (i=n).

The labor unit price at the time of adjustment is determined by the announcement of labor price of locality or as guided by the Ministry of Construction in accordance with the current regulation.

c) Determining the modified cost of constructional machines (MTC).

The modified cost of constructional machines (MTC) is determined by the total modified cost of each type of jth constructional machines  (MTCj) by the following formula:

            (2.28)

The modified cost of jth constructional machines is determined by the following formula:

           (2.29)

In which:

- QJiMTC: waste of jth constructional machines of ith construction in the construction volume to be modified (i=1÷n);

- CLJMTC: difference value of price of jth machine shift at the time of adjustment compared with the price of machine shift in the approved estimate (i=n).

The price of constructional machines shift at the time of adjustment is determined in accordance with the current regulations.

The part of modified cost of construction is aggregated like the Table 2.9 of this Appendix.

2.1.2. Method of construction price index

2.1.2.1. Case of using the price index of construction part

The modified cost of construction () is determined by the following formula:

                        (2.30)

In which:

- GXD: cost of construction in the approved estimate of volume of construction to be modified;

- IXD: price index of construction part at the time of adjustment.

- : price index of construction part at the time of adjustment GXD

price index of works construction part is determined under the current regulations.

2.1.2.2. In case of using the price index of construction by the cost factors (price index of constructional materials of works, price index of works construction labor, the price index of works constructional machines).

2.1.2.2.1. Determining the modified cost of materials (VL)

The modified cost of materials is determined by the following formula:

       (2.31)

In which:

- GVL: cost of materials in the approved estimate of the construction volume to be modified;

- PVL: proportion of cost of works constructional materials to be modified over the cost of materials in the approved estimate;

- IVL: price index of works constructional materials at the time of adjustment;

- : price index of works constructional materials at the time of making the estimate GVL

The price index of works constructional materials is determined under the current regulations.

2.1.2.2.2. Determining the modified cost of labor (NC)

The modified cost of labor is determined by the following formula:

            (2.32)

In which:

- GNC: cost of labor in the approved estimate of construction volume to be adjusted;

- INC: price index of works construction labor at the time of adjustment;

- : price index of works construction labor at the time of estimate making GNC

The price index of works construction labor is determined under the current regulations.

2.1.2.2.3. Determining the modified cost of constructional machines (MTC)

The modified cost of constructional machines is determined by the following formula:

      (2.33)

In which:

- GMTCcost of constructional machines in the approved estimate of construction volume to be modified;

- IMTC: price index of works constructional machines at the time of adjustment;

- : price index of works constructional machines at the time of estimate making GMTC

The price index of works constructional machines is determined under the current regulations.

The modified cost of construction is aggregated like the Table 2.9 of this Appendix.

2.1.3. Combination method

Depending on the specific conditions of each works, the above methods can be used in combination with the above methods to determine the modified cost of construction accordingly.

2.2. Determining the modified cost of equipment ()

The modified cost of equipment is determined by the total modified costs of procurement of equipment . The modified cost of equipment installation, modified cost of testing and calibration of equipment and other modified costs.

2.2.1. Modified cost of procurement of equipment ()

The modified cost of procurement of equipment is determined by the following formula:

                   (2.34)

In which:

- : cost of equipment in the approved estimate;

- : cost of equipment at the time of adjustment

2.2.2. The modified cost of equipment installation and the modified cost of equipment testing and calibration are determined like the modified cost of construction

 

Table 2.8. AGGREGATION OF MODIFIED WORKS CONSTRUCTION ESTIMATE

Works: ………………………………............................................................................

Unit: dong

NO.

COST ITEMS

 PRE-TAX VALUE

VAT

AFTER-TAX VALUE

SYMBOL

[1]

[2]

[3]

[4]

[5]

[6]

I

Approved works construction estimate

 

 

 

GPD

II

Part of modified works construction estimate

 

 

 

GPDC

II.1

Part of works estimate modified for volume modification

 

 

 

GPDCm

II.2

Part of modified works estimate for price fluctuation factors

 

 

 

GBSi

 

TOTAL (I+II)

 

 

 

GDC

 

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Table 2.9. AGGREGATION OF MODIFIED ESTIMATE OF PART OF CONSTRUCTIONAL COST

Works: ………………………………………………………………….........................

Unit: dong

NO.

COST ITEMS

METHOD OF CALCULATION

VALUE

SYMBOL

I

DIRECT COST

 

 

 

1

Cost of materials

VL

 

 

2

Cost of labor

NC

 

 

3

Cost of constructional machines

MTC

 

 

 

Direct cost

VL+NC+MTC

 

T

II

GENERAL COSTS

T x percentage

 

C

III

PRE-DETERMINED TAXABLE INCOME

(T+C) x percentage

 

TL

 

Cost of construction before tax

(T+C+TL)

 

G

IV

VALUE ADDED TAX

G x TGTGT-XD

 

VAT

 

Cost of construction after tax

G + VAT

 

 

TABLE MAKER
(Signature, full name)

PERSON IN CHARGE
(Signature, full name)
Certificate of practice of construction valuation grade…., No….

 

APPENDIX 3

METHOD OF DETERMINING THE CONSTRUCTIONAL COST ESTIMATE
(Issued with Circular No.
06/2016/TT-BXD dated 10/3/2016 of the Ministry of Construction)

The cost of construction is determined for works, works items, auxiliary works or temporary works in service of construction by one of the following methods:

I. METHOD OF CALCULATION BY VOLUME AND PRICE OF WORKS CONSTRUCTION

1. Determination by volume and detailed works construction unit price

1.1. The volume of construction is determined from the technical design or construction drawing design dossier, technical instructions, technical requirements and constructional activities to be done of works and works items.

1.2. The detailed works construction unit price can be the incomplete unit price (including the cost of materials, labor, constructional machines and equipment) or complete unit price (including the cost of materials, labor, constructional machines and equipment, general costs and predetermined taxable income). To synchronize with the package estimate, the unit price can be the complete unit price.

The detailed works construction unit price is aggregated as per the Table 3.3 of this Appendix.

2. Determination by volume and general construction price

2.1. The volume of construction is determined from the technical design or construction drawing design dossier, technical instructions, technical requirements and constructional activities to be done of works and works items and is aggregated from one group of type of constructional work to form a structural unit or part of works.

2.2. The general construction price is made in proportion to the list of and content of volume of group of type of constructional work, structural unit and part of works.

The general construction price can be the incomplete general construction price (including the cost of materials, labor, constructional machines and equipment) or the complete general construction price (including the cost of materials, labor, constructional machines and equipment, general costs and predetermined taxable income) which is made on the basis of detailed construction unit price of the works. To synchronize with the package estimate, the applicable unit price can be the complete unit price.

The general construction price is aggregated as per the Table 3.3 of this Appendix.

The method of preparing the works construction price is guided in the Appendix 04 of this Circular.

The cost of construction is calculated by the volume and the incomplete detailed construction unit price and the incomplete general construction price of the works and is determined and aggregated as per the Table 3.1 below.

Table 3.1. AGGREGATION OF ESTIMATE OF CONSTRUCTIONAL COST CALCULATED BY THE INCOMPLETE DETAILED CONSTRUCTION UNIT PRICE AND THE INCOMPLETE GENERAL CONSTRUCTION PRICE OF THE WORKS

Date ….. month.. year……

Works: ………………………………..............................................................

Unit: dong

NO

CONTENT OF COST

METHOD OF CALCULATION

VALUE

SYMBOL

I

DIRECT COST

 

 

 

1

Cost of materials

 

VL

2

Cost of labor

 

NC

3

Cost of constructional machines and equipment

 

M

 

Direct cost

VL+NC+M

 

T

II

GENERAL COST

T x percentage

 

C

III

PREDETERMINED TAXABLE INCOME

(T+C) x percentage

 

TL

 

Cost of construction before tax

(T+C+TL)

 

G

IV

VALUE ADDED TAX

G x TGTGT-XD

 

VAT

 

Cost of construction after tax

G + VAT

 

GXD

 

TABLE MAKER
(Signature, full name)

PERSON IN CHARGE
(Signature, full name)
Certificate of practice of construction valuation grade…., No….

 

In which:

- Where the cost of materials, labor and constructional machines and equipment is determined by the volume and the incomplete general constructional cost:

+ Qj is the volume of one group of lists of work or one jth structural unit or part of the works.

+ Djvl, Djnc, Djm are the costs of materials, labor and constructional machines and equipment in the general construction price of one group of lists of work or one jth structural unit or part of the works;

- Where the cost of materials, labor and constructional machines and equipment is determined by the volume and the incomplete detailed construction unit price:

+ Qj is the jth volume of construction;

+ Djvl, Djnc, Djm are the cost of materials, labor, constructional machines and equipment in the detailed construction unit price of works for jth construction work;

cost of materials (Djvl), cost of labor (Djnc), cost of constructional machines and equipment (Djm) in the incomplete detailed construction unit price and the incomplete general construction price are calculated and aggregated as per the Table 3.4 of this Appendix.

+ The norm of general cost percentage and the pre-determined taxable income is specified in Table 3.7, 3.8 and 3.9 of this Appendix;

+ G: cost of contruction of works, works items, component, work part or activities before tax;

+ TGTGT-XD: tax rate of VAT stipulated for constructional activities;

+ Knc: night-shift worker coefficient (if any) and is determined as follows:

Knc = 1+ percentage of work volume for night shift * 30% (labor unit price of night-shift work)

+ Km: night-shift constructional machines coefficient (if any) and is determined as follows:

Km = 1 - g + g* Knc

In which: g is the average salary percentage in the machine shift price.

The night-shift work volume is determined by the requirement for works construction progress with the investor’s consent.

The cost of construction is calculated by the volume and the complete detailed works construction unit price and the complete general constructional cost is determined and aggregated as per the Table 3.2 below

Table 3.2. AGGREGATION OF CONSTRUCTIONAL COST ESTIMATE CALCULATED BY THE COMPLETE DETAIL WORKS CONSTRUCTION UNIT PRICE AND THE COMPLETE GENERAL CONSTRUCTION PRICE

Unit:...

NO

COST ITEMS

CALCULATION METHOD

VALUE

SYMBOL

1

Cost of construction before tax

 

G

2

Value added tax

G x TGTGT-XD

 

VAT

3

Cost of construction after tax

G + VAT

 

GXD

 

TABLE MAKER
(Signature, full name)

PERSON IN CHARGE
(Signature, full name)
Certificate of practice of construction valuation grade…., No….

In which:

- Where the cost of construction is determined on the basis of volume of complete general construction price:

+ Qi is the volume of one group of work or one ith structural unit or part of works (i=n);

+ Di is the complete general construction price (including the direct cost of materials, labor, constructional machines, general costs and pre-determined taxable income) for implementation of one group of work or one ith structural unit or part of works.

- Where the cost of construction is determined on the basis of olvolume and the complete detailed works unit price:

+ Qi is the ith construction volume of the works (i=1÷n);

+ Di is the complete works construction unit price (including the direct cost of materials, labor, constructional machines, general costs and pre-determined taxable income) for implementation of one group of work or one ith structural unit or part of works.

+ G: cost of works construction before tax;

+ TGTGT-XD: tax rate of value added tax stipulated for construction;

+ GXD: cost of works construction after tax;

Where the cost of construction is estimated for the component, work part or activities, the cost of construction after tax in the estimate of works and works items is determined by the following formula:

       (3.1)

In which:

- gi: cost of construction after tax of ith component, work part or activities of works and works items (i=n).

On the basis of general or detailed level of construction volumes determined in Section 1 and 2 of this part, it is likely to combine the use of detailed works construction unit price and the general construction price to determine the constructional cost in the works construction estimate.

Table 3.3. AGGREGATION OF WORKS CONSTRUCTION PRICE

Name of works: ………………………………............................................................

PART OF DETAILED WORKS CONSTRUCTION UNIT PRICE

No. (Name of construction activities)

Unit:.....

CODE UNIT PRICE

CODE MATERIAL, LABOR, MACHINE

WASTE COMPONENTS

CALCULATION UNIT

VOLUME

UNIT PRICE

AMOUNT

[1]

[2]

[3]

[4]

[5]

[6]

[7]

DG.1

 

Cost of materials

 

 

 

 

V.1

 

 

 

 

 

V.2

 

 

 

 

 

...

 

 

 

 

 

 

Total

 

 

 

VL (Material)

 

Cost of labor (based on average worker grade)

work

 

 

NC (Labor)

 

Cost of constructional machines

 

 

 

 

M.1

 

shift

 

 

 

M.2

 

shift

 

 

 

….

 

 

 

 

 

 

Total

 

 

 

M (Machine)

PART OF GENERAL CONSTRUCTION PRICE

No. (Name of group of type of construction activities, structural unit and components of the works)

Unit:...

CODE OF UNIT PRICE

WORK COMPONENTS

CALCULATION UNIT

VOLUME

COST COMPONENTS

TOTAL

MATERIALS

LABOR

MACHINE

[1]

[2]

[3]

[4]

[5]

[6]

[7]

[8]

DG.1

 

 

 

 

 

 

 

DG.2

 

 

 

 

 

 

 

...

 

 

 

 

 

 

 

 

Total

 

 

VL (materials)

NC (labor)

M (machine)

 å

Note:

- The code of unit price, materials, labor, constructional machines can be written in letters, figures or combined letters and figures and consistent with the norm code announced by the competent agency.

- Where the complete general constructional cost is determined, it includes the general cost and the pre-determined taxable income.

II. METHOD OF CALCULATION BY WASTE VOLUME OF MATERIALS, LABOR, CONSTRUCTIONAL MACHINES AND EQUIPMENT AND RESPECTIVE QUOTATION

The cost of materials, labor, constructional machines and equipment in the cost of construction can be determined on the basis of total waste volume of necessary materials, labor, constructional machines and equipment and the quotation of respective materials, labor, constructional machines and equipment.

1. Determining total waste volume of materials, labor, constructional machines and equipment

The total waste volume of materials, labor, constructional machines and equipment is determined on the basis of waste of materials, labor, constructional machines and equipment for each volume of construction activities of works and works items as follows:

- Determining each volume of construction of works and works items as in Section 1.1, Part I of this Appendix.

- Determining the volume of materials, labor and constructional machines and equipment in proportion to each volume of construction based on the technical design or construction drawing design of works and works items through the waste of materials, labor and constructional machines and equipment to finish a volume unit of construction based on the regulations and standards of construction and technical norms.

- Calculating the total waste volume of each type of materials, labor and constructional machines and equipment for works and works items by aggregation of waste of all materials, labor and constructional machines and equipment that are alike of different construction activities.

When calculating, it is required to specify the amount, unit, type and specification for materials; a number of workdays for each worker grade; a number of machine shift for each type of constructional machines and equipment based on the technical parameters and code in the quotation of machine shift and works constructional equipment.

2. Determining the quotation of materials, labor, constructional machines and equipment

The price of materials, labor, constructional machines and equipment is determined on the basis of market price of place of works construction or as guided in Appendix 04 of this Circular.

- Determining the cost of materials, labor, constructional machines and equipment in the direct cost based on the total waste volume of each type of material, labor, constructional machines and equipment and the price of respective materials, labor, constructional machines and equipment as in Table 3.4 and 3.5 of this Appendix

The cost of construction calculated by the total waste volume of materials, labor, constructional machines and equipment is determined and aggregated as in Table 3.6 of this Appendix.

Table 3.4. WASTE OF MATERIALS, LABOR, CONSTRUCTIONAL MACHINES AND EQUIPMENT FOR CONSTRUCTIONAL ACTIVITIES

No.

Code

Name of work

Unit

Volume

Waste

Waste volume

Material

Labor

Machine

Material

Labor

Machine

[1]

[2]

[3]

[4]

[5]

[6]

[7]

[8]

[9]

[10]

[11]

001

DM.001

Work 1

m3

 

 

 

 

 

 

 

 

V.001

Fine sand

m3

 

 

 

 

 

 

 

 

V.002

Solid brick

Unit

 

 

 

 

 

 

 

 

 

….

 

 

 

 

 

 

 

 

 

N.001

3/7 Worker of grade 3/7

work

 

 

 

 

 

 

 

 

N.002

Worker of grade 3.5/7

work

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

M.001

80 liter mortar mixer

shift

 

 

 

 

 

 

 

 

M.002

0.8 ton lift

shift

 

 

 

 

 

 

 

 

 

...

 

 

 

 

 

 

 

 

002

DM.002

Work 2

….

 

 

 

 

 

 

 

 

Table 3.5. AGGREGATION OF COST OF MATERIAL, LABOR, CONSTRUCTIONAL MACHINES AND EQUIPMENT IN DIRECT COST

Unit: ...

No.

Code

Content

Unit

Volume

Price

Amount

[1]

[2]

[3]

[4]

[5]

[6]

[7]=[5]x[6]

I

 

Material

 

 

 

 

I.1

V.001

Fine sand

m3

 

 

 

I.2

V.002

Solid brick

unit

 

 

 

 

 

 

 

 

 

Total

 

 

 

VL Material

II

 

Labor

 

 

 

 

II.1

N.001

Worker of grade 3/7

work

 

 

 

II.2

N.002

Worker of grade 3.5/7

work

 

 

 

 

 

 

 

 

 

Total

 

 

 

NC Labor

III

 

Constructional machines

 

 

 

 

III.1

M.001

80 liter mortar mixer

shift

 

 

 

III.2

M.002

0.8 ton lift

shift

 

 

 

 

 

 

 

 

 

Total

 

 

 

M Machine

Note:

The demand for materials, labor, constructional machines and equipment (column 5) is aggregated from the identical waste of materials, labor, constructional machines and equipment of all constructional activities of works and works items (column 9, 10, 11 in Table 3.4 of this Appendix).

Table 3.6. AGGREGATION OF CONSTRUCTIONAL COST CALCULATED BY THE WASTE VOLUME OF MATERIALS, LABOR, CONSTRUCTIONAL MACHINES AND EQUIPMENT AND RESPECTIVE QUOTATION

NO.

CONTENT OF COST

METHOD OF CALCULATION

VALUE

SYMBOL

I

DIRECT COST

 

 

 

1

Cost of materials

Taken from Table 3.5

 

VL

2

Cost of labor

Taken from Table 3.5

 

NC

3

Cost of constructional machines and equipment

Taken from Table 3.5

 

M

 

Direct cost

material + labor +machine

 

T

II

GENERAL COSTS

T x percentage

 

C

III

PRE-DETERMINED TAXABLE INCOME

(T+C) x percentage

 

TL

 

Cost of construction before tax

(T+C+TL)

 

G

IV

VALUE ADDED TAX

G x TGTGT-XD

 

VAT

 

Cost of construction after tax

G + VAT

 

GXD

 

TABLE MAKER
(Signature, full name)

PERSON IN CHARGE
(Signature, full name)
Certificate of practice of construction valuation grade…., No….

In which:

- The norm of general cost percentage is specified in Table 3.7 and 3.8 of this Appendix;

- Norm of pre-determined taxable income is specified in Table 3.9 of this Appendix;

- G: Cost of construction of works and works items before tax;

- TGTGT-XD: tax rate of value added tax specified for the constructional activities;

- GXD: cost of construction of works and works items after tax.

- The general cost is determined by the percentage norm (%) of general cost multiplied by the direct cost in the construction. The percentage norm (%) of general cost is determined by the cost of construction before tax in in the total construction investment of project approved in accordance with the instructions in Table 3.7

Table 3.7. NORM OF GENERAL COST PERCENTAGE  (%)

Unit: %

No.

Type of works under project

Cost of construction before tax in the total construction investment of the approved project

15

100

500

1000

>1000

[1]

[2]

[3]

[4]

[5]

[6]

[7]

1

Civil works

6,5

6,0

5,6

5,4

5,2

 

As for works renovating or restoring the historical and cultural monvoluments

10,0

9,0

8,6

8,4

8,2

2

Industrial works

5,5

5,0

4,6

4,4

4,2

 

As for construction works of hydropower tunnel, pit

6,5

6,3

6,0

5,8

5,7

3

Traffic works

5,5

5,0

4,6

4,4

4,2

 

As for works of traffic tunnel

6,5

6,3

6,0

5,8

5,7

4

Agricultural and rural development works

5,5

5,0

4,6

4,4

4,2

5

Technical infrastructure works

5,0

5,0

4,1

3,9

3,7

Note:

- Where the scale of cost of construction before tax is within the scale of cost specified in Table 3.7, the norm of general cost percentage (Kc) is determined by the interpolation method using the following formula:

         (3.2)

In which:

+ Gt: cost of struction before tax in the approved total investment;

+ Ga: upper value of cost of construction of the value whose norm needs to be calculated;

+ Gb: lower value of cost of construction of the value whose norm needs to be calculated;

+ Ka: norm of general cost percentage in proportion to Ga;

+ Kb: norm of general cost percentage in proportion to Gb.

- Where the construction investment project has many types of works, the norm of general cost percentage (%) in the works estimate is determined by the type of works in proportion to the cost of construction before tax in the approved total construction investment of project.

- Where the works construction contractor must exploit and produce the materials of soil, stone, sand and gravel for works construction, the general cost calculated in the estimate to determine the price of material is equal to the percentage of 2.5% over the cost of labor and constructional machines.

- The general cost is determined by the norm of percentage (%) of general cost multiplied by the cost of labor in the construction estimate of type of constructional activities and installation of work according to the instruction in Table 3.8.

Table 3.8. NORM OF GENERAL COST OVER COST OF LABOR

Unit: %

No.

Type of work

Cost of labor in the direct cost (billion dong)

15

100

>100

[1]

[2]

[3]

[4]

[5]

1

Maintenance and repair of roadway, railway, inland waterway, maritime signal system and inland waterway

66

60

56

2

Digging and leveling of soil for agricultural and rural development works is done totally manually

51

45

42

3

Installation of technological equipment in construction works, building and installation of line, testing and calibration, electricity line and substation, testing of materials, structure and constructional structure.

65

59

55

Note:

- Where the scale of cost of labor in the direct cost is within the range of cost specified in Table 3.8, the norm of general cost percentage calculated over the cost of labor is determined by the interpolation method using the formula (3.2 ) mentioned above.

- For construction works in mountainous areas, border areas, at sea and on islands, the norm of general cost percentage specified in Table 3.7 and 3.8 is modified with the coefficient from 1.05 to 1.1 depending on the specific conditions of works.

Table 3.9. NORM OF PRE-DETERMINED TAXABLE INCOME

Unit: %

NO.

TYPE OF WORKS

PRE-DETERMINED TAXABLE INCOME

[1]

[2]

[3]

1

Civil works

5,5

2

Industrial works

6,0

3

Traffic works

6,0

4

Agricultural and rural development works

5,5

5

Technical infrastructure works

5,5

6

Installation of technological equipment in construction works, building and installation of line, testing and calibration, electricity line and substation, testing of materials, structure and constructional structure.

 

6,0

- The predetermined taxable income is calculated by the percentage (%) over the dicrect cost and general cost in the constructional cost estimate.

- For construction works having many works items, such works items have separate utility and are applied with the percentage of predetermined taxable income by appropriate works.

- Where the works construction contractor must exploit and produce the materials of soil, stone, sand and gravel for works construction, the predetermined taxable income calculatd in the estimate to determine the price of material is equal to the percentage of 3% over the direct cost and the general cost.

Where the project requires the report on economical - technical construction investment, the norm of general cost percentage and the predetermined taxable income are determined by the prescribed percentage in column [3] under the instructions in Table 3.7, 3.8 and 3.0 of this Circular.

For the security and national defense works, depending on the type of respective works, apply the norm of general cost percentage and the predetermined taxable income specified in Table 3.7, 3.8 and 3.9 of this Appendix accordingly.

 

APPENDIX 4

METHOD OF DETERMINING THE PRICE OF WORKS CONSTRUCTION
(Issued with the Circular No. 06/2016/TT-BXD dated 10/3/2016 of the Ministry of Construction)

The price of works construction includes the detailed construction unit price of works and the general construction price.

The detailed construction unit price of works is the economic – technical indicator, including all necessary direct cost on materials, labor and constructional machines to finish one volume unit of construction.

The general construction price is the economic – technical indicator, including all necessary direct cost to finish one unit of group of type of constructional activities, structural unit and component unit of works.

The construction unit price is determined based on the market price or determined from the norm of works construction estimate.

I. METHOD OF DETERMINING THE DETAILED WORKS CONSTRUCTION UNIT PRICE

1. Grounds for determining the detailed works construction unit price

- List of constructional activities of works which need the unit price;

- Norm of construction estimate under the List in need of unit price;

- Cost of materials (excluding VAT) transported to the constructional site;

- Cost of works construction labor;

- Cost of machine shift and works constructional equipment

2. Determining the incomplete detailed works construction unit price

2.1. Determining the cost of material (VL)

The cost of material is determined by the following formula:

           (4.1)

In which:

- Vi: volume of ith material (i=n) calculated for one volume unit of construction;

- : price of one unit of ith material (i=n) determined must be consistent with the technical standards, the prescribed quality of material, requirements for material use of works taking into account the construction site. The price of one unit of ith constructional material is determined as per the announcement of price of constructional material of locality in line with the time of unit price preparation and the market price at the place of works construction.

Where the price of constructional materials as announced by locality is not consistent with the market price level at the place of works construction and the constructional materials not included in the announcement of price of constructional materials of the localities, the price of these constructional materials is determined on the basis of selecting the consistent price between the quotations of the manufacturer or the provider of constructional materials (except for the equipment introduced for the first time and being unique on the market) to ensure the satisfaction of demand for use of materials of works on progress, supply volume, quality standards and technical specification of materials or price reference of types of constructional materials with similar standards and quality which were and are being used in other works.

For the constructional materials which the domestic market does not have and must import them, the price of these materials is determined on the basis of selecting the lowest price between the quotations of the manufacturer or the provider of constructional materials in line with the quality standards and origin of goods.

For the works using the ODA, in case of determining the price of types of material which the domestic market has but must import them in accordance with the provisions in the loan agreement of the donor, the price of imported materials is determined by the import quotation in line with the quality standards, origin of goods and the price level in the region.

Where the price of material has not taken into account the constructional site, the price of material transported to the construction site is determined under the instructions in Section 2.4 of this Appendix.

- Kvl: cost calculation coefficient of other materials (if any) compared with total costs of main materials determined in the norm of works construction estimate.

2.2. Determining the cost of labor (NC)

The cost of labor is determined by the following formula:

NC = N x Gnc     (4.2)

In which:

- N: waste volume of labor calculated by the workday of direct production based on the worker’s average grade for one volume unit of construction;

- Gnc: unit price of labor of workers directly performing the construction is determined under the instructions of the Ministry of Construction and the provincial People’s Committee.

2.3. Determining the cost of constructional machines (MTC)

The cost of constructional machines is determined by the following formula:

  (4.3)

In which:

- Mi: waste volume of machine shift of type of ith main constructional machines and equipment (i=n) calculated for one volume unit of construction;

- Gimtc: price of machine shift of ith main constructional machines and equipment (i=n) based on the quotation of constructional machines shift and equipment of works or price of machine leasing determined in the Appendix 06 of this Circular.

- Kmtc: cost calculation coefficient of other machine (if any) compared with the total cost of main constructional machines and equipment determined in the norm of works construction estimate.

2.4. Method of determining the cost of materials transported to the construction site (Gvl)

The price of materials transported to the construction site is determined by the following formula:

Gvl = Gng + Cv/c + Cbx + Cvcnb + Chh         (4.4)

In which:

- Gng: price of materials at the supply source (price of material on means of transportation);

- Cv/c: cost of transportation to the works;

- Cbx: cost of loading and unloading (if any);

- Cvcnb: cost of transportation within the works (if any).

- Chh: cost of loss from storage at the construction site (if any);

The table of price calculation of material transported to the construction site is aggregated under the instructions in Table 4.1 in which the cost of material transportation to the construction site is determined on the basis of transportation plan (distance, transport road grade, type, load of means of transportation) in line with the conditions for works construction.

A number of types of constructional material are purchased with large amount but the producer or provider does not calculate (the discount) the cost of transport. Therefore, the cost of transport shall not be included in the price of materials transported to the construction site.

Table 4.1. TABLE OF PRICE CALCULATION OF MATERIAL TRANSPORTED TO THE CONSTRUCTION SITE

No.

Type of material

Calculation unit

Price of materials transported to the constructional site

Cost of transport within the works (if any)

Cost of loss from storage at the construction site (if any);

Price of materials transported to construction site

Price of materials at the supply source

Cost of transportation to construction site

Cost of loading and unloading (if any)

[1]

[2]

[3]

[4]

[5]

[6]

[7]

[8]

[9] = [4]+[5]+[6]+[7]+[8]

1

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3. Determining the complete detailed construction unit price of works

- The direct costs include the cost of material, labor and constructional machines of the complete detailed construction unit price of works determined under the instructions in Appendix 2, Part I of this Circular.

- The general cost is calculated by the percentage (%) over the direct cost or by the percentage (%) over the cost of labor in the detailed construction unit price of works. The norm of general cost percentage is under the instructions in Table 3.7 and 3.8, Appendix 03 of this Circular.

- The pre-determined taxable income is calculated by the percentage (%) over the direct cost and the general cost in the detailed construction unit price of works. The  pre-determined taxable income is under the instructions in Table 3.9, Appendix 03 of this Circular.

II. Method of determining the general constructional cost of works

1. Grounds for determining the general constructional cost

- The List of group of types of constructional activities, structural unit and components of works;

- The works construction unit price corresponds to the group of types of constructional activities, structural unit and components of works;

2. Determining the incomplete general construction price

The order to determine the incomplete general construction price is as follows:

- Step 1. Determining the group of types of construction and installation activities, structural unit and components of works that need the preparation of general construction price, some essential technical indicators, calculation unit, content and component of work.

- Calculating the volume of construction and installation (q) of each constructional activity forming the general constructional cost.

- Step 3. Determining the cost of materials (VLi), labor (NCi), constructional machines (Mi) corresponding to the construction volume (q) calculated from the design dossier of each type of construction and installation activities forming the general constructional cost by the formula:

VLi = q x vl; NCi = q x nc; Mi = q x m     (4.8)

- Step 4. Aggregating the result by each cost item in the general construction price by the following formula:

        (4.9)

In which:

- VLi, NCi, Mi: are the cost of materials, labor and constructional machines of ith construction activities (i=1÷n) formed in the general construction price.

3. Determining the complete general construction price

- The direct cost includes the cost of materials, labor and constructional machines of the complete general construction price determined under the instructions in Section 2, Part II of this Circular.

- The general cost is calculated by the percentage (%) over the direct cost or by the percentage (%) over the cost of labor in the general constructional cost. The norm of general cost percentage is under the instructions in Table 3.7 and 3.8, Appendix 03 of this Circular.

- The pre-determined taxable income is calculated by the percentage (%) over the direct cost and the general cost in the general construction price. The pre-determined taxable income is under the instructions in Table 3.9, Appendix 03 of this Circular.

APPENDIX 5

METHOD OF DETERMING THE NORM OF WORKS CONSTRUCTION ESTIMATE
(Issued with Circular No. 06/2016/TT-BXD dated 10/3/2016 of the Ministry of Construction)

I. DETERMINING THE NORM OF CONSTRUCTION ESTIMATE OF NEW WORKS
The norm of new construction estimate of works is determined in the following order:

Step 1. Making the List of construction activities or new structure of works not included in the announced List of estimate norm

The List of construction activities or new structure ensure the requirements for clear expression of volume calculation unit and technical requirements, conditions and essential method of construction of constructional activities or constructional structure.

Step 2. Determining the work components

The work components represent the steps of work to be performed of each phase based on the design of organization of performance technology line from the preparation to the completion, in line with the condition and measures of performance and range of work performance of constructional activities or constructional structure.

Step 3. Calculating the waste of materials, labor and constructional machines

1. Calculating the waste of materials

1.1. Determining the waste components of materials

The waste components of materials are the materials determined by the design requirements, regulations and standards of construction, technical norms of prescribed design – performance  - acceptance and other materials to finish one volume unit of constructional work or constructional structure. The waste components of materials include:

1.1.1. Main materials are the basic materials forming a product unit by the design and have large proportion in material cost.

- The calculation unit is determined in accordance with the regulations in the system of common measurement unit or in kind.

1.1.2. Other materials are the materials forming a product unit by the design and have smaller proportion in material cost.

- The calculation unit is determined by the percentage (%) compared with the cost of main materials in the material cost.

1.2. Calculating the material waste

The material waste is the necessary waste by the design requirements to finish one volume unit constructional activities or constructional structure.

1.2.1. The formula used to calculate the main material waste is as follows:

a) Non-circulating materials

VL1 = QV x (1 + Ht/c)        (5.1)

In which:

- QV: waste of necessary material by design requirement over the norm calculation unit.

- Ht/c: percentage of material loss in construction under the instructions in the announced material use norm. For the new materials, the percentage of material loss in construction can be applied by the announced material use norm; by the manufacturer’s standards and instructions; by the actual loss or by expert experience.

b) Circulating materials

The material waste for the construction based on the performance measure design is determined by the performance techniques and a number of circulation by the material use norm announced or calculated in case of not included in the material use norm.

Calculation formula:

VL2 = QVLC x (1 + Ht/c) x KLC         (5.2)

In which:

- QVLC: circulating material waste volume

- Ht/c: determined as in formula (5.1).

- KLC: material compensation coefficient upon circulation is determined by the material use norm announced by the Ministry of Construction.

+ For the materials with the times of circulation and loss compensation percentage different from the regulations in the announced material use norm, the coefficient KLC is determined by the following formula:

       (5.3)

In which:

h: loss compensation percentage from the 2nd time onwards, in case of no loss compensation, h = 0.

n: number of uses of circulating materials

1.2.2. Determining the other material waste

For the other materials normalized by the percentage (%) compared with the total costs of main materials which are quantified in the construction estimate norm and determined by the type of work, the data of expert experience or the estimate norm of similar works should be referred to.

2. Calculating the labor waste

The labor waste is determined by the direct number and average worker grade (excluding the workers operating the constructional machines and equipment) for completion of work volume unit or constructional structure by one or many cycles.

The labor waste is calculated by the following method:

2.1. Performance organization technology line

The labor waste for one work volume unit or constructional structure is determined by the labor organization in the technology line in line with the conditions and measures of works construction.

The formula used to determine the labor waste is:

            (5.4)

In which:

- NC: labor waste for one work volume unit or constructional structure

- TNC: number of workdays for completion of work volume unit or constructional structure

- Q: volume of work or constructional structure to be performed

- K: coefficient converted to the constructon estimate norm. This coefficient depends on the group of work (simple or complex based on the performance organization technology line), technical requirements, performance conditions, continuous or interrupting working cycle, volume of work continuously performed. K = 1,05÷1,3 determined by the expert experience.

2.2. Based on the statistical data of works which were or are being performed with similar conditions and measures of construction.

The labor waste for one work volume unit or constructional structure is determined on the basis of calculation of analysis of statistic and general data.

The labor waste is determined by the formula (5.4)

2.3. Based on the actual survey data

The labor waste for one work volume unit or constructional structure is calculated on the basis of number of workers of each phase in the production line and the total number of workers in the entire line based on the actual survey data of works (by the time, location and volume performed in one or many cycles…) and reference to the regulations on worker employment.

The formula is used to calculate the labor waste:

NC = å (tgđm x K) x Ktgn (5.5)

- tgđm: is the direct labor waste from the preparation to the end of work of each phase or performance technology line for one specific work volume unit or constructional structure (workhour).

- K: is determined by formula (5.4).

- Ktgn = 1/8: conversion coefficient from workhour norm to workday norm

2.4. Phương pháp kết hợp Combination method

Based on the specific conditions, the 03 methods mentioned above can be combined to determine the labor waste for the work or constructional structure not included in the announced construction estimate norm system.

3. Calculating the waste of constructional machines

3.1. Determining the waste components of constructional machines

The waste components of constructional machines are the constructional machines and equipment determined by the performance organization to finish one work volume unit or constructional structure. The waste components of constructional machines include:

3.1.1. Main constructional machines are the constructional machines with a large proportion of cost in the cost of constructional machines over one work volume unit or constructional structure;

3.1.2. Other machines are the constructional machines with a small proportion of cost in the cost of constructional machines over one work volume unit or constructional structure;

- The calculation unit is determined by the percentage (%) compared with the total costs of constructional machines and equipment in the cost of construction of constructional machines and equipment.

3.2. Determining the waste of constructional machines and equipment

The waste of constructional machines and equipment is the necessary waste volume as required by the performance organization technology line to finish one work volume unit or constructional structure.

Calculating the waste of main constructional machine

The general formula used to determine the waste of main constructional machine is as follows:

     (5.6)

In which:

- K: conversion coefficient to the norm of construction estimate. This coefficient depends on the group of work (simple or complex as per the performance organization technology line), technical requirements, performance conditions, continuous or interrupting working cycle, volume of work continuously performed. K = 1,05÷1,3 determined by the expert experience.

- Kcs: power use coefficient is the coefficient which reflects the effective use of productivity of machine complex in the combined line. This coefficient is calculated by the productivity of constructional machine of working steps with the appropriate adjustment when the type of machine with smallest productivity Kcs 1 is used.

- QCM: norm of constructional machine productivity in a shift.

The norm of constructional machine productivity is determined by the following method:

3.2.1. Based on the performance organization technology line

The norm of constructional machine productivity is determined by the technical parameters of each machine in the performance organization technology line or reference to the constructional machine productivity in machine manuals or is determined by the following formula:

QCM = NLT x Kt   (5.7)

In which:

- NLT: theoretical productivity in a shift

- Kt: time use coefficient in a work shift of constructional machine.

3.2.2. Based on the statistical data of works which were and are being implemented with similar construction conditions and measures

The norm of constructional machine productivity is determined based on the analysis of statistic data or aggregative data from works for one calculation unit to complete one volume unit constructional activities or constructional structure by many cycles of the similar performance organization technology line and is determined by the following formula:

         (5.8)

In which:

- mTK: volume of constructional activities or constructional structure to be done based on the statistic data or aggregative data;

- tCM: time to finish the volume of constructional activities or constructional structure based on the statistic data or aggregative data (machine hour).

- Ktgm = 1/8: conversion coefficient from machine hour norm to machine shift norm.

3.2.3. Based on the actual survey data

The norm of constructional machine productivity is calculated based on the survey data (time, location, volume done in many cycles…) of each type of machine or reference to the regulations on technical productivity of machine and regulations on use of constructional machine and is determined by the following formula:

         (5.9)

In which:

- mKS: volume unit constructional activities or constructional structure to be done based on the actual survey data.

- tCM: time to finish the volume of constructional activities or constructional structure based on the actual survey data (machine hour).

- Ktgm = 1/8: conversion coefficient from machine hour norm to machine shift norm.

3.2.4. Combination method

Based on the specific conditions, the 03 methods mentioned above can be combined to determine the waste of constructional machine for work or constructional structure not included in the not included in the announced construction estimate norm system.

Determining the waste of other constructional machine and equipment

For the other constructional machine and equipment which are normalized by the percentage (%) compared with the total costs of main machines quantified in the construction norm and are determined by the type of work based on expert experience or estimate norm of similar works.

Step 4. Formulation of norms based on the aggregation of waste of materials, labor and constructional machine

Aggregating the norms based on the aggregation of waste items of materials, labor and constructional machine.

Each norm consists of 02 parts:

1. Work components: Giving clear and full contents of working steps in order from the preparation to the completion of work or constructional structure, including the specific constructional conditions and measures.

2. Table of norms of waste items: Describing name, type and specification of main material in work or constructional structure and other materials; average constructional worker grade; name, power of main machine and equipment and other machine and equipment in the performance technology line to finish work or constructional structure.

In the norm table, the waste of main material is calculated by the kind and the other materials are calculated by the percentage (%) compared with the cost of main materials; the waste of labor is calculated by the workday by the average constructional worker grade; the waste of constructional machine and equipment is calculated by the number of machine shift; other machines are calculated by the percentage (%) compared with the cost of main constructional machine and equipment.

The new norms of construction is aggregated by group or type of work or constructional structure and are consistently coded.

II. DETERMINING THE NORM OF MODIFIED WORKS CONSTRUCTION ESTIMATE

When using the norm of estimate announced or norm of estimate of similar works but because the performance conditions or measures or technical requirements of works or all these three methods have one or some parameters which are not consistent with the regulations in the norm of estimate announced or norm of estimate of similar works, the components of waste of materials, labor and constructional machine are adjusted to be in line with the works by the following steps:

Step 1. Making the List of estimate norm to be adjusted

Step 2. Analyzing and comparing the technical requirements, specific construction conditions and measures with the contents in the announced estimate norm

Step 3. Adjusting the waste of materials, labor and constructional machine

1. Adjusting the waste of materials

- For the materials forming the products as required by the design, the calculation of adjustment is based on the regulation and standard of design.

- For the materials used for construction, the component factors in the announced estimate norm, the estimate norm of similar works as calculated from the design of construction measures or by experience of experts or professional organizations.

2. Adjusting the labor waste

The adjustment of components and waste of labor is based on the conditions for works construction or by experience of experts or professional organizations.

3. Adjusting the waste of constructional machine

In case of change of line of constructional machine and equipment as per the organization conditions of works different from the regulations in the announced estimate norm, the estimate norm of similar works, the adjustment of waste based on the conditions for works construction or by experience of experts or professional organizations

 

APPENDIX 6

METHOD OF DETERMINING THE PRICE OF MACHINE SHIFT AND CONSTRUCTIONAL EQUIPMENT
(Issued with Circular No. 06/2016/TT-BXD dated 10/3/2016 of the Ministry of Construction)

I. CONTENT OF COST IN THE PRICE OF MACHINE SHIFT AND CONSTRUCTIONAL EQUIPMENT

The price of constructional machine and equipment (hereafter referred to as the price of machine shift) is the average cost for one working shift in accordance with the regulation of constructional machine and equipment.

The price of machine shift includes all or some cost items like cost of depreciation, repair, fuel, energy, controlling labor and other costs of machine.

The price of machine is determined by the formula:

CCM = CKH + CSC + CNL + CNC + CCPK (dong/shift) (6.1)

In which:

- CCM: price of machine shift (dong/shift)

- CKH: cost of depreciation (dong/shift)

- CSC: cost of repair (dong/shift)

- CNL: cost of energy and fuel (dong/shift)

- CNC: cost of controlling labor (dong/shift)

- CCPK: other costs (dong/shift)

II. DETERMINING THE CONTENTS OF COST IN THE PRICE OF MACHINE SHIFT

1. Determining the cost of depreciation

During the use of machines, they are worn out and their value of use and value due to participation in the business and production and natural depreciation.

The depreciation of machine is the calculation and systemic allocation of prime cost of machine into the cost of production and busness during the time of depreciation of machine to recover the machine investment capital. The machine depreciation is calculated in the price of machine shift.

The cost of depreciation in the price of machine shift is determined by the formula:

              (6.2)

In which:

- CKH: cost of depreciation in the price of machine shift (dong/shift)

- G: prime cost of machine before tax (dong)

- GTH: recovery value (dong)

- ĐKH: depreciation norms of machine (% / year)

- NCA: number of working shifts of machine in a year (shift/year)

* Determining the prime cost of machine

+ The prime cost of machine to calculate the price of works machine shift is determined on the principle of consistency with the machine price level on the market of the type of machine used for works construction.

+ The prime cost of machine is all costs invested to buy the machine by the time of putting the machine into the state of availability including the machine buying price (excluding the cost of materials and accompanied spare parts), import tax (if any), cost of transport, loading and unloading, storage, installation (first time at one construction site), technology transfer (if any), trial running and other proper costs directly related to the machine investment.

+ The prime cost to calculate the price of works machine shift is determined by the provider’s quotation, under machine sale contract and other relevant cost to put the machine into the state of availability or reference to the prime cost from similar works which were and are being implemented the principle of consistency with the machine price level on the market at the time to calculate the price of machine shift.

+ The prime cost of machine does not include the costs as stipulated in Clause 2, Article 26 of this Circular and the costs such as the cost of installation, dismantlement of mortar or asphalt mixing plant, overhead crane, tower crane and some other similar constructional machines and equipment from the second time onwards. These costs are determined by making the estimate and are included in the cost of general items in the works construction estimate and construction package estimate.

* The recovery value is the value of remaining part of machine after disposal. The recovery value is calculated as follows:

+ For the machine with the prime cost from 30,000,000 dong (thirty million dong) or more, the recovery machine is equal to 10% of the prime cost;

+ The recovery machine of the machine with the prime cost of less than 30,000,000 dong (thirty million dong) is not calculated.

* Determining the number of working shifts of machine in a year.

The number of working shifts of machine in a year is determined as follows:

+ Collection and aggregation of statistical data on the actual time of machine use;

+ Processing of collected statistical data on the time of machine use, determination of number of working shift in a year of machine based on the processed statistical data.

+ Addition of factors affecting the number of working shift of machine in a year based on the specific conditions of works;

+ Determination of number of working shift of machine in a year based on the specific conditions of works;

During the time to determine the number of working shift of machine in a year based on the processed statistic data, the number of working shift of similar machines announced by the Ministry of Construction can be referred.

The data dossier on the time of machine use includes: site diary, periodical report on the time of machine use, the technical regulations and requirements on time of maintenance, machine repair and statistic data on weather affecting the working time of machine,….

The depreciation norm of machine is determined on the basis:

- Instructions of the Ministry of Finance on regime of management, use and depreciation of fixed assets;

- The depreciation norm of similar machines is announced by the Ministry of Construction;

- The depreciation of machines during the time of use is based on the specific conditions of works.

2. Determining the cost of repair

The cost of machine repair is the costs of regular and irregular maintenance and repair of machine during the time of their use in order to maintain and restore the standard operation capacity of machine.

The cost of repair in the price of machine shift is determined by the formula:

(6.3)

In which:

- CSC: cost of repair in the price of machine shift (dong/shift)

- ĐSC: norm of machine repair (% year)

- G: prime cost of machine before tax (dong)

- NCA: number working shift of machine in a year (shift/year)

The norm of repair for a year of machine use is determined on the basis of regulation on technical maintenance, periodical repair, machine operation procedure, machine quality, conditions for machine use and price level of machine maintenance and repair on the market.

The norm of machine repair is determined on the basis:

- Estimation of total costs of maintenance and repair of machines in proportion to the total norm machine shifts in the machine lifetime;

- Conversion of total cost of maintenance and repair of machine to the percentage (%) compared with the prime cost of machine;

- Regular allocation of percentage of cost of repair of machines based on the number of year of machine lifetime.

- Repair norm of similar machines is announced by the Ministry of Construction;

In the cost of machine repair, the cost of replacement of spare parts of the working components of machine having great value but their depreciation depends mainly on the nature of working objects.

3. Determining the cost of fuel and energy

The fuel and energy for one working shift of machine is gasoline, oil, power, gas or compressed air that are consvolumed in the working time of machine to create the motive force for the operation of machine called as main fuel.

The types of lubricants, transmission oil, ... called as auxiliary fuel in a working shift of machine are determined by the coefficient compared with the cost of the main fuel.

The cost of fuel and energy in the price of machine shift is determined by the formula:

           (6.4)

In which:

- CNL: cost of fuel and energy in the price of machine shift (dong/shift).

- ĐNL: norm of consumption of fuel and energy of ith type of the working time of machine in a shift.

- GNL: price of fuel of ith type

- Kp: coefficient of price of auxiliary fuel of ith type

- n: number of types of fuel used in a machine shift.

The norm of consumption of fuel and energy in the working shift of machine is determined on the principle of consistence with the actual working time of machine in a shift, consumption of fuel and energy of machine and the specific condtions of works or similar machine announced by the Ministry of Construction;

The coefficient of cost of auxiliary fuel for one working shift of machine is valued depending on each type of machine and specific conditions of works. The coefficient of cost of auxiliary fuel is valued within the range as follows:

- Gas engine: 1.01 – 1.03

- Diesel engine: 1.02 – 1.05

- Electric engine: 1.03 – 1.07

In case of determining the price of machine shift of types of machine to perform some activities (survey, testing and others) but the cost of fuel and energy was included in the cost of materials in the unit price, it shall not be included in the price of machine shift.

The norm of consumption of main fuel of types of machine used for work with the actual working time (number of hours) of machine in different shifts, the norm of consumption of fuel should be developed on the principle of consistence with the number of actual working hours of machine in a shift of each type of work.

4. Determining the cost of controlling labor

The cost of controlling labor in a working shift of machine is determined based on the regulation on number, component, group, machine controlling worker grade in line with the machine operation procedure and regulations on labor unit price in management of cost of construction investment as guided by the Ministry of Construction and the provincial People’s Committee.

The cost of controlling labor in the price of machine shift is determined by the following formula:

          (6.5)

In which:

- N: number of worker as per controlling grade of machine of ith type in one machine shift.

- CTL: workday unit price of worker’s controlling grade of machine of ith type

- n: number and type of worker controlling machine in 01 machine shift.

number, component, group and machine controlling worker grade determned by the similar type of machine announced by the Ministry of Construction;

In case of determining the price of machine shift of types of machine to perform some work (such as survey, testing and others) but the cost of machine controlling labor was included in the cost of labor in the unit price, the cost of controlling labor in the price of machine shift shall not be calculated.

5. Determing the other costs

The other costs in the price of machine shift are the necessary costs to ensure the machine operates normally and effectively at the construction site, including the insurance of machine and equipment during the time of use, storage and service for the technical maintenance in machine storage, register, movement of machine within the construction site and other relevant costs directly related to the management and use of machine at the construction site not included in the other cost in the price of works construction and construction estimate.

The other costs in the price of machine shift is determined by the formula:

    (6.6)

In which:

- CK: other costs in the price of machine cost (dong/shift)

- GK: norm of other costs of machine (% year)

- G: prime cost of machine before tax (dong)

- NCA: number of working shifts in a year (shift/year).

The norm of other costs of machine is determined on the basis:

- Aggregation of costs of machine management based on the documents actually collected of the types of machine to be calculated.

- Review to remove the improper expenditures and addition of necessary expenditures but not implemented due to the characteristics of the time of generated data in the documents;

- Allocation of costs for each machine and type of machine.

- Conversion of value of these costs by the percentage % compared with the depreciation price of machine.

- Allocation of cost of machine management to the number of years of machine lifetime

- Norm of other costs of similar types of machine is announced by the Ministry of Construction;

The norm of other costs of machine is determined on the principle of consistence with each type of machine, size of machine and conditions for operation and use of respective machine corresponding to the specific condtions of works.

6. Determining the price of stand-by machine shift

The price of stand-by machine shift is the price of types of machine mobilized to the site for construction performance but there is no work for them to work but not due to the contractor’s faults.

The price of stand-by machine shift includes the cost of depreciation (50% of cost of depreciation), cost of controlling labor (50% of cost of controlling labor) and other costs of machine.

 

APPENDIX 7

METHOD OF DETERMINING THE CONSTRUCTION PRICE INDEX
(Issued with Circular No. 06/2016/TT-BXD dated 10/3/2016 of the Ministry of Construction)

I. ORDER TO DETERMINE THE CONSTRUCTION PRICE INDEX

The determination of the construction price index is done by the following steps:

Step 1. Determining the time of calculation

1. The time of calculation is chosen to calculate the construction price index for announcement of:

a) The original time which is determined by the current announcement of the provinces and centrally-run cities and is stable within 05 years.

b) The time of comparison which is the announced months, quarters and years compared with the original time.

c) When the original time changes, the announced years need to be re-calculated ( by year) compared with the new original time (at least 01 year before the new original time).

2. In case of determining the construction price index for the specific works, the investor must, based on the progress and conditions for work implementation, choose the original time and the comparison time accordingly.

Step 2. Making the list of works and selecting the input cost factors

a) The selection of number and list of works as per the type of works for announcement is based on the management requirements, the regulations on management of project, management of cost of works construction investment and regulation on classification and grade of works.

b) When determining the construction price index for type of works, the list of representative works for such type of works. The number of representative works for the type of works determined depends on the specific conditions of each locality but must not be less than 03 works.

c) Where the construction price index is determined for a specific works, such works shall be the representative works.

d) The representative input cost factors are the costs of type of materials, labor, constructional machine mainly for works or type of works. The selection of of materials, labor, constructional machine mainly for calculating the construction price index determned on the principle of cost for such main materials, labor, constructional machine must occupy the large proportion (over 80%) in the cost of respective materials, labor, constructional machine of the works.

Step 3. Collecting and processing the calculation data

a) Requirements for collecting data to determine the cost structure:

- The data of cost of works construction investment such as the total investment, works construction estimate, finalization of completed works investment capital (if any) have been approved including the details of cost items;

- The regulations and policies on management of cost of works construction investment, use of materials, labor, constructional machine and equipment and other relevant costs at the time of calculation.

b) Requirements for information on market price of input factors:

- The price of constructional materials is determined under the instructions at Point 2.1, Section 2, Part I, Appendix No.04 of this Circular. The list of materials included to calculate the construction price index must be uniform in type and specification and origin.

- The price of construction labor is determined under the instructions at Point 2.2, Section 2, Part I, Appendix No.04 of this Circular.

- The price of constructional machine shift is determined at Point 2.1, Section 2, Part I, Appendix No.04 of this Circular. The list of constructional machine and equipment used to calculate the construction price index must be uniform in type and specification and origin.

c) Processing of calculation data of construction price index:

- For data used to determine the structure of cost:

+ The processing of collected data includes the review, verification and re-modification of data and cost estimate structure. The data of cost estimate structure must be converted on the basis of estimate specified at the original time.

+ The data of total investment, works construction estimate, finalization of completed works investment capital (if any) must be converted to the cost level at the original time.

- For the information on the price of input factors: the collected data on the price of input factors must be verified, reviewed, modified, particularly:

+ Price of types of input constructional materials is verified for the consistent type, specification and label.

+ Price of types of input labor is verified for the consistent worker grade of work implementation.

+ Price of machine price of types of input constructional machine and equipment is verified for the consistent type, power and origin.

Step 4. Determining the construction price index

4.1. Determining the construction price index based on the cost factors

4.1.1. The price index of works constructional material (KVL) is determined by the total products of cost proportion of each type of main material multiplied by the price index of type of such respective material. The price index of works constructional material at the time of comparison is as follows:

         (7.1)

In which:

- Pvlj: proportion of average cost of jth type of main constructional material in the total cost of types of main constructional material of the representative works;

- KVLj: price index of jth type of constructional material;

- m: number of types of main constructional material

Proportion of average cost (Pvlj) of the jth type of main constructional material in the total costs of main materials is equal to the average of cost proportions of jth types of main constructional material of the representative works.

The total of proportions in the cost of main constructional material is equal to 01.

The cost proportion of each jth type of main constructional material of each representative works is calculated by the ratio between the cost of jth types of main constructional material compared with the total costs of main materials in the direct cost of such representative works and is determined as follows:

     (7.2)

In which:

- : cost proportion of jth types of main constructional material of ith representative works;

- : cost of jth types of main constructional material of ith representative works;

The prescribed types of of main constructional material include: cement, constructional sand, stone, wood, brick, tile, steel, covering materials, electric materials, water materials, asphalt and completion materials.

Depending on the specific features and nature of each constructional works, the type of main constructional material can be added for consistent calculation.

Price index of type of constructional material (KVLj) is calculated by the average price indexes of types of constructional material included in such group of material.

The price index of each type of constructional material in the group is determined by the ratio between the average price transported to the construction site of such type of constructional material at the time of comparison compared with the original time.

4.1.2. Price index of works construction labor (KNC) is determined by the average price index of works construction labor of main worker grades of works or type of works.

Depending on the specific features and nature of each constructional works, the type of main worker grades can be selected for calculating the price index of works construction labor accordingly.

Price of construction labor is determined on the basis of labor unit price used in the management of cost of construction investment announced by the competent state authority at the time of calculation in line with the market labor price level.

The price index of construction labor of each main type worker grade is determined by the ratio between the workday unit price of constructional worker at the time compared with the original time.

4.1.3. Price index of works constructional machine (KMTC) is determined by the total products of cost proportion of each main type of constructional machine multiplied with the price index of such main type of constructional machine, particularly:

     (7.3)

In which:

- PMk: cost proportion of kth main constructional machine in the total costs of main constructional machines of representative works;

- KMk: cost proportion of kth main constructional machine

- f: number of main constructional machines.

The total cost proportion of main constructional machine is equal to 01.

The cost proportion of each main constructional machine of each representative works is calculated by the ratio between the cost of such main constructional machine compared with the total cost of main constructional machines in the direct cost of the representative works. The formula used to determine is:

   (7.4)

In which:

- : cost proportion of kth main constructional machine of ith representative works

- : cost of kth main constructional machine of ith representative works

The prescribed main constructional machines are: management machne, transport machine, lifting machine, concret work machine, metal processing machine, pile work machine, tunnel boring machine, road making machine.

Depending on the specific features and nature of each constructional works, the main constructional machines can be added for consistent calculation.

The price index of main machine shift and the constructional equipment is determined by the ratio between the price of machine shift and the constructional equipment of such type of constructional machine and equipment at the time of comparison compared with the original time.

4.2. Determining the constructional price indexes of based on the cost structure

4.2.1. The price index of constructional part (IXD) is determined by the product of the price index of the direct cost part multiplied by the coefficient pertaining to the remaining cost items calculated over the cost components of materials, labor and constructional machine included in the constructional cost

IXD = ITT x H                 (7.5)

In which:

- ITT: price index of the direct cost in the constructional cost of the representative works;

- H: coefficient of remaining cost items in the constructional cost including the general cost, the pre-determined taxable cost and the VAT calculated over the cost of materials, labor and constructional machine in the constructional cost of the representative works.

The price index of the direct cost (ITT) is determined by the total products of average proportion of cost of constructional materials and constructional machine in the direct cost with the price indexes of the respective constructional materials and constructional machine and is determined by the formula:

ITT = PVL x KVL + PNC x KNC + PMTC x KMTC             (7.6)

In which: PVL, PNC, PMTC - The average proportion of cost of materials, labor, constructional machine in the direct cost of the representative works;

The total average proportions mentioned above is equal to 01.

KVL, KNC, KMTC: price index of constructional materials, labor and machine in the direct cost of the representative works;

The method of determining the components of formular (7.6) is as follows:

- The price index of constructional materials, labor and machine (KVL, KNC, KMTC) is determined under the instructions in Section 4.1 mentioned above.

- The average proportion of cost of materials, labor and constructional machine in the direct cost (PVL, PNC, PMTC) is determined as follows:

The average proportion of cost of materials (PVL), labor (PNC), constructional machine (PMTC) is determined by the average proportions of cost of materials, labor

and constructional machine of the selected representative works.

The proportion of cost of materials, labor and constructional machine of each representative works is equal to the ratio between the cost of materials, labor and constructional machine compared with these total costs of such representative works. The formula use to determined is:

       (7.7)

     (7.8)

  (7.9)

In which:

- PVLi, PNCi, PMTCi: proportion of cost of materials, labor and constructional machine of ith representative works;

- GVLi, GNCi, GMTCi: cost of materials, labor and constructional machine in the direct cost of ith representative works;

- GTti: total of cost of materials, labor and constructional machine in the direct cost of ith representative works;

Cost of materials, labor and constructional machine is determined based on the volume of performed constructional work, the norms, unit price of works construction, announcement of price of materials, labor, machine shift and constructional machine.

Coefficient pertaining to the remaining cost items (H) in the cost of construction is determined by the ratio of total product of coefficients of items calculated over the materials, labor and constructional machine multiplied by the respective cost proportion at the time of comparison and the total product of such coefficients with their cost proportion at the original time.

The coefficient H can be determined as follows:

     (7.10)

In which:

-: coefficients of the remaining cost items (general cost, predetermined taxable cost, VAT) in the cost of construction calculated over the cost of materials, labor and constructional machine at the time comparison;

- : coefficients of the remaining cost items (general cost, predetermined taxable cost, VAT) in the cost of construction calculated over the cost of materials, labor and constructional machine at the original time;

- : proportion of cost of materials, labor and constructional machine at the time of comparison.

The proportion of cost of each type of material, labor and constructional machine in the direct cost at the time of comparison determined by the respective cost proportion at the original time multiplied by the its price index and divided by the price index of the direct cost.

    (7.11)

  (7.12)

       (7.13)

The coefficients related to the remaining cost items in the cost of construction, including: general cost, predetermined taxable cost, VAT calculated over the cost of materials, labor and constructional machine determined based on the instructions on making the constructional cost estimate issued at the original time and the time of comparison and the type of works.

4.2.2. Price index of works equipment (ITB) is determined by the total of products of average proportion of cost of main equipment procurement, cost of installation, testing and calibration of such main equipment (if any) multiplied by the fluctuation coefficient of the respective costs mentioned above of the selected representative works.

ITB = PSTB x KSTB + P x K        (7.14)

In which:

- PSTB, P: average proportion of cost of main equipment procurement, cost of installation, testing, calibration of such main equipment (if any) of the selected representative works.

- KSTB, K: fluctuation coefficient of cost of main equipment procurement, of cost of installation, testing, calibration of such main equipment (if any) of the selected representative works.

fluctuation coefficient of cost of main equipment procurement is determined by the ratio between the average cost of equipment procurement at the time of comparision with the original time.

The price of equipment is determined by the method of survey and statistics of price data of the main equipment with large quantity, high price and great fluctuation on the market, or can be determined on the basis of reference to the price slippage of equipment or calculated by the price slippage of equipment manufacture structure.

The main equipment is the one with the large cost proportion in the cost of equipment procurement. Example for the civil construction works: lift system, airconditioning system…. for the industrial construction works: major manufacture technology line, etc.

The fluctuation coefficient of cost of equipment installation, testing and calibration (if any) is determined as for the price index of constructional part.

4.2.3. The price index of other cost (ICPK) is determined by the total products of average proportion of main cost items in the other costs of the representative works multiplied by the fluctuation coefficient of the respective cost items and is determined by the following formula:

           (7.15)

In which:

- PKMKs: average proportion of sth main cost items in the total cost of main items of the other costs of the representative works;

- KKMKs: cost fluctuation coefficient of the sth main cost items of the other costs of the representative works;

- e: number of main cost items of the other costs of the representative works;

The main cost items of the other costs of the representative works are the cost items occupying a large proportion of the other costs of the representative works, for example for the civil construction works, the main cost items of the other costs such as the cost of constructional survey, design, preparation for works construction project, management of project,…

For the cost items occupying the proportion 1,5% of the other total costs of the representative works, no calculation is required.

For some other cost items calculated over the cost of construction or cost of equipment, their fluctuation coefficients are equal to the price coefficient of constructional part or the price index of respective equipment.

For some other cost items calculated over the total cost of construction and cost of equipment, their fluctuation coefficients are equal to the average of price index of constructional part and the price index of equipment.

4.3. Xác Determining the price index of works construction

The price index of works construction is determined by the total products of the average proportion of cost of construction, equipment and other costs with the price indexes of part of construction, equipment and the other respective costs of the representative works.

The price index of works construction (I) is calculated by the formula:

I = PXD IXD + PTB ITB + PCPK ICPK         (7.16)

In which:

- PXD, PTB, PCPK: average proportion of cost of construction, equipment and other costs of the selected representative works. The total of average proportions mentioned above is equal to 01.

- IXD, ITB, ICPK: price index of part of construction, equipment and the other costs of the representative works.

The method of determining the components of formula (7.16) is as follows:

- The price index of part of construction, equipment and the other costs (IXD, ITB, ICPK) is determined under the instructions at Point 4.2 of this Appendix.

- The average proportion of the cost of construction, equipment and the other costs (PXD, PTB, PCPK) is determined as follows:

The average proportion of the cost of construction (PXD), cost of equipment (PTB), and the other costs (PCPK) is determined by the arithmetic average of proportions of respective cost of construction, of equipment and of other costs of the representative works of the type of works.

The proportion of the cost of construction, cost of equipment and other costs of each representative works is equal to the ratio between the cost of construction, equipment and other costs of such representative works compared with these total costs of the works. The formula for determination is:

  (7.17)

   (7.18)

(7.19)

In which:

- PXDi, PTBi, PCPKi: proportion of cost of construction, equipment and other costs compared with these total costs of ith representative works;

- GXDi, GTBi, GCPKi: cost of construction, equipment and other costs compared with these total costs of ith representative works;

- GXDCTi:

total costs of construction, equipment and other costs of ith representative works;

The data of cost of construction, equipment and other costs of the selected representative works are determined from the collected statistical data.

II. FORMS ANNOUNCING THE CONSTRUCTION PRICE INDEX OF LOCALITIES (PROVINCES AND CITIES)

TABLE 7.1. WORKS CONSTRUCTION PRICE INDEX

Unit: %

No.

Type of works

Price index of month (quarter, year) compared with

Original year 20....

Previous month (quarter, year)

1

Civil works

 

 

1.1

Residential house

 

 

1.2

Public works

 

 

...

 

 

2

Công trình công nghiệp Industrial works

 

 

2.1

Energy works

 

 

2.2

Constructional material production works

 

 

….

 

 

3

Technical infrastructure works

 

 

3.1

Water supply works

 

 

3.2

Water drainage works

 

 

….

 

 

4

Traffic works

 

 

4.1

Roadway works

 

 

4.2

Bridge works

 

 

....

...

 

 

5

Agricultural and rural development works

 

 

5.1

Irrigational works

 

 

5.2

….

 

 

Table 7.2. PRICE INDEX OF CONSTRUCTIONAL PART

Unit : %

No.

Type of works

Price index of month (quarter, year) compared with

Original year 20....

Previous month (quarter, year)

1

Civil works

 

 

1.1

Residential house

 

 

1.2

Public works

 

 

...

 

 

2

Industrial works

 

 

2.1

Energy works

 

 

2.2

Constructional material production works

 

 

….

 

 

3

Technical infrastructure works

 

 

3.1

Water supply works

 

 

3.2

Water drainage works

 

 

….

 

 

4

Traffic works

 

 

4.1

Roadway works

 

 

4.2

Bridge works

 

 

....

...

 

 

5

Agricultural and rural development works

 

 

5.1

Irrigational works

 

 

5.2

….

 

 

Table 7.3. PRICE INDEX OF MATERIALS, LABOR AND CONSTRUCTIONAL MACHINE

Unit: %

No.

Type of works

Price index of month (quarter, year) compared with

Original year 20....

Previous month (quarter, year)

Materials

Labor

Constructional machine

Materials

Labor

Constructional machine

1

 Civil works

 

 

 

 

 

 

1.1

 Residential house

 

 

 

 

 

 

1.2

Public works

 

 

 

 

 

 

...

....

 

 

 

 

 

 

2

Industrial works

 

 

 

 

 

 

2.1

Energy works

 

 

 

 

 

 

2.2

Constructional material production works

 

 

 

 

 

 

...

...

 

 

 

 

 

 

3

Technical infrastructure works

 

 

 

 

 

 

3.1

Water supply works

 

 

 

 

 

 

3.2

Water drainage works

 

 

 

 

 

 

...

 

 

 

 

 

 

4

Traffic works

 

 

 

 

 

 

4.1

Roadway works

 

 

 

 

 

 

4.2

Bridge works

 

 

 

 

 

 

 

 

 

 

 

 

5

Agricultural and rural development works

 

 

 

 

 

 

5.1

Irrigational works

 

 

 

 

 

 

5.2

….

 

 

 

 

 

 

Table 7.4. PRICE INDEX OF CONSTRUCTIONAL MATERIALS

Unit: %

No.

Type of works

Price index of month (quarter, year) compared with

Original year 20....

Previous month (quarter, year)

1

Cement

 

 

2

Constructional sand

 

 

3

Constructional stone

 

 

4

Constructional brick

 

 

5

Constructional wood

 

 

6

Constructional steel

 

 

7

Asphalt

 

 

8

Tile

 

 

9

Roofing and covering materials

 

 

10

Constructional glass

 

 

11

Paint and painting materials

 

 

12

Electric materials

 

 

13

Materials, water pipeline

 

 

...

….

 

 

 

APPENDIX 8

REPORTING FORM OF RESULT OF APPRAISAL/VERIFICATION/CONSULTATION TO DETERMINE THE CONSTRUCTIONAL PRICE INDEX
(Issued with Circular No. 06/2016/TT-BXD dated 10/3/2016 of the Ministry of Construction)

I. REPORT ON RESULT OF APPRAISAL/VERIFICATION OF TOTAL CONSTRUCTION INVESTMENT

The report of result of appraisal/verification of total construction investment is aggregated as in the form No.8.1 below:

Form 8.1. Report of result of appraisal/verification of total construction investment

APPRAISING/VERIFYING UNIT
-------

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom – Happiness

---------------

(Docvolument No.)
Subject:
appraisal/verification of total construction investment……

..., date ... month ... year ....

 

REPORT ON RESULT OF APPRAISAL/VERIFICATION OF TOTAL CONSTRUCTION INVESTMENT

Project: ……………………………………………..

Location: …………………………………………………………………………………

To: ……………………………………………..

Performing the duties of constructional professional agency decentralized or professional agency of the investment-deciding person (for appraising unit) or at the request of (investment-deciding person/investor) (for verifying and consulting unit) on the appraisal/verification of total construction investment (name of project). After studying the dossier, (name of appraising/verifying agency or unit) has the opinions as follows:

1. Overiew of project

- Name of project, works, construction location, scale,….of works;

- Investor, consulting units of survey, project preparation,…;

- Process of investment preparation.

2. Legal grounds and documents used in appraisal/verification

- Construction Law;

- Decree on management of construction investment project;

- Decree on management of construction investment costs;

- Circular guiding the determination and management of construction investment costs;

- Other documents of the state, ministries, sectors, localities…;

- Dossiers and documents of the investment project, including….

3. Remark about quality of dossier of total construction investment

- Remark about the method of preparation for total construction investment selected for calculation;

- Remark about the grounds for determining the costs items in the total investment;

- Conclusion on eligibility or ineligibility for appraisal/verification.

4. Principles for appraisal/verification

- The consistence of the method for determining the total construction investment with the characteristics, nature, technical and technological requirements of the project;

- Verifying the completeness of volumes used to determined the total construction investment; the rationality and consistency with regulations and instructions of the state for the costs used to calculated and determine the costs in the total construction investment.

- Determining the total construction investment after the appraisal/verification. The analysis of cause of increase and reduction and assessment of investment efficiency assurance of the project based on the value of the total construction investment which is determined after the appraisal/verification.

5. Result of appraisal/verification

Based on the grounds and principles mentioned above, the value of total construction investment (name of project) after the the appraisal/verification is as follows:

Unit:...

No.

Contents of cost

Value for appraisal/ verification

Value of appraisal/ verification

Increase/ reduction

1

Cost of compensation, assistance and relocation

 

 

 

2

Cost of construction

 

 

 

3

Cost of equipment

 

 

 

4

Cost of project management

 

 

 

5

Cost of construction investment consultation

 

 

 

6

Other costs

 

 

 

7

Contingency cost

 

 

 

 

Total

 

 

 

 (with attached detailed Appendix)

6. Causes of increase/reduction and assessment of investment efficiency assurance of the project:

6.1 Raising and analyzing the causes of increase and reduction for the main contents of cost increase and reduction.

6.2 Evaluating the investment efficiency assurance of the project as per the indicators based on the value of total construction investment appraised or verified.

7. Conclusion and recommendation

 

APPRAISER/VERIFIER                           




- (signature, full name)

- (signature, full name)

- (signature, full name)

- …

PERSON-IN-CHARGE



(signature, full name)

Certificate of practice of construction valuation grade…., No….

Sent to

-

-

-

-

HEAD OF APPRAISING/VERIFYING UNIT

(signature, seal)

 

II. REPORT ON RESULT OF APPRAISAL/VERIFICATION OF WORKS CONSTRUCTION ESTIMATE

The report on result of appraisal/verification of works construction estimate is aggregated as for the form 8.2 below:

Form 8.2. Report on result of appraisal/verification of works construction estimate

APPRAISING/VERIFYING UNIT
-------

SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happinese
---------------

(Docvolument No.)
V/v: Subject: Appraisal/verification of works estimate……
………………………………

..., date ... month ... year ....

 

REPORT ON RESULT OF APPRAISAL/VERIFICATION OF WORKS CONSTRUCTION ESTIMATE

Works: ……………………………………………………………………………………….

Location: ……………………………………………………………………………………..

To: …………………………………….

Performing the duties of constructional professional agency decentralized or professional agency of the investment-deciding person (for appraising unit) or at the request of the investor or under contract (contract number) (for the appraising/verifying unit) on the appraisal/verification of works construction estimate (name of works). After studying the dossier, (name of appraising/verifying agency or unit) has the opinions as follows:

1. Grounds for appraisal/verification

- Decree on management of construction investment project;

- Decree on management of construction investment costs;

- Circular guiding the determination and management of construction investment costs;

- Other documents of the state, ministries, sectors, localities…;

- Dossiers and documents of the investment project, including….

2. General introduction about the works

- Name of works;

- Investor;

- Consultation units preparing the design and works estimate;

3. Remark about the quality of dossier of works construction estimate

- Remark about the selected method of estimate preparation;

- Remark about the grounds to determined the cost items in the works construction estimate;

- Conclusion on eligibility or ineligibility for appraisal/verification.

4. Principles for appraisal/verification

- Verifying the consistent volume of construction, type and amount of equipment in the estimate compared with the amount, type and the number of equipment in the estimate compared with the amount, type and the number of equipment calculated from the design of construction and technology;

- Verifying the properness and rationality of the application of norm of estimate, constructional price of works and other relevant regulations in determining the cost items of the works construction estimate;

- Determining the value of works construction estimate after the appraisal/verification and recommendation of value of construction estimate for the competent level to review and approve. Evaluating the level of increase or reduction of cost items, analyzing the cause of increase or reduction compared with the value of works construction estimate which requires the appraisal/verification.

5. Result of appraisal/verification

Based on the grounds and principles mentioned above, the value of works construction estimate after the appraisal/verification is as follows:

Unit:...

No.

Contents of cost

Value for appraisal/ verification

Value of appraisal/ verification

Increase/ reduction

1

Cost of construction

 

 

 

2

Cost of equipment

 

 

 

3

Cost of project management

 

 

 

4

Cost of construction investment consultation

 

 

 

5

Other costs

 

 

 

6

Contingency cost

 

 

 

 

Total

 

 

 

(with attached detailed Appendix)

6. Causes of increase/reduction

(Raising and analyzing the cause of increase and reduction for the main contents of cost increase and reduction).

7. Conclusion and recommendation

 

APPRAISER/VERIFIER                           




- (signature, full name)

- (signature, full name)

- (signature, full name)

- …

PERSON-IN-CHARGE



(signature, full name)

Certificate of practice of construction valuation grade…., No….

Sent to

-

-

-

-

HEAD OF APPRAISING/VERIFYING UNIT

(signature, seal)

 

III. REPORT ON VERIFICATION OF CONSTRUCTION PACKAGE ESTIMATE

The report on verification of construction package estimate is aggregated as for the form 8.3 below:

Form 8.3. Report on verification of works construction package estimate

VERIFYING UNIT
-------

SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happinese
---------------

(Document number)
Subject: Verification of construction package estimate
………………………………

..., date ... month ... year ....

 

REPORT ON RESULT OF VERIFICATION OF CONSTRUCTION PACKAGE ESTIMATE

Package: …………………………………………………………………………..

Works: ………………………………………………………………………

Location: ……………………………………………………………………………

To: ……………………………………..

At the request of (investor) or under the contract (contract number) on the verification of construction package estimate (name of construction package). After studying the dossier (name of verifying unit) has the following opinions:

1. Grounds for verification

- Decree on management of construction investment project;

- Decree on management of construction investment costs;

- Circular guiding the determination and management of construction investment costs;

- Other documents of the state, ministries, sectors, localities…;

- Dossiers and documents pertaining to the package, including….

2. General introduction about the construction package

- Name of package

- Name of works;

- Investor;

- Consultation units preparing the design and construction package estimate;

3. Remark about the quality of dossier of construction package estimate

- Remark about the selected method of determining the selected construction package estimate;

- Remark about the grounds to determined the cost items in the construction package estimate;

- Conclusion on eligibility or ineligibility for verification.

4. Principles for verification

- Based on the contents of structure and verification of method for determining the cost items of the type of construction package in part II, Appendix 02 of this Circular.

- About the value of construction package estimate

5. Result of verification

Based on the grounds and principles mentioned above, the value of construction package estimate after the verification is as follows:

Unit: ...

No.

Contents of cost

 (Based on the structure of cost items of type of construction package)

Value of request

Value of appraisal

Increase, reduction

 

1

………

 

 

 

2

………

 

 

 

3

………

 

 

 

 

…..

 

 

 

 

Total

 

 

 

(with attached detailed appendix)

6. Causes of increase and reduction:

Raising and analyzing the causes of increase and reduction for the main contents of cost increase and reduction.

 

7. Conclusion and recommendation

 

VERIFIER

 

 

- (signature, full name)

- (signature, full name)

- (signature, full name)

- …


PERSON-IN-CHARGE



(signature, full name)

Certificate of practice of construction valuation grade…., No….

Sent to

-

-

-

-

HEAD OF VERIFYING UNIT



(signature, seal)

 

IV. REPORT ON RESULT OF CONSULTATION TO DETERMINE THE PRICE INDEX OF WORKS CONSTRUCTION

The report on the result of consultation to determine the price index of works construction is aggregated as for the form 8.4 below:

Form 8.4. Report on the result of consultation to determine the price index of works construction

CONSULTATION UNIT
-------

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
---------------

(Document number)
Subject: Announcing the result of
price index of works construction…

..., date ... month... year....

 

REPORT ON RESULT OF CONSULTATION TO DETERMINE THE PRICE INDEX OF WORKS CONSTRUCTION

Works: ……………………………………………………

Location: ……………………………………………………………………….

To: …………………………………………………………….

Implementing the contract (contract number) on consultation to calculate the price index of works/package (name of works). After studying the dossier (name of consultation unit) has the following opinions:

1. Grounds for determining the price index of works/package

- Decree on management of construction investment project;

- Decree on management of construction investment costs;

- Circular guiding the determination and management of construction investment costs;

- Other documents of the state, ministries, sectors, localities, dossier pertaining to the works/package….

2. Principles and scope of determination of price index of construction

- The original time to determine the price index of construction

- The time of comparison to calculate the price index of construction.

- About the grounds for determining the price index of constructional materials, labor and machine (method of determination, principles to select the input factor,…).

- The price index is applied to the works (name of works/package).

3. Result of determination of price index of construction

Based on the grounds and principles mentioned above, the result of determination of price index of works (name of works) is as follows:

The original time of month….(100%)

Unit: %

No.

Price index of construction

Month.../year....

Month.../year....

Month.../year....

1

Materials

 

 

 

 

Cement

 

 

 

 

Sand

 

 

 

 

....

 

 

 

2

Machine

 

 

 

3

Labor

 

 

 

4. Conclusion and recommendation

 

MAKER

 

- (signature, full name)

- (signature, full name)

- (signature, full name)

- …

PERSON-IN-CHARGE



(signature, full name)

Certificate of practice of construction valuation grade…., No….

Sent to

-

-

HEAD OF CONSULTATION UNIT


(signature, seal)

 

 

Thuộc tính Văn bản pháp luật 06/2016/TT-BXD

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          Circular 06/2016/TT-BXD determination management construction investment costs
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