Thông tư 15/2019/TT-BXD

CIRCULAR

PROVIDING INSTRUCTIONS ON CALCULATION OF UNIT LABOR COSTS IN THE BUILDING AND CONSTRUCTION SECTOR

Pursuant to the Government's Decree No. 81/2017/ND-CP dated July 17, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Construction;

Pursuant to the Government’s Decree No. 68/2019/ND-CP dated August 14, 2019 on administration of investment and construction expenses.

Upon the request of the Director of the Construction Economics Department;

Minister of Construction hereby promulgates the Circular as a manual for calculation and determination of building-sector unit labor cost.

Article 1. Scope

This Circular instructs how to calculate unit labor costs in the building and construction sector (including construction workers and consultants) for determination and administration of investment and construction expenses, including preliminary total investment, total investment amount, estimated construction cost, construction bid price, construction project cost, construction contract value, construction price index and estimated cost of construction counseling service.  

Article 2. Subjects of application

1. Entities and persons related to determination and administration of investment and construction costs of projects funded by the state budget and non-state budgetary capital or PPP investment projects under clause 1 of Article 2 in the Government’s Decree No. 68/2019/ND-CP dated August 14, 2019 on management of investment and construction expenses.

2. Other entities and persons that are advised to apply this Circular to determine and administer investment and construction expenses, and calculate construction costs as a basis to fulfill financial obligations of projects funded by other capital to the State.

Article 3. Principles of determination and adjustment of unit labor costs

1. Unit labor costs in the building and construction sector determined according to instructions given herein must adhere to the following principles:

a) Unit labor costs must be matched with workmanship corresponding to personnel ranks specified in the set of norms for estimated construction costs and working condition of construction workers; occupational characteristics and nature; must be tallied with work contents, nature, titles, qualification and quality of construction consultants.  

b) Unit labor costs must agree with the level of construction personnel costs (already including indexing factors) on respective local labor markets provided that they are not lower than region-based minimum pay rates prescribed by the Government. 

c) Unit labor costs must conform to requirements for payment of several costs for which construction employees are liable (e.g. social insurance, health insurance, unemployment insurance contributions and trade union dues).

d) Unit labor costs in the building and construction sector must be calculated on the basis of an eight-hour working day.

2. Unit labor costs for construction personnel may be adjusted when there is any variation in the level of market costs of construction personnel.

Article 4. Details about unit construction labor costs

1. Unit labor cost of a construction worker per a working day is a unit labor cost of a construction worker directly involved in construction, driver, operator of construction machine or equipment or surveying engineer; master, first mate, operator of inland, ocean-going ship, seafarer, machinist, technician; artisan or diver working under normal condition.

2. Unit labor cost of a construction consultant per a working day is a unit labor cost per a working day of a domestic construction consultant, including senior engineer, project leader; principal engineer, subject group leader; engineer; technician holding secondary education, associate or vocational training qualifications; comprises all wages, salaries, allowances or insurance contributions for which employees are liable as legally prescribed (e.g. social insurance, health insurance, unemployment insurance contributions and trade union dues).

3. Unit construction labor costs of particular work are unit costs of construction personnel working under hazardous and dangerous condition (e.g. working on slopes with steep gradients, at underground projects; projects ashore or located on islands and others having particular characteristics). 

4. Unit construction labor costs are surveyed, determined and published in 10 groups of construction work specified in Appendix No. 2 hereto. In particular, the 11^th group of construction personnel is the particular group of construction work in which the survey on and publication of unit costs of construction personnel depend on particular features of each locality.

5. Unit labor costs of construction consultants are surveyed, determined and published in 04 groups of construction counseling work specified in Appendix No. 3 hereto.

Article 5. Principles of determination and calculation of unit construction labor costs

1. Unit construction labor costs are surveyed by using the following information sources:

a) Direct survey results gained from construction projects located within the areas where such unit costs are published.

b) Statistics of data included in completed financial accounts, or data included in results of successful bidding for similar projects located within the areas publishing such costs, all of which are adjusted according to indices of construction labor costs determined at the specified time.

c) Results of surveys conducted by experienced experts or project owners, contractors, persons or entities in the building and construction sector.

d) Consolidated results of the aforesaid surveys and statistics.

2. Unit labor cost of a construction worker in the group of construction activities is calculated by the arithmetic mean of unit labor costs shown on survey forms, and is determined according to the following formula:

Where:

- : The unit labor cost of a construction worker in the j^th group of construction activities shown in the classification list of groups of construction activities in Appendix No. 2 hereto (dong/working day);

- : The unit labor cost of a construction worker performing the i^th construction activity in the group of j^th group of construction activities shown in Appendix No. 2 hereto, which is determined through surveys or investigations conducted according to instructions given in Appendix No. 1 hereto (dong/working day);

- m: quantity of unit construction labor costs in the group.

3. Details about the method for determination of unit construction labor costs shall be given in Appendix No. 1 hereto.

4. Unit construction labor costs are collected and surveyed by using the forms prescribed in Appendix No. 7, 8, 9 and 10 hereto.

Article 6. Method of determination and calculation of unit labor costs of construction consultants

1. Unit labor costs of construction consultants are surveyed, determined and published in 04 groups of construction counseling activities specified in Appendix No. 3 hereto.

2. Unit labor costs of construction consultants are surveyed according to their titles and professional qualification when they are working for entities providing construction counseling services.

3. Unit labor cost of a consultant belonging in the group of construction consultants shall be calculated by the arithmetic mean of unit labor costs of construction consultants in a group according to the following formula:

Where:

- : Unit labor cost of a consultant in the group k of consultants specified in the classification list of groups of consultants holding construction qualifications shown in Appendix No. 3 hereto (dong/working day).

- : Unit labor cost of a construction consultant performing the construction activity i in the group k of construction activities shown in Appendix No. 3 hereto, which is determined through surveys or investigations conducted according to instructions given in Appendix No. 1 hereto (dong/working day);

- n: quantity of unit labor costs of construction consultants in the group.

4. Details about the method for determination of unit labor costs of construction consultants shall be given in Appendix No. 1 hereto.

5. Unit labor costs of construction consultants are surveyed and published by using the forms given in Appendix No.12 and No.13 hereto.

Article 7. Administration of unit construction labor costs

1. The Ministry of Construction shall publish the range of unit construction labor costs for 03 types of construction personnel arranged into 04 regions in the Appendix No. 4 and the range of unit labor costs for 04 groups of construction consultants arranged into 4 regions in the Appendix No. 5 hereto.

2. Provincial People’s Committees shall consult instructions given herein to direct Departments of Construction to take charge of and cooperate with relevant entities and units in conducting surveys or hiring qualified consultants to survey and collect information and determine unit construction labor costs matched with the range of unit labor costs published by the Ministry of Construction as a basis to publish or authorize publication of unit labor costs every month or quarter as a basis to estimate and manage investment and construction expenses under their jurisdiction, and shall report on results of publication of such costs to the Ministry of Construction for its control.

3. With respect to construction activities listed in the group of particular activities, not yet listed in the published list or already in the list, if unit labor costs for performing these activities that have already been published by provincial People's Committees do not suit construction types and conditions, provincial People's Committees may survey, supplement or revise these costs to be applied to estimation and administration of investment and construction expenses in construction projects located within their remit.  

4. Funding for surveys and collection of information, determination and notification of unit construction labor costs shall be allocated by using regular expenditures authorized by the state budget. In particular, administrative costs of surveys conducted to check unit labor costs by project owners shall be determined by preparing cost estimates and shall be charged into other counseling costs as part of investment and construction expenses of a construction project. 

Article 8. Implementation

1. Ministry of Construction shall provide instructions about, carry out inspections and assessments of determination and publication of unit construction labor costs at respective localities in accordance with clause 4 of Article 32 in the Government’s Decree No. 68/2019/ND-CP dated August 14, 2019 on administration of investment and construction expenses.

2. Provincial People’s Committees shall be responsible for publishing or authorizing Departments of Construction to publish unit construction labor costs and unit labor costs of construction consultants by using the forms given in Appendix No. 11 herein.

3. Project owners, construction contractors and construction counseling contractors operating within cities or provinces shall have responsibilities and obligations to include adequate and accurate information about unit labor costs in applications for approval of construction projects submitted to local construction authorities in order for them to make general reports on these costs, finalize and publish unit labor costs in the building and construction sector.

Article 9. Transition provisions

1. If total investment amount or an estimate of costs of a construction project has already been approved before entry into force of this Circular, and contractors working on such project have not yet been selected, the person making his/her decision on investment in such project may decide to adjust unit labor costs in the building and construction sector included in that total investment amount or estimate as a basis to determine the price of each contract according to unit labor costs published by provincial People’s Committees, ensuring the progress and effectiveness in such project. 

2. Contracts finalized before the effective date of this Circular shall be allowed to continue under agreed terms and conditions.

Article 10. Entry into force

1. This Circular shall enter into force from February 15, 2020, replacing the Circular No. 05/2016/TT-BXD dated March 10, 2016 of the Ministry of Construction on instructions about determination of unit labor costs used in administration of investment and construction expenses.

2. In the course of implementing this Circular, if there is any difficulty that arises, persons and entities may send feedbacks to the Ministry of Construction to seek its approval of proper actions./.