Thông tư 16/2019/TT-BXD

CIRCULAR

PROVIDING INSTRUCTIONS ON DETERMINATION OF PROJECT ADMINISTRATIVE AND INVESTMENT COUNSELING COSTS 

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 Institute of Construction Economics and the Director of Construction Economics Department;

Minister of Construction hereby promulgates the Circular providing instructions on determination of project administrative and investment counseling costs.

Chapter I

GENERAL PROVISIONS

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1. This Circular provides guidance on determination and administration of investment and construction expenses of projects funded by the state budget and non-state budgetary capital or PPP investment projects under clause 2 of Article 32 in the Government’s Decree No. 68/2019/ND-CP dated August 14, 2019 on management of investment and construction expenses (briefly called Decree No. 68/2019/ND-CP).

2. Projects funded by official development aid (ODA) capital shall be subject to regulations laid down in treaties and domestic laws specified in the Law on Treaties.

Article 2. Subjects of application

1. This Circular shall apply to entities and persons involved in determination of administrative and investment counseling costs of investment and construction projects funded by the state budget and non-budgetary capital, and other public-private partnership (PPP) investment projects.  

2. Entities and persons involved may determine administrative and investment counseling costs of projects funded by other capital according to instructions given herein as a basis to perform financial obligations to the state.

Article 3. Several common instructions

1. Norms of administrative costs of investment and construction projects issued herein serve as a basis to determine costs incurred from administration of investment and construction projects (hereinafter referred to as project-related administrative costs) in order for authorized entities to carry out management of these projects from the project pre-execution, execution, completion and operation stage. 

2. Norms of investment counseling costs issued herein shall be used for determining costs incurred from investment and construction consulting services (hereinafter referred to as counseling costs) according to contents and requirements of consulting products and investment and construction procedures.

3. In case where Project Management Unit is capable of providing project management counsel services for other projects or performing several counseling activities, counseling costs shall be additionally charged into operating overheads of the Project Management Unit.  Administration and use of the aforesaid counseling costs shall be subject to regulations currently in force.

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Where:

- N_t: Norm of project-related administrative costs and investment counseling costs which corresponds to the gross amount of construction expenses or equipment expenses, or the gross amount of construction expenses and equipment expenses to be calculated; unit: %;

- G_t: The gross amount of construction expenses or the gross amount of equipment expenses or the gross amount of construction expenses and equipment expenses required for calculation of the norm of project-related administrative costs and investment counseling costs; unit: value;

- G_a: The gross amount of construction expenses or the gross amount of equipment expenses or the gross amount of construction expenses and equipment expenses bounding from above the gross amount of expenses which is required for calculation of the norm; unit: value;

- G_b: The gross amount of construction expenses or the gross amount of equipment expenses or the gross amount of construction expenses and equipment expenses bounding from below the gross amount of expenses which is required for calculation of the norm; unit: value;

- Na:  Norm of project-related administrative costs, investment counseling costs corresponding to G_a; unit: %;

- N_b: Norm of project-related administrative costs, investment counseling costs corresponding to G_b; unit: %;

5. In case where a project has the gross amount of expenses (including construction and equipment expenses) greater than the gross amount of expenses specified in Appendix No. 1 hereto or, due to particular characteristics of a project, its administrative costs determined according to the norms issued herein are not adequate, the project owner may make an estimate in order to determine project-related administrative costs, ensuring the project’s efficiency.

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7. Construction-sector surveying and testing costs shall be determined as construction expenses included in construction cost estimates.

Chapter II

PROJECT-RELATED ADMINISTRATIVE COSTS

Article 4. Details about project-related administrative costs

Project-related administrative costs determined according to norms of project-related administrative costs issued in the Table No. 1.1 and No. 1.2 in the Appendix No. 1 hereto as a basis for calculation, including:   Wages, salaries paid to project administrators or employees according to their employment contracts; salary allowances; bonuses, welfare benefits; contributions (e.g. social insurance, health insurance, unemployment insurance, trade union dues, other payments prescribed under laws, paid to persons entitled to receive wages and salaries from projects); costs of scientific and technological application, management of application of the building information modeling (BIM) system; costs of training in enhancement of project administrator’s capabilities; payments for public services; payments for stationery supplies; communication and telecommunication costs; costs of project-related seminars; business travel fees; costs of hiring, repair or purchase of assets necessary for administration of projects, other costs and contingency expenses.

Article 5. Determination of project-related administrative costs

1. Project-related administrative costs constituting total investment amount determined in per cent (%) (issued in the Table No. 1.1 in Appendix No. 1 hereto) are multiplied by construction and equipment costs (not including VAT yet) constituting total investment amount.

2. Project-related administrative costs included in a construction cost estimate or total cost estimate of a project determined in per cent (%) (the same as the one used for calculation of project-related administrative costs included in the approved total investment amount) are multiplied by construction and equipment expenses (not including VAT) included in the construction cost estimate or total cost estimate of a project.

3. Project-related administrative costs of offshore investment and construction projects, those located on islands; those located along land borders, those located at communes facing extreme socio-economic difficulties (coastal zones and islands; border communes, safety zone communes; mountainous or ethnic minority villages facing extreme difficulties) shall be determined according to the Government’s regulations by using the norms specified in the Table No. 1.1 in Appendix No. 1 hereto, and shall be adjusted with the coefficient k = 1.35. Administrative costs incurred in projects stretching along a specified direction within at least two provinces or projects including separate construction works built within different provinces shall be determined according to norms specified in Table No. 1.1 in Appendix No. 1 hereto, and may be adjusted with the coefficient k = 1.1.

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5. In case of hiring of project management consultants, costs of hiring of project management consultants shall be determined by costs estimated on the basis of duties and workloads related to project management which are agreed upon in project management contracts between project owners and project management consulting contractors. Costs of hiring of project management consultants (already including VAT) plus project-related administrative costs of a project owner shall not exceed project-related administrative costs determined according to instructions given herein.

6. In case where equipment expenses account for greater than or equal to 50% of total construction and equipment expenses included in the approved total investment, the norm of project-related administrative costs of a project may be adjusted with the coefficient k = 0.8.

7. If a project is managed like subprojects, each of which is able to operate independently, or is used or developed according to investment phasing procedures, its administrative costs may be separately determined according to the size of each subproject.

8. If the general contractor is authorized to perform several duties to manage a project on behalf of a project owner, they may be paid a part of project-related administrative costs, depending on duties assigned by that project owner. The general contractor’s expenditures on performing project management activities shall be subject to an agreement between the project owner and the general contractor by using project management funds and may be determined in the general contractor agreement. Both project-related administrative costs of the project owner and the general contractor shall not exceed total project-related administrative cost defined according to instructions given herein.

Article 6. Determination of administrative costs of PPP investment projects

1. Project-related administrative costs are determined by competent authorities on the basis of cost estimates relevant to respective project management duties and policies.

2. Operating overheads of a project management unit under the control of a competent authority determined in per cent (%) (issued in the Table No. 1.2 in Appendix No. 1 hereto) are multiplied by construction and equipment costs (not including VAT yet) constituting total investment amount. Operating overheads of a project management unit controlled by a competent authority with respect to projects stretched along the direction within at least two provinces or projects comprising separate construction works built within different provinces shall be determined according norms issued in Table No. 1.2 in Appendix No. 1 hereto, and may be adjusted with the coefficient k = 1.1.

3. If an investor in a project wishes to determine its administrative costs, such costs must be determined according to instructions given in Article 5 herein and may be adjusted with the coefficient k = 0.7. 

Chapter III

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Article 7. Details about investment counseling costs

Investment counseling costs calculated and determined according to norms of investment counseling costs shall serve as a basis for determining costs incurred from consulting activities, including payments to consulting workers (e.g. wages, salaries, salary allowances, bonuses, welfare benefits for the collective, social insurance, health insurance, unemployment insurance contributions, trade union dues or other payments prescribed in laws to persons performing consulting duties in projects); costs of application of scientific and technological research products; payments for public services, stationery supplies or telecommunication costs; costs of hiring, repair or purchase of assets necessary for project counseling activities (if any); administrative costs determined by consulting organizations; other costs; accrued taxable profits; but not including costs of application of BIM system, VAT and contingency costs.    

Article 8. Determination of investment counseling costs

1. Counseling costs shall be determined according to norms in per cent (%) in proportion to the gross amount of construction expenses, the gross amount of equipment costs or the gross amount of construction and equipment expenses.

2. Counseling costs vary depending on types of construction work or classification thereof in accordance with regulations currently in force. Costs of counseling of national defence and security projects shall be determined according to norms of counseling costs for respective civil, industrial, technical infrastructure, transport, agriculture and rural development construction works.

3. Counseling costs shall be determined according to norms issued in Appendix No. 2 hereto, not including costs of preparation of application documents in foreign language. Costs of preparation of application documents in foreign language may be added to counseling costs and can be determined by estimation of costs which are not greater than 15% of counseling costs determined according to norms specified in Appendix No. 2 hereto.

4. In case where preparing additional counseling documents according to international conventions or preparing separate reports upon any sponsor’s request is required with respect to projects funded by foreign loans, costs paid for these activities shall be determined by estimation of costs corresponding to respective work requirements.

5. In case of simultaneous application of coefficients adjusting norms of counseling costs, adjusted counseling costs shall be determined by multiplying coefficients by norms of counseling costs.

6. If it is necessary to hire a consulting person or entity to perform several consulting activities upon the request of competent authority during the period of inspection of acceptance testing of construction work, costs of hiring of such person or entity shall be determined on the basis of estimated costs relevant to consulting activities and scope of consulting duties that need to be performed.    

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Chapter IV

IMPLEMENTATION PROVISIONS

Article 9. Transition provisions

Calculating and determining project-related administrative costs, counseling costs in the transition stage as provided in Article 36 in the Decree No. 68/2019/ND-CP shall be subject to the following specific regulations:

1. If an investment project is approved before entry into force of the Decree No. 68/2019/ND-CP and currently in progress, norms of project-related administrative costs and norms of counseling costs prescribed in the Government’s Decree No. 32/2015/ND-CP dated March 25, 2015 on management of investment and construction expenses may continue to be used for determining project-related administrative costs and counseling costs. If a project management or consulting contract has not been awarded under an agreement after entry into force of this Circular, the person issuing investment decisions may apply norms of project-related administrative costs and counseling costs specified herein in order to adjust value of such contract in accordance with requirements concerning progress and efficiency of projects.

2. As for investment and construction projects already approved after entry into force of the Decree No. 68/2019/ND-CP:

a) If project management or consulting contracts are already used, are valued by applying norms of costs specified in the Decree No. 32/2015/ND-CP dated March 25, 2015, are awarded to successful contractors and effected by agreements before the effective date of this Circular, agreements already in effect must be obeyed.

b) If project management or consulting contracts have not yet awarded or are being awarded to successful contractors before the effective date of this Circular, norms of project-related administrative costs and counseling costs issued herein shall be used for the purpose of updates to value of these contracts. 

3. If project management or counseling agreements have already been signed before the effective date of this Circular, terms and conditions of these agreements and regulations of relevant laws must be observed.

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This Circular shall enter into force on February 15, 2020.

PP. MINISTER
DEPUTY MINISTER




Bui Pham Khanh

APPENDIX 1

PROJECT MANAGEMENT COST NORMS
 (to the Circular No. 16/2019/TT-BXD dated December 26, 2019 of Ministry of Construction)

Table 1.1. Project operating cost norms

Unit: %

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...

...

Types of construction projects

Construction and equipment costs (VAT excluded) (billion dong)

≤ 10

20

50

100

200

500

1.000

...

...

...

5.000

10.000

20.000

30.000

1

Civil construction project

3,282

2,784

2,486

...

...

...

1,796

1,442

1,180

0,912

0,677

0,486

0,363

0,290

2

...

...

...

3,453

2,930

2,616

2,021

1,890

1,518

1,242

1,071

0,713

...

...

...

0,382

0,305

3

Road construction project

2,936

2,491

2,225

1,719

1,607

...

...

...

1,056

0,910

0,606

0,435

0,325

0,260

4

Agricultural and rural development project

3,108

...

...

...

2,355

1,819

1,701

1,366

1,118

0,964

0,642

0,461

0,344

...

...

...

5

Technical infrastructure construction project

2,763

2,344

2,093

1,517

1,486

1,214

1,020

...

...

...

0,570

0,409

0,306

0,245

Table 1.2: Norms of operating costs of project management units of state authorities having competence in executing public-private partnership (PPP) projects 

Unit: %

No.

Types of construction projects

...

...

...

≤ 50

100

200

500

1.000

2.000

5.000

10.000

20.000

...

...

...

1

Civil construction project

1,113

0,764

0,714

0,573

0,469

0,404

0,202

...

...

...

0,105

0,084

2

Industrial construction project

1,178

0,809

0,756

0,607

0,497

...

...

...

0,214

0,154

0,111

0,088

3

Road construction project

1,001

0,688

0,643

...

...

...

0,445

0,385

0,178

0,131

0,094

0,075

4

Agricultural and rural development project

1,065

...

...

...

0,684

0,549

0,450

0,388

0,193

0,139

0,100

0,080

5

...

...

...

0,945

0,649

0,606

0,487

0,398

0,343

0,172

0,123

0,089

...

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...

APPENDIX 2

INVESTMENT CONSULTANCY COST NORMS
 (to the Circular No. 16/2019/TT-BXD dated December 26, 2019 of Ministry of Construction)

I. Instructions on how to use these norms for costs of preparation of pre-feasibility study reports, feasibility study reports and economic-technical reports 

1. The costs of preparation of a pre-feasibility study report are determined by multiplying the percent (%) (referred to in Table 2.1 of Appendix 2 to this Circular) by the construction and equipment costs (excluding value added tax) estimated according to the costs per unit or cost data of projects of similar nature and size that are completed or in progress.

2. The costs of preparation of a feasibility study report are determined by multiplying the percent (%) (referred to in Table 2.2 of Appendix 2 to this Circular) by the construction and equipment costs (excluding value added tax) included in the estimate of total investment stated in the approved pre-feasibility study report or estimated according to the costs per unit or cost data of projects of similar nature and size that are completed or in progress (in case where the pre-feasibility study report is not required).

3. The costs of preparation of a report are determined by multiplying the percent (%) (referred to in Table 2.3 of Appendix 2 to this Circular) by the construction and equipment costs (excluding value added tax) estimated according to the costs per unit or cost data of projects of similar nature and size that are completed or in progress.

4. The costs of preparation of a PPP project proposal are determined as follows:

- The costs of formulation of a Group-A or Group-B project proposal are equal to 40% of the costs of preparation of the feasibility study report of the project of equivalent size which are determined according to the percent (%) issued in the Appendix No. 2 to this Circular.

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5. The costs of preparation of the pre-feasibility study report or feasibility study report of a project of national significance which are adjusted with the coefficient k = 1.1.

6. The costs of preparation of the feasibility study report and preparation of the economic - technical report in some projects are adjusted as follows:

- Projects for renovation, repair and expansion expected to get connected with existing ones: k = 1.15.

- Investment projects composed of multiple separate projects built in ​​two or more provinces: k = 1.1.

- Use of sample designs or typical designs adopted by competent authorities: k = 0.80.

- Use of repeated designs or reuse of designs: k = 0.80.

7. The costs of adjustment of pre-feasibility study reports, feasibility study reports and economic-technical reports for construction projects are determined by using the estimate made according to the instructions given in Appendix 3 hereto.

Table 2.1. Cost norms for preparation of pre-feasibility study reports

Unit: %

...

...

...

Types of construction projects

Construction and equipment costs (VAT excluded) (billion dong)

≤ 15

20

50

100

200

500

1.000

...

...

...

5.000

10.000

20.000

30.000

1

Civil construction project

0,668

0,503

0,376

...

...

...

0,161

0,100

0,086

0,073

0,050

0,040

0,026

0,022

2

...

...

...

0,757

0,612

0,441

0,294

0,206

0,163

0,141

0,110

0,074

...

...

...

0,034

0,027

3

Road construction project

0,413

0,345

0,251

0,177

0,108

...

...

...

0,062

0,053

0,036

0,029

0,019

0,016

4

Agricultural and rural development project

0,566

...

...

...

0,343

0,216

0,144

0,096

0,082

0,070

0,048

0,039

0,025

...

...

...

5

Technical infrastructure construction project

0,431

0,360

0,262

0,183

0,112

0,074

0,065

...

...

...

0,038

0,030

0,020

0,017

Table 2.2. Cost norms for preparation of feasibility study reports

Unit: %

No.

Types of construction projects

Construction and equipment costs (VAT excluded) (billion dong)

...

...

...

20

50

100

200

500

1.000

2.000

5.000

10.000

...

...

...

30.000

1

Civil construction project

1,114

0,914

0,751

0,534

0,402

0,287

...

...

...

0,209

0,167

0,134

0,102

0,086

2

Industrial construction project

1,261

1,112

...

...

...

0,654

0,515

0,466

0,404

0,315

0,248

0,189

0,135

0,107

...

...

...

Road construction project

0,689

0,628

0,501

0,393

0,271

0,203

0,177

0,151

...

...

...

0,097

0,075

0,063

4

Agricultural and rural development project

0,943

0,858

0,685

0,480

...

...

...

0,273

0,234

0,201

0,161

0,129

0,100

0,084

5

Technical infrastructure construction project

...

...

...

0,654

0,524

0,407

0,280

0,211

0,185

0,158

0,127

0,101

...

...

...

0,065

Table 2.3. Cost norms for preparation of economic-technical reports

Unit: %

No.

Types of construction projects

Construction and equipment costs (VAT excluded) (billion dong)

≤ 1

3

7

...

...

...

1

Civil construction project

6,5

4,7

4,2

3,6

2

Industrial construction project

6,7

...

...

...

4,3

3,8

3

Road construction project

5,4

3,6

2,7

2,5

4

...

...

...

6,2

4,4

3,9

3,6

5

Technical infrastructure construction project

5,8

4,2

3,4

...

...

...

Notes: The costs of preparation of an economic - technical report are determined according to Table 2.3, and are not less than VND 5,000,000 at minimum (VAT excluded).

II. Instructions about use of construction engineering cost norms

1. Construction engineering costs determined according to the instructions given in this Circular to complete engineering jobs, including: Interpretation of designs, plans or drawings, preparation and provision of construction cost estimates, technical manuals, construction maintenance procedures, author’s supervision and purchase of professional liability insurance.

2. Construction engineering costs are determined by multiplying percents (%) (in the Table No. 2.4 through Table 2.13 in Appendix No. 2 hereto) by construction costs (not including VAT) of specific types and grades of construction projects that are included in the approved total investment.

3. Construction engineering costs of a construction project are determined according to the formula:

Where:

- C_tk: Construction engineering costs; unit of measure: value;  

- C_xd: Construction costs corresponding to the type and grade of each construction project in the total approved investment; unit of measure: value;

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- k: Coefficient for adjustment of the engineering cost norm.

4. The construction engineering costs are calculated according to the percents (%) given in Appendix 2 to this Circular, already including the costs of preparation of the estimate of construction costs that account for about 12% of the construction engineering costs.

5. The construction engineering cost norm is adjusted in the following cases:

5.1. Repair, renovation, upgradation or expansion projects:

- Repair, renovation or upgradation engineering:

+ In case the engineering job does not result in any change in the load-bearing structure of a building: k = 1.1;

+ In case the engineering job results in changes in the load-bearing structure (excluding the foundation structure) of the project or the engineering job is carried out for the purposes of renovation or upgradation of the technological line or addition of equipment: k = 1.2;

+ In case the engineering job leads to any change in the load-bearing structure and the foundation of a building or construction project: k =1.3;

- Engineering for expansion of a project expected to get connected with the technology line of the existing one: k = 1.15.

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5.3. In case of using sample designs, typical designs adopted by competent agencies; repeated designs in a building complex or in a project, or reusing a design, the engineering cost will be determined according to the following formula:

C_tk = C_xd x N_t x (0.9 x k + 0.1)

Where:

- C_xd: Construction costs corresponding to the type and grade of each construction project in the approved total investment; unit of measure: Value;

- N_t: The given norm for engineering costs; unit of measure: %;

- k: Coefficient used for making the decreasing adjustment of the engineering cost norm due to:

+ Using sample designs or typical designs: The first construction project: k = 0.36; the second construction project or more: k = 0.18;

+ Using the repeated design in a building complex or in a project, or reusing a design: The first construction project: k = 1 (remaining unchanged); the second construction project: k = 0.36; the third construction project or more: k = 0.18;

- 0.1: Costs of author’s supervision (10%).

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7. When it is necessary to design the separate ground leveling work of an economic zone, industrial park, tourist site or new city project, the costs of design for the ground leveling work of the above-mentioned project shall be equal to 40% of the norm for engineering costs of a grade-IV road construction project.

8. In case of applying a lump-sum engineering contract, the main contractor’s operating expenses are derived from engineering costs of subcontractors based on the agreement between involved parties. 

9. The norms for construction engineering costs have not yet included costs paid for the following jobs:

a) Engineering surveying;

b) Positioning of points and landmarks at jobsite;

c) Measuring and assessing the current state of a construction work for repair, renovation, upgradation and expansion engineering jobs;

d) Relocation; demolition engineering;

d) Equipment manufacturing engineering (except mechanical engineering defined in Table TL1);

e) Engineering of smart control systems of buildings;

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g) Selection of energy-saving construction engineering plans;

h) Modeling or experimenting with the hydraulic model;

i) Geological description used during the period of execution of hydropower and irrigation construction works;

k) Preparation of the environmental impact assessment report and environmental protection commitment;

l) Preparation of the earthquake assessment report (a separate report is required);

m) Preparation of specialized reports and agreement documents at the investor’s request (if any);

n) Purchase of design copyright.

Costs of the aforesaid jobs are determined according to relevant instructional documents or cost estimates.

10. Costs of the adjusted construction engineering or preparation of the adjusted construction cost estimate are determined by using the estimate made according to the instructions given in Appendix 3 hereto.

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Table 2.4. Norms of technical engineering costs of civil construction projects subject to 3-step engineering requirements

Unit: %

Construction costs (VAT excluded) (billion dong)

Project grades

Special grade

Grade I

Grade II

Grade III

Grade IV

...

...

...

0,61

0,55

0,50

0,44

-

8.000

0,68

0,61

0,55

...

...

...

-

5.000

0,89

0,80

0,73

0,64

-

2.000

1,16

...

...

...

0,94

0,83

-

1.000

1,36

1,22

1,11

0,98

-

...

...

...

1,65

1,50

1,37

1,21

0,89

200

1,96

1,78

1,62

...

...

...

1,06

100

2,15

1,94

1,77

1,57

1,30

50

2,36

...

...

...

1,96

1,74

1,48

20

2,81

2,55

2,33

2,07

1,81

...

...

...

3,22

2,93

2,67

2,36

2,07

Table 2.4. Norms of costs of drawings for civil construction works subject to 2-step engineering requirements

Unit: %

Construction costs (VAT excluded) (billion dong)

Project grades

...

...

...

Grade I

Grade II

Grade III

Grade IV

10.000

0,91

0,80

0,72

0,63

...

...

...

8.000

0,99

0,90

0,82

0,72

-

5.000

1,28

1,16

...

...

...

0,94

-

2.000

1,65

1,51

1,36

1,20

-

1.000

...

...

...

1,76

1,61

1,43

-

500

2,39

2,17

1,98

1,75

...

...

...

200

2,83

2,57

2,34

2,07

1,51

100

3,10

2,82

...

...

...

2,25

1,86

50

3,41

3,10

2,80

2,48

2,12

20

...

...

...

3,66

3,33

2,95

2,55

≤ 10

4,66

4,22

3,85

3,41

...

...

...

Notes:

1) Engineering costs of a civil construction work subject to 3-step engineering requirements are the summation of costs of the technical engineering and costs of the drawing, including costs of the engineering design which are determined according to the norms given in Table 2.4; costs of the drawing which account for 55% of the norms given in table 2.4.

2) Costs of a drawing for a civil construction work subject to 2-step engineering requirements are determined according to the norms given in Table 2.5.

3) Norms of engineering costs of several civil construction works are adjusted by the coefficient k = 1.2, including the following ones: National stadiums, national arenas; national sports arenas; National Convention Centers; National museums, libraries, exhibitions and galleries; National Assembly House, Presidential Palace, headquarters of the Government, Party Central Committee; Working offices of ministries, central authorities, People's Committees of centrally-run cities and equivalent administrative authorities; airport terminals.

4) In case where a civil construction work incurs costs of construction equipment which are 50% of total construction cost and equipment costs included in the cost estimate, engineering costs of this civil construction work are determined by a pair of norm values expressed in percent (%) according to construction costs and equipment costs (excluding value added tax) given in Table 2.4 or 2.5 and table DD1 below.

Table DD1

Equipment costs (billion dong)

≤ 5

15

...

...

...

50

100

200

500

1.000

3.000

%

0,60

0,50

...

...

...

0,40

0,36

0,33

0,28

0,22

0,16

12. NORMS OF INDUSTRIAL CONSTRUCTION ENGINEERING COSTS

Table 2.6. Norms of engineering design costs of industrial construction works subject to 3-step engineering requirements

Unit: %

...

...

...

Project grades

Special grade

Grade I

Grade II

Grade III

Grade IV

10.000

0,70

0,58

...

...

...

0,42

-

8.000

0,79

0,65

0,53

0,47

-

5.000

...

...

...

0,80

0,66

0,58

-

2.000

1,30

1,09

0,90

0,79

...

...

...

1.000

1,54

1,28

1,05

0,93

-

500

1,76

1,46

...

...

...

1,06

0,83

200

1,92

1,60

1,32

1,17

0,98

100

...

...

...

1,77

1,46

1,27

1,14

50

2,34

1,93

1,59

1,40

...

...

...

20

2,73

2,27

1,86

1,65

1,47

≤ 10

2,96

2,47

...

...

...

1,78

1,59

Table 2.7. Norms of drawing costs of industrial construction works subject to 2-step engineering requirements

Unit: %

Construction costs (VAT excluded) (billion dong)

Project grades

Special grade

Grade I

Grade II

...

...

...

Grade IV

10.000

1,04

0,88

0,72

0,64

-

8.000

1,21

...

...

...

0,82

0,72

-

5.000

1,52

1,26

1,04

0,91

-

...

...

...

2,03

1,70

1,42

1,25

-

1.000

2,40

2,01

1,66

...

...

...

-

500

2,75

2,28

1,90

1,68

1,22

200

3,01

...

...

...

2,03

1,79

1,47

100

3,32

2,77

2,24

1,99

1,72

...

...

...

3,66

3,02

2,43

2,16

1,89

20

4,27

3,57

2,90

...

...

...

2,25

≤ 10

4,70

3,87

3,13

2,78

2,46

Notes:

1) Engineering costs of an industrial construction work subject to 3-step engineering requirements are the summation of costs of the engineering design and costs of the drawing, including costs of the engineering design which are determined according to the norms given in Table 2.6; costs of the drawing which account for 60% of the norms given in Table 2.6.

...

...

...

3) Norms of engineering costs of several industrial construction works are adjusted by the following coefficients:

- Mining and mineral processing projects:

+ Coal or other ore surface mining projects: Grade II: k = 1.2; Grade III: k = 1.35.

+ Construction of underground coal, ore mining, coal screening plant, ore processing/enrichment plant projects: Grade I: k = 1.2; Grade II: k = 1.45; Grade III: k = 1.6.

+ Norms of engineering costs of a horizontal drift mining project  In case of engineering of an underground coal mine, underground ore mine opened by an inclined tunnel, the norm of costs of such engineering job will be adjusted with the coefficient k = 1.3. In case of engineering of an underground coal mine, underground ore mine opened by a vertical tunnel, the norm for costs of such engineering job will be adjusted with the coefficient k = 1.5.

+ The norm of engineering costs of repair or renovation of a coal or other ore surface mining project is adjusted with the coefficient k = 3.0; for an underground coal or other ore mining project, adjusted with the coefficient k = 1.5; for a coal screening plant, ore processing/enrichment plant project, adjusted with the coefficient k = 1.2.

- The norm of engineering costs of repair and expansion of a transformer station, the norm of engineering costs is calculated according to the instructions applied to new construction works and is adjusted with the following coefficients: Special grade: k = 1.1; Grade I: k = 1.3; other grade: k = 1.5.

- Thermal power project: Special grade: k = 0.8; Grade I: k = 0.95; Grade II: k = 1.15; Grade III: k = 1.3.

- Hydropower project: Special grade: k = 1.0; Grade I: k = 1.2; Grade II: k = 1.44; Grade III: k = 1.59.

...

...

...

- Overhead power line project: Special grade: k = 0.64; Grade I: k = 0.76; Grade II: k = 0.85; Grade III, IV: k = 0.93.

- The norm for costs of a double- or multi-circuit transmission line, double-phase split line is the same as that of an overhead power transmission line of the same voltage level and is adjusted with the following coefficients: Transmission line consisting of 2 - 4 circuits: k =1.1; transmission line consisting of greater than 4 circuits: k = 1.2; split phase line, voltage level 220KV÷500KV: k = 1.1; transmission line consisting of multiple voltage levels, at least 35KV: k = 1.2.

- The norm of engineering costs of a breaker station, capacitor station, and metering station, voltage level ≤ 35kV, is the same as that of a transformer station at the same voltage level.

- The norm of engineering costs of a compensation station at the voltage level of 500kV is calculated as the norm of engineering costs of a transformer station at the same voltage level.

- The norm of engineering costs of a closed transformer station - GIS station at the voltage level of up to 220KV is adjusted with the coefficient k = 1.35 compared to the norm of costs in percent of engineering costs of an ordinary transformer station at the same voltage level.

- The norm of engineering costs of a compact transformer station at the voltage level of up to 220KV is adjusted with the coefficient k = 1.2 compared to the norm of engineering costs of an ordinary transformer station at the same voltage level.

- With respect to the engineering of a power transmission line crossing, it is subject to separate engineering requirements and the norm of costs of such engineering job is adjusted with the coefficient k = 1.2 applied to the crossing.

- Cement plant: Grade I: k = 1.2; Grade II: k = 1.42; Grade III: k=1.58.

- Chemical plant project:

...

...

...

+ Cosmetics manufacturing project: Grade II: k = 1.2; Grade III: k = 1.34;

+ Chemicals used for production of compound Urea, DAP, MPA, SA, NPK fertilizers: Grade I: k = 1.2; Grade II: k = 1.35; Grade III: k = 1.5;

- Petroleum stockpile projects: Grade I: k = 1.2; Grade II: k = 1.36; Grade III: k = 1.5;

- Liquefied gas storage and transfer station project: Grade I: k = 1.18; Grade II: k = 1.36.

4) The norm of engineering costs of an underground cable work subject to 2-step engineering requirements is determined by multiplying the norm in percent (%) in Table CN1 below by construction costs and equipment costs (exclusive of VAT). The norm of engineering costs of the one subject to 3-step engineering requirements is adjusted with the coefficient k = 1.15.

Table CN1

Unit: %

Construction and equipment costs (billion dong)

Voltage level

...

...

...

15

25

50

100

200

500

Underground cable, voltage < 6KV

1,70

1,40

...

...

...

1,20

1,10

0,95

0,85

Underground cable, voltage 6 ÷ 110KV

1,90

1,60

1,45

1,30

...

...

...

1,05

0,95

Underground cable, voltage 220KV

1,65

1,43

1,27

1,16

1,05

0,94

...

...

...

5) In case where a chemical manufacturing, coal, ore mining, cement manufacturing or transformer station project incurs costs of construction equipment which are at least 50% of total construction cost and equipment costs included in the cost estimate, engineering costs of each of this construction project are determined by a pair of norm values expressed in percent (%) according to construction costs and equipment costs (exclusive of value added tax) given in Table 2.6 or 2.7 and Table DD2 below.

Table CN2

Unit: %

No.

Description of construction works

Equipment costs (billion dong)

≤ 5

15

25

...

...

...

100

200

500

1.000

3.000

1

Chemical facility construction project

1,10

1,00

...

...

...

0,85

0,80

0,70

0,60

0,55

0,45

2

Coal and ore mining project (material quarries):

...

...

...

- Open pit

0,95

...

...

...

0,80

0,75

0,70

0,60

0,55

0,50

0,40

- Underground mine

1,15

...

...

...

0,95

0,90

0,80

0,75

0,65

0,60

0,50

3

Cement plant project

...

...

...

-

-

1,15

1,10

1,05

1,01

0,96

0,80

4

...

...

...

0,73

0,65

0,56

0,51

0,48

0,42

0,37

0,34

0,30

...

...

...

13. NORMS OF ROAD CONSTRUCTION ENGINEERING COSTS

Table 2.8. Norms of engineering design costs of a road construction work subject to 3-step engineering requirements

Unit: %

Construction costs (VAT excluded) (billion dong)

Project grades

Special grade

Grade I

Grade II

Grade III

...

...

...

10.000

0,45

0,28

0,25

0,21

-

8.000

0,51

0,34

...

...

...

0,25

-

5.000

0,68

0,44

0,39

0,32

-

2.000

...

...

...

0,58

0,51

0,43

-

1.000

1,08

0,68

0,60

0,48

...

...

...

500

1,24

0,81

0,70

0,58

0,49

200

1,36

0,95

...

...

...

0,68

0,59

100

1,50

1,05

0,84

0,74

0,69

50

...

...

...

1,13

0,92

0,81

0,76

20

1,92

1,39

1,08

0,93

...

...

...

≤ 10

2,05

1,44

1,19

1,05

0,95

Table 2.9. Norms of costs of the drawing of a road construction work subject to 2-step engineering requirements

Unit: %

Construction costs (VAT excluded) (billion dong)

...

...

...

Special grade

Grade I

Grade II

Grade III

Grade IV

10.000

0,66

0,49

0,36

...

...

...

-

8.000

0,75

0,61

0,42

0,33

5.000

1,02

...

...

...

0,56

0,45

-

2.000

1,32

1,03

0,72

0,59

...

...

...

1,52

1,21

0,85

0,70

500

1,78

1,38

1,01

...

...

...

0,71

200

1,95

1,51

1,10

0,97

0,83

100

2,15

...

...

...

1,20

1,06

0,98

50

2,36

1,83

1,32

1,17

1,08

...

...

...

2,76

2,15

1,55

1,37

1,26

≤ 10

3,01

2,27

1,67

...

...

...

1,37

Notes:

1) Engineering costs of a road construction work subject to 3-step engineering requirements are the summation of costs of the engineering design and costs of the drawing, including costs of the engineering design which are determined according to the norms given in Table 2.8; costs of the drawing which account for 55% of the norms given in table 2.8.

2) Costs of the drawing for a road construction work subject to 2-step engineering requirements are determined according to the norms given in Table 2.9.

3) Norms of the engineering costs of several road construction works are adjusted by the following coefficients:

+ Road tunnel, railway tunnel, and intersection at different levels: Grade I: k = 1.5; Grade II: k = 1.65; Grade III, IV: k = 1.86;

+ Railway and rail bridge renovation and repair project: k = 1.5. In case the costs of renovation or repair of a railway bridge and railway crossroad are ≤ 1 billion VND: k = 3.3;

+ Flight area (takeoff and landing runway, taxiway, apron): Special grade: k = 1.35; Grade I: k = 1.56.

14. NORMS OF ENGINEERING COSTS OF AGRICULTURAL AND RURAL DEVELOPMENT PROJECTS

...

...

...

Unit: %

Construction costs (VAT excluded) (billion dong)

Project grades

Special grade

Grade I

Grade II

Grade III

Grade IV

10.000

...

...

...

0,52

0,42

0,37

-

8.000

0,66

0,59

0,49

0,43

...

...

...

5.000

0,85

0,77

0,67

0,59

-

2.000

1,13

1,02

...

...

...

0,77

-

1.000

1,30

1,17

1,05

0,90

0,64

500

...

...

...

1,39

1,22

1,06

0,80

200

1,83

1,66

1,51

1,24

...

...

...

100

1,98

1,78

1,61

1,43

1,12

50

2,20

1,99

...

...

...

1,60

1,27

20

2,60

2,36

2,14

1,90

1,52

≤ 10

...

...

...

2,70

2,48

2,20

1,74

Table 2.11. Norms of costs of drawings of agricultural and rural development projects subject to 2-step engineering requirements

Unit: %

Construction costs (VAT excluded) (billion dong)

Project grades

Special grade

...

...

...

Grade II

Grade III

Grade IV

10.000

0,83

0,74

0,58

0,51

-

...

...

...

0,95

0,85

0,69

0,60

-

5.000

1,22

1,10

0,96

...

...

...

-

2.000

1,58

1,43

1,25

1,10

-

1.000

1,87

...

...

...

1,48

1,29

-

500

2,21

2,00

1,73

1,52

1,14

...

...

...

2,60

2,36

2,15

1,79

1,41

100

2,85

2,57

2,34

...

...

...

1,61

50

3,17

2,87

2,62

2,31

1,82

20

3,75

...

...

...

3,11

2,76

2,19

≤ 10

4,29

3,89

3,53

3,13

2,48

...

...

...

1) Engineering costs of an agricultural and rural development project subject to 3-step engineering requirements are the summation of costs of the engineering design and costs of the drawing, including costs of the engineering design which are determined according to the norms given in Table 2.10; costs of the drawing which account for 55% of the norms given in Table 2.10.

2) The norm of costs of the drawing of an agricultural and rural development project subject to 2-step engineering requirements is determined according to the norms given in Table 2.11.

3) The norms of engineering costs of several agricultural and rural development projects are adjusted by the following coefficients:

- Renovation, repair or expansion engineering of an agricultural and rural development project: k = 1,5.

- Costs of the engineering for a jet grout drilling for treatment of foundation and body of a hydraulic structure are calculated according to the norm value corresponding to that construction structure, but based on the construction costs of the jet grout drilling job.

- Diversion channel, pipeline system: k = 0.8.

- Hydraulic tunnel, conduit and culvert: k = 1.1.

- The norm of engineering costs of the dredging job of an irrigation canal, irrigation canal or drainage ditch is adjusted with the coefficient k = 0.8 like that of a Grade-IV hydraulic structure subject to 2-step engineering requirements.

- The norm of engineering costs of a dam, spillway or retaining wall belonging to a headwork is adjusted with the following coefficients: Special grade: k = 1.0; Grade I: k = 1.1; Grade II: k = 1.2; Grade III, IV: k = 1.35.

...

...

...

Table TL1

Equipment costs (VAT excluded) (billion dong)

Project grades

Special grade and Grade I

Grade II, III and IV

500

0,75

0,62

200

...

...

...

0,74

100

1,07

0,90

50

1,42

1,23

20

1,46

...

...

...

5

2,53

2,26

≤ 2

2,89

2,58

15. NORMS OF ENGINEERING COSTS OF TECHNICAL INFRASTRUCTURE CONSTRUCTION PROJECTS

Table 2.12. Norms of engineering design costs of technical infrastructure construction projects subject to 3-step engineering requirements

Unit: %

...

...

...

Project grades

Special grade

Grade I

Grade II

Grade III

Grade IV

10.000

0,43

0,33

...

...

...

0,25

-

8.000

0,48

0,39

0,34

0,29

-

5.000

...

...

...

0,53

0,47

0,41

-

2.000

0,83

0,75

0,66

0,56

...

...

...

1.000

0,97

0,90

0,78

0,70

0,58

500

1,14

1,04

...

...

...

0,80

0,70

200

1,36

1,28

1,13

0,97

0,80

100

...

...

...

1,38

1,22

1,07

0,92

50

1,63

1,53

1,36

1,19

...

...

...

20

1,94

1,83

1,62

1,39

1,23

≤ 10

2,22

2,09

...

...

...

1,62

1,45

Table 2.13. Norms of costs of drawings of technical infrastructure construction projects subject to 2-step engineering requirements

Unit: %

Construction costs (VAT excluded) (billion dong)

Project grades

Special grade

Grade I

Grade II

...

...

...

Grade IV

10.000

0,63

0,49

0,43

0,36

-

8.000

0,70

...

...

...

0,51

0,44

-

5.000

0,90

0,79

0,70

0,61

-

...

...

...

1,19

1,07

0,92

0,81

-

1.000

1,39

1,28

1,14

...

...

...

-

500

1,64

1,49

1,32

1,16

0,98

200

1,95

...

...

...

1,58

1,39

1,15

100

2,13

1,99

1,77

1,55

1,35

...

...

...

2,35

2,21

1,97

1,72

1,49

20

2,79

2,63

2,33

...

...

...

1,76

≤ 10

3,23

3,01

2,68

2,36

2,07

Notes:

1) Engineering costs of a technical infrastructure construction project subject to 3-step engineering requirements are the summation of costs of the engineering design and costs of the drawing, including costs of the engineering design which are determined according to the norms given in Table 2.12; costs of the drawing which account for 55% of the norms given in Table 2.12.

...

...

...

3) Norms of the engineering costs of several technical infrastructure construction projects are adjusted by the following coefficients:

- Water plant; clean water treatment project; raw water, clean water or booster pumping station (not including pipeline system): Grade I: k = 1.2; Grade II: k = 1.3; Grade III: k = 1.44;

- Rainwater pumping station; wastewater treatment; sewage pumping station project (not including pipeline system); sludge treatment; solid waste treatment project: Grade I: k = 1.15; Grade II: k = 1.25; Grade III: k = 1.35;

- Water supply and drainage pipeline: k = 1.2;

- River-crossing water supply pipeline: k = 1.2 applied to the crossing section.

4) The norm of engineering costs of a telecommunications, radio and television broadcasting post, pole or tower is adjusted with the coefficient k = 1.2.

5) The norm of engineering costs of a communications – telecommunications project shall be based on the instructions given in Table HTKT1 mentioned hereunder.

Table HTKT1

Unit: %

...

...

...

Construction and equipment costs (VAT excluded) (billion dong)

≤ 5

10

15

25

50

100

200

500

...

...

...

1,83

1,40

1,30

1,10

0,95

0,80

0,70

0,60

River-crossing buried cable system

...

...

...

1,50

1,40

1,30

1,10

1,00

0,90

0,70

Utility trench, underground duct

2,10

...

...

...

1,50

1,35

1,15

1,05

0,95

0,80

- The norms of engineering costs of communications – telecommunications construction projects are applied to grade-III construction projects while those of Grade-IV construction projects are adjusted with the coefficient: k = 0.9.

- The norms of engineering costs of train signaling and installation of railway communication systems, electricity communication projects are the same as those given in Table HTKT1. If the norm of construction and equipment costs of each of these construction projects is less than 1 billion dong, the norm of engineering costs of such project shall be adjusted with the coefficient k = 1.3.

6) The norms of engineering costs of communication system projects shall be based on the instructions given in Table HTKT2 mentioned hereunder:

...

...

...

Unit: %

Description of construction works

Construction and equipment costs (VAT excluded) (billion dong)

≤ 5

10

15

25

50

100

...

...

...

500

Host, satellite, independent switchboards

1,00

0,75

0,60

0,50

0,45

0,35

0,25

...

...

...

MSC, BSC, subscriber access, SMS gateways

0,90

0,70

0,55

0,45

0,40

0,30

0,20

0,10

...

...

...

1,35

0,80

0,60

0,50

0,40

0,30

0,20

0,10

Microwave transmission system

...

...

...

1,40

1,30

0,80

0,60

0,45

0,30

0,15

Rural telecommunications network

2,80

...

...

...

1,40

0,90

0,65

0,50

0,35

0,20

Internet, voip, NGN network equipment

1,00

0,75

...

...

...

0,50

0,40

0,30

0,20

0,10

Lightning protection system (including protection of equipment)

2,15

1,05

0,85

...

...

...

0,55

0,35

0,25

0,20

VSAT-type satellite ground station

1,80

1,30

1,10

0,90

...

...

...

0,50

0,35

0,20

BTS, CS, card phone station

1,25

0,70

0,50

0,35

0,30

...

...

...

0,20

0,10

- The norms of engineering costs of communication system projects defined in the instructions given in Table HTKT2 mentioned above are adjusted in the following cases:

+ These norms of construction projects using synchronous equipment without being subject to the requirement for engineering of technology lines are adjusted with the coefficient k = 0.60;

+ These norms of engineering costs of the expansion job, regardless of expansion with additional racks or cards (except installation of new stations), are adjusted with the coefficient k = 0.40;

+ These norms of repeated construction projects in a construction complex or a project are based on the instructions given in 5.3 – Section II. Instruction about use of norms of construction engineering costs given in Appendix No. 2 to this Circular. 

III. Instructions about use of cost norms for verification of pre-feasibility study reports, feasibility study reports and economic-technical reports 

1. The costs of verification of a pre-feasibility study report are determined by multiplying the percent (%) (referred to in Table 2.14 of Appendix 2 to this Circular) by the construction and equipment costs (excluding value added tax) estimated according to the costs per unit or cost data of projects of similar nature and size that are completed or in progress.

2. The costs of verification of a feasibility study report are determined by multiplying the percent (%) (referred to in Table 2.15 of Appendix 2 to this Circular) by the construction and equipment costs (excluding value added tax) included in the estimate of total investment stated in the approved pre-feasibility study report or estimated according to the costs per unit or cost data of projects of similar nature and size that are completed or in progress (in case where the pre-feasibility study report is not required).

...

...

...

4. The costs of verification of adjusted pre-feasibility study reports, total investments or economic – technical reports are determined according to the estimates made according to the instructions given in Appendix 3 hereto.

Table 2.14. Cost norms for verification of pre-feasibility study reports

Unit: %

No.

Types of construction projects

Construction and equipment costs (VAT excluded) (billion dong)

≤ 15

20

50

...

...

...

200

500

1.000

2.000

5.000

10.000

20.000

30.000

1

...

...

...

0,071

0,059

0,048

0,034

0,025

0,016

0,014

0,012

0,009

...

...

...

0,005

0,004

2

Industrial construction project

0,098

0,083

0,067

0,049

0,037

...

...

...

0,025

0,020

0,015

0,010

0,007

0,005

3

Road construction project

0,054

...

...

...

0,039

0,030

0,020

0,013

0,011

0,009

0,007

0,005

0,004

...

...

...

4

Agricultural and rural development project

0,064

0,058

0,047

0,033

0,024

0,015

0,013

...

...

...

0,009

0,006

0,005

0,004

5

Technical infrastructure construction project

0,056

0,051

0,041

...

...

...

0,021

0,013

0,012

0,010

0,008

0,005

0,004

0,003

Notes:

...

...

...

+ Verification of the basic engineering: 35%

+ Review of the estimate of total investment: 35%

+ Verification of the rest of matters in a project: 30%

Table 2.15. Cost norms for verification of feasibility study reports

Unit: %

No.

Types of construction projects

Construction and equipment costs (VAT excluded) (billion dong)

≤ 15

...

...

...

50

100

200

500

1.000

2.000

5.000

10.000

20.000

...

...

...

1

Civil construction project

0,204

0,168

0,138

0,097

0,070

0,046

0,041

...

...

...

0,026

0,019

0,015

0,012

2

Industrial construction project

0,281

0,238

0,190

...

...

...

0,107

0,080

0,070

0,056

0,044

0,029

0,020

0,015

3

...

...

...

0,153

0,139

0,112

0,087

0,058

0,036

0,032

0,026

0,020

...

...

...

0,010

0,009

4

Agricultural and rural development project

0,182

0,167

0,133

0,094

0,068

...

...

...

0,037

0,032

0,026

0,017

0,014

0,010

5

Technical infrastructure construction project

0,160

...

...

...

0,116

0,092

0,060

0,037

0,034

0,029

0,022

0,015

0,010

...

...

...

Notes:

- Costs of verification of feasibility study reports that are determined according to the norms given in Table 2.15 are distributed as follows:

+ Verification of the conceptual or feasibility design: 35%

+ Verification of total investment: 35%

+ Verification of the rest of matters in a project: 30%

- In case where a project is subject to the requirement of verification of the technological design verification, the costs of such verification must add 20% of the costs of verification of the feasibility study report.

IV. Instructions about use of cost norms for verification of construction designs

1. Costs of verification of a construction design are determined by multiplying percents (%) (in the Table No. 2.16 of Appendix No. 2 hereto) by construction costs (not including VAT) included in total investment. Costs of verification of the design job rendered as a bid are determined by multiplying percents (%) (in the Table No. 2.16 of Appendix No. 2 hereto) by construction costs (not including VAT) included in the estimate of costs of the contract.

2. As for projects that plan to be executed according to bids, in order to budget for verification of the construction design for calculation of total investment, the costs of verification of the construction design are determined according to percents (%) (in the Table No. 2.16 of Appendix No. 2 hereto) corresponding to the amounts of construction costs that intend to be distributed to specific bids.

...

...

...

Table 2.16. Cost norms for verification of engineering designs

Unit: %

No.

Types of construction projects

Construction costs (VAT excluded) included in total investment or the bid estimate (billion dong)

≤ 10

20

50

100

...

...

...

500

1.000

2.000

5.000

8.000

10.000

1

Civil construction project

0,258

...

...

...

0,172

0,143

0,108

0,083

0,068

0,044

0,033

0,028

0,026

...

...

...

Industrial construction project

0,290

0,252

0,192

0,146

0,113

0,087

0,066

0,053

...

...

...

0,031

0,028

3

Road construction project

0,170

0,147

0,113

0,084

0,073

...

...

...

0,042

0,035

0,024

0,020

0,017

4

Agricultural and rural development project

0,189

0,163

...

...

...

0,093

0,073

0,056

0,043

0,035

0,026

0,022

0,019

5

...

...

...

0,197

0,172

0,133

0,099

0,076

0,059

0,046

0,040

0,029

...

...

...

0,021

Notes:

- Costs of verification of the design of a construction project using the typical design or the sample design validated by the competent authority are adjusted with the coefficient k = 0.36 if such project is the second or later one.

- As for a construction project subject to 3-step engineering requirements, if verification of the engineering design and construction drawing are required, the costs of verification of the engineering design shall be determined according to the norms given in Table 2.16 while the costs of verification of the construction drawing are calculated as 40% of the costs of verification of the engineering design.

- Costs of verification of the design of a ground leveling work are calculated as 40% of the costs of verification of the design of a road construction project.

- Design verification costs are determined according to the norms, but are not less than VND 2,000,000 at minimum (not including VAT yet).

V. Instructions about use of cost norms for review of construction cost estimates

1. Costs of review of a construction cost estimate are determined by multiplying percents (%) (in the Table No. 2.17 of Appendix No. 2 hereto) by construction costs (not including VAT) included in total investment in a construction project. Costs of review of the construction bid estimate are determined by multiplying the norm values in percent (%) (in the Table No. 2.17 of Appendix No. 2 hereto) by construction costs (not including VAT) included in the bid estimate.

2. As for projects that plan to be executed according to bids, in order to budget for review of the construction bid estimate for calculation of total investment, the costs of review of the construction bid estimate are determined according to percents (%) (in the Table No. 2.17 of Appendix No. 2 hereto) corresponding to the amounts of construction costs that intend to be distributed to specific bids.

...

...

...

4. Costs of review of the adjusted construction cost estimate; the cost estimate of the bid for purchase of construction materials and equipment; the cost estimate of the construction investment consultancy bid, the estimate of the bid cost classified into other cost items (in the case of the consultancy bid, the bid defined as other cost items by an estimate); the estimate of costs of the mixed bid, are subject to the instructions provided in Appendix 3 to this Circular.

Table 2.17. Cost norms for review of construction cost estimates

Unit: %

No.

Types of construction projects

Construction costs (VAT excluded) included in total investment or the bid estimate (billion dong)

≤ 10

20

50

...

...

...

200

500

1.000

2.000

5.000

8.000

10.000

1

Civil construction project

...

...

...

0,219

0,166

0,140

0,105

0,077

0,064

0,043

0,032

0,027

...

...

...

2

Industrial construction project

0,282

0,244

0,185

0,141

0,108

0,083

0,062

...

...

...

0,034

0,030

0,027

3

Road construction project

0,166

0,142

0,106

0,082

...

...

...

0,052

0,041

0,034

0,021

0,018

0,016

4

Agricultural and rural development project

0,183

...

...

...

0,119

0,092

0,070

0,053

0,040

0,034

0,024

0,021

0,018

...

...

...

Technical infrastructure construction project

0,191

0,166

0,128

0,095

0,072

0,056

0,044

0,037

...

...

...

0,022

0,020

Notes:

- As for a construction project subject to 3-step engineering requirements, if review of both the cost estimate of the engineering design and the cost estimate of the construction drawing is required, the review costs shall be determined separately for each cost estimate according to the norms announced in Table 2.17.

- Costs of review of the cost estimate of a construction project using the typical design or the sample design validated by the competent authority are adjusted with the coefficient k = 0.36 if such project is the second or later one.

- Costs of review of the cost estimate of a ground leveling work are calculated as 40% of the costs of review of the cost estimate of a road construction project.

- Estimate review costs are determined according to the norms expressed in percent (%), but are not less than VND 2,000,000 at minimum (not including VAT yet).

VI. Instructions about use of cost norms for preparation of invitations for bid and evaluation of bid packages

1. Costs of preparation of an invitation for bid and evaluation of a bid package for a consultancy contract are determined by multiplying the norm values in percent (%) (in the Table No. 2.18 of Appendix No. 2 hereto) by consultancy costs (not including VAT) included in the estimate of costs of the consultancy contract.

...

...

...

3. Costs of preparation of an invitation for bid and evaluation of a bid package for a procurement contract are determined by multiplying the norm values in percent (%) (in the Table No. 2.20 of Appendix No. 2 hereto) by procurement costs (not including VAT) included in the estimate of costs of the procurement contract.

4. As for projects that plan to be executed according to different bids, in order to budget for preparation of an invitation for bid, evaluation of a bid package for a consultancy, construction and procurement contract for calculation of total investment, costs of preparation of the invitation for bid, evaluation of the bid package for the consultancy, construction and procurement contract are determined according to the norms expressed in percent (%) (in the Table No. 2.18, 2.19 and 2.20 of Appendix No. 2 hereto) corresponding to the amounts of consultancy, construction or equipment costs that intend to be distributed to each contract.

5. Costs of preparation of an invitation for expression of interest, evaluation of documents of expression of interest, or costs of preparation of an invitation for pre-qualification and evaluation of pre-qualification documents, are equal to 30% of costs of preparation of an invitation for bid, evaluation of a bidding package in a procurement contract and a consultancy contract which are determined according to the norms given in Appendix No. 2 hereto.

6. Costs of preparation of a request for proposal, evaluation of a proposal are equal to 60% of costs of preparation of an invitation for bid, evaluation of a bidding package in a construction contract, a procurement contract and a consultancy contract which are determined according to the norms given in Appendix No. 2 hereto.

7. Costs of preparation of an invitation for bid, evaluation of a bid package for the mixed contract are determined by using the cost estimate made according to the instructions given in Appendix 3 hereto.

Table 2.18. Cost norms for preparation of invitations for bid and evaluation of bid packages for consultancy contracts

Consultancy costs (VAT excluded) included in the consultancy bid estimate (billion dong)

≤ 1

3

...

...

...

10

20

50

100

%

0,816

0,583

0,505

0,389

...

...

...

0,176

0,114

Notes: Norms of costs of preparation of invitations for bid and evaluation of bid packages for consultancy contracts that are calculated according to the norms given in Table 2.18 are distributed as follows:

- Preparation of invitation for bid: 45%;

- Evaluation of bid packages: 55%.

Table 2.19. Cost norms for preparation of invitations for bid and evaluation of bid packages for construction contracts

Unit: %

No.

Types of construction projects

...

...

...

≤ 10

20

50

100

200

500

1.000

2.000

1

...

...

...

0,432

0,346

0,195

0,127

0,078

0,057

0,040

0,032

2

...

...

...

0,549

0,379

0,211

0,144

0,096

0,067

0,052

0,041

3

...

...

...

0,346

0,237

0,151

0,090

0,057

0,043

0,029

0,023

4

...

...

...

0,361

0,302

0,166

0,094

0,066

0,046

0,031

0,026

5

...

...

...

0,388

0,325

0,172

0,106

0,069

0,052

0,038

0,028

Notes: Norms of costs of preparation of invitations for bid and evaluation of bid packages for construction contracts that are calculated according to the norms given in Table 2.19 are distributed as follows:

...

...

...

- Evaluation of bid packages: 55%.

Table 2.20. Cost norms for preparation of invitations for bid and evaluation of bid packages for procurement contracts

Unit: %

No.

Types of construction projects

Material and equipment costs (VAT excluded) included in the procurement bid estimate (billion dong)

≤ 10

20

50

...

...

...

200

500

1.000

2.000

1

Civil construction project

0,367

0,346

0,181

...

...

...

0,102

0,081

0,055

0,043

2

Industrial construction project

0,549

0,494

0,280

...

...

...

0,152

0,123

0,084

0,066

3

Road construction project

0,261

0,230

0,131

...

...

...

0,074

0,056

0,040

0,032

4

Agricultural and rural development project

0,281

0,245

0,140

...

...

...

0,078

0,061

0,050

0,037

5

Technical infrastructure construction project

0,302

0,260

0,156

...

...

...

0,087

0,069

0,054

0,041

Notes: Norms of costs of preparation of invitations for bid and evaluation of bid packages for procurement contracts that are calculated according to the norms given in Table 2.20 are distributed as follows:

- Preparation of invitation for bid: 45%

- Evaluation of bid packages: 55%

VII. Instructions about use of supervision cost norms

1. Construction supervision costs are determined by multiplying the norm values in percent (%) (in the Table No. 2.21 of Appendix No. 2 hereto) by construction costs (not including VAT) included in the estimate of costs of the construction contract.

...

...

...