An introduction regulations of construction investment costs

0
315

The State Government promulgates Decree 10/2021/ND-CP into the industry on February 9, 2021, providing for the management of construction investment costs for projects using public investment capital, foreign state capital for public investment. , investment project under the mode of public-private partnership (hereinafter referred to as PPP project for short), including: preliminary total construction investment, total construction investment, construction estimate, construction bidding package price construction; construction norms, work construction prices, project management costs and construction investment consultancy; payment and settlement of construction contracts, payment and settlement of construction investment capital; rights and responsibilities of investment deciders, rights and obligations of investors, construction contractors and consulting contractors in the management of construction investment costs. The management of construction investment costs for projects funded by official development assistance (hereinafter referred to as ODA) or concessional loans from foreign donors shall comply with the provisions of international treaties; agreements on ODA and concessional loans have been signed; provisions of this Decree and the law on management and use of ODA and concessional loans of foreign donors.

  1. Subjects of application

 – Agencies, organizations and individuals involved in the management of construction investment costs of projects using public investment capital, foreign capital from public investment, PPP projects

 – Organizations and individuals refer to the provisions of this Decree to manage construction investment costs for projects outside the regulations.

 Contents of total construction investment

 – Total construction investment is the entire construction investment cost of the project determined in accordance with the basic design and other contents of the construction investment feasibility study report.

– Contents of total construction investment, including: costs of compensation, support and resettlement (if any); construction costs; equipment costs; project management costs; construction investment consulting costs; Other costs; reserve costs and are specified as follows:

  1. a) Expenses for compensation, support and resettlement include: costs of compensation for land, houses, structures on land, properties attached to land, on water surface and other compensation expenses as prescribed; supports when the State recovers land; resettlement costs; expenses for organizing compensation, support and resettlement; cost of land use and land rental calculated during the construction period (if any); expenses for relocation and reimbursement for the technical infrastructure that has been built in service of ground clearance (if any) and other related expenses;
  2. b) Construction costs include: construction costs of works, work items of the project; works, work items of temporary and auxiliary construction in service of construction; the cost of demolition of constructions that are not within the scope of the demolition work for site clearance has been included in the cost of compensation, support and resettlement;
  3. c) Equipment costs include: costs of procurement of construction equipment and technological equipment; equipment procurement management expenses (if any); expenses for purchasing software copyrights used for engineering and technological equipment (if any); training and technology transfer expenses (if any); expenses for processing and manufacturing equipment to be processed and manufactured (if any); costs of installation, testing and adjustment; cost of testing equipment according to technical requirements (if any); transportation costs; insurrance; taxes and fees; other related costs; d) Project management expenses are expenses necessary to organize the management of the implementation and implementation of project management tasks from the stage of project preparation, project implementation to the end of construction, to bring the work to the public. the project’s process for exploitation and use and settlement of construction investment capital, detailed in Article 30 of this Decree;

đ) Construction investment consulting expenses are expenses necessary to perform construction investment consulting works from the project preparation stage, project implementation to the completion of construction and putting the project’s works. on exploitation, use and settlement of construction investment capital, as detailed in Article 31 of this Decree;

  1. e) Provision costs include provision costs for volume, arising work and provision costs for price slippage during the project implementation period.

– The project only requires the preparation of an economic-technical report for construction investment, the total construction investment including the work construction estimate as prescribed in Article 11 of this Decree, the cost of compensation, support and resettlement (if any) and related costs are generally calculated for the project. The work construction cost estimate is determined according to the provisions of Article 12 of this Decree.

Decree 10/2021/ND-CP takes effect from February 9, 2021 and replaces Decree No. 68/2019/ND-CP dated August 14, 2019 of the Government on management of construction investment costs. build.