9 CIRCULARS IN THE CONSTRUCTION SECTOR OFFICIALLY TAKE EFFECT ON FEBRUARY 15, 2020
With the aim of ensuring consistency and uniformity in management, on December 26, 2019, the Ministry of Construction issued 9 new Circulars, all of which will take effect on February 15, 2020. The details are as follows:
1. Circular 10/2019/TT-BXD: Promulgation of Construction Norms
The contents of construction survey cost estimation norms include: code, work name, unit of measurement, work components, applicable regulations (if any), and a table of norm consumption rates. The work components specify the work steps from preparation to completion of the survey.
Norm consumption rates include the necessary material, labor, and construction machinery costs required to complete one unit of construction survey work.
2. Circular 11/2019/TT-BXD: Guidelines for Determining the Cost of Construction Machinery and Equipment per Shift
The cost per machine shift is determined based on the following principles: it represents the average cost for one working shift; is based on equipment usage management requirements; is consistent with the construction machinery requirements in cost estimates; and is determined according to the type of machinery used.
The pricing includes depreciation, repair, fuel, energy, machine operator labor, and other costs. Note: The machine shift cost does not include the cost of constructing protective enclosures, machine foundations, or power and water supply systems serving installation.
3. Circular 12/2019/TT-BXD: Management of the Database System for Norms, Prices, and Price Indices
Specialized agencies must provide information within 10 days from the date of issuance. Departments of Construction must provide material price data on a monthly basis before the first day of the following month.
Investors and project management boards (PPP and state-funded projects) are responsible for providing project and construction contract information within 10 days from the date of approval or contract signing.
4. Circular 13/2019/TT-BXD: Management of Investment Costs for Projects under National Target Programs
Specific cost ratios are prescribed as follows:
- Project management costs: Equal to 2.763% of construction and equipment costs. (For island, border, and disadvantaged areas: calculated as 2.763% x 1.35).
- Economic – technical report preparation costs: Equal to 2.5% of construction and equipment costs (excluding VAT).
5. Circular 14/2019/TT-BXD: Guidelines for Determining and Managing Construction Price Indices
Price indices must objectively and promptly reflect market price fluctuations in each locality. When determining price indices for publication, a representative list and number of projects must be selected, with at least 03 projects for each type.
6. Circular 15/2019/TT-BXD: Guidelines for Determining Construction Labor Unit Prices
The published labor unit price ranges for 04 regions:
| Category | Region I | Region II | Region III | Region IV |
|---|---|---|---|---|
| Construction workers, drivers, machinery operators | 213,000 – 280,000 | 195,000 – 260,000 | 180,000 – 246,000 | 172,000 – 237,000 |
| Artisans, divers | 590,000 – 620,000 | 540,000 – 568,000 | 504,000 – 527,000 | 479,000 – 502,000 |
* Unit: VND/day. There are also price ranges for senior engineers, project managers, technicians, etc.
7. Circular 16/2019/TT-BXD: Determination of Project Management and Investment Consultancy Costs
Consultancy costs are determined based on the corresponding percentage according to the cost scale.
- Foreign-language documents: An additional maximum of 15% of the consultancy costs according to the norms.
- Hiring consultants to coordinate with foreign experts: Costs are determined based on an estimate but may not exceed 02 times the prescribed amount.
8. Circular 17/2019/TT-BXD: Guidelines for Quantity Takeoff in Construction
For projects funded by the state budget, quantity takeoff must be appropriate to the purpose and reflect the structural characteristics. “Provisional quantities” may be provided and quantities may be remeasured upon acceptance.
Bidding documents must clearly specify the principles and methods for quantity takeoff for major works such as demolition, masonry, reinforcement, road construction, pipelines, finishing works, etc.
9. Circular 18/2019/TT-BXD: Guidelines for Converting Construction Investment Capital
Cost items are converted to the conversion date. If the converted value is lower than the actual settled value, the settled value shall be used.
The capital conversion report must be prepared together with the final settlement documents and submitted for approval no later than 09 months from the date the construction project acceptance and handover minutes are signed.
The above is a summary of 9 important Circulars in the Construction sector officially taking effect on February 15, 2020. We hope this provides you with useful information. Thank you for following and supporting LPC!
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