Circulars established and managed the investment costs of building works pursuant to Decree No. 36/2003/ND-CP dated 4/4/2003 of government functions, tasks, powers and organizational structure of the Ministry of construction;
Pursuant to Decree No. 99/2007/ND-CP dated 13/6/2007 on the management of government investment costs of building works;
The construction of specific guidance in the preparation and management of investment costs of building works as follows: i. GENERAL PROVISIONS on ESTABLISHMENT and MANAGEMENT of the COST of CONSTRUCTION WORKS 1. The cost of construction works is the entire costs needed to build new or repair, renovation, expansion of construction works.
The cost of construction works are shown through indicators the total investment of the project at the stage of project construction investment, construction estimation at the stage of implementation of investment projects in construction, the value of the payment, settlement of capital construction finishing putting works into the harness use.
2. Investment costs of building works to be created according to each specific work, in accordance with the stage of construction works, the design steps and regulations of the State.
3. Establish and manage the investment costs of building works to ensure objective, investment efficiency, at the same time to ensure the viability of investment projects in construction, ensure the correct calculation, counted enough, reasonably, in accordance with the actual conditions and requirements of market mechanisms.
4. the building owner is responsible for the comprehensive management of the cost of construction project from project preparation phase until the end of the building put into use mining works.
5. This circular regulating the establishment and management of investment costs for the construction of projects using state capital, including the State budget, which the official development assistance (ODA) capital investment credit, development of the State, which by the State credit guarantees and other investment capital of the State. With regard to the use of other capital projects, investors decide to apply the provisions of this circular.
For projects using ODA, if international treaties which the Agency, the competent organizations of the Socialist Republic of Vietnam signed the provisions on the management of the cost of construction works other than the provisions of this circular shall follow the provisions of international treaties.
II. The TOTAL COST Of The PROJECT And CONSTRUCTION ESTIMATION 1. The TOTAL INVESTMENT of the PROJECT 1.1 BUILDING CONSTRUCTION INVESTMENT. Content total investment of the project construction investment total investment of the project construction works (hereinafter the total investment) is estimated at full cost for construction investment in investment decisions and is the basis for investment planning and capital management when implementing construction investment process.
The total investment is calculated and determined during project construction investment consistent with the content of the project and the design basis; for cases only technical-economic report, total investment is defined consistent with construction drawing design.
The total investment includes: construction costs; the cost of the equipment; the cost of clearance compensation, resettlement; project management costs; the cost of construction investment; other fees and costs.
1.1.1. Construction costs include: costs of building works, projects; the cost of demolition and dismantling the old architecture; cost of leveling build; the cost of constructing the temporary works, ancillary construction service; the cost of the temporary home where to stay and what works.
1.1.2. equipment costs include: costs of purchasing technology equipment (including non-standard technological equipment needed for production, processing); the cost of training and technology transfer; the cost of equipment and calibration testing; shipping costs, insurance, equipment; taxes and fees involved.
1.1.3. The cost of clearance compensation, resettlement, including: the cost of compensation for homes, architecture, plant on Earth, ...; resettlement implementation costs related to compensation for the clearance of the project; the cost of organizing the clearance compensation; land use fees during construction; the cost of paying for the infrastructure already invested.
1.1.4. project management costs include the costs to the organization performing the work of project management from project preparation phase, project implementation until the completion of the transfer test to put the work into the harness use, include:-the cost of held up investment reports cost, held up investment projects or technical-economic report;
-The cost of organizing the clearance compensation, relocation are the responsibility of the owner;
-The cost of organizing examination architecture design;
-The cost of organizing the investment project evaluation, technical-economic report, total investment; costs the Organization verifies the design, engineering, construction drawing design, estimation of construction works;
-The cost of organizing the selection of contractors in construction activities;
-Cost of quality management organization, volume, scheduling and cost management of construction works;
-The cost of organizing the safety and sanitation of buildings;
-The cost of held up the norm, the unit cost of building works;
-The cost of inspecting the quality of materials, quality control of works at the request of the owner;
-The cost of inspecting and certifying the conformity of the quality of the work;
-The cost of organizing trials, payment, settlement of the contract; payments, capital construction investment;
-The cost of organizing trials, Commission;
-The cost of commencement, inauguration, advertising propaganda;
-The cost of holding a number of other management work.
In case the investor has not enough base to determine the costs of project management (not yet possible to determine the total investment of the project) but need to deploy the project preparation work, the investor's cost estimate for this work is to present the approved investment decisions as a basis for planned capital planning and implementation work. The cost will be calculated in the cost management of project total investment.
1.1.5. investment costs of building include:-the cost of building survey;
-Cost of investment reports (if available), the costs of establishing the project or set up a technical-economic report;
-The cost of examination architecture design;
-Cost of building design;
-Cost of design verification engineering, construction drawing design, estimation of construction works;
-The cost of making the request, selected documents, bid and cost analysis reviews the proposed profile, profile, profile project tender to select consultant, building contractor, contractor supplies, equipment and general contractor construction;
-Costs survey monitoring construction, construction supervision, monitoring equipment installation;
-The cost of reporting environmental impact assessment;
-The cost of established norms, unit price construction;
-Cost management of construction cost: the total cost, estimating, construction norms, unit price construction, contract, ...-the cost of project management consulting;
-The cost of materials, quality control quality control of works at the request of the owner;
-The cost of testing and certification of conformity of quality works;
-Conversion cost of capital for the construction of the project has duration of 3 years;
-The cost of performing the work of other consultants.
1.1.6. other costs are the costs necessary in construction costs; the cost of the equipment; the cost of clearance compensation, resettlement; the cost of project management and the cost of construction investment, include:-the cost total cost undertaking;
-The cost of demining, explosive objects;
-The cost of insurance works;
-The cost of moving construction equipment and labor force to the market;
-Costs of international quality register, deformation monitoring works;
-The cost of ensuring traffic safety service of construction works;
-The cost of an audit, investigation, approval of investment capital;
-The fees and the prescribed fee;
-Costs of research science and technology related project; working capital for the initial construction investment project aimed at business, interest during construction; the cost for the test run does not load and the load according to the process before handing technology except product value recovered;
-Some other costs.
Some of the other costs of the project if it is not specified or yet to calculate the right shall be provisional for inclusion in the total investment.
1.1.7. backup costs include: costs of backup for workload incurred not foreseen when it set up the project and the cost of backup for sliding elements during project implementation.
For projects with duration up to 2 years: the cost is calculated as 10% of the cost of construction; the cost of the equipment; the cost of clearance compensation, resettlement; project management costs; the cost of construction and investment advisory fees.
For projects with duration of 2 years, the cost is determined by two factors:-preventive costs for elements of the workload generated by 5% of the total construction cost, cost of equipment, the cost of compensation for site clearance and resettlement project management, costs, investment costs and other costs of construction.
-Redundancy costs for sliding elements price is calculated according to the duration of the project and construction price index for each type of work under each area of construction.
Construction price index used to calculate the cost of redundancy for essential elements of sliding average calculated price of not less than 3 years and the likely volatility of the cost factor, the prices in the region and internationally. Time to calculate costs for the sliding element is the duration of project construction investment.
1.2. Method of determining the total investment total investment is determined according to the methods prescribed in clause 1 article 5 of Decree 99/2007/ND-CP dated 13/6/2007 on the management of government investment costs and construction guidelines in annex 1 of this circular.

2. CONSTRUCTION ESTIMATION 2.1. Content construction estimation the estimation of construction works (hereinafter the estimation works) was established for each category of works, construction works.
Estimation works include construction costs, equipment costs, costs of project management, cost consultancy, construction costs and the costs of works.
Estimation of works was established according to the guidelines in annex 2 of this circular.
2.2. Method of determining the estimation process 2.2.1. Construction costs construction costs in the estimation of works was established for works and projects, ancillary, temporary works construction service or parts, the work, the work of the works projects. Construction costs are determined by estimating. For the ancillary works, temporary works construction service or simple works, then estimating construction costs can be determined by capacity building cost in productivity of capital construction or by quota costs calculated according to a percentage (%) (hereinafter the quota ratio).
Estimating the cost of construction, projects were established according to the guidelines in annex 2 of this circular.
Case construction costs are calculated for each Department, the work, the work of the works, projects, the construction costs in the estimation of public works projects, is the total cost of each Department, the work, the work mentioned above.
Estimating construction costs include direct costs, general costs, income taxes, value added taxes and the cost of the temporary home where to stay and what works.
2.2.1.1. Direct costs: direct costs include the cost of materials (including materials due the investor level), labor costs, costs of using construction machines and other direct costs.
a. the cost of materials, labor and construction machines in direct costs are defined using one of the following methods:-according to the volume and unit price construction aggregate.
-According to the volume and unit price construction details.
-Combine the above methods.
a. 1. Determine the cost of materials, labor, construction machines and building unit price.
a. 1.1. Determine the volume: the volume of construction work is determined from the technical design drawings or construction drawing design, job duties must make of works, projects and is synthesized from a group of building works to form a structural unit or parts of the work.
a. 1.2. Determine the unit price General construction: General construction unit price was set to correspond to the category and the contents of the volume of construction stated in section a. above 1.1. General construction unit price was established on the basis of the unit price construction details. General construction unit price can include only the cost of materials, labor costs, costs of construction machines or full synthetic at all other direct expenses, general expenses, taxable income calculated in advance. Methods of synthesis unit price according to the guidelines in annex 4 of this circular.
Unit price construction details used to identify price General construction is defined as category a. 2.2 below.
a. 2. Determine the cost of materials, labor and construction machines according to the volume and unit price construction details a. 2.1. Determine the volume: volume of the building is determined from the technical design drawings or construction drawing design, job duties must make of works, projects match category and content construction in unit price construction details.
a. 2.2. determining unit price construction details: unit price construction details are established according to the guidelines in annex 4 of this circular, including costs of materials, labor costs and the cost of construction machines are determined on the basis of norms for evaluating cost and price of materials price, labour, construction machines respectively. Unit price construction details can include only the cost of materials, labor costs, costs of construction machines or full synthetic at all other direct expenses, general expenses, taxable income calculated in advance.
-Material Price: is the price of materials to the construction, determined accordingly to the structures and associated with the location where the construction works. The prices of materials is reasonable and consistent with using the market price where the construction, determined on the basis of the producer, supplier price information or reviews have been applied to other works with the same standards of quality or price on local publication and to ensure competitiveness. In the case of material not yet available on the market or the contractors manufactured building materials at the request of the owner then reviews the material was retrieved under reasonable rates with conditions meet the requirements set out on the type, quality, quantity, supply schedules , ... and ensure competition.
When setting the price of construction works to make the test of the fit between price and types of materials used in public works as designed.
-Labour: be counted correctly, the computer enough salary, the extra salary and salary allowance account (including salary support) on the basis of the minimum wage level are the competent State agencies announced to ensure the salary of workers taking to the floor price of common labour market of each region according to each type of workman and specific labour conditions of works, the ability of resources and ability to pay of the investor.
-Construction machines (including rents): was calculated according to the method of determining the price guide ca machines and equipment for construction of the building to apply for or from price ca machines and construction equipment by the local public.
b. other direct costs: is the cost for the work necessary to directly serve the construction works such as the movement of the labour force in the internal market, labor safety, environment protection for workers and the environment, the cost of pumping water, mud suits , laboratory materials, ... do not determine the volume from the design.
Other direct costs are calculated by 1.5% on the total cost of materials, labor costs, costs of construction machines. Separate construction traffic tunnel, the tunnel of hydropower, mining, the direct costs (including operating costs, repair costs often water supply systems, drainage, power supply, wind level serves construction in tunnel) is calculated by 6.5% of the total cost of materials, labor costs , the cost of construction machines.
The case if other direct costs calculated at the prescribed rate does not match the base on actual conditions to consider adjusting the level of the rate accordingly.
2.2.1.2. General costs: common costs include: costs of enterprise management, cost of executive producer in the market, the costs of service workers, the cost of construction at the service of the University and some other expenses. The overall cost is calculated by the percentage (%) on the costs directly or by percentage (%) on labor costs in the estimation under prescribed for each type of work. for projects corresponding to each type of works projects, each of which is regarded as an independent work and apply norms of general cost ratio by type the picture works accordingly.
2.2.1.3. the taxable income calculated in advance: taxable income calculated in advance is calculated by the percentage (%) on the direct costs and general costs as specified for each category of works. Norms and cost of taxable income calculated in advance according to the guidelines in Table 2.4 Appendix 2 of this circular.
2.2.1.4. value-added Tax: value-added Tax for construction application under current rules.
2.2.1.5. cost of temporary housing in the scene to stay operating and construction costs to build makeshift houses at the scene to stay operating and construction was calculated by 2% of total direct costs, general costs, taxable income calculated in advance for the works take the external routes and urban populations as power lines information line, post offices, roads, canals, pipelines, construction works and other online forms by 1% for the remaining works.
For special cases (such as large scale works, complicated, outer islands, works ...) if the item cost field to makeshift home in and operated by construction on unsuitable then the investor base actual conditions, estimating this cost determination accordingly and take responsibility for his decisions.
For the case of a tender, then this cost item is included in the package price, bid price and is paid according to the price of the contract has been signed.
Construction contractors construction expenses can be used to build new, field rent or hire airport shuttle staff, ... depending on the specific conditions of the work.
2.2.2. Costs of equipment in the equipment cost estimation works include the costs of purchasing technology equipment (including non-standard technological equipment needed for production, processing); the cost of training and technology transfer; the cost of equipment and experiments, edit.
The costs of purchasing the equipment include: purchase price (including costs of design and supervision of construction), the cost of shipping from the port or place of purchase to works, storage, demurrage costs, save the Container at the port of Vietnam (for imported equipment), the cost of maintenance, maintenance in warehousing in the scene tax and insurance fees, the device works.
The costs of purchasing the equipment is determined in one of two ways here:-for the device has determined the price can be calculated according to the number, type each type of device or entire technological lines and the price of a ton, one or all of the lines of the corresponding equipment.
-For the unspecified equipment reviews can provisionally calculated according to the price list of suppliers, producers or the price of the similar equipment on the market at the time of calculation or of the works have a similar device was made.

For non-standard technological equipment needed manufacture, machining, the costs are determined on the basis of the volume of the equipment needed for production, processing and fabrication, production price per tonne (or a computer) consistent with the nature and type of equipment under contract outsourcing was signed, or based on the price of the product machining manufacturer is the owner the choice of production, processing or similar devices of the works had done.
The cost of training and technology transfer were determined by estimating depending on the specific requirements of individual works.
The cost of equipment and calibration testing is like for estimating construction cost estimation.
The case of the device are chosen through bidding, the cost of equipment including price winning bid and the expenses according to the aforesaid contents be written in the contract.
The cost of the construction equipment was established according to the guidelines in the table of annex 2.5 No. 2 of this circular.
2.2.3. The cost of project management project management costs in the estimation of works including the costs necessary to implement owner project management are specified in section 1.1.4 part II of this circular.
Project management costs are determined on the basis of the reference rate limit by the Ministry of construction announced or by estimating.
2.2.4. The costs of construction investment costs of construction investment in the estimation of works including the costs specified in section 1.1.5, part II of this circular. For projects with many reporting costs, costs of investment projects or establish technical-economic report is not included in the cost of investment estimation of construction works.
The cost of construction investment is determined on the basis of the reference rate limit by the Ministry of construction announced or by estimating.
2.2.5. other costs other costs in the estimation of works including the costs specified in section 1.1.6 of part II of this circular, the quota is determined by the percentage (%) or by estimating. for projects with cost total cost undertaking; the cost of scientific research, related technologies project; working capital for the initial construction investment project aimed at business, interest during construction; the cost for the test run does not load and the load according to the technological processes before delivery (except the value recovery products) and the fees and charges not included in the cost of financing the work.
For some specialized building construction have specific cost factors, the process of using ODA, in addition to the fee prescribed in item 2.2.3, 2.2.4 and 2.2.5 of the above if there are other related costs shall be added to the cost. The owner and responsible decisions about their decision.
The case of the work of the project to hire foreign consultants perform the consulting fees are estimating under current rules consistent with the requirements of use for advice or consulting contract value has signed to write to the estimation.
Some other charges if not specified or yet to calculate the right temporary shall be taken on the estimation works to plan funds.
2.6. The cost of redundant standby cost is the cost to the plan for workload incurred and sliding elements during construction.
For the duration of projects up to 2 years: the cost is calculated as 10% of the building cost, cost of equipment, project management costs, the costs of construction and investment advisory fees.
For the duration of the projects on the 2 years, the cost is determined by two factors:-preventive costs for elements of the workload generated by 5% of the total construction cost, cost of equipment, project management costs, the costs of construction and investment advisory fees.
-Redundancy costs for sliding elements price is calculated according to the construction price index of each type of construction works according to the area and the time of construction.
Time to count slipping construction time is according to the construction schedule was approved.
The project has many works, the owner can determine the total estimate of the project for the management of project cost. Total estimate of the project is determined by adding up the estimation of the project in the works and a number of cost items in the cost of construction investment, other costs not included in the estimation process of the project.
III. COST MANAGEMENT In CONSTRUCTION INVESTMENT 1. TOTAL COST MANAGEMENT, ESTIMATING CONSTRUCTION 1.1. Total investment management 1.1.1. When establishing project construction or establishment of technical-economic report for the case not to set up the project, the investor must determine the total cost to calculate the efficiency of investment construction. The authority approved assessment, total investment made under the provisions of article 6 of Decree 99/2007/ND-CP dated 13/6/2007 on the management of government investment construction (Decree 99/2007/ND-CP). The total investment was approved as the maximum cost that the owner be allowed to invest in the construction of works and is the basis for the owner to plan and manage the capital when performing construction works.
1.1.2. The total investment is adjusted in the case prescribed in clause 1 article 7 Decree 99/2007/ND-CP for the works using the State budget, total investment cases adjust not exceeding the total investment approved, including changing the structure of the items in the total investment costs (including the cost of using backup) then the owner manual, must then report the investment decisions on adjustment results; The owner is responsible for their decisions. Total investment cases adjust the exceeding the total investment has been approved, the owner must report the investment decision allowed before making the adjustment.
With respect to the use of capital by the State credit guarantees, credit capital investment and development of the State and the other State's capital, the investor decide and take responsibility for the adjustment of the total investment.
Total investment section to adjust to change in comparison with the total investment approved appraisal must be organized according to the provisions of article 6 of the Decree 99/2007/ND-CP. 1.1.3. The cost of project management by the owner determined to implement the project management work. For small scale projects, simple have total investment under a billion, if the owner is not established project management that use the specialized unit to manage the owner used the funds to spend on project management the project management activities overtime spending, for the Chief Officer of project management according to the current rules.
For the applicable project design general contractor forms, supplies, construction equipment and construction (EPC) contractor, was entitled to a portion of the cost of the respective project management workload by general contractor project management implementation. The cost of general contractor project management by the two parties to the agreement and specified in the contract.
The case of the project management unit has enough capacity to perform some work building investment project management committee shall be entitled to the cost of performing the work of construction investment.
When hiring consultants to manage the project, the cost of hiring consultants determined by estimation on the basis of content, volume of work managed by the investor and the prescribed policy mode. The case of the foreign consultants hired to follow the Government's rules.
1.2. the estimation process management 1.2.1. The estimation process before approval must be verified. The estimation process, projects must be counted the cost factor as specified. Investor survey organizations estimate works include the content specified in item 1 article 10 of the Decree 99/2007/ND-CP. 1.2.2. The case of incompetent owner verifies the individual institutions hire qualified, experience verifies estimate works. Organizations and individuals undertaking the estimation process is responsible before the law and the owner of the results of its assessment. The cost of undertaking the estimation work due to the owner to decide.
1.2.3. The investor approval and responsible before the law on approval of results estimation after the work has been verified as a basis for determining the price of package, the cost of construction and is grounds for negotiating the contract, payment to the contractor in case the specified bid.
1.2.4. the estimation process was adjusted in the case prescribed in clause 1 article 11 of the Decree 99/2007/ND-CP investors held, approval of estimation adjustments.
2. LEVEL of MANAGEMENT building, CONSTRUCTION PRICES and CONSTRUCTION PRICE INDEX 2.1. 2.1.1 construction quota management. Norm construction including technical-economic norms and norms the rate prescribed in article 12 of the Decree 99/2007/ND-CP. 2.1.2. The Ministry of construction announced this capacity of investment and construction norms: norm construction estimation (part building, Part of a survey, the installation), the repair estimate norm in construction, construction materials and norms, and norms project management costs, level of investment costs of construction and other construction norms.
2.1.3. The Ministry, the provincial people's Committee building methods based on norms according to the instructions in Appendix 3 of this circular construction organization, announced the norms for the construction of the peculiarities, local not yet in construction quota system by the Ministry of construction announced.
2.1.4. With regard to the norms of construction already in the system construction norms are published but not yet fit measures, construction conditions or technical requirements of the work, the owner held additional adjustments, as appropriate.

2.1.5. With regard to the norms of construction not yet in construction quota system was announced regulations in section 2.1.2 and 2.1.3 above, the investor according to the technical requirements, construction conditions and construction methods and norms specified in Appendix 3 of this circular to the Organization construction of the norm or manipulate the construction norms Similarly have used in other works to decide to apply.
The use case level of new construction not yet have mentioned above as a basis for establishing the price to pay for the package use the applicable state budget form specifies the bid then the owner reported the investment decision to review the decision. Construction works in the private investment project by the prime investment decisions, the Minister of management, Chairman of the provincial people's Committee to review the decision.
2.1.6. Investors organize themselves or hire the qualified organization, experience to guide the set, adjust the norm of construction as content in section 2.1.4 and 2.1.5 above. Consulting organizations responsible for reasonableness, accuracy of the norm due to construction.
2.1.7. The investor decided the application, use the build limit or adjust to set up and manage the cost of investment in building construction.
2.1.8. The Ministry, the provincial people's Committee to periodically send the annual norm of construction announced during the year on The building to monitor, manage.
2.2. construction cost management 2.2.1. The owner pursuant to the nature, conditions of work, in particular the system of norms as content in section 2.1 part III outlined on the price-setting methods and construction according to the guidelines in annex 4 of this circular to the building and decided to apply the unit cost of the work as a basis for determining the estimation cost management, building construction investment.
2.2.2. for projects using ODA capital has asked to use foreign workers, materials, imported materials, construction equipment and other specific requirements, then the unit cost to build was created additional costs according to actual conditions and characteristic works.
2.2.3. construction owner hired the Organization, individual professional advice has the capacity, the experience to perform the work or part of the work related to the establishment of the price building. Individual counseling, organization responsible to the owner and the law in ensuring the reasonableness, accuracy of the unit price construction by themselves.
2.2.4. the provincial people's Committee directed the Department of construction based on the guidelines of this circular and the specific local situation to announce construction price system, the price of American machinery and equipment construction, materials, price ... for references in the process of determining the price of construction.
2.3. Management 2.3.1 construction price index. Construction price index: index of prices charged for a group or a category of construction works; the index price according to the cost structure; According to the price index material factors, labor and construction machines. Construction price index is one of the bases for determining the total cost of the projects of building construction, construction estimating, pricing and bidding package price paid under the construction contract.
2.3.2. The Ministry of construction announced the build method of construction price index and periodically announce construction price index to reference applicable owner. The owner, the contractor can also refer to the building price index applied by the Advisory organizations have the capacity, experience.
2.3.3. The investor base price fluctuation trends and particularities of works to the building price index decision accordingly.
IV. IMPLEMENTATION 1. The management transition costs of construction works are carried out according to the provisions of article 36 of the Decree 99/2007/ND-CP DATED. 2. The quota system built by the Ministry of construction; the norm due to The specialization; unit price construction, price ca machines and construction equipment, construction material prices of locally issued before the date of the Decree 99/2007/ND-CP of effect execution shall be converted into publication to the owner of the reference, the decision to apply or use as a basis for determining the price of construction cost management and construction investment.
3. The Ministry, the provincial people's Committee to base the regulation on management of investment costs of building works under the Decree 99/2007/ND-CP, guides of this circular and other related documents to guide the establishment and management of investment costs due to its construction management.
The application of capping capital, construction norms, unit price construction and construction price index of works using local budget due to the provincial people's Committee guidelines and regulations apply.
4. This circular have effect after 15 days from the Post Gazette and replacing circular No. 04/2004/TT-BXD dated 17/4/2005 of the Ministry of construction and the management of construction cost in the investment project and the previous provisions contrary to this circular.
In the process if there are obstacles, the proposal reflects on The building for research.