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The Decree 99/2007/nd-Cp: About Cost Management In Investment Construction

Original Language Title: Nghị định 99/2007/NĐ-CP: Về quản lý chi phí đầu tư xây dựng công trình

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The DECREE on the management of the investment costs of building works _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ the GOVERNMENT pursuant to the law on organization of the Government of 25 December 2001;
Pursuant to the law building on November 26, 2003;
Considering the recommendation of the Minister of construction.
DECREE: chapter I GENERAL PROVISIONS article 1. The object of this Decree apply apply to organizations and individuals related to the management of the cost of construction works using state capital.
Encourage organizations and individuals related to the management of the cost of construction works using other capital applying the provisions of this Decree.
Article 2. Scope of this Decree, the regulation on the management of the investment costs of building works include: total investment; construction estimation; norm and construction prices; the contract in construction activities; payments, capital construction investment using capital state capital, including the State budget, which official development assistance, capital investment credit of the State, which by the State credit guarantees and other investment capital of the State.
With regard to the use of resources of official development assistance (ODA), if the 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 Decree shall follow the provisions of international treaties.
Article 3. The principle of cost management in investment construction 1. Investment cost management of building works to ensure effective, target investment projects of construction works and the requirements of a market economy.
2. cost management in investment construction works according to each, in accordance with the stage of the construction works, the design step, the type of funding and the regulations of the State.
3. The total investment, the construction estimates to be calculated correctly, the computer enough and matched the length of the construction period. The total investment is the maximum cost that the owner be allowed to invest in the construction works.
4. State the function of cost management of construction investment through issuing, guide and check the implementation of the regulations on the management of the cost of construction works.
5. The owner is responsible for construction of comprehensive cost management in investment construction investment preparation stage to the end of the building put into operation works, use.
Chapter II the TOTAL INVESTMENT CONSTRUCTION article 4. Content total investment construction 1. The total investment of construction works (hereinafter the total investment) is the expected cost of the project is determined according to the provisions in clause 1 article 5 of this Decree. The total investment for the investor planning and capital management when implementing construction investment.
2. The total investment includes: construction costs; the cost of the equipment; the cost of clearance compensation, resettlement; project management costs, costs of construction investment; other fees and costs.
3. The costs of total investment are specified as follows: a) 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; temporary home where to stay and what works;
b) equipment costs include: costs of purchasing technology equipment; the cost of training and technology transfer, if any; cost of installation, calibration/testing; transportation costs, insurance; taxes and other related charges;
c) compensation cost of clearance, resettlement compensation costs include: homes, architectural treasures, the crops on the land and other costs; the cost of implementing resettlement; the cost of organizing the clearance compensation; land use costs during construction, if any; investment costs of building infrastructure, if any;
d) project management costs include the costs to organizations doing work in project management from project planning till completion, delivery, putting the work into use;
DD) investment costs include: construction cost consulting, survey, design, construction, monitoring and consulting the investment costs of other construction;
e) costs include: working capital in time for the production of investment projects aimed at building business; interest during construction, and other necessary expenses;
g) standby costs include: costs of backup for workload incurred and costs for sliding elements during construction.
Article 5. Set the total investment of 1. The total investment is determined by one of the following methods: a) calculated according to the basic design of the project, including, construction costs are calculated by weight primarily from the basic design, the other planned volumes and construction prices consistent with the market; cost of equipment is calculated according to the quantity, category of the device match the design technology, the price of the equipment on the market and other factors, if any; the cost of clearance compensation, resettlement is calculated by mass compensation, relocation of the project and the mode of the State concerned; other costs are determined by estimating or provisional under the percentage (%) of the cost of construction and equipment costs; contingency fees are determined according to the provisions in paragraph 3 of this article; b) Computed by area or use the capacity of the construction and General construction price according to structural parts , by area, public use (hereinafter the General construction price), productivity of capital construction works respectively at the time of project modifications, additional costs not included in the price of General construction and investment performance to determine total investment;
c) calculated on the basis of data of the project, the technical-economic indicators had done. When applying this method to calculate the conversion of similar projects on the project time and adjust the cost of items not yet determined in the total investment;
d) combine the method specified in point a, point b and point c of paragraph 1 of this article.
2. The total investment of the works are reporting and investment applied form of key contracts are estimated on the basis of the capacity of the investment or the costs of similar works have been done and the cost factors affecting total investment according to the length of time the construction works.
3. Backup for workload incurred is calculated by the percentage (%) of the costs specified in point a, b, c, d, e and e account 3 article 4 of this Decree. The cost for the sliding element price is calculated on the basis of the length of time the construction works and the construction price index in accordance with the type of construction works taking into account the likely movements in the country.
Article 6. Evaluation, approved a total investment of 1. Evaluation of total investment is a content of the evaluation of investment projects in construction. Content total investment evaluation including: a) the suitability of the method of determining the total investment with characteristics, technical nature and technology requirements of the project construction works;
b) adequacy, reasonable and consistent with the actual market requirements of the items in the total investment cost;
c) the calculations of the effect of investment construction, risk factors, financial schemes, repayment plan, if available;
d) determines the total investment value of effective guarantees construction investment.
2. The investment decision to decide the Organization of the evaluation of total investment or can rent the Organization, individuals are eligible experience, capacity to verify it. Appraisal fees or costs are calculated into the cost assessment in the total investment. Organizations and individuals performing the evaluation, assessment of investment must be responsible before the law about the reasonableness, accuracy of results, evaluation assessment.
3. Total investment recorded in the investment decision by the investment decisions of approval.
Article 7. Adjust the total investment of 1. The total investment was approved only to be adjusted in the following cases: a) appear the unforeseen factor: earthquake, hurricane, flood, Tornado, flood, tsunami, landslides; war or danger of war and have a direct impact to the construction works;
b) When approved plan was adjusted directly affect the total cost of construction works;
c) due to the change of investment decisions, adjust the scale works when saw the emergence of new factors of economic efficiency – higher society.
2. The authority to adjust the total investment: a) for the use of capital construction budget: the owner must report the investment decision allowed before adjusting the total investment;
b) for construction work using credit funds by State guarantees, credit capital investment and development of the State and the other State's capital: investors decide and take responsibility for the adjustment of the total investment.
3. the total investment to adjust to change in comparison with the total investment approved appraisal must be organized according to the provisions of article 6 of this Decree.
Chapter III CONSTRUCTION ESTIMATION article 8. Content construction estimation 1. Estimation of construction works (hereinafter the estimation works) are determined by specific construction and is grounds for the owner to manage the cost of construction works.
2. Estimation works are set bases on the basis of the volume of the work defined by the design, engineering or construction drawing design, job duties are performed by the work and unit price construction cost limit, calculated according to a percentage (%) (hereinafter the quota ratio) needed to perform job duties, mass.
3. content estimation works include: construction cost, cost of equipment, the cost of project management, cost consultancy, building costs and other costs.

Article 9. Estimating the process 1. The estimation process was established as follows: a) construction costs were established for the work, the main work items, the work of specific works and was determined by estimating. For the auxiliary buildings, temporary buildings, temporary buildings construction service in the scene to stay operating and construction, the construction cost is determined by estimating the rate limit or;
Construction costs include direct costs, general costs, taxable income calculated in advance and value added tax, the cost of building a temporary home where to stay and what works;
b) cost of equipment in the estimation of works including the costs of purchasing the equipment, including the cost of training and technology transfer, if any; the cost of installing the equipment, laboratory fees, and other costs involved, if any;
The costs of purchasing the equipment is determined on the basis of volume, number, type of equipment to buy, and the purchase price or work equipment. The cost of training and technology transfer, the cost of installing the equipment, laboratory fees, and other related costs (if any) are determined by estimation;
c) project management costs include the expenses needed to implement the Organization owner of project management. Project management costs are determined by the level of the rate;
d) investment costs include construction cost consulting projects construction, survey, design, construction supervision, consultation and assessment of the costs of other construction investment. The cost of construction investment is determined by the level of the rate or estimating;
DD) other costs include costs not specified at points a, b, c and d of paragraph 1 of this article and are determined by estimating or rate limit;
e) costs for workload incurred is calculated by the percentage (%) of the costs specified in point a, b, c, d and DD clause 1 of this article. The cost for the sliding element price is calculated on the basis of the length of time the construction works and the construction price index in accordance with the type of construction work.
2. for small scale works only technical-economic report, the total investment at the same time as the estimates.
3. for projects with many works, the owner can determine the total estimate of the project for the management of the project. Total estimate of the project is determined by adding up the estimates of the construction of the project.
Article 10. Verify, approve the estimate works 1. The owner organizes the assessment estimates the process before approval. Survey content includes: a) check the fit between the volume estimates mainly with the volume of design;
b) check the logical correctness, of applying, use the unit cost of building works, the incidence rates, estimation of cost estimation and consulting the other cost items in the estimation process;
c) determine the value estimation.
2. where the client is not eligible, the capacity assessment, the allowed personal organizations hire qualified capacity, experience to verify the estimation process. Individual counseling, organization assessment estimation works are responsible before the law and the owner of assessment results.
3. Investor approval of estimation works after you have verified and is responsible before the law on approval of results estimation. The approved work plan is the 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.
4. Works or projects using the State budget when the construction must have design, estimation is approved.
Article 11. Adjust the estimation process 1. The estimation process is adjusted in the following cases: a) The case prescribed in clause 1 article 7 of this Decree;
b) The case is allowed to change, complement the design is not contrary to the basic design or structural changes in the cost estimates but not beyond the estimation process was approved, including the cost of backup.
2. The investor survey organizations, approved construction estimation adjustments.
Chapter IV NORMS BUILD and the PRICE BUILDING article 12. Norm construction 1. Norm construction including technical-economic norms and rate limit.
2. technical-economic norms is grounded to set unit price construction, General construction price.
3. Level the rate used to determine the costs of certain types of work, costs of construction includes construction investment, ancillary, preparing construction sites, general expenses, taxable income computed before and some of the work, the cost of the other.
Article 13. Establishment and management of building norms 1. The Build Guide and method of establishing norms of construction, building and announced construction norms.
2. The base building norm-setting method as specified in paragraph 1 of this article, the Ministry, the provincial people's Committee building organization, announced the construction of norms for the particular job, works of local branches.
3. for construction are already in construction quota system was announced but not yet fit measures, construction conditions or technical requirements of the work, the owner, contractor, consultant organizations adjust the level accordingly to applicable to the works.
4. for new building works not yet in construction quota system was announced, the owner, contractor, consulting organization based on the technical requirements, construction conditions and methods of building norms due to The Build Guide to construction norms for working on or apply the same construction norms in other works.
5. The owner hired the consulting organization that qualify the capacity, the experience to guide, set or adjust the norm of construction as defined in paragraph 3, paragraph 4 of this Article. Consulting organizations responsible for reasonableness, accuracy of the level of this building.
6. The new construction norms prescribed in clause 4 of this when using the established price to pay for the use of works which the State budget must be State administration competent the agreement apply.
Article 14. Construction price system 1. The price system construction includes construction and unit price reviews general construction. Unit price construction was created for specific construction projects. General construction cost from the unit cost of building works.
2. construction rating system used to determine construction costs in total investment and financing projects.
Article 15. Set unit price construction 1. Construction unit price was established on the basis of the technical-economic norms and elements of the following costs: a) the price of construction material is determining the standard suit, types and quality of materials used for concrete construction. Building materials price determined on the basis of the market value by the function provided by the manufacturer, supplier price information or reviews have been applied to other works have the same quality standards. Reviews of materials to construction are calculated according to the method of establishing the price of construction works;
b) construction labour are determined by using the common labour market of each region, province, according to each industry uses. Price construction worker are calculated based on the minimum wage level is the competent State agencies announced; the ability of resources, ability to pay of the owner and other requirements;
c) Reviews ca machines and construction equipment are determined according to the method by The build instructions.
2. for the construction using ODA required 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 particularities of the process.
Article 16. Construction cost management 1. The owner method established base unit price construction, technical requirements, specific implementation measures of the work held up construction unit price, price General construction as the basis for determining the total investment and the construction estimation to cost management in investment construction.
2. construction owner hired the Organization, individuals are eligible experience, capacity to perform the work or part of the work related to the establishment of the construction price. Individual counseling, organization is responsible to the owner and the law in ensuring the reasonableness, accuracy of construction cost by themselves.
3. provincial people's Committee to base cost management requirements construction works to guide the establishment and management of the construction price for the construction work on the area.
Article 17. Construction price index 1. Construction price index as indicator reflecting the level of volatility of the price of construction over time and as the basis for the determination of total investment and cost management in investment construction. Construction price indices are determined according to the type of structure, according to the area and are published each time.
2. The Ministry of construction announced the construction price index and method of building construction price index. Organization of construction investment is eligible to determine capacity, construction price index published for reference applies.
Article 18. Cost of management consulting construction 1. Cost of management consulting construction investments is conditional business activities.
2. The organization of activity cost management consulting construction must have at least 3 people have certified construction engineer. Active organization management consulting construction costs are divided into two grades as follows: a) 1: at least 5 construction engineer, class 1;
2 Class b): at least 3 construction engineer, class 2 or 1 construction engineer 1st class.
3. Individuals operate independently of management consultancy costs of construction must have the certificate of construction engineer.
4. organizations, personal management consulting construction cost only made the work of consultancy in the scope of activities regulated at the same time be responsible before the law and the owner about his consulting activities.

5. Ministry of construction stipulates the scope of activity of the individual, the organization management consulting activities investment costs of building and construction engineering class, instructor training, certificate management, construction engineer.
Chapter V CONTRACT in CONSTRUCTION ACTIVITIES article 19. The contract of building activity 1. Contracts in construction operations (hereinafter referred to as the construction contract) is the written agreement between the Contracting Parties and the parties the subcontract on the establishment, change or termination of rights, obligations of the parties to the contract to implement all or some of the work in building activity. Construction contracts are binding legal rights and obligations of the parties to the contract. The dispute between the parties to the contract are settled on the basis of contracts already signed into effect the law.
2. building contracts cover the following principal contents: jobs, tasks to be done; the type of guarantee; the quality and the technical requirements of the work; time and progress made; the contract price, the method of payment; acceptance and delivery conditions; the warranty period; the liability due to breach of contract; adjust the contract; other agreements under each type of contract; the language used in the contract.
3. construction contracts are only concluded when the party subcontract complete the selection of the contractor under the provisions and the parties involved had ended the contract negotiation process.
4. building contracts cover the following principal types: a) consultancy: construction contract is to perform one, some or all the counseling work in construction activities;
b) supply contracts supplies and equipment: construction contract is to supply materials, equipment and technology for the project construction works;
c) construction contracts: the contract is built to perform construction, installation of equipment for public works projects, or building construction design;
d) design contract-providing supplies, equipment-construction (EPC contract) is a contract to build the entire execution of the work from design, supply of materials, equipment to the construction works, projects;
DD) key contracts: the contract is built to make the whole package of the work: set up the project; design; the supply of materials, equipment; the construction works.
Article 20. Profile construction contract 1. Profile construction contract include the construction contract and the documents enclosed with the contract.
2. documents enclosed construction contract are integral parts of the contract. Depending on the scale, nature of work, document enclosed construction contract covering the whole or part of the following documents: a) the notice or the tender specified text;
b) conditions of contract (private terms and general conditions of contract);
c) contractor's proposal;
d) technical instructions, reference conditions;
DD) The design drawings;
e) The modified, supplemented by text;
g) ensure implementation of contract, advance and guarantee the type of guarantee, if any;
h) other related documents.
3. The Contracting Parties to the agreement on the order of precedence when applicable contract documents if between this document contains contradictory provisions, different.
Article 21. Price construction contract Price the contract construction subcontract Party budget is charged for Contracting Parties to make the workload as required on the progress, quality and other requirements specified in the contract for construction. Depending on the characteristics, the nature of the construction works, the parties to the contract are agreed upon price construction contract according to one of the following forms: 1. Contract Price packages: a package Price) is the contract price does not change during the execution of the contract unless the case is allowed to adjust the provisions of the contract , if available;
b) package Prices apply to the following cases: works or package is clearly about the volume, quality, duration, or in some cases impossible to determine the volume and Contracting Parties have sufficient capacity, experience, material to calculate, determine the price package and accept the risks associated with the identified package price;
Package or the usual advice, simply that the contract price is determined by the percent value or volume of work.
2. The price of the contract under the fixed-price menu: a) Reviews the contract according to the fixed unit price is the price of the contract is determined on the basis of temporary work volume and unit price of each work in the contract is fixed and cannot change during the execution of the contract, except in the case of permitted adjustments stipulated in the contract , if available;
b) Contract Price according to the fixed unit price applicable to the work or the package is not eligible to determine the exact volume of eligible but determined about the unit price work and Contracting Parties have sufficient capacity, experience, material to calculate, determine the unit price fixed construction and the risks related to the determination of unit price;
c) fixed unit price does not change during the execution of the contract, except in the case of permitted adjustments clearly in the construction contract.
3. the contract Price by price adjustment: a) the price of the contract according to the adjusted price is the price of the contract that the volume of work and the price per unit of work in the contract are allowed to adjustments in the cases provided for in the contract;
b) Contract Price by price adjustments apply for works or package which at the time of signing the contract do not qualify for accurate determination of the volume of work should make or cost factors to determine the unit price to perform the work;
c) Price adjustments will be adjusted when there is eligible to determine volume, price made as specified in the contract.
4. Contract Price the contract price is to be determined according to the form provided for in the paragraph 1, paragraph 2, paragraph 3 of this article. The combined contract price applicable to the work or large-scale package of technical, complicated and prolonged duration. Subcontract and parties Contracting Parties based on the type of work in the contract to the agreement, determines the type of work applied by the contract price package (package), the price of the contract according to the fixed unit price or the contract price by price adjustments.
Article 22. Adjust the unit price in construction contract Work adjusted unit price in construction contract must be recorded in the contract and is adjusted in the following cases: 1. When a contract that uses the unit price for the temporary work or workload that at the time of signing the contract and subcontract bid recipient Parties not yet eligible to determine the exact menu price and agree to adjust when eligible.
2. When the volume incurred greater than 20% of the corresponding volume of work that the contractor must perform according to the contract, then consider adjusting the price of the volume generated.
3. The unit price at which the owner and the Contractor agree to review, adjust again after a certain period of time since the implementation of the contract and are clearly in the contract.
4. where the price of fuel, materials and equipment stated in the contract, the largest fluctuations directly affect the implementation of the contract or when the state changes to relevant policies, they must report the person who has the authority to review the decision.
5. Due to unforeseen circumstances are stipulated in the contract.
Article 23. Construction contract price adjustment 1. Price construction contract only be adjusted in the following cases: a) additional work beyond the scope stipulated in the contract concluded;
b) cases prescribed in article 22 of this Decree;
c the price slider) specified in the contract. The bases for the calculation of sliding prices are determined at the time of 28 days before the date of submission of contractor payments.
2. In the price range of package in the bidding plan is approved, the construction contract price adjustment must be Contracting Party and subcontract Party clearly in construction contract.
3. Pursuant to the provisions in Article 22 of this Decree, the owner is entitled to approval of contract price adjustment and self responsible for approval. For the capital works using the State budget, before approving the contract price adjusted, the owner must report the investment decision.
4. where the contract price after adjustment beyond the package price in the bidding plan is approved, the owner must report the person who has the authority to approve before approving the contract price adjusted.
5. Adjusting the price of project construction contract not exceeding the total investment in the project has been approved by the authority.
Article 24. Advance capital to perform construction contract 1. The advance of capital construction must be specified in the contract to build and implement as soon as the contract is in effect. Advance level of capital construction works shall be as follows: a) for consulting contracts, the level of the minimum capital in advance of 25% of the contract price;
b) for the construction contract, the advance minimum capital is 10% of the contract price for the contract worth over 50 billion; a minimum of 15% for contracts worth from 10 billion to 50 billion and a minimum of 20% of the contract value below 10 billion;
c) supply contracts for supplies, equipment, depending on the value of the contract but not lower than the advance level of 10% of the contract price;
d) with respect to contracts made in the form of EPC, the advance capital to purchase the equipment was based on the progress in the supply contract; the other work, such as: design, build a minimum advance level is 15% of the value of the contract.
2. Working capital advance for clearance work to be carried out according to the plan.
3. the party subcontract plans advance divestment with the party contracting for the production of some products, constructions in building great value secured construction or buy some supplies to the reserve.
Article 25. Construction contract payment

1. The payment of the contract must match the type of the contract, the price of the contract and the conditions in the contract that the parties to the contract was signed. The number of payments, the payment period and payment conditions must be clearly stated in the contract.
2. the contract price for the whole package: the payment according to the percentage (%) of the contract price or the price of works, projects completed with the respective payment period stated in the contract after it had been checked payment records, confirmed by the owner. Contracting Party be paid the entire price of the contract signed with subcontract and the funds were adjusted price (if any) after the completion of the contract and are collecting.
3. With regard to the price of the contract according to the fixed unit price: payment on the basis of the volume of work completed (including volume, if any) are collecting the payment period and the price corresponding to the work that has been recorded in the contract or additional contract addendum.
4. With regard to the contract price by price adjustments: payment on the basis of the volume of work completed (including volume, if any) are collecting the payment period and the price has been adjusted according to the provisions of the contract. Case to the payment stage yet eligible to adjust the price, then use the temporary unit price when signing the contract to make the payment and adjust the value of the payment when there is price adjusted in accordance with the provisions of the contract.
5. in case of application of combined contract price as defined in paragraph 4 to article 21 of this Decree, the payment is made respectively under the payment provisions in clause 2, clause 3 and clause 4 of this Article.
6. advance Capital are recovered gradually through the times of payment. The recovery of the capital advance is started immediately after the first payment and ends when the volume has reached 80% payment of contract value. With regard to the clearance work, the recovery of the capital advance ended after having done the work clearance.
7. within 10 working days from the date of submission of contractor payments, the investor must pay the value of the workload has made to the contractor. With regard to the use of capital construction budget, within 3 working days, from receipt of application proposed the valid payment of the contractor, the owner must complete the procedure and recommended transfer payment agencies to allocate, for loans. In the end build or in bringing the work into use, the investor must pay to the contractor the value of work completed except for monies held back for warranty work as specified.
Article 26. Payment profile construction contract 1. The document, the certificate required in the payment record must be clearly stated in the contract. Payment profile established by the Contracting Parties includes the following principal documents: a) a volume test done in the period of payment certified by the representative of the contractor, on the subcontract and supervision, if any;
b) confirming the volume adjustment to increase or decrease compared with the contract certified by the representative of the contractor, on the subcontract and supervision, if any;
c) suggested values spreadsheet of payments on the basis of the volume of work completed has been confirmed and the price stated in the contract;
d) proposed payments of Contracting Parties, which stated the volume finished and complete value, the value increase (decrease) in comparison with the contract, the advance value, the recommended value of payments during the period.
2. for cases of contract payment according to the price package deal: the minutes confirmed the mass in art. 1 this is confirmation of completed works, projects, the work of appropriate works with the design (without confirmation volume complete details).
Article 27. Unit price workload arising out of construction contract 1. Workload arising out of construction contracts include: a) the volume of additional work beyond the scope of the regulations with respect to the applicable contract package deal price method;
b) workload with no price or volume of work has a price but arise, additional volume with respect to the applicable contract price the contract modalities according to the fixed price menu and price adjustment provisions in paragraph 2 and paragraph 3 article 21 of this Decree.
2. for workload incurred less than 20% of the corresponding workload recorded in the contract and had the price in the contract then use the unit price was recorded in the contract for payment.
3. for workload incurred greater than 20% of the corresponding workload recorded in the contract or the workload incurred have yet to have the price in the contract, the Contracting Party and subcontract Party unity determined according to the principle specified in the contract on the price of the volume.
4. for additional work beyond the scope of the provisions of the applicable contract package deal price method, the additional value will be estimating. Party subcontract negotiation, Contracting Party and unify additional contract value.
5. The owner is entitled to approve the price per unit volume of work arise, payment arises and is responsible for the approval, this payment. For works which use the State budget, the owner must report the investment decisions before approving price jobs arise and payment arises.
Article 28. Insurance of construction and maintenance works 1. The object of insurance, insurance, insurance period and the liability insurance of the subcontract and the Party Contracting Parties must be clearly specified in the contract for construction.
2. insurance of buildings and other property owned by subcontract Party-party subcontract purchase. Cases this premium has been calculated into the price winning bid, the Contracting Parties to buy insurance.
3. the Contracting Party must purchase coverage necessary to guarantee its operation.
4. the party subcontract and unified Contracting Party and the provisions in the agreement about the conditions, the time limit of warranty and liability of the parties about the maintenance of construction works as well as the amount retained to perform the obligation of warranty works. The case was the party subcontract approval, Contracting Parties may submit a warranty guarantee works instead of the funds that the party subcontract retained for warranty work.
Article 29. The payoff and dispute resolution construction contract 1. The contract award, the fine due to breach of contract must be expressly specified in the contract for construction.
2. bonus Levels not to exceed 12% of the value of the portion of the contract benefit; the fine does not exceed 12% of the value of the portion of the contract breached.
3. Disputes between parties to the contract are settled on the basis of negotiation, conciliation between the parties or by the Arbitration Court or resolved in accordance with the law.
Article 30. Settlement construction contract 1. Party subcontract and responsible Contracting Parties settlement construction contract within 30 days after the Contracting Parties to fulfill the obligations under the contract (unless the obligation of warranty prescribed works) and the proposed contract settlement.
2. the Contracting Party responsible for establishing the contract settlement sent Party subcontract. Finalizing the contract must clearly identify the price of the contract was signed, the price paid, the price paid and the other obligations of that Party subcontract must follow the rules in the contract. Subcontract-party is responsible for the examination and settlement with contractor and Party responsible for the value of the contract.
3. Immediately after the completion of the warranty obligations of the work under the terms of the contract signed, on subcontract (or owner) is responsible for the payment of monies retained for warranty work (if any) for Contracting Parties and made the liquidation of contract termination liability between the parties to the contract.
Chapter VI PAYMENT, settlement of CAPITAL CONSTRUCTION of article 31. Payment of capital construction 1. Within 7 working days from the date of receiving payment and proposal documents, the agency allocated, for loans are responsible for the payment of capital under the proposed payment by the owner (or the legal representative of the owner) on the basis of the plan which had been delivered.
2. The owner (or the legal representative of the owner) is responsible before the law about the value of payments to the Organization to allocate, for loans. In the course of capital construction payment if the errors detected, unreasonable about the payment proposal value of the investor (or legal representative of the owner), the authority, the lenders invested must immediately notify with the owner to award the owner Supplement, complete the profile.
3. The owner has the right to claim or sue out to the Administrative Court, compensation for economic damages caused by the delay of the payment authority, lending caused investment to the investor. Prohibits issuing institutions, loan capital and investors to put out the unlawful regulations in the payment of capital construction.
Article 32. Capital construction investment 1. Investment capital are finalizing is the entire legal costs made for the construction investment and put the work into use. Legal costs are costs that are realized in the scope of design, estimates have been approved including the adjustable parts, additional fees are made true to the contract concluded, in accordance with the provisions of the law. With regard to the use of State budget, the capital invested in the settlement are limited to total investment has been approved by the authority.
Depending on the nature, scale and duration of the construction works, the owner can carry out capital construction investment for each category of works, or the whole project right after categories works, complete works put into use according to the request of the investment decision.

2. The owner is responsible for making investment capital works projects completed for submission to the investment decision of approval 12 months for national important projects and project group A, 9 months for the project group B and 6 months for the project group C since the complete works , mined using. After 6 months since have decided to approve capital projects completed, the owner has the responsibility to resolve the debt, payment of accounts in payment agency projects, loans, investment allocations.
3. for the construction using funds official development assistance, the owner is responsible for implementing the investment capital under provisions of the State and the provisions of the sponsor, if any.
Chapter VII STATE MANAGEMENT on the COST of CONSTRUCTION WORKS in Article 33. The Ministry of construction, Ministry of construction is responsible for the uniform implementation of State management of investment costs of building works and is responsible for: 1. Guide the establishment and management of construction cost including total investment, construction estimation, norm and construction prices; the method of measuring volume peeling works; method of determining the price ca machines and construction equipment.
2. Disclosure norms, building capacity of investment capital, construction price index, method of determining construction price index; Guide to contract in construction activity and other contents prescribed in this Decree.
3. Inspect, examine the implementation of the regulations on the management of the cost of construction works.
Article 34. The Ministry of finance 1. Guide the payment, settlement of capital construction investment.
2. Instructions and issued insurance advice, insurance of building works.
3. Inspection, check the payment, settlement capital projects budget.
Article 35. The Ministry and the provincial people's Committee 1. The Ministry, the provincial people's Committee to base the method established by the Ministry of construction norms build instructions, Organization building and announced the norms for the construction works, the work of the Ministry, local peculiarities.
2. provincial people's committees guide the establishment and management of construction works on the province, the city; check the implementation of the regulations on the management of capital expenditures on construction.
Chapter VIII TERMS of ENFORCEMENT of Article 36. Handle forward 1. Project construction is approved before the date this Decree is in effect the implementation but not yet implemented or being implemented, then follow the regulations on the management of construction cost in Decree No. 16/2005/ND-CP of July 8, 2005 on the management of government investment project construction , Decree No. 112/2006/ND-CP dated 29 September 2006 from the Government about amending and supplementing a number of articles of Decree No. 16/2005/ND-CP on the management of investment projects in construction and other legal texts concerned.
Necessary cases adjust the total investment under the provisions of this Decree, the people decided to invest considering the decision to regulate and ensure not to interrupt the work of the project construction investment.
2. Investment projects in the construction set, the evaluation has not been approved before the decree to this effect is made according to the provisions of this Decree.
3. organizations and individuals performing the work management consulting costs to be building construction investment continued to operate until 31 December 2008. Since January 2009 the Organization, this individual if management consulting activities investment costs of building works must have sufficient conditions specified in this Decree.
Article 37. Effective enforcement of this Decree has effect after 15 days from the date The report.
Article 38. Implementation 1. The Ministers, heads of ministerial agencies, heads of government agencies, the Chairman of people's Committee of the province, central cities and organizations, individuals responsible for the implementation of this Decree.
2. This Decree replaces the regulation on the management of project cost of construction investment, construction of contracts in building activity in Decree No. 16/2005/ND-CP of July 8, 2005 on the management of government investment project construction and Decree No. 112/2006/ND-CP of October 9, 2006 by the Government on the amendments supplement some articles of Decree No. 16/2005/ND-CP of July 8, 2005 and the regulations in the different text contrary to the provisions of this Decree.
3. The Ministry of construction, in coordination with the ministries concerned, responsible guide follow this Decree.