CIRCULAR guide the establishment and management of construction cost in the project _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ CONSTRUCTION MINISTER pursuant to Decree No. 51/1999/ND-CP on 08/7/1999 of the Government issued regulations on investment and construction.
To implement a management mechanism for the work of the investment and construction projects using the State budget, which by the State credit guarantees, credit capital investment and development of the State capital, development of State enterprise, which was due to the free State business of mobilizing commercial credit capital and not by the State guarantee provided for in the Article 10.11 and 12 of Decree 51/1999/ND-CP; The build guide the establishment and management of construction cost in the project are the following: I – GENERAL PROVISIONS 1-construction costs in the investment project is the entire costs needed to build new or renovate, extend or refitted technique works. Due to the characteristics of the production process and characteristics of construction products should each have a separate construction costs are determined according to the scale, characteristics, technical nature and technology requirements of the building process.
According to the stages of the process of investment and construction, construction costs are shown through the total investment norms in the preparatory phase of investment, total estimation, works projects at the stage of implementation of the investment, the price and payment settlement of capital construction finishing works to put the project into operation to use.
The total investment is the entire cost of the investment and construction (initial production capital) and is limited to the maximum cost of the project is defined in the investment decision. Total works, the total value of the settlement process at the end of the construction project on the harness use is located within the limits of the total investment was browsing or were adjusted according to the provisions of article 25 of regulation on investment management and building attached to Decree No. 51/1999/ND-CP on 08/7/1999 of the Government.
2-construction costs are determined on the basis of the volume of work, the system of norms, technical-economic norms and policy regimes of State match the elements of the market in each period and are managed by investment management regulation and building attached to Decree No. 51/1999/ND-CP on 08/7/1999 of the Government.
3-all the works of investment projects using the State budget, which by the State credit guarantees, credit capital investment and development of the State capital, development of State enterprise, which was due to the free State business of mobilizing commercial credit capital and no guarantee by the State must follow the instructions set up and manage construction costs are specified in this circular.
II – content CONSTRUCTION COST UNDER the INVESTMENT STAGE 1-total investment total investment are analysed, calculated and determined in the stage of feasibility study reports (or report) of the project, including the costs for the preparation of (investment survey , set up and evaluation of feasibility study report of the project), the cost of preparing investment land compensation (green, residential move, works on the construction ground, land use right transfer..., survey, design, set up, design and evaluation of estimation, bidding costs , complete the investment procedures, road construction, electricity, water, construction, temporary housing (if any)), the cost of investment and construction (construction, procurement of equipment and other related expenses), the cost of production preparation to put the project into operation using (training cost , test, production, hiring professionals operate in the time trials), the initial working capital for production (for the project), the interest rate of bank loans the investor during investment implementation, costs, insurance costs.
For A group project and a number of projects have special requirements are the Prime allows the in addition to the aforementioned content, in the total investment includes the cost of scientific research, technology-related projects.
Detailed content, method and the base for the calculation of the total investment under the guidance of the Ministry of planning and investment.
2 total total works works is the total cost required for the construction investment is calculated specifically in the design stages of engineering or technical-construction design. Total works include: costs, costs of construction equipment (including technology equipment, non-standard device types need production (if any) and the other serving equipment for production, work, living), other expenses and the cost of contingency (including redundancy due to sliding prices and reserve elements by mass arises).
The items cost in total works including the specific content as follows: 2.1-construction costs include:-the cost of demolition and dismantling the old architecture (taking into account value supplies, materials are recovered (if available) to reduce the capital);
-Cost of leveling build;
-Construction costs, ancillary construction service (road construction, water and electricity, workshops etc.), the temporary home where to stay and what works (if any);
-Cost of building these projects;
-Equipment installation costs (for equipment installation required);
-The cost of major moves construction equipment and building forces (in this case specify the bid if available).
2.2-the cost of equipment including:-costs of purchasing technology equipment (including non-standard equipment needed for production, processing (if any)), the other serving equipment production, work, activities of the works (including the equipment installed and the device does not need installation);
            -The cost of shipping from the port or place of purchase to works, storage, demurrage costs, save the Container (if any) in the port of Vietnam (for imported equipment), the cost of maintenance, maintenance in warehousing in the scene;
            -Tax and premium construction equipment.
2.3-other costs include: due to the specific characteristics of this expenses should the content of each type of cost are divided according to the stage of the investment and construction process. In particular: a. at the stage of preparation of the investment:-costs of establishment of the feasibility study report of the project group A or group B of the project (if the authorized investment decisions required by text), feasibility study report for the project in General and the project just make investment reports;
-The cost of advertising, propaganda project (if any);
-The cost of scientific research, technology related to the project (for A group project and a number of projects have special requirements are the Prime allows);
-Evaluation report fees feasibility study of investment project.
b. in the period of investment realization:-commencement fee (if any);
-Compensation and organization made in the compensation process, move the green land and residential buildings on the premises of building, the cost of service for the resettlement and rehabilitation (for the construction of investment projects require relocation and restoration);
            -Land lease or transfer land-use rights;
-Cost of building survey, design works, the cost model of the experiment (if any), the cost of establishing bid evaluation, analysis, results for the construction, procurement materials and equipment; the cost of monitoring the construction and installation of the equipment and the cost of other advice ....
-Project management costs;
-Costs of protection, protection of the environment in the construction process (if any);

-Cost of quality control of works (if any);
            -Costs, verify the unit cost estimation; cost management of construction works;
            -The cost of insurance works;
            -Cadastral fees;
            -Fees for the evaluation of technical or design technical design-construction, total works, tender results.
c. in the closing stages of construction projects to harness the use of:-complete the record-setting cost; redemption of capital; examining and approving the settlement process;
-The cost of scrapping the temporary works, ancillary construction service, temporary home (minus the recovery value) etc.
-The cost of clean sanitary works, held trials, the inauguration and the Commission;
-Cost of training technicians and production managers;
-The cost of hiring professionals to operate and produce in time trials (if available);
-The cost of raw materials, energy and manpower to process test run no load and load (minus the value of product recovered) etc. ...
2.4-costs: the cost of prevention is only anticipated to cost of capital calculation for the volume generated by changing the design at the request of the owner is authorized to accept, the volume incurred unforeseeable, prophylaxis due to slippage factor during project implementation.
3-estimate construction projects construction estimation category of works is the cost needed to complete the volume of building works of the category of works is calculated from the construction drawing design or design-construction techniques.
Estimate construction projects include: 3.1-construction estimation value before tax include: material costs, labor costs, costs of construction machines, general expenses and taxable income calculated in advance.
3.2-construction estimation value after tax are: construction estimation value before tax and value added tax.
4-4.1 Payment Rates-for the case of bidding, the price paid is made according to the schedule, and by price winning bid (for the package) or payment according to the price winning bid and the conditions stated in the contract between owner and construction business (for contracts with adjustable price).
4.2-for the case to be allowed to specify a bid price, then payment is made according to the value estimation category or all of the works are on the basis of experience of the volume and quality of each billing period.
5-capital is the investment capital are finalizing is the entire legal costs have made in the process of investment and construction.
The detailed content of capital settlement was under the guidance of the Ministry of finance.
III. SET BASE COST of BUILDING WORKS in the INVESTMENT PHASE To determine the full cost of the necessary investment made in stages according to the content of point 2; 3 section II above is based on the following documents: 1 – feasibility study report (if available) and feasibility study report or investment reports are approved by the authority.
2-profile design, engineering, construction drawing design or design-construction techniques.
3-the volume of building works by the design fits the category of basic building unit price.
4-category and the number of technology devices (including non-standard equipment needed for production, processing (if any)), the other serving equipment production, work, activities need to be installed, no installation required production technology of building construction.
Design consulting organizations responsible for the level of full, accurate, sensible of the content outlined in points 3 and 4 above.
5-the price charged at a unit area or per unit of power, the use of the categories of works: Is the target determines the average construction cost to complete a unit area or per unit of power use or a structural unit of each type of home common projects, built according to the typical design or under reasonable economic design. This price is calculated from the value estimation before tax of the type of work, construction and installation structure within the House, the category of works (residential, industrial, transportation, irrigation, etc.), not including the costs does not constitute directly within the House or projects such as the costs to build the roads , water supply, power outside the home ... and the cost of equipment or home projects.
6-unit price construction: basic building unit price by the provincial people's Committee issued include the direct costs of material, labour and cost of using a construction on a unit volume of building works or structural parts of a building and is determined on the basis of norms of the basic construction estimation.
As for the important work of the State, the construction scale and complex technical requirements are allowed to build a private unit price shall be based on the unit price construction established in accordance with the design step is competent to enact.
7-the price of the devices according to the results of bidding or competing stores or equipment according to the trade information on the market.
8-transport rates, unloading, warehousing costs, under the guidance of the Government pricing Committee.
9-level of the costs, charges and fees charged at the rate of% or pricing include:-the cost of compensation for land, residential moving flowers and works on the premises of building, the cost of service for the resettlement and rehabilitation (for the construction works of these projects require relocation and restoration) pursuant to the provisions of The Government, the direction of the Finance Ministry and the competent authority.
-Land lease or transfer of land use right pursuant to the provisions of the Government and the instructions of the competent authority.
-General costs, limit the price survey, the cost of design, project management costs, costs of construction investment, the evaluation fee (report feasibility studies, design, engineering, or technical design-construction, total estimation works...)  under the guidance of the Ministry of construction, the Finance Ministry and the competent authority.
-The fees, other fees, tax types, premium ... based on the instructions of the Ministry of finance.
            10-The mode, the relevant policy by the Ministry of construction and the competent authority.
IV-COST METHODS of CONSTRUCTION WORKS in the INVESTMENT STAGE 1-total works Of estimation works are determined according to the principles and methods are as follows:-high-tech projects, structured Foundation and geology buildings, complex hydrological geology must implement the technical design (design) before drawing (design detailed design) then the total works created according to the technical design.
-Simple or technical works or had design templates only make technical design-construction, the total set by design-construction techniques.
1.1.-construction cost: 1.1.1-The category of construction engineering design steps are performed before the construction drawing design, the construction cost is determined on the basis of the volume of building works according to the design, engineering and construction unit price of the type of work or construction structures are established consistent with the technical design.
1.1.2-These projects only make technical design-construction, the construction cost is determined on the basis of the volume of building works according to the technical design-construction and basic building unit price in construction by the provincial people's Committee.

1.1.3-The common projects, the construction cost is determined on the basis of total floor area or the design capacity of the projects and calculated according to the price level of a unit area or per unit of power, the use of the categories of works like the content in point 5 section III above.
1.1.4 – with regard to the categories of works, temporary housing construction workers serve the construction works of the project are competent to decide in total investment, construction cost calculation for items above are as follows : 1.1.4.1-About the construction cost in the construction of ancillary and auxiliary was established as a separate construction estimation depending on specific design according to the scale, the nature of each category of works in the backend but the total cost of the construction projects not exceeding the costs recorded in the total investment has been approved by the authority.
Estimate construction projects identified by the method outlined in annex 2 of this circular.
1.1.4.2-About temporary housing construction workers built temporary housing construction costs of construction workers is calculated based on the needs of the type of temporary housing need built but does not exceed 2% of the value of construction in total approved of the work (for new construction works in residential remote , these works take the online (roads, canals level I, the forestry industry, line)) and does not exceed 1% of the value of construction in total approved of the work (for the others).
The cost of the construction of temporary housing, construction workers are included in the price of the package (for works done bidding method) or stock package these costs (for works that are specified by the authorized bid).
1.2-the cost of the equipment: the equipment cost is determined according to the number of each type of device and the value calculated for a ton or a corresponding type of equipment; In particular, the value calculated for 1 ton or 1 piece of equipment include: purchase price, the cost of shipping from the port or place of purchase to works, storage, demurrage costs, save the Container (if any) in 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 case of a tender, the price is the price winning bid includes the content as stated above and the other expenses (if any) included in the contract.
Particularly for the non-standard equipment needed in manufacturing, outsourcing, the costs for this type of equipment is determined on the basis of the volume of the equipment needed for production, processing and fabrication, production price calculated for 1 ton or 1 piece suit the nature and category of non-standard equipment and other related expenses as mentioned above.
1.3-other costs: include the cost of not belonging to the construction costs, the cost of equipment and are classified according to the stage of the investment process and construction as content in clause 2.3, point 2 of section II of this circular. The expenses are determined according to the level calculated by the percentage (%) or a specific price and are divided into two groups:-Group costs, the fee is determined by the level calculated by the percentage (%) include: the cost of design, project management, costs, fees and expenses assessment consultants etc.
Among them: the project management costs are calculated according to the scale and type of structure. Value ratio limit (%) and the method of calculating cost of project management implementation as defined in Appendix 3 attached to this circular.-Group costs determined by estimating unknown expenses included under the quota calculated by the percentage (%) such as: the cost of building survey advocacy advertising, costs of the project, the cost of training workers, technicians and managers in production, the cost of hiring professionals to operate and test production (if any), costs and expenses made in the compensation process, move the green land and residential buildings on the ground building cost of service for the resettlement and rehabilitation (for the construction of investment projects require relocation and restoration), etc.
1.4-reserve Fee: as a rule, the level of costs in the total estimation works are calculated by 10% on the total cost of construction, equipment costs and other expenses outlined in points 1.1, 1.2 and 1.3 above.
The sequence and methods of estimation of construction works according to the instructions in Appendix số1 attached to this circular.
2-estimate construction projects construction estimation projects is determined on the basis of the volume of building works by design, basic building unit price by the provincial people's Committee issued or unit price construction (for the works was formed a separate unit price) norms of general expenses, taxable income computed before and giă value added tax increase output.
            Estimating method of construction and installation projects according to the instructions in Appendix 2 attached to this circular.
V-COST MANAGEMENT in the STAGE of CONSTRUCTION INVESTMENT 1-About norm norm estimation of basic construction estimation by the Ministry of construction research and issued the uniform application throughout the country. Basic building unit price by the provincial people's Committee issued or unit price construction works (for the works was formed a separate unit price) must be established on the basis of the level of estimation. The case of the types of building works or construction structure is not yet in the category the norm current estimate, the Ministry has built specialized and local research institutions to build the kind of the norm there and agreed with the Ministry of construction to apply.
-The Ministry has built specialized organizations reviewed, modified, additional specialized expected level of agreement with the Ministry of construction issued to apply; Do not apply the norm estimation by the Ministry of construction has issued a 30-day advance specialisation/3/1994.
Department of construction of the central cities and is responsible for chairing and coordination with departments have specialized building construction organizations norms for the building works to use the types of supplies, materials and new construction technology in the construction works on the local Ministry of construction to apply. The Department of building and facility construction majoring not agreement or temporarily unified the additional level of adjustment, estimating the building works to set the price of works.
2-basic building unit price Of 2.1-basic building unit price was established at the province, central cities (called the local unit price) by the Chairman of the provincial people's Committee issued only used to estimating private construction for the categories of works, works or determine the cost of construction in total for the construction works at the local (not using the basic building unit price of another local), as a base to hold a tender for the construction of all works of the Central and local levels, regardless of the level of investment decisions, build on. The own construction unit price of the cities of Hanoi, Ho Chi Minh, Haiphong, Danang and can tho before enacting or additions, amendments must have the agreement of the Ministry of construction (the slowest is 30 days from the date of the proposed text). Unit price construction by the construction of coordinated with relevant agencies (finance, pricing, transportation, agriculture and rural development, ...) built according to the guidelines, the method instruction of the Ministry of construction.

2.2-for the important work of building scale and technical complexity requirements, some of which have special requirements or some buildings have distinct conditions are allowed to set unit price (unit price construction works) according to the method established by the Ministry of construction of the price guide. The Ministry of construction consistent with the level of investment decisions the Board price structures and agreements issued in their own work units.
 3-about the total works all the construction works irrespective of the tender or the tender must specify the allowed set of estimates in accordance with the principles, content and methods of instruction in this circular.
Before the owner authority for approval of estimation, the total should be the Agency construction management functions have been decentralized evaluation. Agency for the evaluation of the guaranteed estimation of the content evaluation provisions in clause 2 article 37 of regulation of investment and construction management and responsible before the law about the results and content evaluation as noted above. When necessary, the Agency assessed technical design, total unity with the approval of the technical design and total consulting organizations hire (or expert) performing the evaluation. In this case, the appraisal fee is used to hire the consulting organization (or expert) performing due diligence. Total private construction projects in Group A due to The construction of appraisal organizations.
Total approval authority by not exceeding the total investment was browsing.
3.1-total work of the project groups B, C use the capital budget, capital investment credit development of credit capital, State by State guarantee in the ministries, central agencies and the State Corporation by authority approved investment decisions after the Agency has the function of construction management-level decision investment or professional body that functions to manage the unit cost estimation of construction, the Ministry has built specialized (for projects where the investment decision level do not have the aforementioned authorities) evaluation.
3.2-total estimated costs of the projects in the Group B, C use the capital development of State enterprise, which was due to the free State business of mobilizing commercial credit capital and not by the State guarantee by the authorized person of the business investment decisions for approval after the relevant construction management functions of the business or by the Agency professional management function the unit cost estimation of construction, the Ministry, local (for the construction of investment projects of enterprises do not have the aforementioned authorities) evaluation.
3.3-total construction approval authority is limited to a maximum cost of building works, as a base to organize tenders and management costs after bidding. Who has the authority to approve total responsibility before the law about the content of the approval under the provisions of clause 2, article 38 of the regulations of investment and construction, and the other provisions of the law.
-A group project case was allowed to split up the component project (or subproject) then the total work of each project (or subproject) was set up as the work of an independent investment projects. The evaluation, approval of the total work of each project (or subproject) as prescribed for A group project in the works.-separate case, if construction work of the project group A, B has not had total approved or not yet eligible to establish total then the slowest after implementation was 50% of the value works of the whole project must have the total granted approval authority: + case in the investment decision has to specify which of the items but it is necessary to proceed to the commencement of estimate projects was approved by the authority.
+ For estimation category in the construction of project components in the project group, before the owner made approval of estimate items of this estimation, the work must be professional body that functions to manage the price, construction estimation evaluation. The estimation of the categories have been approved by the owner not be beyond the estimation of project components in the total estimate of the whole project was established to the authority for approval.
3.4-total evaluation time not to exceed 45 days for public works in Group A project, 30 days for the work of the project group B, 20 days for public works in Group C of the project from the date the Agency received enough due diligence documents.
4. Adjust the cost estimation Of construction works as well as estimate projects or building works approved separate can be adjust, Supplement, but not exceeding the total investment has been approved by the authority.
            4.1-case granted investment decisions allow to change the design of a number of parts, a category of works, when repeated estimation for parts or items that follow along using the price of total approved that do cross the total (including the cost of backup) was approved by the then owner to reset total and made the evaluation back to the authority for approval.
            4.2-in the case of granted investment decisions allow to change the design of a number of parts, a category of works, without exceeding the total approved estimate (including the cost of backup) then repeat the estimation for the parts, a category that still have to apply the same item by the price of the total has been approved to ensure consistency document estimating's works.
            4.3-the adjustment cost of construction works are conducted regularly by month or you by determining the level of compensation, except for the difference or adjusted individually each item in the cost estimation, then combined to determine the level of the General adjustment of the estimation process.
Department of construction of the city, centrally hosted, with the participation of the Department of finance – pricing and related agencies in determining the price of materials to the construction on the basis of periodic notice of construction-finance-pricing on the price , building materials at the focus or place of production of the province, the city as a base to determine the level of compensation, except for the difference in the cost of materials in the estimation.
            When there are major changes on prices, wages and the relevant policy regulations, the province, central cities and the owner (for the works was formed a separate unit price) must proceed to rebuild the basic building unit price according to the regulations of the State.
4.4-the payment for capital works in the bidding or specify the bid made by the content specified in article 49 of regulation in investment and construction management and guidance of the Ministry of finance.
             VI-Organization MADE this circular apply uniformly throughout the country since. The circular of the Ministry of construction have content related to this circular are repealed.