Vietnam: 03 costing principles for determination of construction and urban planning costs

According to Circular No. 20/2019/TT-BXD of the Ministry of Construction of Vietnam, determination and management of construction and urban planning costs, including district or inter-district planning; urban planning; functional zone planning; rural planning shall follow the following principles:

- Construction and urban planning costs need to be computed in an accurate and sufficient manner to the extent that they are matched with the scales of planning schemes (sometimes briefly called plan(s)), characteristics, properties and requirements of products created by performing specific planning activities.

- Construction and urban planning costs determined according to instructions given herein may be used for estimating and managing costs, testing or appointing contractors in order to find out those qualified to execute planning contracts in conformance to laws.

- Costs of formulation of construction and urban planning projects and schemes (hereinafter referred to as planning project(s) and scheme(s)) must be aligned with planning duties, schedules and quality requirements in accordance with regulations in force. Planning scheme formulation costs may be considered for any necessary adjustment to be made if there is any change in regulatory taxation and payroll policies on experts that directly affect planning scheme formulation costs, or duration of implementation of planning schemes are extended through no fault of scheme development units, entities authorized to approve estimates of costs of formulation of planning schemes shall be responsible for considering and adjusting planning scheme formulation costs. Planning scheme formulation costs must be adjusted to ensure that these costs are matched with used funds, contract forms and regulations laid down in relevant laws.

View more details at Circular No. 20/2019/TT-BXD of the Ministry of Construction of Vietnam, effective from March 10, 2020.

Thu Ba

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