Vietnam: When shall approved construction estimate be adjusted?

An approved construction estimate shall be adjusted in the cases specified in Clause 1 Article 11 of Decree No. 68/2019/NĐ-CP of Vietnam’s Government:

- The total construction investment is adjusted;

- The design is changed in a way that is conformable with the fundamental design, adjusted fundamental design or the costs, including cost contingency, are adjusted due to the fact that prices are adjusted when price indexes increase higher than those included in contingency for cost escalation but the approved total construction investment is not exceeded.

Regulations on adjustment to approved construction estimate:

- The adjusted construction estimate shall be appraised and approved in accordance with regulations of the law on construction.

- If the construction estimate is adjusted due to the fact that prices are adjusted when price indexes increase higher than those included in contingency for cost escalation but the value of the approved construction estimate is not changed, the investor shall adjust and approve it after reaching an agreement with the investment decider. In case the adjusted estimate must be approved by the investment decider, the investment decider shall consider granting approval and assume responsibility for such approval.

- The investment decider shall decide to use the contingency cost of the construction project. The investor shall only decide to use cost contingency if the project only requires the economic-technical reports.

View relevant provisions at Decree No. 68/2019/NĐ-CP of Vietnam’s Government, effective from October 01, 2019.

Thu Ba

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE