How many management principles of construction investment cost are there? What are the regulations on appraisal and approval of costs for project preparation in Vietnam?
- Vietnam: How many management principles of construction investment cost are there?
- What are the regulations on appraisal and approval of costs for project preparation in Vietnam?
- Which agency has the authority to approve construction investment cost for projects utilizing public investment funding in Vietnam?
Vietnam: How many management principles of construction investment cost are there?
Pursuant to Article 3 of Decree 10/2021/ND-CP on management of construction investment cost, it is necessary to comply with the following principles:
(1) Management of construction investment cost must comply with Article 132 of Law on Construction and Clause 50 Article 1 of Law on amendments to Law on Construction, and conform to each type of funding source, investment form, implementation method, project execution plans and relevant law provisions.
(2) Specify and exercise rights and responsibilities of regulatory agencies, individuals deciding to invest, and agencies specialized in agencies; rights and obligations of investors, organizations and individuals related to management of construction investment cost satisfactory to construction investment procedures under Clause 1 Article 50 of Law on Construction.
(3) The Government shall regulate, provide guidelines and inspect implementation of regulations and law on management of construction investment cost; regulate affairs necessary to enable investors and relevant entities to adopt and refer to during management of construction investment cost, including: construction norms, construction prices, construction investment rates, output price indices; construction material costs, construction machinery and equipment cost per shift, construction personnel unit price; information and data on construction costs of projects and constructions; methods of determining, managing construction investment cost, construction quantity takeoff, and controlling construction cost, norms, prices, investment rate and output price indices.
(4) Specific projects and constructions shall comply with Decree on elaborating to management of construction investment and specific mechanisms prescribed by Government, decisions of Prime Minister to determine and manage construction investment cost.
(5) For projects and constructions serving national defense and security, entitlement, procedures for appraising total investment cost in construction investment feasibility reports, construction investment economic-technical reports, and entitlement, procedures for approving and appraising construction estimates in construction design implemented after fundamental design shall conform to regulations of Minister of National Defense and Minister of Public Security.
(6) Projects and constructions under national target programs shall adopt principles and methods of determining construction investment costs under this Decree and relevant law provisions satisfactory to characteristics and conditions of construction under national target programs.
(7) Management of construction investment cost of overseas projects and constructions shall conform to principles under Decree elaborating to management of construction investment cost.
How many management principles of construction investment cost are there? What are the regulations on appraisal and approval of costs for project preparation in Vietnam?
What are the regulations on appraisal and approval of costs for project preparation in Vietnam?
Pursuant to Article 10 of Decree 10/2021/ND-CP stipulates as follows:
Appraisal and approval of costs for project preparation
1. Costs for project preparation include costs for: construction survey; preparation and appraisal of construction investment pre-feasibility reports, approval of investment guidelines (if any); preparation and appraisal of construction investment feasibility reports, construction investment economic-technical reports and other necessary affairs related to project preparation.
2. Agencies and organizations assigned to prepare projects or investors (if investors have been identified) shall organize preparation and appraisal of project preparation estimates under Clause 1 of this Article, except for cases under Clauses 3 and 4 of this Article.
3. For national important projects utilizing public investment capital, preparation, appraisal and approval of project preparation estimates under Clause 1 of this Article shall conform to regulations and law on public investment.
4. For estimates of costs for hiring foreign consultants for affairs under Clause 1 of this Article, entitlement for appraisal and approval of estimates shall conform to Clause 4 Article 32 of this Decree.
5. Project preparation estimates under Clause 1 of this Article shall be included in total construction investment after being approved.
Thus, the appraisal and approval of costs for project preparation shall comply with the above regulations.
Which agency has the authority to approve construction investment cost for projects utilizing public investment funding in Vietnam?
Pursuant to Clause 6 and Clause 10, Article 35 of Decree 10/2021/ND-CP has the following provisions:
Agencies appraising and approving settlement are responsible for appraising and approving settlement within 9 months from the date on which adequate settlement documents are received.
Entitlement to approval of settlement of construction investment:
- For national important projects and other important projects in which investment is decided by the Prime Minister: superior authorities of investors shall approve cost statements of component projects funded by public investment capital and component projects funded by non-public investment state budget;
- For remaining projects, individuals capable of approving settlement of construction investment or authorizing approval of settlement of construction investment of completed projects shall decide on investment;
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