How to determine the estimate of the bidding package for the project that has been approved for the construction cost estimate in Vietnam?
- Determination, appraisal and preliminary approval of total construction investment in Vietnam?
- Verification and appraisal of the total construction investment in Vietnam?
- How to determine the estimate of the bidding package for the project that has approved the construction cost estimate in Vietnam?
Determination, appraisal and preliminary approval of total construction investment in Vietnam?
According to the provisions of Article 4 of Decree 10/2021/ND-CP on management of construction investment costs, specifying the determination, appraisal and preliminary approval of the total construction investment in Vietnam, specifically as follows:
(1) Preliminary total construction investment is the estimate of construction investment cost of the project in the pre-feasibility study report for construction investment. Preliminary content of total investment, including: costs of compensation, support and resettlement (if any); construction costs; equipment costs; project management costs; construction investment consulting costs; Other costs; redundancy costs.
(2) Preliminary total construction investment estimated on the basis of scale, capacity or service capacity according to the project's preliminary design plan and construction investment rate or cost data of the project. similar projects in terms of type, work grade, scale, capacity or service capacity, and nature of the implemented projects, with analysis and evaluation to adjust the conversion in terms of market price level in accordance with the market price. suitable with the construction site, additional necessary costs of the project.
(3) The appraisal and preliminary approval of the total construction investment is carried out concurrently with the appraisal and approval of the construction investment pre-feasibility study report in accordance with the law on public investment, investment in the form of public-private partnership, management and use of state capital in production and business at enterprises and other relevant laws.
Determining the cost estimate of the bidding package for the project that has approved the construction cost estimate
Verification and appraisal of the total construction investment in Vietnam?
Article 7 of Decree 10/2021/ND-CP on management of construction investment costs stipulates the verification and appraisal of the total construction investment in Vietnam as follows:
(1) Appraisal of the total construction investment is a content of the appraisal of the construction investment feasibility study report, the economic - technical report of construction investment. The competence to appraise the total construction investment is carried out in accordance with the provisions of the Law on Construction and the Decree detailing a number of contents on management of construction investment projects.
(2) Details of appraisal of the total construction investment by a specialized construction agency are specified at Point g, Clause 2, Article 58 of the Law on Construction, as amended and supplemented at Clause 15, Article 1 of the Amended Law, supplementing a number of articles of the Construction Law as follows:
- The completeness and validity of the application for appraisal of the total construction investment; legal bases for determining the total construction investment;
- The conformity of the total construction investment with the approved preliminary total construction investment; method of determining total construction investment;
- Conformity of the content of the total construction investment as prescribed in Article 5 of this Decree with the contents and requirements of the project;
- Compliance with the provisions of law on application, reference to the system of construction norms, construction prices, other necessary tools promulgated and announced by competent state agencies, and the apply and refer to cost data of similar projects and works to determine the total construction investment.
(3) Details of the appraisal of the total construction investment by the agency or organization or individual assigned by the investment decider to assume the prime responsibility for the appraisal are specified at Point a, Clause 3, Article 56 and Point d, Clause 1 of this Article. 57 The Law on Construction is amended and supplemented in Clauses 13 and 14, Article 1 of the Law on amending and supplementing a number of articles of the Construction Law as follows:
- The completeness and validity of the application for appraisal of the total construction investment; check the results of verification of the total construction investment of the consulting organization (if any);
- Results of completing and supplementing documents submitted for appraisal of the total construction investment according to the recommendations of specialized construction agencies specified in Clause 2 of this Article (if any) and explanations;
- The appropriateness and adequacy of determining the volume or scale, capacity and capacity for calculation in the total construction investment compared with the basic design of the project;
- Determine the value of the total construction investment to ensure correct and complete calculation according to regulations, in accordance with design requirements, construction conditions, market price level and project implementation plan;
- Analyze the causes of the increase, decrease and evaluate the assurance of investment efficiency of the project according to the value of the total construction investment determined after the appraisal.
(4) For projects using state capital other than public investment that are not the subjects specified at Point c, Clause 1, Article 58 of the Law on Construction, which is amended and supplemented in Clause 14, Article 1 of the Law on amendments and supplements to a Articles of the Law on Construction, the investment decider shall appraise the contents specified in Clauses 2 and 3 of this Article.
(5) For projects requiring only construction investment economic-technical reports, the investment deciders shall appraise the contents specified in Clauses 3 and 4, Article 13 of this Decree.
(6) The verification for appraisal of the total construction investment shall comply with the regulations on verification for the appraisal of projects in the Decree detailing a number of contents on management of construction investment projects. .
(7) Expenses for organizations and individuals participating in appraisal are deducted from fees and expenses for appraisal of construction investment feasibility study reports and construction investment economic-technical reports.
How to determine the estimate of the bidding package for the project that has approved the construction cost estimate in Vietnam?
According to the provisions of Article 7 of Circular 11/2021/TT-BXD guiding the determination and management of construction investment costs, promulgated by the Minister of Construction on determining the estimate of bidding packages for Projects with approved construction cost estimates in Vietnam are:
(1) Based on the approved work construction estimate, the investor shall determine the cost estimate of the bidding package by himself, specifically as follows:
- Determining the scope and content of the work to be performed in the bidding package;
- Determine cost components and items in the bid package estimate according to the scope and content of the work to be performed in the bidding package on the basis of the approved work construction estimate.
- Update the volume, unit price, cost factor prices in accordance with the market price level of the work construction area, the relevant regimes and policies of the State at the time of determining the bidding package estimate. , technical instructions and specific requirements of the bidding package for the components and cost items identified at Point b, Clause 1 of this Article.
(2) Other relevant costs of the bidding package are determined according to the provisions of Point b, Clause 1, Point b, Clause 2, Point b, Clause 3, and Point d, Clause 4, Article 6 of this Circular in accordance with specific conditions. , the nature of the bidding package and the approved construction cost estimate.
(3) The contingency cost in the estimate of the bidding package is determined as the reserve cost in the construction estimate of the work specified in Section 1, Appendix II of this Circular and must ensure the total provisioning cost of the estimate. the bidding packages do not exceed the reserve cost in the approved construction estimate.
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