What are the fees for appraisal of technical designs and construction cost estimates in Vietnam applied from July 1, 2023?
- What are the fees for appraisal of technical designs and construction cost estimates in Vietnam applied from July 1, 2023?
- How to determine the fees for appraisal of construction designs following fundamental designs and construction cost estimates in Vietnam?
- What is the formula for calculating the construction cost falls between two values specified in the Fee Schedule?
- What are the fees for modified construction designs following fundamental designs and construction cost estimates in Vietnam?
What are the fees for appraisal of technical designs and construction cost estimates in Vietnam applied from July 1, 2023?
On May 12, 2023, the Ministry of Finance of Vietnam has just issued Circular No. 27/2023/TT-BTC.
According to that, in the schedule of fees for appraisal of construction designs following fundamental designs and construction cost estimates promulgated together with Circular No. 27/2023/TT-BTC clearly states the following fees:
Fees for appraisal of construction designs following fundamental designs
Fees for appraisal of construction cost estimates
How to determine the fees for appraisal of construction designs following fundamental designs and construction cost estimates in Vietnam?
Pursuant to the provisions of Clause 2, Article 4 of Circular No. 27/2023/TT-BTC stipulating the determination of fees for appraisal of construction designs following fundamental designs and construction cost estimates:
Fee payable is calculated adopting the following formula:
Fee payable = Construction cost x Fee rate.
Where:
- Construction cost (as prescribed by law regulations on management of construction costs) is exclusive of VAT and written in the construction cost estimate to be appraised.
- Fee rate is specified in the Fee Schedule enclosed with Circular No. 27/2023/TT-BTC.
Note: Fee payable for appraisal of construction designs following fundamental designs and construction cost estimates shall not exceed VND 150.000.000/construction cost to be appraised/appraising agency but shall not be smaller than VND 500.000/construction cost to be appraised/appraising agency.
What is the formula for calculating the construction cost falls between two values specified in the Fee Schedule?
Pursuant to the provisions of Clause 3, Article 4 of Circular No. 27/2023/TT-BTC, in case the construction cost falls between two values specified in the Fee Schedule enclosed herewith, the fee payable shall be calculated adopting the following formula:
Where:
- Nt : Fee rate in question (unit: %).
- Gt : Construction cost in question (unit: value of the construction work).
- Ga : Supremum construction cost (unit: value).
- Gb : Infimum construction cost (unit: value).
- Na : Fee rate corresponding to Ga (unit: %).
- Nb : Fee rate corresponding to Gb (unit: %).
What are the fees for appraisal of technical designs and construction cost estimates in Vietnam applied from July 1, 2023?
What are the fees for modified construction designs following fundamental designs and construction cost estimates in Vietnam?
Pursuant to the provisions of Clause 4, Article 4 of Circular No. 27/2023/TT-BTC as follows:
Fees
…
4. For modified construction designs following fundamental designs and construction cost estimates:
a) If a design or cost estimate is modified using contents of the original design or cost estimate which has been already appraised: the fee rate equaling 50% of that specified in the Fee Schedule enclosed herewith shall apply.
b) If a design or cost estimate is modified without using contents of the original design or cost estimate which has been already appraised: the fee rate specified in the Fee Schedule enclosed herewith shall apply.
According to the above regulations, on fee rates for construction investment projects, fees for modified construction designs following fundamental designs and construction cost estimates are determined in the following two cases:
- If a design or cost estimate is modified using contents of the original design or cost estimate which has been already appraised: the fee rate equaling 50% of that specified in the Fee Schedule enclosed herewith shall apply.
- If a design or cost estimate is modified without using contents of the original design or cost estimate which has been already appraised: the fee rate specified in the Fee Schedule enclosed herewith shall apply.
Circular No. 27/2023/TT-BTC takes effect from July 1, 2023.
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