What are details of Decision 816/QD-BXD in 2024 announcing the investment unit cost in construction and construction unit cost for 2023 which comes into force in Vietnam from August 22, 2024?
What are details of Decision 816/QD-BXD in 2024 announcing the investment unit cost in construction and construction unit cost for 2023 which comes into force in Vietnam from August 22, 2024?
On August 22, 2024, the Ministry of Construction of Vietnam promulgated download Decision No. 816/QD-BXD in 2024 to announce the construction investment rates and aggregate construction prices for structural components in 2023.
Decision No. 816/QD-BXD in 2024 is effective from August 22, 2024.
The construction investment rates and aggregate construction prices for structural components in 2023 issued along with Decision No. 816/QD-BXD in 2024 provide a general explanation about the construction investment rates as follows:
Construction investment rates are the necessary expense levels calculated per unit of area, volume, length, capacity, or service capability of the construction project according to the design.
The capacity or service capability according to the project's design is the production ability or utilization extraction of the project as determined by the appropriate measuring units.
Investment rates are published on average nationwide. When applying the construction investment rates to projects in the regions specified below, regional adjustment coefficients announced in Part 4 of the construction investment rates and aggregate construction prices for structural components in 2023 issued along with Decision No. 816/QD-BXD in 2024 should be used.
What are details of Decision 816/QD-BXD in 2024 announcing the investment unit cost in construction and construction unit cost for 2023 which comes into force in Vietnam from August 22, 2024? (Image from the Internet)
What are regulations on structure and contents of investment unit cost in construction in Vietnam?
According to Section III Part 1 of the construction investment rates and aggregate construction prices for structural components in 2023 issued along with Decision No. 816/QD-BXD in 2024, the structure and content of the construction investment rates 2023 are defined as follows:
The set of construction investment rates and aggregate construction prices for structural components in 2023 is structured into 4 parts and the indicators are coded with a uniform number as follows:
Part 1: General Explanation and Usage Instructions
This part introduces the concepts, calculation bases, usage scope; the cost items defined and not defined in the investment rates and component prices.
Part 2: Construction Investment Rates
Includes the system of indicators for construction investment rates, explanation about the applicable standards, and cost content of the investment rates indicators.
Part 3: Aggregate Construction Prices for Structural Components
Includes the system of component price indicators for certain types of projects, explanation about the applicable standards, and necessary technical guidelines.
The indicator code for investment rates and component prices is encoded with 8 digits (00000.000), comprising:
- The first digit represents the type of indicator (1: Investment rates; 2: Component prices);- The second digit represents the type of project (1: Civil projects; 2: Industrial projects; 3: Technical infrastructure projects; 4: Transportation projects; 5: Agriculture and rural development projects);- The next three digits represent the project group within the five project types;- The next two digits represent the specific indicator for the announced project;- The last digit represents the indicator (0: Investment rates; 1: Construction cost rates; 2: Equipment cost rates).
Part 4: Regional Adjustment Coefficients for Applying Construction Investment Rates and Aggregate Construction Prices for Structural Components
Which regions included in the announcement on regional adjustment coefficients for investment unit cost in construction in Vietnam?
According to Sub-section 1 Section I Part 1 of the construction investment rates and aggregate construction prices for structural components in 2023 issued along with Decision No. 816/QD-BXD in 2024, the regions announced with regional adjustment coefficients for construction investment rates include:
Region 1 includes the provinces: Lao Cai, Yen Bai, Dien Bien, Hoa Binh, Lai Chau, Son La, Ha Giang, Cao Bang, Bac Kan, Lang Son, Tuyen Quang, Thai Nguyen, Phu Tho, Bac Giang.
Region 2 includes the provinces and cities: Quang Ninh, Bac Ninh, Ha Nam, Hai Duong, Hung Yen, Hai Phong city, Nam Dinh, Ninh Binh, Thai Binh, Vinh Phuc.
Region 3 includes the provinces and cities: Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Thua Thien-Hue, Da Nang city, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan, Binh Thuan.
Region 4 includes the provinces: Kon Tum, Gia Lai, Dak Lak, Dak Nong, Lam Dong.
Region 5 includes the provinces: Binh Phuoc, Binh Duong, Dong Nai, Tay Ninh, Ba Ria-Vung Tau.
Region 6 includes the provinces and cities: Long An, Dong Thap, Tien Giang, An Giang, Ben Tre, Vinh Long, Tra Vinh, Hau Giang, Kien Giang, Soc Trang, Bac Lieu, Ca Mau, Can Tho city.
Region 7: Hanoi City
Region 8: Ho Chi Minh City
What are contents of investment unit cost in construction in Vietnam according to Decision No. 816/QD-BXD in 2024?
According to Sub-section 2 Section I Part 1 of the construction investment rates and aggregate construction prices for structural components in 2023 issued along with Decision No. 816/QD-BXD in 2024, the content of construction investment rates is defined as follows:
Construction investment rates include: construction costs; equipment costs; project management costs; construction investment consultancy costs; and several other cost items as per regulations. The VAT rate is 10%. Construction investment rates do not include contingency costs and costs for implementing some specific types of work as required by particular projects, such as:
- Compensation, support, and resettlement costs as per legal regulations included in preliminary total investment, total investment levels:
- Loan interest during the construction investment implementation period (for projects using loans).
- Initial working capital (for construction investment projects aimed at production and business).
- Several specific costs for each project like: environmental impact assessment and mitigating project impacts on the environment; international quality certification, project deformation monitoring, quality inspection costs, special foundation reinforcement costs, foreign consultancy fees, other specific costs.
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