The principles for construction cost management for PPP projects in Vietnam
According to regulations on construction investment costs for PPP projects, what are the principles for construction cost management for PPP projects in Vietnam? Please get back to me.
The principles for construction cost management for PPP projects in Vietnam (Image from the Internet)
According to the provisions of Article 3 of Decree 68/2019/ND-CP (effective October 1, 2019) regulating the principles for construction cost management:
1. Construction cost management must ensure achievement of investment targets and project proficiency which have been approved, appropriate for construction investment procedures prescribed in Clause 1 Article 50 of the Law on Construction, capital sources, investment form and execution methods. Construction costs must be calculated correctly and sufficiently for each project, construction, contract, conformable with design requirements, technical specifications, construction conditions, project execution plan, market prices at the construction site and expected price fluctuations during the investment process.
2. The State shall manage construction costs by promulgating legal documents, providing instructions, and inspect the implementation thereof; providing instructions on method for estimating and managing construction costs.
3. Investors are responsible for construction cost management from the project preparation stage to the completion and inauguration of the project up to the approved total investment, including the case in which the total investment is adjusted as prescribed in Article 7 of this Decree. Investors may hire cost management advisors that are qualified as prescribed in the Decree on construction project management to estimate, examine, control, and manage construction costs.
4. With regard to specific construction works classified as state secrets and works constructed under urgent orders, the principles and methods of determining construction costs, systems of measuring devices, construction prices and price indexes set out in this Decree shall be applied to determine construction costs, serving as a basis for determining the value of public property formed from these construction works. Costs of construction of these works shall be appraised and approved in accordance with regulations on management of construction of specific works specified in the Decree on construction project management.
5. With regard to infrastructure construction projects under the National target program on sustainable poverty reduction and National target program on new-style rural area building, the principles and methods of determining construction costs specified in this Decree shall be applied, and such projects shall be appropriate to their characteristics and nature.
6. Construction costs shall be managed according to the basis, contents, methods, and time of determination of cost items in the total construction investment, construction estimate, construction contract package values, construction norms, construction prices, construction price indexes that are unanimously used by investment deciders and investors during corresponding stages of cost estimation according to regulations on construction cost management of this Decree.
Above are regulations on the principles for construction cost management for PPP projects.
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