Vietnam: Full price quotation when preparing the cost estimate based on volume and unit prices for investment projects on IT application
According to Section 3 of Appendix 04 issued together with Circular 04/2020/TT-BTTTT (effective from April 9, 2020), the determination of full price quotation when preparing the cost estimate based on volume and unit prices in Vietnam as follows:
The full price quotation includes the price quotation of materials, the price quotation of labor, the price quotation of construction machinery, general expenses, and income subject to calculated pre-tax.
- Direct costs include the price quotation of materials, the price quotation of labor, and the price quotation of construction machinery in the full price quotation, which are determined according to the guidance in Section 2 of this Appendix.
- General expenses are calculated by multiplying the labor costs in the price quotation by a standard rate. The standard rate for general expenses is guided in Table 4.3 of this Appendix.
- Income subject to calculated pre-tax is calculated at 06% of direct costs and general expenses in the price quotation.
TABLE 4.2: FULL PRICE QUOTATION
| No. | EXPENSES | CALCULATION METHOD | VALUE | NOTATION |
|---|---|---|---|---|
| I | DIRECT EXPENSES | |||
| 1 | price quotation of materials | Table 4.1 | DG^VL^ | |
| 2 | price quotation of labor | Table 4.1 | DG^NC^ | |
| 3 | price quotation of construction machinery | Table 4.1 | DG^MTC^ | |
| Direct expense | DG^VL^ + DG^NC^ + DG^MTC^ | T | ||
| II | GENERAL EXPENSES | DG^NC^ x standard rate | C | |
| III | INCOME SUBJECT TO CALCULATED PRE-TAX | (T + C) x rate | TL | |
| full price quotation | (T + C + TL) | DG^DD^ |
TABLE 4.3: GENERAL EXPENSE NORMS
Unit: %
| No. | CONTENT OF WORK | Labor cost (billion dong) | ||
|---|---|---|---|---|
| NC ≤ 1 | 1 < NC < 5 | NC ≥ 5 | ||
| 1 | - Construction and installation costs; - Costs for creating the database; standardization, conversion for data entry; data entry implementation for the database; - Costs for equipment installation; software installation; testing, calibration of equipment and software. |
65 | ||
| 2 | - Costs for training and usage guidance; costs for training management and operation staff (if any) for training items with technical-economic standards. | 55 | 50 | 45 |
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