What are regulations on statement of construction costs in Vietnam?

What are regulations on statement of construction costs in Vietnam? - image from internet

Pursuant to Article 27 of the Decree 68/2019/ND-CP (effective from 01/10/2019) stipulating statement of construction costs in Vietnam:

1. Capital investment in works funded by state budget and external-source state capital and PPP projects must be stated after the works are completed, transferred and put into operation or permanently suspended as a competent authority issues a document stating project suspension or permission for project termination.

2. The investment stated must not exceed the total investment that is approved or adjusted in accordance with law.

3. The investment stated is every legitimate cost incurred during the investment process to put the project into operation. Legitimate cost is every cost within the scope of the project, design, and estimate that are approved; construction contracts concluded in accordance with law, including revisions thereto that are approved intra vires. Regarding PPP projects, regulations on investment in public-private partnership shall be complied with.

4. The contractor shall prepare a cost statement of the contract with the investor in accordance with regulations of law on construction.

5. The investor shall prepare the cost statement and convert capital investment to submit them to the investment decider for approval within 9 months from the day on which the work is completed, transferred and put into operation.

With regard to independent works and work items of the project that are completed, put into operation, and need immediate settlement, the investor shall request the investment decider to consider.

6. The authority in charge of verifying and approving statements shall verify and approve statements within 9 months from the date on which the statements are fully received.

7. Within 6 months from the issuance of the decision to approve the cost statement, the investor shall settle the debts and project accounts at the reimbursing body. In case the cost statement of a completed project has been approved but the capital has not yet been fully allocated, the investor shall request the investment decider and relevant authorities to allocate capital so as to settle the debts and project accounts as prescribed.

8. With regard to projects funded by state budget, after the end of the fiscal year, the investor shall make an annual cost statement as prescribed by the Ministry of Finance.

9. The investor that fails to make the statement on schedule as prescribed in Clause 3 of this Article shall incur penalties in accordance with the Decree on penalties for administrative violations against regulations on construction; manufacture, extraction, and trading of building materials; management of infrastructure; real estate trading, development of residential houses, management and use of houses and office buildings.

10. The power to approve cost statements:

a) With regard to projects of national importance and other important projects in which investment is decided by the Prime Minister:

- The superior authority of the investor shall consider approving cost statements of subprojects funded by state budget;

- The investor shall consider approving cost statements of subprojects that are not funded by state budget.

b) With regard to other projects, the investment decider shall approve or another person to approve cost statements thereof as the projects are completed. Regarding PPP projects, regulations on investment in public-private partnership shall be complied with.

Above are regulations on statement of construction costs in Vietnam.

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