What is review of project management expenses of public investments in completed projects in Vietnam?
What is review of project management expenses of public investments in completed projects in Vietnam? What is review of construction consultancy and other expenses of public investments in completed projects in Vietnam? What is review of investment expenses not charged into asset value of public investments in completed projects in Vietnam?
Please advise. Thankyou.
1. What is review of project management expenses of public investments in completed projects in Vietnam?
In Clause 5, Article 40 of Decree 99/2021/ND-CP stipulates as follows:
5. Review of project management expenses:
a) Comply with regulations of the Ministry of Finance on management and utilization of revenues from construction consultancy and project management activities of investors in and authorities in charge of publicly-funded projects.
b) Managing assets of investors and project management authorities upon completion shall be subject to regulations of the Law on Management and Use of Public Assets and other instructional documents thereof.
2. What is review of construction consultancy and other expenses of public investments in completed projects in Vietnam?
According to Clause 6, Article 40 of Decree 99/2021/ND-CP stipulates as follows:
6. Review of construction consultancy and other expenses:
a) For consultancy and other expenses calculated in percentage, check regulatory requirements imposed on using the percent norms for determining amounts of expenses corresponding to specific types of work.
b) For consultancy and other expenses calculated according to the detailed cost estimate, compare amounts requested for final accounting with those specified in the approved cost estimate in order to assess the degree of rationality and legitimacy of these expenses.
c) For consultancy and non-consultancy expenses incurred under the time-based contract, compare the unit price of remuneration paid in a time-based manner by mutual agreement between the investor and the contractor in the contract with the actual time length (in months, weeks, days, hours) for determining the amount of remuneration payable to the contractor. For travel, survey, office lease and other expenses, it is mandatory to consult regulations on payment methods set out in the contract to conduct the review (based on legitimate invoices, evidencing documents or according to the full-package price agreed upon in the contract).
d) For consultancy or non-consultancy expenses under the turnkey, fixed price-based, adjustable price-based or mixed price-based contract: The review shall be carried out according to regulations on review of construction expenses with respect to the bids executed under the turnkey, fixed price-based, adjustable price-based or mixed price-based contract as provided in clause 3 of this Article.
3. What is review of investment expenses not charged into asset value of public investments in completed projects in Vietnam?
Pursuant to Article 41 of Decree 99/2021/ND-CP stipulating review of investment expenses not charged into asset value, according to which:
1. Reviewing costs of damage due to force majeure causes that cannot be charged into asset value according to the following regulations:
a) Determine damage costs according to the relevant regulatory principles and procedures.
b) Damage value stated in the damage report must be checked, validated by, and treated upon recommendation of, the investor, the winning contractor, the supervision consultant and the insurance contractor.
2. Reviewing expenses that do not give rise to assets to seek the competent authority’s consent to exempting them from being charged into asset value, including costs of training, strengthening and building of capacity of the management agency or community; costs of payments to project management authorities that are not directly related to assets formed and handed over in localities; investment costs subject to losses due to subjective reasons, such as investment volume canceled under decisions of competent authorities; costs already incurred without any damage that occurs, giving rise to products that are not used for the project though like completed survey or design results reaching good quality standards that are not used because of the investor’s design changes; costs of in-progress construction (when the project ceases to be implemented permanently) that do not form any asset; expenses for repair and mitigation of consequences of natural disasters that are not accounted for as an increase in asset value in accordance with law on accounting and asset management.
Best Regards!
