What is the formula for the determination of project management costs in the method of preparing the estimate for the application of information technology in Vietnam?

According to Section 3, Appendix 02 issued together with Circular 04/2020/TT-BTTTT (effective from April 09, 2020), the determination of project management costs in the method of preparing the estimate for the application of information technology in Vietnam is specified as follows:

1. Project management costs in Vietnam are determined by the following formula:

G_QLDA = G_THQLDA + G_GSĐGĐT (2.5)

Where:

- G_THQLDA: Costs for organizing project management from the investment preparation phase to completion, acceptance, handover, and putting the project's product into use (collectively referred to as project management implementation costs);

- G_GSĐGĐT: Costs for supervision and investment evaluation.

In case of hiring a consultant to implement, these costs are managed as consultancy costs.

2. The costs for project management implementation are determined by the following formula:

G_THQLDA = T x (G_XLtt + G_TBtt) (2.6)

In which:

- T: cost norm by percentage (%) for project management costs as guided by the Ministry of Information and Communications;

- G_XLtt: pre-tax construction costs;

- G_TBtt: pre-tax equipment costs.

In the case of hiring a project management consultant, the costs for project management implementation are determined by budgeting according to the guidelines in Appendix 05 issued together with this Circular.

3. Investment supervision and evaluation costs are determined according to regulations on investment supervision and evaluation.

4. The management of project management costs shall follow the guidance of the Ministry of Finance on the management and use of project management costs for projects using state budget funds.

Sincerely!