Method for Determining Contingency Cost Estimates in Construction as Prescribed?

The method for determining the estimated contingency costs in construction is specified in Clause 7, Article 9 of Circular 09/2019/TT-BXD. To be specific:

- Contingency costs for the factor of arising work volume are calculated as a percentage (%) of the total construction costs, equipment costs, project management costs, construction investment consultancy costs, and other costs.

- Contingency costs for the inflation factor are determined based on the construction duration, package implementation duration, project implementation plan, contractor selection plan, capital arrangement plan, and construction price index (calculated by month, quarter, year) in accordance with the type of construction works, taking into account the possibilities of domestic and international price fluctuations.

- For projects with multiple constructions or projects that have approved contractor selection plans, contingency costs in the construction estimate (total estimate) are the total contingency costs of the constructions or construction packages and the remaining contingency costs of the project not yet allocated to each construction or construction package within the project. The allocation of contingency costs for each construction in projects with multiple constructions or construction packages for projects with approved contractor selection plans is determined based on the nature of the work, the duration of the work implementation, technical requirements, actual conditions, and other factors. The management of contingency costs is conducted according to the provisions of Article 15 of this Circular.

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