What are regulations on cost elements of a construction tender estimate in Vietnam?

What are regulations on cost elements of a construction tender estimate in Vietnam? (Image from the Internet)

The cost elements of a construction tender estimate is specified in Clause 2, Article 10 of Circular 09/2019/TT-BXD as follows:

- A construction tender estimate shall comprise the following costs, such as direct costs, indirect costs, pre-assessed taxable income, value-added taxes, contingent costs offset against elements giving rise to quantities and inflation elements.

- The estimate of costs of procurement of materials and equipment shall include the following expenses, such as procurement of building materials, equipment and technological accessories, value added taxes; costs of production and processing of non-standard equipment (if any); costs of management of procurement of building equipment incurred by contractors; costs of training and technology transfer (if any); transportation, insurance costs and other types of charges (if any); other related costs; contingent costs offset against elements giving rise to quantities and inflation factors.

- The estimate of costs of procurement of equipment installation work shall comprise the following costs, such as installation, testing and calibration costs, value-added taxes, other related costs, and contingent costs offset against elements giving rise to quantities and inflation elements.

- The estimate of costs of procurement of construction investment consultancy work shall comprise the following costs, such as consultant costs, administrative overhead costs, other costs, pre-assessed taxable income, taxes and contingent costs offset against elements giving rise to quantities and inflation elements.

- The estimate of costs of procurement of engineering/design and construction work (EC) shall include the cost estimates specified in point a and d of this clause.

- The estimate of costs of procurement of engineering/design work and building materials and equipment (EP) shall include the cost estimates specified in point b and d of this clause.

- The estimate of costs of procurement of building materials and equipment, and construction work (PC) shall include the cost estimates specified in point b and d of this clause.

- The estimate of costs of procurement of design/engineering, procurement of building materials and equipment, procurement of equipment and construction work (EPC) shall include cost items related to design/engineering work; procurement of building materials, equipment and construction work which are included in the approved total construction investment. 

- The estimate of costs of procurement of project formulation work – design/engineering - procurement of building materials, equipment and construction work (turnkey) shall comprise cost items or entries of the total construction investment of the project specified in point b, c, d, dd, e and g of clause 4 of Article 4 in the Decree No. 68/2019/ND-CP.

- Costs of other estimates of construction tender costs shall be determined on the basis of the scope of respective procurement works.

Best Regards!