What are regulations on the determination of construction cost approaches in Vietnam?

What are regulations on the determination of construction cost approaches in Vietnam? (Image from the Internet)

The determination of construction cost approaches are specified in Clause 2, Article 9 of Circular 09/2019/TT-BXD as follows:

Construction costs may be specific to cost details or determined by consolidating costs according to the approaches specified at point a and b below:

a) Construction costs shall be determined by construction quantities and unit prices

- Direct costs, including: Building material, labor, machinery and equipment costs shall be determined on the basis of construction work quantities and unit construction prices.

- Indirect costs calculated in percent (%) or estimated according to the instructions given in the section 3.1 of Appendix No. 3 hereto.

- Pre-assessed taxable income calculated in percent (%) ratio to direct costs and indirect costs specified in instructions given in the Table 3.11 of Appendix No. 3 hereto.

- Value added taxes regulated by the State.

- Construction quantities which are taken off or measured based on engineering design drawings or construction design drawings or FEED designs and guidelines for technical matters and required works to be performed at construction works. Construction quantity takeoff approach shall be subject to instructions issued by the Minister of Construction.

- Unit prices at which construction costs are calculated may be detailed/broken-down or general prices corresponding to construction quantities which are taken off or measured based on engineering design drawings or construction drawings or FEED designs and guidelines for technical matters and required works to be performed at construction works. Subject matters of and approaches to determination of construction costs shall be subject to Article 18 herein.

b) Construction costs calculated in proportion to material, labor, machinery and equipment costs and values of corresponding cost elements

- Building material, labor, machinery and equipment costs constituting direct costs shall be determined by quantities or volumes of materials, labor, machinery and equipment and values of these cost elements.

- Quantities of materials, labor, machinery and equipment may be determined on the basis of quantities of construction workload taken off by using engineering designs, construction drawings or FEED designs and economic-technical norms.

- Material costs shall be determined according to the instructions given in Table 4.1 of Appendix No.4 hereto.

- Labor, machinery and equipment costs shall be determined according to the instructions issued by the Minister of Construction.

- Indirect costs, pre-assessed taxable income and value added taxes shall be conformable to the instructions given in point a of this clause.

Best Regards!