Determination of Management Costs for Planning Operations: Regulations and Guidelines

Determination of business management costs for planning formulation is regulated in Article 7 of Circular 20/2019/TT-BXD. To be specific:

- Costs of managing business activities in urban planning formulation are expenses for the activities of the agency overseeing the planning process, such as: payments for experts, part-time staff, meetings, travel expenses, materials, office supplies, and some other tasks serving business management according to revenue management regulations and legal spending policies.

- The costs of managing business activities for planning formulation are calculated as a percentage of the cost of the planning formulation. The cost norms for managing business activities in planning formulation are specified in Table 11 - Appendix 1. In cases where the scope of the business management covers a region, inter-region, or comprehensive urban plans for special cities, the management costs are calculated according to the norms and adjusted with coefficient K=2.

- The calculated cost norms for managing business activities in planning formulation do not include the expenses for the following tasks:

+ Hiring organizations or experts to review the planning project or conducting specialized seminars for reviewing the planning project.

+ Organizing feedback sessions from agencies, organizations, and community representatives for the planning project, if any.

+ Placing boundary markers according to the plan in the field.

+ Announcing the approved planning project.

+ Hiring organizations or individuals to consult, appraise planning cost estimates.

+ Organizing the competition for consulting organizations to formulate the planning project (if any).

+ Other tasks serving the business management of planning formulation.

- The cost of organizing feedback from agencies, organizations, and community representatives is determined by cost estimates but should not exceed 2% of the corresponding planning formulation cost, and not less than 5,000,000 VND (Five million VND).

- The cost of announcing the approved planning project is determined by cost estimates but should not exceed 3% of the corresponding planning formulation cost, and not less than 5,000,000 VND (Five million VND).

- The cost of making a planning model is calculated according to the cost norms in Table 12 - Appendix 1 and multiplied by the area of the planning model.

- The cost of organizing a competition for consulting organizations to formulate the planning project (if any) is determined by cost estimates as per the guidance in Appendix 2.

Sincerely.