How to determine preliminarily estimated total investment in construction in Vietnam?

How to determine preliminarily estimated total investment in construction in Vietnam?

Pursuant to Clause 1 Article 3 of the Circular 11/2021/TT-BXD stipulating determination of preliminarily estimated total investment in construction in Vietnam as follows:

- Preliminarily estimated total investment is determined under clause 1 and 2 of Article 4 of the Decree 10/2021/NĐ-CP

Determination, appraisal and approval of preliminary total investment in construction

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2. Preliminary total investment is estimated on the basis of scale, capacity or capability according to preliminary design of projects and construction investment rates or data on costs of similar projects in terms of construction type, grade, scale, capacity or capability, characteristics of implemented projects with analysis and assessment to adjust shift in market price depending on building site and including other necessary costs of projects.

The method under the instructions given in Section I of Appendix I of the Circular 11/2021/TT-BXD

- In case there is no published construction investment rate data, preliminary total construction investment is determined on the basis of cost data of similar projects that have been implemented, with adjustments and additions. supplement other necessary costs and convert them to suit the construction site, characteristics and nature of the project, and the time of preliminary determination of the total construction investment.

What are bases for determination of preliminarily estimated total investment in construction in Vietnam?

Pursuant to Clause 2 Article 3 of the Circular 11/2021/TT-BXD stipulating bases for determination of preliminarily estimated total investment in construction in Vietnam as follows:

2. Total investment is determined under Article 6 in the Decree No. 10/2021/ND-CP and the method under the instructions given in Section II of Appendix I herein and under several specific regulations as follows:

a) Bases for determination of total investment include conceptual or feasibility design, applicable regulations for standards and standards, solutions related to main technologies, techniques and equipment; solutions related to main architecture and structures; solutions related to main construction activities and building materials; conditions and plans for implementation of the project and other necessary requirements of the project.

b) If there is none of regulations or bases for calculation of several cost items included as components of project management costs, construction investment consultancy costs or other project costs, these cost items may be part of the estimate of total investment in construction.

As regualtions above, bases for determination of total investment include conceptual or feasibility design, applicable regulations for standards and standards, solutions related to main technologies, techniques and equipment; solutions related to main architecture and structures; solutions related to main construction activities and building materials; conditions and plans for implementation of the project and other necessary requirements of the project.

What are methods for determination of preliminarily estimated total investment in construction in Vietnam?

Pursuant to Article 6 of the Decree 10/2021/NĐ-CP stipulating 3 methods for determination of preliminarily estimated total investment in construction in Vietnam as follows:

1. Total construction investment is determined by using following methods:

a) Determination according to construction load based on fundamental design and other requirements of projects;

b) Determination according to construction investment rate;

c) Determination according to costs of similar projects, constructions;

d) Combination of methods under Points a, b, and c of this Clause.

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