What are methods of determination of the total construction investment by works construction investment capital in Vietnam?

What are methods of determination of the total construction investment by works construction investment capital in Vietnam? - image from internet

Pursuant to Appendix 1 of the Circular 06/2016/TT-BXD on determination and management of construction investment costs, the methods of determination of the total construction investment by works construction investment capital in Vietnam are as follows:

Where the total construction investment is determined by scale, power or service capacity based on the basic design, the norm of constructional cost rate (S_XD) and equipment cost rate (S_TB) or the overall construction price can be used to calculate the construction investment cost for each works under the project and the total construction investment is determined by the formula 1.1 of this Appendix.

2.1. Determining the constructional cost

The constructional cost of project (G_XD) is equal to the total constructional costs of works, works items or group of constructional activities, structural unit or works part of project determined by the formula (1.2) in Section 1.2, part I of this Appendix. The cost of construction of works, works items or group of constructional activities, structural unit or works part (G_XDCT)  is determined by the formula

G_XDCT = S_XD x P + C_CT-SXD           (1.8)

In which:

- S_XD: constructional cost rate calculated for one power unit or service capacity announced by the Ministry of Construction or agreed upon for announcement or referred from the data of constructional cost rate of similar projects on type, scale and features of project.

- P: production capacity or service capacity of works, works items or group of constructional activities, structural unit or works part of project.

- C_CT-SXD: cost items not yet calculated in the constructional cost rate or in the overall construction unit price calculated for 01 power unit, service capacity of works, works items of the project;

2.2. Determining the cost of equipment

The cost of works equipment and technological equipment of the project (G_TB) is equal to the total costs of works equipment and technological equipment of the works under the project. The cost of equipment of works (G_TBCT) is determined by the following formula:

G_TB = S_TB x P + C_CT-STB   (1-9)

In which:

- S_TB: cost rate of works equipment and technological equipment calculated for one power unit and service capacity of works is announced by the Ministry of Construction or agreed upon for announcement or referred from the data of constructional cost rate of similar projects on type, scale and features of project.

- P: production power or service capacity of works, works items or group of constructional activities, structural unit or works part of project.

- C_CT-STB: cost items not yet calculated in the cost rate of works equipment under the project.

2.3. Determining other costs

The cost of compensation, assistance and relocation; cost of project management, construction investment consultation, other costs and contingency cost are determined in accordance with the instructions in Section 1.1, 1.4, Section 1.5, Part I of this Appendix.

Above are methods of determination of the total construction investment by works construction investment capital in Vietnam. Please refer to the Circular 06/2016/TT-BXD for more details.

Best regards!