Appraisal of State-Funded Projects: How to Charge Fees?

Regarding this issue, the Ministry of Finance has the following opinion:

At Point a, Clause 1, Article 82 of the Construction Law 2014 stipulates the authority to appraise technical designs, construction drawing designs, and construction cost estimates: “For construction projects using State budget capital: The construction specialized agency according to decentralization shall be in charge of appraising technical designs, construction cost estimates in the case of three-step design; and appraising construction drawing designs, construction cost estimates in the case of two-step design.”

Thus, for the economic-technical report (one-step design), the Construction Law 2014 does not stipulate the appraisal of construction drawing designs and construction cost estimates.

Based on the Law on Fees and Charges and the Construction Law, the Ministry of Finance issued Circular 209/2016/TT-BTC dated November 10, 2016, stipulating the rates, collection, submission, management, and use of fees for appraising construction investment projects, and basic design appraisal fees (effective from January 1, 2017).

At Points a and d, Clause 2, Article 4 of Circular 209/2016/TT-BTC it is stipulated: “a) The basis for determining the appraisal fee amount for construction investment projects to be collected is the total investment approved by the competent authority and the fee rate. To be specific:

The appraisal fee for construction investment project = Approved total investment x Fee rate

In case the value of a group of works falls between the value ranges of works stated in the Fee Rate Table, the appraisal fee to be collected is calculated by interpolation as follows:

Where the fee rate based on the project's total investment is stipulated in the Fee Rate Table issued with this Circular.”

“d) The appraisal fee for construction investment projects for small-scale works (appraising the economic-technical report) using state budget capital is determined according to the guidelines at point a of this clause.”

At Clause 2, Article 1 of Circular 209/2016/TT-BTC, the applicable subjects are investors of construction investment projects stipulated in Decree 59/2015/ND-CP dated June 18, 2015 of the Government of Vietnam on construction investment project management, and Decree 11/2013/ND-CP dated January 14, 2013 of the Government of Vietnam on urban development investment management.

Based on the above regulations, the collection of appraisal fees for construction investment projects for small-scale works (appraising the economic-technical report) using state budget capital is carried out according to the provisions at Point a, Clause 2, Article 4 of Circular 209/2016/TT-BTC mentioned above.

Source: Construction Newspaper

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