Circular 20: Methods for determination of construction and urban planning costs in Vietnam

Currently, the construction and urban planning costs determined according to instructions given in Circular No. 20/2019/TT-BXD may be used for estimating and managing costs, testing or appointing contractors in order to find out those qualified to execute planning contracts in conformance to laws.

Specifically, according to Circular No. 20/2019/TT-BXD of the Ministry of Construction of Vietnam, methods for determination of construction and urban planning costs are specified as follows:

- Costs of planning scheme formulation and other planning activities shall be calculated according to norms annexed hereto. If costs of planning activities calculated according to norms stipulated herein have not yet included value added taxes, the value added taxes must be charged in the process of estimation of construction and urban planning costs in accordance with regulations in force.

- If the size of a planning scheme falls within the range of two size values specified in an Appendix hereto, the norm (or ratio (%)) of cost of a planning scheme shall be determined on the basis of the norm (or ratio (%)) of cost which is an upper bound and lower bound of this range as provided in this Circular according to the following interpolation formula:

Where:

+ Nt: Norm of cost (or ratio (%)), unit: million dong (or %);

+ Gt: Planned population or land size; unit: value;

+ Ga: Planned population or land size which is a lower bound of the size value to be calculated; unit: value;

+ Gb: Planned population or land size which is an upper bound of the size value to be calculated; unit: value;

+ Na: Norm of cost (or ratio (%)) corresponding to Ga, unit: million dong (or %);

+ Nb: Norm of planning cost corresponding to Gb, unit: million dong (or %).

- Norms of construction and urban planning costs of planning schemes of which sizes are smaller than those specified herein may be determined by the norm of construction and urban planning costs of the planning scheme having the least prescribed size.

If planning schemes have sizes greater than the prescribed size value; or include planning tasks of which prescribed norms of costs have not been set, or of which norms of costs are inappropriate, their planning costs shall be estimated. Contents of cost estimates shall follow instructions given in Appendix No. 2 hereto. Estimates of costs of formulation of planning schemes shall be made on the basis of planning projects approved by competent authorities.

View more details at Circular No. 20/2019/TT-BXD of the Ministry of Construction of Vietnam, effective from March 10, 2020.

Thu Bba

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