Detailed guidance on the estimate of bidding packages for construction investment projects in Vietnam

Specifically, according to Article 14 of the Circular No. 39/2015/TT-BNNPTNT of the Ministry of Agriculture and Rural Development of Vietnam, the estimate of the bidding package is approved by the investor together with the bidding documents and the request according to the provisions of Article 12 of Decree No. 32/2015/NĐ-CP dated March 25, 2015 on construction cost management; the estimate of the bidding package that will replace the price of the package in the the plan for the selection of contractors to serve as a basis for bid evaluation according to the provisions of Clause 2 Article 117 of Decree 63/2014/NĐ-CP; in case the approved bid package estimate is higher than the bid package price in the plan for the selection of contractors but does not exceed the estimated value of the item or package in the total investment (including the item reserve), the investor is entitled to decide.

- For the bidding package estimate for the package contract type, it includes contingency costs for the volume and price slippage that may occur during the contract performance. The instructions for determining the bid price must be included in the bidding documents by the investor according to the provisions of Clause 4 Article 6 of the Circular No. 39/2015/TT-BNNPTNT;

- For small-scale bidding packages and package contracts, if it is considered that the bidding volume has been determined correctly and the execution time is short, the estimate of the bidding package does not include contingency costs for volume and price slippage;

- The estimate of the bidding package for the type of contract at a fixed unit price as a basis for consideration and approval of bid winning includes provision for price slippage and excludes costs for risk factors that may occur during the contract performance (when arising, the payment shall comply with the provisions of Clause 2 Article 10 of the Circular No. 39/2015/TT-BNNPTNT);

- The estimate of the bidding package for the type of contract according to the adjusted unit price as a basis for considering and approving the winning bid, excluding provision costs for risk factors and possible price slippage during the contract performance (when arising, the payment shall comply with the provisions of Clause 3 Article 10 of the Circular No. 39/2015/TT-BNNPTNT);

Note: In case the estimate of the bidding package is higher than the value of the bidding package in the approved plan for the selection of contractors and exceeds the estimated value of the item or package in the total investment (including the provision for items), before approving the investor must comply with the provisions of Clause 2 Article 4 of the Circular No. 39/2015/TT-BNNPTNT of Vietnam’s Government.

View more details at the Circular No. 39/2015/TT-BNNPTNT of the Ministry of Agriculture and Rural Development of Vietnam, effective from December 10, 2015.

Le Vy

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