Regulations on Economic - Technical Norms for State Budget Estimation

Regulations on Economic and Technical Norms for State Budget Estimation (illustrative image)

Circular 20/2015/TT-BTNMT stipulates that these economic and technical norms are the basis for constructing unit prices and estimating construction costs, adjusting land price tables, and specifically valuing land according to the law on land in cases where funds from the state budget are used. Economic and technical norms include technological labor norms and material and equipment norms, as specifically stipulated below:

1. Technological Labor Norms (hereafter referred to as labor norms) are the direct labor time required to perform a step of work. The content of labor norms includes:

- Staffing: Specifies the number of technical laborers; types and levels of technical laborers performing the work according to the professional standards of the public employee grades in the resources and environment sector and common standards for equivalent grades such as: engineer (KS) and technician (KTV);- Norms: Specifies the direct labor time to perform a step of work, unit of measurement being group work/product unit; workday (shift) calculated as 8 working hours.

Depending on the workload and task execution time, one or several labor groups with staffing as regulated in this Circular may be arranged to complete the task on schedule.

2. Material and Equipment Norms.

- Material and equipment norms include norms for the usage of tools, equipment, and materials.

- Norms for the usage of tools and equipment are the required usage time of tools and equipment to perform the work.- Norms for the usage of materials are the required quantity of materials to perform the work;

- Shelf-life data is the basis for calculating the depreciation unit price of tools and the depreciation unit price of machinery and equipment. The shelf-life of labor tools: Unit of measurement is month.

- Equipment lifespan (durability): According to regulations of the Ministry of Finance and the Ministry of Natural Resources and Environment.

- Electric energy consumption of electrical tools and equipment is calculated based on the norms for the usage of tools and equipment (shift), the number of working hours per shift (8 hours), and the power capacity of tools and equipment. Electric energy in norm tables is calculated according to the following formula:

Electric energy = Norms for the usage of tools, equipment (shift) x 8 (hours/shift) x power capacity (kw/hour) x 1.05 (5% is the line loss);

- The usage level of small, auxiliary tools is calculated at 5% of the usage level of the main tools already normed;

- The usage level of auxiliary, trivial materials and wastage are calculated at 8% of the main material usages already normed.

See details at Circular 20/2015/TT-BTNMT effective from June 12, 2015.

Ty Na

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