Vietnam: Circular No. 14/2019/TT-BXD determined 04 types of construction price indices

According to Article 2 of Circular No. 14/2019/TT-BXD of the Ministry of Construction of Vietnam, construction price indices are classified as follows:

- Construction price index by a building type refers to an indicator showing the extent of fluctuation in total cost of a classification of construction works or projects over time.

- Construction price index by cost structure, including construction cost index referring to an indicator showing the level of fluctuation in costs of construction activities over time; equipment cost index referring to an indicator showing the level of fluctuation in costs of building equipment used in a construction work over time; other cost index referring to an indicator showing the level of fluctuation in several costs, e.g. project management and investment consulting and other costs, of a construction work over time.

- Construction price index by cost factor, including building material cost index referring to an indicator showing the level of fluctuation in costs of building materials used in a construction work over time; building labor cost index referring to an indicator showing the level of fluctuation in costs of personnel working for a construction work over time; building machinery and equipment cost index referring to an indicator showing the level of fluctuation in costs of machines and equipment items for use at a construction work over time.

- Construction price index by main building material type refers to an indicator showing the level of fluctuation in costs of main building materials over time.

In particular, with respect to a particular construction project, calculation of all or some indices stated above shall depend on purposes and requirements of administration of investment and construction expenses.

View full text at Circular No. 14/2019/TT-BXD of the Ministry of Construction of Vietnam, effective from February 15, 2020.

Thu Ba

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