Vietnam: Determining construction quality management expenditures in the form of PPP investment

According to Article 4 of the Circular No. 08/2019/TT-BXD of the Ministry of Construction of Vietnam, expenditure on implementation of quality supervision and control of the regulatory authorities specified in Point b Clause 2 Article 2 of this Circular is part of the contract supervision fee. The regulatory authorities shall determine this fee on the basis of work that needs to be examined. In which, the contract supervision fee is part of the operation expenditure of the project management bodies affiliated to the regulatory authorities and identified according to regulations and law on management of construction investment expenditure.

Moreover, Circular No. 08/2019/TT-BXD also stipulates expenditure on quality inspection, supervision of constructions as follows:

- Inspection expenditure mentioned in Points dd and g Clause 2 Article 2 of this Circular and responsibility for payment thereof shall be determined in accordance with Clause 4 Article 29 of Decree No. 46/2015/NĐ-CP.

- Expenditure on supervision of construction progress specified in Point b Clause 3 Article 2 of this Circular shall be determined in accordance with regulations on management of construction investment expenditure. In case a regulatory authority supervises or assigns the investor to partially supervise the construction progress as specified in Point b Clause 3 Article 2 of this Circular, the total expenditure on supervision of the construction progress of the regulatory authority and the investor must not exceed the expenditure on supervision of the construction progress as per the law.

View more details at Circular No. 08/2019/TT-BXD of the Ministry of Construction of Vietnam, effective from January 01, 2020.

Thu Ba

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