Vietnam: Methods for determination of maintenance costs of construction works

According to Circular No. 03/2017/TT-BXD of the Ministry of Construction of Vietnam, the maintenance cost shall be determined by one of the following methods:

- Rate of the maintenance cost by percentage (%);

- Quantity and unit prices, including: the quantity of work according to the maintenance plan and unit price; the number of specialists by each tasks, scope of work and progress of works, qualifications of each specialist, and salaries and incurring expenses; or

- Combined methods.

Besides, Circular No. 03/2017/TT-BXD stipulates that maintenance cost elements shall be determined as follows:

- The cost of preparation and assessment of construction maintenance process shall be calculated based on technical design expenses (for construction works requires 3-stage design) or construction design expenses (for any construction works requires 1-stage design and 2-stage design). Costs of assessment of the construction maintenance process shall be included in the costs of design assessment. If a construction works is in progress or in operation without any construction maintenance process, the owner or manager of such construction works shall take charge of preparing the construction maintenance process. Expenses for completing such tasks shall be estimated based on the quantity of work and unit price as prescribed in point b clause 1 of this Article.

- Costs of annual construction maintenance of the specialized construction works under the State management of the Ministry of Construction shall be determined on the basis of the cost rate as stipulated in the Annex attached hereto. The Ministry in charge of management of specialized construction works shall, according to properties and nature of such construction works, provide guidelines for determination of the maintenance cost.

- Costs of construction repair, quality control, construction monitoring, assessment of safety and bearing capacity during the operation for the purpose of maintenance shall be estimated based on the quantity of work and unit prices or by applying combined methods.

- Other necessary and incurring expenses shall be determined by using appropriate methods.

View details at Circular No. 03/2017/TT-BXD of the Ministry of Construction of Vietnam, effective from May 01, 2017.

-Thao Uyen-

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