Vietnam’s Decree No. 68/2019/NĐ-CP: Adjustment to total construction investment

Total construction investment of projects funded by state budget and external-source state capital prescribed in Clause 1 and Clause 2 Article 60 of the Law on Construction of Vietnam, and PPP projects shall be adjusted according to Decree No. 68/2019/NĐ-CP of Vietnam’s Government, specifically as follows:

- Approved total construction investment shall be adjusted according to Clause 5 Article 134 of the Law on Construction of Vietnam. The total construction investment shall be adjusted together with adjustment of the construction project, and adjusted if any cost incurred exceeds the total investment. The investment decider shall approve adjustment to total construction investment and construction project.

- The increased or reduced total construction investment shall be appraised and approved as prescribed in Article 6 of Decree No. 68/2019/NĐ-CP.

- If the adjustment is made to cost items including contingency cost due to the fact that prices are adjusted when price indexes increase higher than those included in contingency for cost escalation but the approved total construction investment is not exceeded, the investor shall make the adjustment and request the investment decider to grant approval.

- The investment decider shall decide to use the cost contingency of the construction project. The investor shall only decide to use cost contingency if the project only requires the economic-technical reports.

- If the adjustment to total construction investment as prescribed in Clause 1 Article 7 of Decree No. 68/2019/NĐ-CP causes an increase or decrease to the scale of the project or group of projects, it is still managed according to the scale approved before adjustment. If the project is changed into the project of national importance or project of group A, the investment decider shall approve the adjusted total investment after reaching an agreement with the authority that decides on the investment guidelines according to the new scale (group) of the project.

View relevant provisions at Decree No. 68/2019/NĐ-CP of Vietnam’s Government, effective from October 01, 2019.

Thu Ba

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