Recently, the Ministry of Construction of Vietnam has promulgated Circular 14/2021/TT-BXD guiding the determination of construction maintenance costs. In which, the Ministry of Construction guides the determination of construction maintenance costs based on the following criteria: Cost of performing annual maintenance works; Construction repair costs; Cost of consulting services for maintenance works; Other Expenses and Management and Maintenance Costs are the responsibility of the owner or manager; Other expenses and Management and maintenance expenses of the owners or managers of the works
Article table of contents
Guidelines for determining construction maintenance costs from November 1, 2021 (Artwork)
Specifically :
(1) Costs for annual maintenance works are by multiplying percentage with construction costs and equipment costs;
In which::
- Construction costs and equipment costs shall be determined based on statement value of structures and adjustment of market price at the time of preparing maintenance plans.
In case statement value of structures is not available, construction costs and equipment costs shall be determined based on investment capital of respective structures publicized by competent authority.
- Percentage of costs for annual maintenance works shall be determined according to guidelines under Annex I attached Circular 14/2021/TT-BXD of Vietnam. Specifically:
| No |
Type of construction |
Quota |
|
1 |
Civil works |
0.08÷ 0.10 |
|
2 |
Industrial buildings |
0.06 0.10 |
|
3 |
Transport works |
0.20 0.40 |
|
4 |
Agricultural works and rural development |
0.16 0.32 |
|
5 |
Technical infrastructure projects |
0.18 0.25 |
(2) Structure repair costs shall determine via estimates on structure repair costs consist of repair costs for construction components of structures, repair costs for structure equipment, and other relevant costs (if any).
In case structure repair requires at least VND 500 million in cost, estimates on structure repair costs shall conform to Circular providing guidelines on provisions regarding identification and management of construction investment costs of Ministry of Construction of Vietnam.
In case the repair of works has the cost to perform under VND 500 million, the cost estimate for the repair of the work shall be determined on the basis of the volume and unit price of the repair of the work; or summarize the cost estimate for repair of the works with the cost of implementation under VND 500 million according to the guidance in Table 2.2, Appendix II issued together with this Circular. Specifically:
|
NO |
COST CONTENT |
CALCULATION |
VALUE |
SYMBOL |
|
[1] |
[2] |
[3] |
[4] |
[5] |
|
A |
COST REPAIR OF CONSTRUCTION SECTION |
|
|
G SCXD |
|
I |
DIRECT COSTS |
|
|
|
|
1 |
Cost of materials |
|
|
VL |
|
2 |
Labor costs |
N x G nc |
|
NC |
|
3 |
Cost of construction machines and equipment |
|
|
USA |
|
|
Direct costs |
VL + NC + CODE |
|
BILLION |
|
II |
INDIRECT COSTS |
T x 10% |
|
GT |
|
III |
PRIORITIZED TAX INCOME |
(T + GT) X Ratio |
|
TL |
|
|
Pre-tax repair costs |
(T + GT + TL) |
|
WOOD |
|
IV |
V.A.T TAX |
G + T VAT |
|
VAT |
|
|
After-tax repair costs |
G + VAT |
|
G SCXD |
|
B |
COST REPAIR OF CONSTRUCTION EQUIPMENT (IF ANY) |
|
|
G SCTB |
|
|
TOTAL (A+B) |
|
|
G SC |
(3) Consultancy costs serving structure maintenance shall be determined as follows
For consultancy affairs regulated by Ministry of Construction under Circular issuing construction norms, costs shall conform to this Circular.
For consultancy affairs such as: structure survey to serve maintenance works; survey serving repair design, experiment serving consultancy for structure maintenance and other consultancy affairs instructed by Ministry of Construction under Circular providing guidelines regarding identification and management of construction investment costs of Ministry of Construction.
For consultancy affairs such as: preparing and appraising structure maintenance procedures (in case of maintenance procedures have not been implemented) or revising structure maintenance procedures; conducting quality control for maintenance works; conducting irregular structure inspection at request; conducting periodic assessment regarding safety of structures during operation, use, and consultancy affairs applying norms that have been prescribed but are not appropriate, determine by producing estimates.
In case structure repair that requires at least VND 500 million in cost requires economic and technical reports or structure repair investment projects, consultancy costs serving repair identified in total construction investment and structure construction estimates.
(4) Other expenses include other necessary expenses to carry out the construction maintenance process such as: audit, verification and approval of settlement; construction insurance; appraisal fees and other related costs, determined by percentage norms or making estimates according to the guidance of competent agencies.
(5) Maintenance management costs under responsibilities of owners or individuals managing, using structures shall be identified as follows:
For structure repair that requires less than VND 500 million in cost, equal 3.5% of total costs for annual maintenance works and structure repair costs; consultancy costs serving structure maintenance and other costs prescribed under Clauses 1, 2, 6, and 7 respectively of this Article.
For structure repair that requires at least VND 500 million in cost and technical reports or structure repair investment projects, equal 3.5% of total costs for annual maintenance works, consultancy costs serving structure maintenance, and other costs under Clauses 1, 6, and 7 respectively of this Article.
Circular 14/2021/TT-BXD of Vietnam takes effect from November 1, 2021.
Bao Ngoc
