Contents of total construction investment in Vietnam

Contents of total construction investment in Vietnam (Image from the internet)

Contents of total construction investment in Vietnam

The contents of total construction investment in Vietnam includes: compensation, support, and resettlement costs (if any); construction costs; equipment costs; project management costs; construction investment consultancy costs; other costs; contingency costs and are specifically regulated as follows:

- Compensation, support, and resettlement costs include:

+ Compensation costs for land, houses, structures on land, assets attached to land, on water surfaces, and other compensation costs as prescribed;

+ Support costs when the state recovers land; resettlement costs;

+ Organization costs for compensation, support, and resettlement;

+ Land use costs, land rental costs calculated during the construction period, and other related costs for land use, changing land use purposes, water resources, and sea resources as prescribed by law (if any);

+ Relocation costs, reimbursement for the infrastructure that has been invested in serving site clearance (if any) and other related costs;

- Construction costs include:

+ Costs of constructing works, project items; temporary and auxiliary works serving construction;

+ Demolition costs of structures not within the scope of the demolition work for site clearance determined in compensation, support, and resettlement costs;

- Equipment costs include: costs of purchasing construction equipment and technology equipment; equipment procurement management costs (if any); software license costs for construction equipment, technology equipment (if any); training and technology transfer costs (if any); fabrication costs for equipment requiring fabrication (if any); installation, testing, calibration costs; costs of trial run according to technical requirements (if any); transportation costs; insurance; taxes and related fees; other related costs;

- Project management costs are necessary costs to organize and manage the implementation and management tasks of the project from the project preparation stage, project implementation to the completion of construction, bringing the project's work into operation, and finalizing construction investment capital, detailed in Article 30 Decree 10/2021/ND-CP;

- Construction investment consultancy costs are necessary costs to perform construction investment consultancy tasks from the project preparation stage, project implementation to the completion of construction, bringing the project's work into operation, and finalizing construction investment capital, detailed in Article 31 Decree 10/2021/ND-CP;

- Other costs include the necessary costs to perform the construction investment project, including:

+ Costs of bomb, mine, and explosive clearance; costs of moving specialized construction equipment to and from the site;

+ Costs of traffic safety assurance for construction; costs of restoring technical infrastructure affected during construction;

+ Costs of material storage; costs of building shelters for machinery, machinery foundations, electricity, compressed air, and water supply systems on site, installation, and dismantling of certain types of machinery;

+ Construction insurance costs during construction; international quality inspection, work deformation monitoring; auditing, verification, and approval of investment capital finalization; inspection of acceptance during construction and acceptance of the completion of work items and works by specialized construction authorities or councils established by the Prime Minister of the Government of Vietnam; scientific and technological research, application, and use of new materials related to the project; initial working capital for business construction investment projects, loan interest during construction;

+ Costs of no-load and load trial runs for technological lines, production according to the process before handover (excluding the value of recovered products);

+ Costs of appraisal of the construction investment feasibility study report, construction investment economic-technical report;

+ Resource taxes, fees, and charges as prescribed and other necessary costs to perform the construction investment project not specified in points a, b, c, d, dd Article 5 Decree 10/2021/ND-CP;

- Contingency costs include costs for additional work volume, activities, and costs for price volatility during project implementation.

Projects only requiring the development of a construction investment economic-technical report, the total construction investment includes construction estimate costs as specified in Article 11 Decree 10/2021/ND-CP, compensation, support, and resettlement costs (if any), and other related costs for the project. The construction estimates are determined as specified in Article 12 Decree 10/2021/ND-CP.

(Article 5 Decree 10/2021/ND-CP)

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