Determination of new estimate norms and revision of estimate norms for application in structures in Vietnam

Determination of new estimate norms and revision of estimate norms for application in structures in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Determination of new estimate norms and revision of estimate norms for application in structures in Vietnam

Determination of new estimate norms and revision of estimate norms for application in structures according to Article 21 of Decree 10/2021/ND-CP as follows:

- Determination of new estimate norms for structures shall be implemented for construction operations not specified elsewhere or construction operations that utilize new construction technology, construction solutions, or construction conditions that are not specified under construction norm systems issued by competent authorities.

- Revision of estimate norms is implemented for construction operations specified under construction norm system issued by competent authorities but not conforming to technical design, requirements, construction conditions and/or construction solutions.

- Determination of new estimate norms and revision of estimate norms shall conform to regulations of Minister of Construction.

- During preparation of construction estimates, determination and management of new estimate norms and revised estimate norms under Clauses 1 and 2 of this Article shall be implemented as follows:

+ Organizations and individuals preparing construction estimates are responsible for preparing lists of new estimate norms and estimate norms that require revision to meet specific structure requirements and organizing determination of norm depreciation conforming to technical design, requirements, construction conditions, expected construction solutions to serve preparation of unit price and determination of construction estimates;

+ Agencies specialized in construction shall appraise relevant details under Point d Clause 3 Article 13 of Decree 10/2021/ND-CP;

+ Investors shall consider and decide on use of revise estimate norms and/or new estimate norms for structures as the basis for determining construction prices.

- During construction process, investors shall organize surveys to determine new estimate norms and revised estimate norms under Clause 4 of Article 21 of Decree 10/2021/ND-CP as follows:

+ Organize recalibration of contents of norms (including applicable regulations, affair components, depreciation components, unit of measurement, norm values) on the basis of surveys and data collection in practical construction situations;

+ Norm determination results shall be sent to agencies specialized in construction to serve review and completion of construction norm systems under Article 20 of Decree 10/2021/ND-CP in order to be updated in database under Article 28 of Decree 10/2021/ND-CP.

- In case investors request, Ministry of Construction shall provide guidelines and remarks for new estimate norms whereas agencies which issue norms shall provide guidelines and remarks for revised estimate norms under Clauses 4 and 5 of Article 21 of Decree 10/2021/ND-CP.

- Investors may hire capable cost management and consultancy organizations according to Decree elaborating to regulations on management of construction investment projects to determine and appraise norms under Clause 5 of Article 21 of Decree 10/2021/ND-CP.

2. Regulations on construction norm system in Vietnam

Regulations on the construction norm system in Vietnam according to Article 20 of Decree 10/2021/ND-CP are as follows:

- Construction norm system includes economic-technical norms and cost norms. Economic-technical norms include basic norms and estimate norms.

- Basic norms include norms on use of materials, labor capacity, construction machinery and equipment capacity conforming to technical requirements, construction regulations, standards and are used to determine or revise estimate norms.

- Estimate norms

+ Estimate norms are norms on necessary depreciation of materials, human resources, construction machinery and equipment conforming to technical requirements, construction conditions and specific construction measures for completion of a unit of construction quantity;

+ Estimate norms are adopted, consulted in order to prepare construction estimates and serve as the basis for determining construction prices, preparing and managing construction investment.

- Cost norms include: norms expressed in percentage and norms expressed in numeric values. Cost norms serve as the basis for determining construction prices, cost estimates of affairs, costs in construction investment namely indirect costs, pre-assessed taxable income, project management costs, construction investment consultancy costs and other costs.

- Estimate norms for specific construction operations of sectors, local administrative divisions are norms for affairs not specified under construction norm system regulated by Ministry of Construction and only occur in constructions under management of sectors or local governments.

- Ministry of Construction shall organize construction, issue construction norms for general use on a nationwide scale.

Ministries having jurisdiction over specialized construction works shall organize construction operations, issue estimate norms for specific construction operations of sectors, People’s Committees of provinces shall organize construction operations, issue estimate norms for specific construction operations of local administrative divisions.

- Ministries having jurisdiction over specialized construction works, People’s Committees of provinces shall prepare plans, organize development of estimate norms under Clause 5 of this Article, send to Ministry of Construction and request for feedback on methods and basis for developing norms, conformity of calculation results of depreciation components prior to issuance.

- Adoption and reference of construction norm systems shall conform to Clause 3 Article 136 of Law on Construction and amendments thereto under Clause 51 Article 1 of Law on amendments to Law on Construction.

- Construction norm system under this Article shall be managed by code system according to Minister of Construction.

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