Latest regulations on construction maintenance costs in Vietnam

Latest regulations on construction maintenance costs in Vietnam (Internet image) 

1. What are costs of maintenance of a construction work under law in Vietnam?

According to Clause 1, Article 35 of Decree 06/2021/ND-CP, costs of maintenance of a construction work are all costs that are determined according to the requirements of the works to be performed in accordance with the approved construction maintenance procedures and plan. Maintenance costs may include one, some or all of the costs incurred from the maintenance of a construction work according to the requirements of the approved construction maintenance procedures.

2. Latest regulations on construction maintenance costs in Vietnam

Construction maintenance costs in Vietnam according to Clause 3, Article 35 of Decree 06/2021/ND-CP include:

- The costs of execution of the annual maintenance works, including: Costs incurred from formulating annual construction maintenance plans and cost estimates; carrying out regular and periodic construction inspections; project servicing costs determined according to the annual maintenance plans of construction projects; setting up and operating the database of construction maintenance; preparing and managing construction maintenance documentation.

- Costs of (both regular and irregular) construction repairs, including the costs incurred from making repairs for construction work and equipment according to the approved construction maintenance procedures, and from any necessary addition and replacement of construction items and equipment to serve the purposes of ensuring the right functions and safety of construction works during the period of operation and use.

- Costs of consulting services for construction maintenance work, including: Costs incurred from

+ Establishing, examining (in case there is no maintenance procedures) or adjusting the construction maintenance procedures;

+ Inspecting the quality of construction works as a basis for maintenance work (if any);

+ Checking construction works spontaneously to serve maintenance purposes (if any);

+ Conducting the ad-hoc inspection of construction works as required (if any);

+ Conducting the periodic assessment of the safety of construction works during the period of operation and use (if any);

+ Carrying out the survey with the aim of creating designs for repair work;

+ Making, verifying repair designs and cost estimates of maintenance;

+ Preparing invitations for bid, requests for proposals and evaluating bid packages and proposals submitted for contractor selection;

+ Supervising construction and repair of construction works, supervising repair of construction equipment;

+ Performing other consulting services;

- Other costs, including those necessary to carry out the construction maintenance process, such as audit, verification before approval of the financial settlement; construction insurance; evaluation and other related costs;

- Overheads incurred from construction maintenance activities performed by the owner or the manager or the user of the construction project.

3. Regulations on costs of repair of a construction work or equipment in Vietnam

Regulations on costs of repair of a construction work or equipment in Vietnam according to Clause 4, Article 35 of Decree 06/2021/ND-CP are as follows:

- In the case of repair of a construction work or equipment costing less than VND 500 million from state capital other than public investment capital and regular state budget expenditure, the owner or the manager or the user of the construction work shall have autonomy in deciding the repair plan, containing the following information: the name of the construction constituent or equipment that needs repairing or replacement; repair or replacement reasons, repair or replacement targets; quantity of repair or replacement work; cost estimation, expected execution time and completion time.

- In the case of repair of a construction work or equipment costing VND 500 million or more from state capital other than public investment capital and regular state budget expenditure, the owner or the manager or the user of the construction work shall undertake the preparation, submission for appraisal and approval of the economic and technical report or the construction investment project in accordance with the laws on construction investment.

- In the case of repair of a construction work or equipment using other funds, the investor or the manager or the user of the construction work shall be encouraged to consult and apply the regulations specified at Points a and b of Clause 4, Article 35 of Decree 06/2021/ND-CP in order to determine costs of repairing that construction work or equipment.

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