This is a new content in the Circular No. 02/2020/TT-BXD dated July 20, 2020 of the Ministry of Construction amending and supplementing a number of articles of 4 Circulars concerning management of construction investment costs.

According to regulations on the competence to appraise and approve construction cost estimates: For turnkey bidding packages and mixed bidding packages, cost estimates shall be appraised and approved by investment deciders before selecting contractors. When necessary, the investment decider may authorize the project owner to appraise and approve construction survey cost estimates together with survey tasks.

Cost estimates for preparation for formulation of technical designs and construction drawing designs which are determined in percentage (%) or by estimation method and included in the appraised and approved total construction investment are not required to be appraised and approved again.

The Circular also supplements other costs that may also include in the total construction investment: cost of transportation of special-use construction machinery and equipment to and from the construction site; cost of assurance of traffic safety for construction activities; cost of restoration of technical infrastructure facilities affected by construction activities; cost of material warehousing, etc.

For the use of contingency amounts, in the course of performance of a construction contract, the project owner shall decide on the use of contingency amounts which must not exceed the contingency amounts approved by the investment decider when determining and updating the price of the bidding package.

This Circular takes effect on September 05, 2020.

 
 

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