On December 29, 2023, the Minister of Construction issued Circular No. 14/2023/TT-BXD amending certain provisions of Circular No. 11/2021/TT-BXD guiding some contents on identification and management of investment costs (Circular 14).

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Accordingly, the construction price of a project includes detailed construction unit prices and aggregated construction prices. The construction price of a project is determined according to the regulations in Article 2, Article 3 of Decree No. 10/2021/ND-CP and detailed guidance in Appendix IV of this Circular.

Investors shall use the construction price system stipulated in Article 1, Article 2 of Decree No. 10/2021/ND-CP and the provisions in Article 1, Article 2 of this Circular as a basis for identifying and managing construction investment costs. In cases where organizations determine the construction price of a project based on detailed construction unit prices or aggregated construction prices based on construction norms, the prices of construction materials, construction labor unit prices, and other relevant contents shall be determined as follows:

Construction material prices

Construction material prices published by competent state agencies according to regulations are the basis for determining the construction price of a project.

In cases where construction materials are not included in the price publication or are included but the types of materials do not meet the requirements for standards, regulations, quality, supply capacity, and specific conditions for each project, the construction material prices for determining the construction price of the project shall be collected, synthesized, analyzed, and evaluated based on referencing information sources on construction material prices as guided in point b section 1.2.1.1 of Appendix IV of this Circular. The selection of construction material prices must be objective, transparent, ensuring the project’s effectiveness.

Encouragement should be given to selecting construction materials that save mineral resources, energy, and are environmentally friendly when preparing feasibility study reports, construction design, and determining construction investment costs for projects, but must ensure investment efficiency and meet project requirements.

In cases where projects require the use of specialized construction materials not commonly available on the market, or imported materials, specific justifications must be provided in the pre-feasibility study report, feasibility study report, economic-technical report, and construction design justification.

Criteria to be evaluated when selecting construction material prices for determining the construction price of a project are guided in point a section 1.2.1.1 of Appendix IV of this Circular.

The method of determining material prices to the construction site is implemented according to the guidance in section 1.2.1.2 of Appendix IV of this Circular.

Construction labor unit prices

Construction labor unit prices published by competent state agencies according to regulations are the basis for determining the construction price of a project.

In cases where the construction labor unit prices published by competent state agencies are not suitable for the specific nature of the work, project, the investor shall organize surveys, determine construction labor unit prices according to the method specified in the Circular guiding the method of determining economic-technical indicators and measurement of construction volume for decision-making when determining construction prices. During the process of determining construction labor unit prices, the Department of Construction shall guide the accuracy, appropriateness of bases, methods for determining construction labor unit prices when requested by investors.

The investor submits the results of determining construction labor unit prices to the Department of Construction for monitoring and management. The results of determining construction labor unit prices submitted to the Department of Construction must demonstrate the basis, method, results of determining construction labor unit prices, and forms (if any) as prescribed. Annually, the Department of Construction aggregates and reports to the Ministry of Construction.

The Circular shall be effective from February 15, 2024.

Above is the entire content of the News: Ministry of Construction guidelines on identification and management of investment costs.

* This news is for informational purposes about newly issued legal regulations and is not intended for specific advice or application in individual cases. 

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