On December 26, 2019, the Ministry of Construction issued Circular No. 16/2019 / TT-BXD guiding the determination of project management costs and construction investment consultancy for the project that use State budget, non- State budget capital and investment project in the form of public-private partnership (PPP) prescribed in Clause 2, Article 32 of Decree No. 68/2019 / ND-CP of August 14, 2019 of the Government on construction cost management.
Accordingly, the determination of project management costs and consultancy expenses in the transition period prescribed in Article 36 of Decree No. 68/2019 / ND-CP are specified as follows:
– Construction investment projects that have been approved before October 1, 2019 and are being implemented, may continue to use and apply the norms of management costs and norms of consultancy expenses under the Decree. 32/2015 / ND-CP.
In case a project management bidding package or consultancy bidding package has not signed a contract after February 15, 2020, the person determining investment shall decide to apply the project management expense norm and consultancy expense norm. Issued in Circular 16/2019 / TT-BXD to adjust the price of project management package, consulting package but must meet the progress and efficiency requirements of the project.
– For approved construction investment projects after October 1, 2019:
+ In case the project management bidding packages, consultancy bidding packages have been used, the cost norms applied under the provisions of Decree 32/2015 / ND-CP are used to determine the price of project management package and packages consultancy contractors, who have selected contractors and signed contracts before February 15, 2020, shall comply with the contents of the signed contracts.
+ In case the project management bidding package, consultancy bidding package have not yet selected contractors or are selecting contractors before February 15, 2020, the cost norms for project management and spending Consultancy fee issued in Circular 16/2019 / TT-BXD to update the price of project management package, consultancy package.
– For project management and consultancy contracts signed before February 15, 2020, the contract contents shall comply with the provisions of law applicable to the contract.
The issuance of a circular creates a clear legal corridor for agencies, organizations and individuals in determining project management costs and construction investment consultancy for projects funded with state budget capital, non- state budget capital, and investment project in the form of public-private partnership.