In order to complete the legal regulations, in line with international practices, the Government issued Decree 68/2019/ND-CP on management of construction investment costs..
Accordingly, Decree 68/2019/ND-CP stipulates some outstanding new points in construction investment cost management as follows:
– Regarding the scope:
Amend “bidding package estimate” to “bidding package price” in accordance with the provisions of the Law on Construction 2014 and in line with the objective of construction investment cost management.
– Regarding the object of application:
Additional subjects are added to construction investment projects’ scope in the form of public-private partnership (PPP), because PPP projects are public projects and have been regulated as goverment capital projects in other legal documents (point b, clause 3, Article 3 of Decree 59/2015/ND-CP).
– Regarding the principles of construction cost management:
Supplement the principles of construction investment cost management according to the investment form of the project and the method of implementation; construction investment costs have to be consistent with the project implementation plan, market price at the construction site and expected price fluctuations during the construction process.
– Regarding the content of expense items and expenses in each item of Total investment:
- Equipment cost: add cost of management and procurement of construction equipment of the contractor.
- Additional project management costs for PPP projects include: project management costs of authorized state agencies, operating expenses of project management units of state agencies competent to implement projects, and project management costs of the investor.
Decree 68/2019/ND-CP takes effect from October 1, 2019 and replaces Decree 32/2015/ND-CP.
Source: Tạp chí Xây Dựng
