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

By |2022-02-11T10:21:20+00:00February 11th, 2022|News|

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