THE MINISTRY OF CONSTRUCTION

SOCIALIST REPUBLIC OF VIET NAM
Independence – Freedom - Happiness

No. 03/2008/TT-BXD

Hanoi, January 25, 2008

 

   CIRCULAR

Pursuant to the Government's Decree No. 36/2003/ND-CP of April 4, 2003, defining the functions, tasks, powers and organizational structure of the Ministry of Construction;

Pursuant to the Governments Decree No. 16/2005/ND-CP of February 7, 2005, on management of investment projects on the construction of works and Decree No. 112/2006/ND-CP of September 29, 2006 amending and supplementing a number of articles of the Government's Decree No. 16/2005/ND-CP on management of investment projects on the construction of works;

Pursuant to the Governments Decree No. 99/2007/ND-CP of June 13, 2007, on management of work construction investment expenditures;

Pursuant to the Government's Decree No. 03/2008/ND-CP of January 7, 2008, amending and supplementing a number of articles of the Government's Decree No. 99/2007/ND-CP of June 13, 2007, on management of work construction investment expenditures;

Pursuant to the Government's Decree No. 166/2007/ND-CP of November 16, 2007, providing for the common minimum wage level;

Pursuant to the Governments Decree No. 167/2007/ND-CP of November 16, 2007, providing for region-based minimum wage levels for laborers working for Vietnamese companies, enterprises, cooperatives, cooperative groups, farms, households, individuals and other labor-employing organizations;

Pursuant to the Labor, War Invalids and Social Affairs Ministry's Circular No. 29/2007/TT-BLDTBXH of December 5, 2007, guiding the application of the common minimum wage level and region-based minimum wage level in state companies and one-member limited liability companies where the State holds 100% charter capital.

The Ministry of Construction guides the adjustment of work construction cost estimates from January 1, 2008, as follows:

I. GENERAL PROVISIONS

1. This Circular guides the adjustment of cost estimates for the volumes performed from January 1, 2008, under state-funded works or bidding packages (referred to as work construction cost estimates) for which the investment deciders have not yet decided to switch the management of work construction investment expenditures under the Government's Decree No. 99/2007/ND-CP of June 13, 2007.

Work construction investment projects funded with other capital sources are encouraged to apply regulations on adjustment of cost estimates guided in this Circular.

2. Work construction cost estimates formulated using construction, installation and construction survey unit prices set by provinces or centrally run cities on the basis of wage scales of the wage table A.1.8 promulgated together with the Government's Decree No. 205/2004/ND-CP of December 14, 2004, with the minimum wage level of VND 450.000/month, will be adjusted as prescribed in the Appendix to this Circular.

3. For works for which separate unit prices or machine-shift costs have been formulated using the minimum wage level specified by competent persons, work construction cost estimates will be adjusted using the new common minimum wage level or new region-based minimum wage level in accordance with the principles and methods guided in this Circular.

4. Adjustment of contract prices or amounts paid for work volumes performed from January 1, 2008, under signed contracts and contractual terms: If the involved parties have agreed not adjust price- during the implementation process, investors and construction contractors may negotiate and supplement contracts in order to ensure laborers interests as prescribed.

5. For works under work construction investment projects implemented under the Government's Decree No. 99/2007/ND-CP of June 13, 2006, on management of work construction investment expenditures, investors shall use contingency funds for price increase to adjust the expenditure structure in the work construction cost estimates.

II. SPECIFIC PROVISIONS

Work construction cost estimates formulated using construction unit prices set by provinces or centrally run cities on the basis of the minimum wage level of VND 450,000 per month and wage scales in the wage table promulgated together with the Government's Decree No. 205/2004/ND-CP of December 14, 2004, are adjusted as follows:

1. Adjustment of construction cost estimates

1.1. Adjustment of labor expenses

Labor expenses in construction cost estimates formulated using local construction unit prices will be multiplied by an adjustment coefficient (KDCNC) in conformity with the adjustment of the common minimum wage level or region-based minimum wage level

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GLIDING THE ADJUSTMENT OF WORK CONSTRUCTION COST ESTIMATES