08 EXPENSES FOR DETERMINING THE TOTAL CONSTRUCTION INVESTMENT
On August 14, 2019, the Government issues the Decree No. 68/2019/ND-CP on management of construction investment costs.
Accordingly, total construction investment shall be determined by 08 types of cost, includes: Compensation, assistance and resettlement costs; Construction investment costs; Equipment costs; Project management costs; Construction investment consulting costs; Other costs; Contingency costs.
The adjustment of total construction investment shall be carried out in conjunction with the adjustment of project construction investment and shall be adjusted when costs arise in excess of the total investment.
In case of adjusting only the cost structuring, including the contingency costs, due to price adjustment when price indexes increase higher than the indexes calculated in the price escalation reserves but this does not exceed the approved total construction investment, the investors shall adjust the investment and submit the results to the investment deciders for approval.
In case of increasing the costs of the projects or delaying projects leading to loss and waste by deciding on implementation of projects when the capital plans are inconsistent with the project implementation plans, the investment deciders shall take legal accountability.
This Decree takes effect on October 01, 2019.
