Determining structure maintenance costs in Vietnam

Article 3 of Circular 14/2021/TT-BXD (Effective from November 1, 2021) provides for determining structure maintenance costs in Vietnam as follows:

Structure maintenance costs shall be determined by estimates. Estimates on structure maintenance costs consist of: costs for annual maintenance works, structure repair costs, consultancy costs serving structure maintenance, other costs, and maintenance costs under responsibilities of owners or individuals managing, using structures. Estimates on structure maintenance costs shall be determined as follows:

1. Costs for annual maintenance works specified under Point a Clause 3 Article 35 of Decree No. 06/2021/ND-CP are determined by multiplying percentage with construction costs and equipment costs; in which:

a) Construction costs and equipment costs shall be determined based on statement value of structures and adjustment of market price at the time of preparing maintenance plans. In case statement value of structures is not available, construction costs and equipment costs shall be determined based on investment capital of respective structures publicized by competent authority.

b) Percentage of costs for annual maintenance works shall be determined according to guidelines under Annex I attached hereto.

c) Rely on structure type, class, maintenance procedures, and specific operation and management requirements of structures, owners or individuals managing, using structures shall prepare structure maintenance plans and costs for annual maintenance works of the structures. These costs must not exceed the costs determined based on percentage of costs for annual maintenance works shall be determined according to guidelines under Annex I attached hereto.

2. Structure repair costs shall determine via estimates on structure repair costs consist of repair costs for construction components of structures, repair costs for structure equipment, and other relevant costs (if any).

3. In case structure repair requires at least VND 500 million in cost, estimates on structure repair costs shall conform to Circular providing guidelines on provisions regarding identification and management of construction investment costs of Ministry of Construction.

4. In case structure repair requires less than VND 500 million in costs, estimates on structure repair costs shall be determined as follows:

a) Repair costs shall be determined on the basis of structure repair workload and unit price.

In case of periodic structure repair, workload of repair works shall be determined on the basis of approved repair design, repair plans, and maintenance procedures. In case of irregular structure repair, workload of repair works shall be determined on the basis of conditions of structures requiring repair, repair design dossiers, and other relevant requirements.

Structure repair unit price shall be determined based on repair estimates and price components or determined on the basis of market price or equivalent price in structures where repair has been implemented.

In case structure repair unit price is determined from repair estimates and price of cost factors, direct costs (material, personnel, construction machinery, and equipment costs) shall be determined according to Circular providing guidelines regarding identification and management of construction investment costs of Ministry of Construction. Indirect costs shall equal 10% of direct costs. Advance taxable income shall equal a percentage of direct costs and indirect costs in structure repair unit price. Percentage of advance taxable income shall be determined according to Circular providing guidelines regarding identification and management of construction investment costs of Ministry of Construction. In case structure repair unit price is determined on the basis of market price or equivalent price in structures where repair has been conducted, unit price may include indirect costs and advance taxable income.

d) Total estimates on structure repair costs with less than VND 500 million in costs shall comply with guidelines under Schedule 2.2 Annex II attached hereto.

5. In case year costs for irregular repair are incurred in year of planning, estimates on structure repair costs shall be determined as follows:

a) For structure repair with at least VND 500 million in costs, estimates on structure repair costs shall be determined according to Clause 3 of this Article.

b) For structure repair that requires less than VND 500 million in costs, estimates on structure repair costs shall be determined according to Clause 4 of this Article.

6. Consultancy costs serving structure maintenance shall be determined as follows:

a) For consultancy affairs regulated by Ministry of Construction under Circular issuing construction norms, costs shall conform to this Circular.

b) For consultancy affairs such as: structure survey to serve maintenance works; survey serving repair design, experiment serving consultancy for structure maintenance and other consultancy affairs instructed by Ministry of Construction under Circular providing guidelines regarding identification and management of construction investment costs of Ministry of Construction.

c) For consultancy affairs such as: preparing and appraising structure maintenance procedures (in case of maintenance procedures have not been implemented) or revising structure maintenance procedures; conducting quality control for maintenance works; conducting irregular structure inspection at request; conducting periodic assessment regarding safety of structures during operation, use, and consultancy affairs applying norms that have been prescribed but are not appropriate, determine by producing estimates.

d) In case structure repair that requires at least VND 500 million in cost requires economic and technical reports or structure repair investment projects, consultancy costs serving repair identified in total construction investment and structure construction estimates.

7. Other costs according to Point d Clause 3 Article 35 of Decree No. 06/2021/ND-CP shall be identified by percentage or estimates according to guidelines of competent authority.

8. Maintenance management costs under responsibilities of owners or individuals managing, using structures shall be identified as follows:

a) For structure repair that requires less than VND 500 million in cost, equal 3.5% of total costs for annual maintenance works and structure repair costs; consultancy costs serving structure maintenance and other costs prescribed under Clauses 1, 2, 6, and 7 respectively of this Article.

b) For structure repair that requires at least VND 500 million in cost and technical reports or structure repair investment projects, equal 3.5% of total costs for annual maintenance works, consultancy costs serving structure maintenance, and other costs under Clauses 1, 6, and 7 respectively of this Article.

9. Appraisal, approval, and revision of structure maintenance costs shall conform to Clause 4 and Clause 5 Article 35 of Decree No. 06/2021/ND-CP.

Best Regards!