Chương 2 Nghị định 99/2007/NĐ-CP: Tổng mức đầu tư xây dựng công trình

Chapter II

TOTAL WORK CONSTRUCTION INVESTMENT

Article 4.- Contents of total work construction investment

1. The total work construction investment (hereinafter referred to as total investment) means a projects estimated expenditure determined under the provisions of Clause 1, Article 5 of this Decree. The total investment serves as a basis for investors to formulate plans and manage capital when making investment in construction of works.

2. The total investment covers the construction expenses; the equipment expenses; the expenses for ground clearance compensation and resettlement; the project management expenses; the construction investment consultancy expenses; other expenses and reserve expenses.

3. The expenses of the total investment are specified as follows:

a/ The construction expenses include the expenses for construction of works, work items; expenses for demolition and dismantlement of old architectural objects; expenses for construction ground leveling and fill-up; expenses for construction of temporary and support facilities in service of the construction; makeshifts at construction sites for dormitory and construction administration purposes;

b/ The equipment expenses include expenses for procurement of technological equipment; expenses for training and technology transfer, if any; expenses for installation, experiment and adjustment; expenses for transportation and insurance; taxes and relevant charges;

c/ The expenses for ground clearance compensation and resettlement include expenses for compensation for houses, architectural objects and cultivation plants on land and other expenses; expenses for resettlement; expenses for organization of ground clearance compensation; expenses for use of land in the construction duration, if any; expenses for investment in construction of technical infrastructure, if any;

d/ The project management expenses include expenses for organization of the project management from the time of formulating projects to the time of completing the construction of, pre-acceptance testing, handing over and putting works into exploitation and use;

e/ The construction investment consultancy expenses include expenses for consultancy on surveys, designing, construction supervision, verification and other construction investment consultancy expenses;

f/ The other expenses include working capital in the course of trial production for investment projects on construction for commercial purposes; loan interests in the construction duration and other necessary expenses;

g/ The reserve expenses include reserve expenses for arising work volumes and reserve expenses for drift of prices in the work construction duration.

Article 5.- Estimation of total investment

1. The total investment is determined by one of the following methods:

a/ Calculating it according to the projects base design, in which the construction expenses are calculated according to the volume mainly from the base design, the other volumes estimated and construction cost suitable to the market; the equipment expenses are calculated according to the equipment quantity and categories suitable to technological designs, the market prices of equipment and other elements, if any; the expenses for ground clearance compensation and resettlement are calculated according to the compensation and resettlement volume of the project and relevant state regulations; other expenses are determined by way of making estimates of provisional calculation in percentage (%) of the total construction and equipment expenses; the reserve expenses are calculated according to provisions of Clause 3 of this Article;

b/ Calculating it according to the works flooring space and use capacity and the general construction cost by structural parts, flooring space, utility (hereinafter called the general construction cost), the corresponding investment capital ration for work construction at the time of project formulation with adjustment and addition of expenses not yet included in the general construction cost and the investment capital ration for determination of the total investment;

c/ Calculating it on the basis of figures of executed projects with similar econo-technical norms. Upon the application of this method, the figures of similar projects must be calculated in conversion to the time of formulating the projects and adjusting expenses not yet determined in the total investment;

d/ Combining the methods specified at Points a, b and c, Clause 1 of this Article.

2. The initial total investment of works subject to investment reports and works to which the form of turn-key contracts is applied shall be estimated on the basis of the investment capital ration or expenses for executed similar works and expenses affecting the total investment according to the length of construction duration.

3. The reserve for arising work volume is calculated in percentage (%) of all the expenses specified at Points a, b, c, d, e and f, Clause 3, Article 4 of this Decree. The reserve for drift of prices is calculated on the basis of length of the work construction duration and the annual construction price indexes, suitable to types of construction works with possible fluctuation of domestic and world market prices taken into account.

Article 6.- Appraisal and approval of total investment

1. Appraisal of total investment constitutes a content of the appraisal of work construction investment projects. Contents of total investment appraisal include:

a/ The suitability of the method of determining the total investment with technical characteristics and nature as well as technological requirements of work construction investment projects;

b/ The completeness, reasonability and compliance with practical market requirements of the expense items in the total investment;

c/ The calculations on efficiency of work construction investment, risks, financial plans, loan capital repayment plans, if any;

d/ Determination of the total investment value, ensuring the efficiency of work construction investment.

2. Investment deciders shall decide on the organization of appraisal of the total investment or may hire organizations or individuals fully meeting the capability and experience conditions to verify. The appraisal charges or verification expenses are calculated into other expenses in the total investment. Organizations and individuals performing the appraisal or verification of the total investment shall bear responsibility before law for the reasonability and accuracy of the appraisal or verification results.

3. The total investment stated in an investment decision is approved by the investment decider.

Article 7.- Adjustment of total investment

1. The approved total investment is adjusted only in the following cases:

a/ There appear force majeure circumstances: earthquakes, storms, floods, whirlwinds, tsunami, landslides; wars or war dangers, which exert direct impacts on construction works;

b/ The approved planning is adjusted, thus directly affecting the total investment in work construction;

c/ The investment deciders change or adjust the work sizes upon emergence of new elements which bring about higher socio-economic efficiency.

2. Competence to adjust total investment:

a/ For construction works financed by state budget capital: Investors shall report to and ask for permission of investment deciders before adjusting the total investment;

b/ For construction works financed by State-guaranteed credit sources, development investment credit capital of the State and other investment capital of the State: Investors may make decisions by themselves and take responsibility for the adjustment of the total investment.

3. The difference between the adjusted total investment and the approved total investment must be appraised according to the provisions of Article 6 of this Decree.