Chương I Thông tư 14/2019/TT-BXD: Quy định chung

Chapter I

GENERAL PROVISIONS

Article 1. Scope and subjects of application

1. Scope of application: This Circular provides instructions for determination and administration of construction price indices for the purposes of identifying and adjusting total investment, construction cost estimates, construction package prices, contract value, converting investment capital and managing investment costs.

2. Subjects of application:

a) Entities and persons involved in determination and administration of construction price indices of investment and construction projects funded by state budget and non-budgetary capital, and other public-private partnership (PPP) investment projects.

b) Other entities and persons are encouraged to apply this Circular to determination and administration of construction price indices for projects funded by other capital sources.

Article 2. Classification of construction price indices

1. Price indices, including:

a) Construction price index by a building type refers to an indicator showing the extent of fluctuation in total cost of a classification of construction works or projects over time.

b) Construction price index by cost structure, including construction cost index referring to an indicator showing the level of fluctuation in costs of construction activities over time; equipment cost index referring to an indicator showing the level of fluctuation in costs of building equipment used in a construction work over time; other cost index referring to an indicator showing the level of fluctuation in several costs, e.g. project management and investment consulting and other costs, of a construction work over time.

c) Construction price index by cost factor, including building material cost index referring to an indicator showing the level of fluctuation in costs of building materials used in a construction work over time; building labor cost index referring to an indicator showing the level of fluctuation in costs of personnel working for a construction work over time; building machinery and equipment cost index referring to an indicator showing the level of fluctuation in costs of machines and equipment items for use at a construction work over time.

d) Construction price index by main building material type refers to an indicator showing the level of fluctuation in costs of main building materials over time.

2. With respect to a particular construction project, calculation of all or some indices stated in clause 1 of this Article shall depend on purposes and requirements of administration of investment and construction expenses.

Article 3. Principles for determination and administration of construction price indices

1. Once already being determined, a construction price index must reflect any fluctuation in local market prices in a fair and appropriate manner.

2. Determination and public disclosure of construction price indices must be timely and conformable to regulations on administration of construction investment expenses.

3. It shall be obliged that a particular list and quantity of representative construction works are defined before calculation and public disclosure of a construction price index.

4. A construction price index is calculated according to a mean formula during the specified period of time without taking into account several costs of compensation, support and resettlement, lending interest incurred during construction period and initial outlay. A construction price index is expressed in percent (%).

5. Cost structure used for calculation of construction price indices must correspond to the cost structure covered by regulations on administration of construction investment expenses, be based on statistical data and be used in a stable manner until there is any change in a benchmark point of time.

6. Management and use of construction price indices must comply with regulations related to management of construction investment expenses.

7. During the process of determining price indices, entities specialized in construction need to carry out review and assessment of these price indices by using information about those of adjacent regions or localities in order to ensure they adapt to tendencies of fluctuation in the regional market and there is none of great difference between local price indices.

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