Regulations on management of construction investment costs

On 14/08/2019, the Government issued Decree 68/2019/ND-CP ( Decree 68) on the management of construction investment costs. Accordingly, Decree 68 regulates the costs which form the total construction investment, including the following costs:

  • Compensation, assistance and resettlement costs: include compensation costs for land, houses, works on land and water surface; assistance amounts paid by the State for land recovery; resettlement costs; costs for removal of and payment for technical infrastructure items which have been constructed (if any).
  • Construction costs: include construction costs of work items in a project; temporary works serving construction; costs of demolition of the works outside the scope of site clearance for which the costs have been counted into the costs of compensation, assistance and resettlement.
  • Equipment costs: include procurement of construction and technological equipment; training and technology transfer costs (if any); costs for fabricating and manufacturing non-standard equipment (if any); transportation and insurance costs; taxes, fees.
  • Project management costs: include the costs for managing projects from the preparation stage, execution stage to the completion stage to bring the project into use.
  • Construction investment consulting costs: include survey and consulting costs; design costs, construction supervision consulting costs.
  • Contingency costs: include the costs for arising workloads and contingency costs for inflation during the project execution period.
  • Other costs: include necessary costs for detecting and removing mines and explosive objects; insuring the works during the time of construction; charges and fees for appraisal of projects; costs for audit, due diligence and approval of the investment capital.


In case of adjustment of the total construction investment:

  • Adjustment of the total construction investment will be carried out along with the adjustment of the investment project and must be adjusted when costs arise in excess of the total investment.
  • In case of adjusting only the cost structure, 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 will adjust the investment and submit the results to the competent officer.
  • In case of increasing the project costs or project delay leading to loss and waste as a result of carrying out projects while the capital plans are inconsistent with the execution plans, the investment approver and the investor must take legal responsibility.

Decree 68 takes effect from 01/10/2019 and supersedes Decree No. 32/2015 / ND-CP.

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