To adjust some details in the mechanism of management of construction investment expenditures, making it consistent with the revised Bidding Law and Decree No. 85/2009/ND-CP, the Government on December 14 issued Decree No. 112/2009/ND-CP to replace Decree No. 99/2007/ND-CP of June 13, 2007, officially treating official development assistance (ODA) as a state capital source.
The new regulation no longer provides for construction contracts and specifies more clearly capacity conditions, rights and responsibilities of investment deciders, investors, management consultants and contractors for management of construction investment expenditures in projects with 30% or more of capital coming from the state budget.
Investors of construction works are totally responsible for expenditure management from investment preparation to construction completion and putting of works into operation.
In addition to five principles for management of construction investment expenditures prescribed in Decree No. 99, the new regulation sets a new principle requiring the inspection, examination and audit of these expenditures to be performed in accordance with this decree and expenditures already approved by investment deciders or investors.
Individuals acting as expenditure management consultants must possess certificates of construction cost assessment engineer issued by directors of provincial-level Construction Departments and make business registration for their operations.
As compared with Decree No. 99, the new decree is also more detailed on total investment capital, cost estimates, and construction norms and prices.