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Managing construction costs

Investors of work construction projects would be required to take full responsibility for the management of construction investment costs, according to a draft decree formulated by the Construction Ministry’s Institute of Construction Economics.

The draft decree, which would replace Government Decree No. 99/2007/ND-CP and Decree No. 03/2008/ND-CP, devotes a chapter to further specifying rights and responsibilities of investors and contractors in the management of construction investment costs.

Accordingly, investors of construction projects funded with state capital, including ODA, would formulate the projects, set down instructions, requirements and limitations on investment capital and select designing plans, technology, equipment and construction materials for submission to competent persons for consideration and approval. They would also make, verify and approve construction cost estimates; work out and decide on the application of new construction norms not yet included in the system of promulgated norms or adjust existing construction norms to suit the practical situation. Investors may propose the forms of construction contracts and prices of construction bidding packages to competent authorities.

The draft requires construction cost management consultancy contractors to take responsibility before law and project investors for their operation results and refrain from disclosing information and documents related to cost management without permission of investors or competent authorities.-

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