On July 13, 2022, the Ministry of Construction issued Decision 610/QD-BXD (“Decision 610”) on the Announcement of the investment unit cost and construction unit cost of structural assemblies in 2021. This is the basis for agencies, organizations and individuals involved in the construction investment management to use to estimate and manage construction costs.
In this legal update, ATA Legal Services would like to introduce some outstanding contents on the investment unit cost for the construction specified in Decision 610 as follows:
1. Basis for calculating investment unit cost
- Investment cost is based on the market price in the Quarter IV of 2021.
- For the construction using foreign currency as USD, the part of foreign currency costs converted into Vietnamese dong at the average exchange rate of the Quarter IV/2021 is USD 1 = VND 22,890 according to the foreign exchange rate announcement of the Joint Stock Commercial Bank for Foreign Trade of Vietnam
2. Changes in the method of determining the value of investment unit cost for residences compared to 2020
- In Decision 65/QD-BXD dated 20/01/2021 promulgating the investment unit cost of 2020, the investment unit cost of residence is divided into 2 kinds of works: (i) the investment unit cost for apartment buildings (level classification on I, II and III – different in the minimum and maximum number of floors and basements); and (ii) the investment unit cost for individual houses;
- In Decision 610, the investment unit cost of residence is divided into 3 kinds of works: (i) apartment buildings (not level classfication, but only divided by the number of floors and basements of the buildings); (ii) Works for social residence development and management (“WSRDM”) (including: apartment-type WSRDM (no more than 15 floors and 01 basement); dormitory-type WSRDM (no more than 10 floors and 0 basement); low-rise townhouse WSRDM); and (iii) individual houses.
3. The value of the investment unit cost for all works is increased in accordance with the current market price.
4. The regional adjustment coefficients has changed: the increase, decrease of such coefficients depends on each region and corresponding to each kind of works.
The Decision 610 officially took effect on July 13, 2022.
Comment: