Headlines 28/03/2015 09:16 SA

New Decree on construction cost management

Ms. Kim Kiều

On March 25, 2015, the Government promulgated Decree No. 32/2015/NĐ-CP on construction cost management.
Some significant regulations of the Decree:

- Construction costs of each project, construction, contract must be calculated correctly and sufficiently and appropriate for design requirements, technical instructions, construction conditions, market prices at that time, and the construction site.

- Investors may hire cost management consultants who are qualified as prescribed in the Decree on construction project management to estimate, inspect, control, and manage construction costs.

- If the cost contingency is overrun, the investor shall determine replenishment of cost contingency according to cost escalation rate when the construction price index announced by a competent authority at the time of commencement of the project execution is higher than the price index of the approved total investment

This Decree takes effect from May 10, 2015 and replaces Decree No. 112/2009/NĐ-CP .
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