On the Ministry of Construction's Information Portal, reader L.T. T wondered:
I am working at the Project Management Board for Investment - Infrastructure of Quang Bi commune (Hanoi). The Project Management Board was established by the Hanoi People's Committee in Decision No. 3536/QD-UBND dated June 30, 2025.
The Investment - Infrastructure Project Management Board is a public non-business unit directly under the Commune People's Committee and is assigned by the Commune People's Committee to be the investor in implementing projects using capital from the state budget. Accordingly, the Project Management Board directly manages the project (not hiring consulting organizations to participate in project management).
According to Point 1. 4, Section 1, Chapter I, Part II, Appendix VIII of Circular No. 12/2021/TT-BXD dated August 31, 2021 of the Minister of Construction promulgating construction norms (amended and supplemented by Point 2, Appendix V of Circular No. 09/2024/TT-BXD dated August 30, 2024):
“1. Guidelines for applying project management cost norms
1. 4. In case the investor uses its legal entity and the professional apparatus directly under it has sufficient conditions and capacity to directly manage the project (not hiring consulting organizations to participate in project management) in the form of the investor organizing project management implementation in the Decree detailing a number of contents on construction investment project management of the Government, the project management cost is determined according to the norms issued in Table 1. 1 attached to this Circular and adjusted with a coefficient k = 0.8”.
I would like to ask, according to the above regulations, the project management cost coefficient for projects for the Investment - Infrastructure Project Management Board at the commune level to implement is determined as k = 0.8 or k = 1?
Answering this question, after research, the Department of Economics - Construction Investment Management has the following opinions:
According to the provisions of Clause 3, Article 30 of Decree No. 10/2021/ND-CP dated February 9, 2021 of the Government, project management costs are determined on the basis of percentage norms (%) or by preparing estimates suitable to the form of project management organization, project implementation time, scale and characteristics of project management work.
The project management cost norms are guided in Circular No. 12/2021/TT-BXD dated August 31, 2021 of the Minister of Construction. In case the commune project management board is a public non-business unit with legal status with its own seal, financial autonomy, self-sufficiency, and sufficient capacity to implement project management decided by the commune chairman, the project management cost is determined according to the norms issued in Table 1. Appendix No. VIII attached to Circular No. 12/2021/TT-BXD is applied with a coefficient of k = 1.
