Mr. L.D.P reflected that the Project Management Board of the area where he works was assigned by the Provincial People's Committee as the investor to implement Project A using capital from the state budget. The project management board of the area directly manages the project (not hiring a consulting organization to participate in project management). The project approval date is October 2025.
According to the provisions of 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 the construction norms (amended and supplemented by Point 2, Appendix V of Circular No. 09/2024/TT-BXD dated August 30, 2024):
"Instructions for applying project management cost norms:
In case the investor uses their legal status and the affiliated professional apparatus that meets the conditions and capacity to directly manage the project (not hiring a consulting organization to participate in project management) in the form of the investor organizing project management in the Decree detailing a number of contents on the management of construction investment projects of the Government, the cost of project management shall be determined according to the norms issued in Table 1.1 attached to this Circular and adjusted with coefficient k = 0.8".
Mr. P asked, according to the above regulations, the project management cost coefficient for project A is determined to be k = 0.8 or k = 1.0?
The Ministry of Construction responds to this issue as follows:
For construction investment projects with cost management according to Decree No. 10/2021/ND-CP dated February 9, 2021 on management of construction investment costs, project management costs are determined according to the provisions of Point 1.4, Section 1, Chapter I, Part II of Appendix No. VIII issued with Circular No. 12/2021/TT-BXD (amended and supplemented by Point 2, Appendix V of Circular No. 09/2024/TT-BXD).
In case the specialized construction investment project management board is established according to the provisions of Point a, Clause 1, Article 24 of Decree No. 175/2024/ND-CP dated December 30, 2024 of the Government to perform the functions, tasks and powers of the investor in organizing the management of assigned projects as prescribed, the project management cost is determined according to the norms in Circular No. 12/2021/TT-BXD and the coefficient is applied 1.0.
