Establish a working group to remove difficulties in determining unit prices

Speaking to the press, Deputy Minister of Construction Bui Hong Minh said that the Ministry of Construction has proactively identified advantages and difficulties as well as clearly pointed out the "responsibility address" for inappropriate unit prices and norms belonging to which ministry or locality, avoiding the situation of shifting responsibility, avoiding responsibility or unclear authority.

Deputy Minister of Construction Bui Hong Minh

*At the conference on unit prices and norms organized by the Ministry of Construction, contractors also reflected on the situation of increasing losses due to current shortcomings in the construction of norms. How did the Ministry of Construction identify these shortcomings, Deputy Minister?

Deputy Minister Bui Hong Minh: In the world , there are currently two main methods to determine construction standards and unit prices, including management according to unit price standards of Japan and China and management according to synthetic prices of the US, UK and European countries, meaning price management according to structure, construction, project or item.

Currently, the Ministry of Construction approaches both methods. In which, the method of determining by unit price standards has followed throughout history and to be suitable with current practice, there will be shortcomings.

The problem is that in essence, there must be a project before there can be a standard. But in reality, every method has its pros and cons, and there is no completely optimal solution. Therefore, in the process of state management, we continue to conduct additional research.

This is also the content of the major work program that the Ministry of Construction is implementing. Accordingly, the Ministry of Construction has advised the Government and the Prime Minister to issue a plan to use building information modeling (BIM) to digitize the entire project, thereby creating big data to later have sample designs in all stages from design to acceptance and full settlement. On this basis, it helps state management agencies and the Ministry of Construction to gradually form appropriate and transparent unit prices.

Currently, special class A projects must apply BIM from material preparation to construction, construction machinery management, construction technology, including acceptance and payment settlement.

* With the spirit of getting involved quickly and frankly acknowledging the shortcomings, what solutions will the Ministry of Construction have to overcome difficulties for current specialized projects and works?

Deputy Minister Bui Hong Minh: The Prime Minister's Official Dispatch No. 02 demonstrates a spirit of urgency in resolving current difficulties in construction norms and unit prices as well as exploitation and supply of construction materials.

In addition to the construction site, the spirit of "overcoming the sun and rain" and working through Tet must also be thoroughly understood in management from central ministries and branches to localities, to avoid congestion in the investment and construction process of projects and works.

I propose to establish a working group between the Ministry of Construction and the Ministry of Transport, which involves two main units: the Department of Construction Economics and the Department of Construction Activities to quickly find a solution to this difficulty.

Regarding the current standards, there are still some that are not suitable, some standards are missing and have not been updated, the working group will be responsible for classifying which ones belong to the Ministry of Construction, which ones belong to the Ministry of Transport to supplement, adjust and issue new ones. The criteria is to ensure no duplication, not to let the same standard be issued by two units.

In the first quarter of 2024, the Ministry of Transport plans to issue new and adjust and supplement 547 construction cost estimates according to its authority. Similarly, the Ministry of Construction will issue additional 318 norms according to its authority; at the same time, continue to review and issue additional norms that are missing or inappropriate due to changes in technology, construction conditions or new construction materials, in order to meet practical requirements in construction investment activities.

In the spirit of not letting it drag on to the second quarter, the Ministry of Construction and the Ministry of Transport will have to agree to review legal procedures in the first quarter. Specifically, the Ministry of Construction will report the results to the Prime Minister in the first quarter and in the next quarter, both ministries will continue to coordinate to determine other norms that need to be issued, under the authority of which units, or under the localities to continue to adjust accordingly.

Deputy Minister of Construction Bui Hong Minh

On the side of investors, project management boards, contractors and localities where the project is located, they also review current norms and based on regulations, propose to the working group on outdated or missing norms, which areas need to be supplemented, but in the spirit of honesty and objectivity. We need to take large quantities and average quantities as the promulgation principles, not "following" reality, so that everything is required to be promulgated, it will be very difficult.

* Specifically, with the remaining norms and unit prices that have been pointed out by contractors and localities, how will they be revised in the coming time?

Deputy Minister Bui Hong Minh: Regarding the institutional issues in determining norms, I propose that the Ministry of Construction review two matters. One is to clarify what is specialized and what is specific, in order to have implementation guidelines.

If this instruction is beyond the authority, then report to the competent authority. If it is not beyond the authority, then the instruction will be implemented on the basis of issuing a circular. At this point, explaining the specialized and specific fields will be very easy. Only when there is a "crossover" in concepts will the Ministry of Construction coordinate with the Ministry of Transport to resolve it.

The Ministry of Construction has adjusted the Circular on determining and managing construction investment costs, adjusting regulations on determining appropriate sources of construction material prices.

Second, there needs to be guidance on how to determine norms based on reliable data to ensure correct and appropriate norms. Regarding the input prices of all projects, in principle, public investment management is cost management. PPP investment management is profit management.

For key national traffic projects and works, we manage public investment so we must strictly control costs, from labor costs to construction material costs.

Regarding construction material prices, I suggest that localities, according to current regulations, must update and announce them promptly, ensuring that they are close to market prices, public and transparent. Recently, the Ministry of Construction has adjusted the Circular on determining and managing construction investment costs, adjusting regulations on determining appropriate construction material price sources.

On this basis, the announcement of construction material prices in the locality is the responsibility of the locality. The Department of Construction submits to the People's Committee of the province or is authorized by the People's Committee of the province to promulgate correctly and appropriately.

* Thank you very much, Deputy Minister!

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