The method of determining the unit price of works using state capital and works using non-state capital has created an unworthy precedent; there are many reputable and capable contractors that do not want participating in bidding packages using state capital for many reasons, including price and payment issues. In case of participation, if wining the contract, then it also find every ways to adjust the price as is still widely seen in public works today. This is due to (i) unreasonable salary costs. Labor cost is calculated by the state as not appropriate, 20-30% lower than the actual wage, (ii) rigid budget structure is not flexible.

To resolve the above situation, it recommends that:

• The Government and the Prime Minister have a mechanism to adjust the wage levels in the market-oriented unit price, expand the salary framework in the professional guidance documents.

• To renovate the estimation methodology, issue cost norms for general cost price without over-estimating unit prices.