Mr. Tran Quoc Quan's company is implementing construction investment projects using state funds for public investment as regulated by the Construction Law.

After the projects are approved by the competent authorities for feasibility study reports - construction investment or economic-technical reports - construction investment or design drawings - cost estimates, Mr. Quan's company consolidates materials and equipment from various projects to prepare centralized procurement estimates for materials and equipment.

According to the regulations of the Ministry of Construction, the determination of equipment prices is stipulated in Circular No. 11/2021/TT-BXD dated August 31, 2021 (amended and supplemented by Circular No. 14/2023/TT-BXD dated December 29, 2023 of the Minister of Construction guiding certain contents of determining and managing construction investment costs). The selection of equipment prices follows the principle of choosing the lowest price from the following sources:

- Quotations from manufacturers, suppliers registered and licensed to do business as regulated...;

- Equipment prices in final settlement documents;

- Equipment prices in equipment supply contracts that have been signed;

- Equipment prices in approved construction estimates;

- Prices stated in appraisal certificates issued by units qualified to appraise prices as regulated.

When preparing total construction investment amounts and construction estimates, Mr. Quan's company adheres to the above principles. The majority of chosen information is the lowest equipment prices in equipment supply contracts because they have the lowest prices.

When preparing centralized procurement estimates for materials and equipment, the company obtains quotations for materials and equipment from manufacturers, suppliers at the time of preparing the centralized procurement estimate based on the quantities consolidated from the projects needing procurement (specifications, types, labels, standards, specifications, technical parameters,... unchanged compared to the approved contents from the projects).

The centralized procurement estimate is based on the lowest unit price for materials and equipment from these quotations, which are higher than the unit prices in the total construction investment amounts and approved construction estimates.

Mr. Quan asked if this centralized procurement estimate complies with the current regulations of the Ministry of Construction regarding the principle of choosing the lowest equipment prices.

In the case where the centralized procurement estimate has been prepared according to the principle of selecting the lowest equipment prices from various sources, but during the bidding process, all participating contractors bid above the tender price (these contractors have met the technical requirements of the bidding documents), can the investor adjust the tender package estimate based on the bidding prices (after correcting errors, deducting the discount value) of all participating contractors who have met the technical requirements to adjust the estimate? If adjustment of the tender package price is necessary according to Point d, Clause 2, Article 16 of Decree No. 24/2024/NĐ-CP, the average price of the quotations shall be taken.

According to the provisions of Decree No. 10/2021/NĐ-CP on construction investment cost management:

- For projects where the construction project estimates have been approved, the investor independently determines the tender package estimate based on the cost items within the scope of the tender package in the approved construction project estimate, if necessary (provisions in Clause 4, Article 17 regarding tender package estimates).

- The investor approves the tender package estimate to replace the tender package price in the contractor selection plan as stipulated by the bidding law (provisions in Clause 2, Article 18).

- According to Clause c, Point 1, Article 7 of Circular No. 11/2021/TT-BXD, the determination of the tender package estimate includes: Updating quantities, unit prices, prices of cost factors appropriate to the market prices in the construction area...

- The tender package estimate is based on the approved construction project estimate. Therefore, the unit price of equipment in the tender package estimate is determined based on the lowest approved construction project estimate unit price.

Mr. Quan asked whether updating the unit price of equipment in the tender package estimate according to the provisions of Clause c, Point 1, Article 7 of Circular No. 11/2021/TT-BXD follows the principle of selecting the lowest price.

The Ministry of Construction responded as follows:

The regulations and guidance on determining equipment prices in Circular No. 11/2021/TT-BXD dated August 31, 2021 of the Minister of Construction (amended and supplemented by Circular No. 14/2023/TT-BXD dated December 29, 2023 of the Minister of Construction) apply to determining and adjusting total construction investment amounts, construction project estimates, and construction tender package estimates.

Determining equipment prices to calculate equipment costs in the total construction investment amount, construction project estimates, and construction tender package estimates must be appropriate for the calculation and determination timeframe.

The preparation of centralized procurement estimates, determination of tender package prices, selection of contractors to implement according to bidding law provisions and other relevant legal provisions are required.

Mr. Quan is advised to study the aforementioned regulations and provisions to implement them appropriately based on specific circumstances and conditions.