When is it necessary to adjust the construction budget?

Wed, 03 Apr 2024 14:29:00  |  Print  |  Email   Share:

A project with a construction and installation bidding package includes construction costs and contingencies. During implementation, acceptance, final settlement, the construction costs exceed the approved budget.

The reason is that some items in the budgeting phase are underestimated, so during construction and acceptance, all parties update the quantities to reflect reality (under a fixed unit price contract). The settlement value does not exceed the bidding price, the budgeted bidding package.

Mr. Khoa Kiem (Hanoi) asked if in the above case it is necessary to adjust the construction budget as a basis for amending the appendix and settling costs, project settlements?

The Ministry of Construction responds to this issue as follows:

Mr. Kiem's question does not clearly state the source of investment capital, as well as the applicable laws for the project, so the Ministry of Construction does not have enough basis to provide guidance. In the case of projects using public investment capital, foreign state investment capital:

Cases where the construction budget needs adjustment are regulated in Clause 4, Article 135 of the Construction Law.

The authority to adjust construction contracts is stipulated in Point c, Clause 3, Article 143 of the Construction Law.

Payment and settlement of construction contracts are carried out according to the signed contract, in accordance with accompanying documents and regulations of the applicable law for that contract.

According to Chinhphu.vn / Government Newspaper.


By: Translator: LeAnh-Bizic


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