6 Glce - en

THE SOCIALIST REPUBLIC OF VIET NAM
MINISTRY OF CONSTRUCTION (MOC)
JAPAN INTERNATIONAL COOPERATION AGENCY
Guideline
on
the Cost Estimation
for Construction Packages
in Viet Nam
Ha Noi, January 2018

PREFACE
T h e G o v e r n m e n t o f t h e S o c i a l i s t R e p u b l i c o f Vi e t N a m ( h e r e i n a f t e r r e f e r r e d t o a s G O V ) m a i n t
sustainable economic growth and implements a large number of major infrastructure d
p r o j e c t s . H o w e v e r d u e t o i n s u f f i c i e n t p r o j e c t m a n a g e m e n t
management in construction works, lots of construction accidents in quality and safety
recorded. I a nt ddition,
h b m dhere i cave een
c many isputes
i V N n onstru
during construction implementation. Hence, those obstruct smooth implementation of
projects.
The GOV requested JICA to run a technical cooperation project and then the Project for C
Enha nc em e nt i n Cos t Es t im a ti on, Cont r ac t M a na ge me nt , Qua l
Investment Projects (hereinafter referred to as CCQSP) has been implemented since May 2015.
As o onet o f he
o C utputs
t G f o CQSP,
C E his
f C uidelineC Wn ost stim
has b een
f ormulated
f i o c or cmprovement
e s i G f T urrent
o o ost
t stimation
Guideline are as follows.
 To a s s i s t t h e S t a t e A u t h o r i t i e s , P r o j e c t o w n e r s a n d P r o j e c t M a n a g e m e n
importance of cost estimation system for public construction works and to understand necessity of
improvement of current system to the international standard level
 To h e l p t h e s t a f f s c o n c e r n e d o n c o s t e s t i m a t i o n c o m p r e h e n d t h e c o n c e p
estimation s e ystema d nhanced
c a e nd metailed o D ontents
a I nd stima
Cost structured package price of construction project
W i t h t h i s s t u d y a n d o au pt pa uc it t, yc f o r i n t e g r a t i n g q u a l i t y a n d s a f e t y m a n a g e m e n t i n t o
estimation of construction works is enhanced and more appropriate and internationally standard cost
estimation system will be realized.
This Guideline illustrates basic principles and methodologies recommended for proper cost estimation
system of Direct and Indirect Cost in package price of construction projects; therefore, it is important
for not only staffs concerned and also all officers in GOV to review and understand the contents i
order to promptly improve current stale cost estimation system in Viet Nam.
H ow e v e r, i t w i l l t a ke m uc h m o r e t i m e t o c om p l e t e t hi s Gu i d e l i n e i n d e t a i l w i t h d e e pe r s
f i n a l l y, i t i s e x p e c t e d t h a t t h i s G u i d e l i n e c o n t r i b u t e s t o t h e e s t a b l i s h m e n t o f s t a t e
Estimation System in Viet Nam in near future so as to produce fairer and more appropriate package
price of each public construction work.
Guideline on the Cost Estimation for Construction Packages in Viet Nam
Table of Contents
Chapter 1 Purpose.....................................................................................................................................1
Chapter 2 Related Regulation...................................................................................................................2
Chapter 3 Mechanism of Cost Estimation................................................................................................3

3.1 Definition of Cost Estimation.............................................................................................3
(1) Importance..........................................................................................................................3
(2) Necessity.............................................................................................................................3
(3) Construction Package Estimate..........................................................................................4
(4) Condition for Estimation....................................................................................................5
3.2 Structure of Cost.................................................................................................................6
(1) Whole Structure..................................................................................................................6
(2) Component and Contents....................................................................................................6
3.3 Construction Period............................................................................................................7
(1) Definition............................................................................................................................7
(2) Purpose and Importance.....................................................................................................7
(3) Procedure of Setting Period................................................................................................8
(4) Construction Period............................................................................................................9
Chapter 4 Component of Direct Cost.....................................................................................................10

4.1 Definition..........................................................................................................................10
4.2 Structure............................................................................................................................10
4.3 Material Cost....................................................................................................................10
(1) Current Practice................................................................................................................11
(2) Issues.................................................................................................................................11
(3) Improvement Plan.............................................................................................................11
4.4 Labor Cost........................................................................................................................12
(2) Issues................................................................................................................................13
4.5 Machinery Cost.................................................................................................................18
(2) Issues................................................................................................................................23
Chapter 5 Estimation Method of Direct Cost.........................................................................................31

5.1 Introduction......................................................................................................................31
5.2 Productivity Rate..............................................................................................................31
(1) Definition..........................................................................................................................31
(2) Formula of Direct Cost.....................................................................................................32
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5.3 Method of Estimation.......................................................................................................32

(1) Present State.....................................................................................................................32
(2) Estimation Method Suggested..........................................................................................33
5.4 Earth Work........................................................................................................................33
(1) Component........................................................................................................................33
(2) Bulking and Shrinkage Factor of Soil, Earth and so forth................................................34
(3) Implementation of Earth Work by Machineries (Soil, Earth and so
forth.)..........................................................................................................................................35
(4) Selection of Machineries and Construction Volume........................................................36
(5) Format of Price Schedule of Earth Work by Machineries................................................40
5.5 Concrete Work..................................................................................................................40
(1) Application and Component.............................................................................................41
(2) Implementation of Concrete Work...................................................................................41
(3) Selection of Machinery and Construction Volume / Productivity
Rate 42
(4) Format of Price Schedule of Concrete Work....................................................................44
(5) Implementation of Form Work.........................................................................................46
(6) Format of Price Schedule of Form Work..........................................................................46
(7) Implementation of Rebar Work........................................................................................47
(8) Format of Price Schedule of Rebar Work.........................................................................48
(9) Market Unit Price Method................................................................................................48
5.6 Road Pavement Work.......................................................................................................48
(1) Component........................................................................................................................48
(2) Implementation of Sub-base and Base Course Work.......................................................48
Rate 49
(4) Format of Price Schedule of Sub-base and Base Course Work........................................50
(5) Implementation of Asphalt Concrete Pavement Work by Machinery..............................50
Rate 52
(7) Format of Price Schedule of Asphalt Concrete Pavement Work by
Machinery...................................................................................................................................53
(8) Implementation of Asphalt Concrete Pavement Work by Man-power.............................53
(9) Format of Price Schedule of Asphalt Concrete Pavement Work by Man-
power..........................................................................................................................................54
5.7 Scaffolding Work..............................................................................................................54
(1) Application and Component.............................................................................................54
(2) Implementation of Scaffolding Work...............................................................................55
(3) Format of Price Schedule of Scaffolding Work................................................................56
5.8 Finishing Work.................................................................................................................56
(1) Component........................................................................................................................56
(2) Implementation of Concrete Block Work.........................................................................56
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(3) Format of Price Schedule of Concrete Block Work.........................................................57

(4) Implementation of Plastering Work..................................................................................58
(5) Format of Price Schedule of Plastering Work..................................................................59
(6) Implementation of Tiling Work........................................................................................60
(7) Format of Price Schedule of Tiling Work.........................................................................61
Chapter 6 Indirect Cost...........................................................................................................................63

6.1 Definition..........................................................................................................................63
6.2 Structure............................................................................................................................63
6.3 Component of Indirect Cost.............................................................................................63
(1) Common Indirect Cost......................................................................................................63
(2) Site Management Cost......................................................................................................65
6.4 Notice of Indirect Items....................................................................................................67
(1) Present State.....................................................................................................................67
(2) Estimation method analysis for New System...................................................................69
Chapter 7 Overhead................................................................................................................................72
7.1 Definition..........................................................................................................................72
7.2 Component........................................................................................................................72
(1) Head and Branch Offices Expenses..................................................................................72
(2) Profit.................................................................................................................................72
(1) Present State.....................................................................................................................73
(2) Estimation Method Suggested..........................................................................................74
Chapter 8 Conclusion and Recommendations........................................................................................75

8.1 Direct Cost Estimation......................................................................................................75
8.2 Recommendations for Improvement of Direct Cost Estimation......................................76
(1) Summary...........................................................................................................................76
(2) Actual Condition Survey for Unit Price of Materials.......................................................76
(3) Actual Condition Survey for Unit Price of Labors...........................................................79
(4) Actual Condition Survey for Unit Price of Machineries..................................................83
(5) Actual Condition Survey for Productivity Rate...............................................................86
8.3 Indirect Cost Estimation...................................................................................................90
8.4 Recommendation for Improvement of Indirect Cost Estimation.....................................92
(1) Summary...........................................................................................................................92
(2) Expense Trend Survey......................................................................................................92
(3) Analysis of Financial Statements.....................................................................................94
(4) Survey Method.................................................................................................................94
8.5 Establishment of New Organization.................................................................................95
iii
APPENDIX
1 Comparison Tables between Current Regulations on Cost Estimation for Construction
Works and the Contents of GLCE............................................................................................A-1
2 Comparison of Structure of Cost............................................................................................A-13
3 Definition of Type of Occupations.........................................................................................A-15
4 Machinery Operation Unit Price............................................................................................A-20
5 Detail Explanation on Common Indirect Cost Items by rate.................................................A-23
6 Detail Explanation on Common Indirect Cost Items by piling up.........................................A-28
7 Detail Explanation on Site Management Cost Items..............................................................A-30
8 Schedule and Organization Chart...........................................................................................A-36
9 Survey Form of Unit Price of Material..................................................................................A-37
10 Survey Form of Unit Price of Labor......................................................................................A-38
11 Survey Form of Unit Price of Machinery...............................................................................A-40
12 Survey Form of Productivity Rate..........................................................................................A-43
13 Expense Trend Survey Form for Project Owner....................................................................A-50
14 Expense Trend Survey Form for Contractor..........................................................................A-53
iv
Chapter 1　 Purpose
Construction projects are not implemented in exactly the same conditions in any construction
objects because wide variety of structures are produced on the basis of each individual
specifications in the infinite variety of conditions of weather, geography, terrain, environment,
society, and so forth. In this production form for implementation of construction projects by
contract agreement, project owners have to perform series of acts such as planning, research,
design, cost estimation, tendering and contracting, construction, supervision and inspection, and
so forth. in each individual project. Cost estimation is positioned as an important and inevitable
work closely related to all activities in these procedures.
Therefore, cost estimation must be carefully implemented with close link to the specification,
construction site, construction environment, construction period, and construction method
regulated by site conditions. In addition, it is deeply involved in the matters related to the project
cost such as design changes, supervising, and inspection works and so forth.
Current cost estimation methodology of Viet Nam was first established nearly 30 years ago.
Therefore, it has not adjusted to present social economic state of Viet Nam. Moreover, it has not
reflected required quality and safety management cost matching international standard for public
construction projects. Therefore, the existing cost estimation methodology shall be immediately
improved in order to match and harmonize enhancement of construction management methods
toward international standard. This Guideline has been prepared for establishment of new fair and
proper cost estimation methodology which shall be improved in near future for further
enhancement of contract management in Viet Nam.
1
Chapter 2　 Related Regulation
Current regulations stipulating the matters regarding cost estimation in Viet Nam are as follows.
(as of 1/2018)
Table 2.1 Regulations for Cost Estimation
Sign Category Subjects
50/2014/QH13 Law Law No. 50/2014/QH13 dated June 18, 2014 on the
construction
43/2013/QH13 Law Law No. 43/2013/QH13 dated November 26,2013 on
bidding
32/2015/ND-CP Decree Decree No. 32/2015/ND-CP dated March 25, 2015,
construction cost management
37/2015/ND-CP Decree Decree No. 37/2015/ND-CP dated April 22, 2015, detailed
regulations on construction contract
46/2015/ND-CP Decree Decree No. 46/2015/ND-CP dated May 12, 2015, on
quality control and maintenance of construction works
59/2015/ND-CP Decree Decree No. 59/2015/ND-CP dated June 18, 2015, on
construction project management
06/2016/TT- Circular Circular No. 06/2010/TT-BXD dated March 10, 2016,
BXD guiding the determination and management of construction
investment costs
05/2016/TT- Circular Circular No. 05/2016/TT-BXD dated March 10, 2016,
BXD providing guidance on determination of the unit labor cost
in the construction cost management
1134/QD-BXD Decision - Norm Decision No. 1134/QD-BXD dated October 08, 2015, on
promulgation of the consumption norm for determining
construction machines and equipment shift prices
1776 /BXD-VP Notifications - Norm Notification No. 1776 /BXD-VP issued on 16/8/2007 of
Ministry of Construction promulgating the construction
estimation norm - Construction portion
1091/QD-BXD Decision - Norm Decision No. 1091/QD-BXD dated December 26, 2011, on
promulgation of the construction estimation norm -
Construction portion (Amendment)
Construction portion (Adjustment and amendment)
588/QD-BXD Decision - Norm Decision No. 588/QD-BXD dated May 29, 2014, on
235/QD-BXD Decision - Norm Decision No. 235/QD-BXD dated April 4, 2017, on
promulgation of the norm for using material in construction
Source: JICA Project Team
2
Chapter 3　 Mechanism of Cost Estimation
3.1 Definition of Cost Estimation

(1) Importance
Cost estimation method has been simplified by the computer system due to laborsaving for its
complexed works and procedures. However, cost estimation has originally been done by piling
up one by one the cost of each work item with productivity and unit price at every work item
structuring the targeted construction work so far. Therefore, cost estimation is not successfully
carried out without detailed technical knowledge of whole contents of the targeted construction
works and is important task to finally and fairly decide the price of the targeted construction
work.
Moreover, the staffs in charge of cost estimation have to possess enough technical knowledge of
targeted construction objects to make basis for estimation. It is desirable that they are the capable
engineers who have sufficient construction experience and technology. The project owner has
responsibility in deciding the engineers for cost estimation. The contractor also has to implement
reasonable cost estimation with exchange views with the owner side and cooperate for the
completion of the construction work.
(2) Necessity
The purpose of the public construction project is to complete a wide variety of target products
under infinite various environments. Therefore, it does not fit commercial deals like automobile
and electric appliance selling in which the price is decided by previously offering from the
manufacturers. In the case of construction projects, the price of the work has to be decided by
project owner’s calculation or estimation order to contractors by presentation of drawings,
specification, bill of quantities, execution conditions, construction period and so forth. This is the
reason why cost estimation is required because price is determined for each project every time.
The following description is the necessities of cost estimation to all stakeholders on construction
projects.
1) Project Owner
 To understand the framework of the funding measures
 To ensure the fulfillment of appropriate quality
 To allow the contractors to obtain appropriate profit
2) Bidders
 To ensure the fulfillment of required quality
 To determine the appropriate price so as not to lose
 To make favorable bid strategy
3) Successful Bidder (Contractor)
 For good budget management
 To obtain the proper benefits with ensuring appropriate quality for construction
4) Social Demand
 To ensure implementation of the fulfillment of appropriate quality of construction
 To eliminate the bidders disturbing social regularity
 Not to enforce the unfair benefit and unreasonable price to contractors
3
(3) Construction Package Estimate

Construction Package Estimate is the total amount of cost to be placed under a tender by the
project owners to determine the successful bidder for goods or services to be provided to achieve
the contract. Also, it is the final total amount of money calculated by existing cost estimation
methodology. In public works, Construction Package Estimate is prepared by estimating the cost
of contract works. The successful bidder shall be determined within the range of the package
estimate.
Construction Package Estimate is determined based on the following criteria.
 The Construction Package Estimate shall be prepared strictly from specification documents,
design documents and the other contract documents.
 The Construction Package Estimate should be equal to the appropriate total cost of the
construction work.
 The Construction Package Estimate should be exactly determined with considering results of
current market price in transactions, supply and demand situation, difficulty of implementation,
quantity, the length of the performance period, and so forth.
Construction
Net
Cost
Construction
Construction Cost
Package
Estimate Value-added
Tax
Total Overhead
Contingency
Construction Cost
Cost

Figure 3.1 Composition of Construction Package Estimate
4
(4) Condition for Estimation

One of the important tasks as precondition for cost estimation is to make construction execution
plan. Project owner and candidate bidders shall carefully examine the technical contract
documents such as drawings and specification and plan appropriate execution methods based on
those materials in order to implement exact cost estimation and to decide accurate price of the
whole project targeted. Project owner does it for securing exact budget and on the other hand
bidders do it for successful bid with accurate and valid planning.
Construction execution plan is defined as follows.
The most appropriate and reasonable construction method and procedures where objects required
by owner are completed rapidly, economically, safely and with good quality and environmental
protection combined utilization of manpower, material, and machine by harmony.
Design drawings and specifications show only forms, sizes and quality of the targeted structural
objects, but not show the methods and processes how to construct them. Project owner and
contractor have to originally examine those materials and create the most rational plan for cost
estimation. Cost estimation and execution plan are closely related and cost estimation work
cannot be done without execution plan. Those relation is described in Figure 3.2.
Execution Plan Cost Estimation
Execution method
Source cost (workers,
Work schedules
materials, machines)
Machinery plan Operation rate
Cost of construction
Scaffoldings Productivity
Workers plan . Cycle time . Direct cost
Indirect cost
Quality plan Reuse
Overhead cost
Safety plan Wastage
Profit
Protection of Workers
VAT
surroundings
etc.
etc.

Figure 3.2 Relations between Execution Plan and Cost Estimation
5
3.2 Structure of Cost

(1) Whole Structure
Recommended basic cost structure of public construction package estimate in Viet Nam is shown
in Figure 3.3. This is a clear and simple structure to grasp whole kinds of costs of construction
packages comprehensively.
Direct Cost Material Cost
Net Construction
Cost Labor Cost
Construction
Cost Machinery Cost
Overhead
Construction Common Indirect

Package Estimate Value-added Tax Cost
Indirect Cost
Contingency Site Management
Cost Cost

Figure 3.3 Basic Cost Structure of Construction Package Estimate
(2) Component and Contents

1) Construction Package Estimate
Construction Package Estimate is the total amount of Construction Cost, Value added Tax (VAT)
and Contingency Cost and the all costs of construction contractors necessary for implementation
of the whole construction package till its completion.
2) Construction Cost
Construction Cost is the total of Net Construction Cost and Overhead and will become targeted
project cost for bidding.
3) Contingency Cost
Contingency Cost is the cost for the future event or circumstance that is possible but cannot be
predicted with certainty. Cost adjustment will be implemented with special procedure in cases
such as arising of construction quantities and price escalation. The following events are
considered as contingency.
 Discrepancy found in site (Mistakes in contract documents, topographical difference, and so
forth.)
 Cancelled construction or reduction of construction period due to circumstances of project
owner
 Considerable changes in wages and prices in market during construction period
 Construction damages due to natural disaster or force majeure
4) Net Construction Cost
Net Construction Cost is the total of Direct Cost and Indirect Cost of the project and the total net
amount of money that is necessary for completion of the construction package.
6
5) Overhead
Construction work cannot be carried out by not only net construction cost, but contractors have to
obtain profit as the commercialized organization. They need to get money for management of
company such as personnel expenses of the owner, executives and administrative staffs, office
fee, utility cost, insurance and tax so forth. Those not related to main construction works are
called Overhead.
6) Direct Cost
Direct Cost is the cost that is used only for purely creating the construction objects. This cost is
composed of 3 main elements such as construction material, labor and machines.
7) Indirect Cost
Indirect Cost, which is the other costs not dealt as Direct Costs, basically doesn’t become contract
unit price items. It is composed of Common Indirect Costs and Site Management Costs and
mostly calculated by rate for labor and time saving of estimation work due to complicated
contents. However, there are cases of estimation by piling up in particular projects with regard to
Common Indirect Cost. Quality control and safety management costs are treated in this Indirect
Cost.
3.3 Construction Period

(1) Definition
Construction period is defined as "Period from commencement date of construction work to the
date of completion of the work”, which is described in contract document. Construction period
has some elements that structure it as preconditions for deciding appropriate period. They are as
follows.
1) Preparatory period for planning and implementation of necessary personnel, equipment,
investigation and surveying, power and water receiving contract, explanation to residents,
negotiation with police department and so forth prior to the construction works
2) Actual working period
3) Periods in which the work is posed by holidays, national holidays and some social
constraints
4) Periods to pause the work due to natural factors and environmental factors such as rain,
flooding and unexpected phenomena
5) Periods necessary for cleaning in the midst of construction work and after the work, self-
inspection and cleanup at the end of whole construction work
6) Waiting period for the inspection for completion of construction work
7) Spare period for the time of rework in case of fail at final inspection
(2) Purpose and Importance

The purpose of setting the construction period is to decide the period actually necessary for
completion of construction object targeted. However, the period of construction work is not as
simple as univocally determined in accordance with construction objects and will enormously
vary with execution time and site, labor capacity, number and kind of machines, execution order
and so forth. Therefore, work price is closely related with construction period and it is important
to accurately set it so as to make appropriate cost estimation. In order to determine reasonable
period, following three concepts should be taken into account by cost estimators.
7
1) Elimination of Absurdity
For compensation of the lack of time due to improper construction period, unreasonable works
such as rush work must not be implemented on work pause period.
2) Elimination of Futility
Rush construction work such as night works with additional work force and machines should not
be carried out in order to regain the delay due to oversight of work prohibition period.
3) Elimination of Non-uniformity
The state that the number of workers and machines in the construction field are temporarily
increased due to overlap of many kinds of construction works should be avoided.
(3) Procedure of Setting Period

Construction period should be set by the following procedure.
1) To consider construction order in each construction contents (block unit), and extract main
construction works (hereinafter, referred to as “Main Work), which dominate overall construction
period and directly affect it in any change of its own execution period and then, to decide the
order of Main Work. The simple example of sub structure works of bridge is shown below.
 Main Works Order
Order 1: Construction of approach road (Temporary bridge, relocated waterway and so forth.)
Order 2: Foundation pile works for Piers
Order 3: Pier No.1 work (Relocated waterway for Pier No.2)
Order 4: Abutment work (Earth work)
* Construction works in ( ) mean the work that can be executed in parallel to Main
Work.
* If main works are overlapped, make critical path and decide order basing on the path.
2) To decompose Main Work into all component works constituting Main Work.
3) To seek Required number of days for each component works in Main Work. The Required
number of days means the number of days when actual work can be carried out. This days can be
calculated by following formula. Daily average amount of work must be separately decided based
on productivity and classified in major kinds of work such as concrete casting, reinforcing bar
work, form work and so forth.
Work Quantity
Required number of days =
Daily average amount of work
Daily average amount of work: standard work volume that can be done per day. This value is
decided in each construction work statistically in advance.
e.g. placing concrete by pump is xxm3/day.
4) To seek the Required number of days for each main work. In the case that the component works
of the main work are executed in series, one after another, the required number of days for each
main work will be the sum of the required number of days for all of the component works. If the
construction periods of component works overlap, make critical path and the required number of
days for the main work will be the length of the main work’s critical path on the time axis.
5) To seek the Required number of days to complete all of main works. In the case that the main
works are executed in series, one after another, the required number of days to complete all of
8
main works will be the sum of the required number of days for all of the main works. If the
construction periods of main works overlap, make critical path and the Required number of days
to complete all of the main works will be the length of the whole main works’ critical path on the
time axis. The Required number of days to complete all of construction works will be the
Required number of days to complete all of the main works.
6) To count the number of non-working days. Non-working days are composed of holidays and
work impossible number of days that are weatherly bad days such as rain, strong wind, flood and
so forth. It is decided based on the natural conditions on the site. Furthermore, overlapping days
of both should be considered.
7) To set up Rate of operation. Rate of operation is one of important elements to decide the
construction period. This is calculated with the following formula.
(Calendar days) – (Holidays) –(Non-working days) +

Rate of Operation days
= (Number of overlapping days)
operation =
Calendar days (Calendar days)
Rate of operation is defined as the rate of actual number of operation days to calendar days. The
rate is most affected by non-working days and non-working days is affected by weather.
Therefore, the rate of operation is determined by the location with proper weather conditions. The
district with specific weather in whole year has its own rate of operation in certain country. The
rate of operation is classified with some districts with similar weather in Viet Nam.
Here, Number of overlapping days are calculated by the following formula.
Holidays
Number of overlapping days = Work impossible number of days ×
Calendar days
8) To determine Required calendar days. Required calendar days is calculated by the following
formula.
Required number of days

Required calendar days =
Rate of operation
The Required number of days in the above formula is the required number of days to complete all
of construction works determined by the sub-clause ”5)” above.
9) To determine Days for preparation and cleaning. Days for preparation and cleaning actually
differs by scale and kinds of construction work; however, normally the following days can be
used in general.
 Days of preparation – 1 month
 Days of cleaning – 10~20 days
(4) Construction Period

Finally, construction period is decided by this formula.
Construction Period = (Required calendar days) + (Days for preparation and cleaning)
9
Chapter 4　 Component of Direct Cost
4.1 Definition
Direct cost is the costs directly charged to the desired objects for their construction, other than
indirect construction costs. The costs for temporary works for main structures are included in
direct cost. Main items of direct cost consist of material, labor and machinery costs for
construction and temporary works. Temporary works included in direct cost are form, support,
scaffolding, earth retaining, steel sheet pile, dewatering, temporary deck and bridge and various
plants for concrete and asphalt and so forth.
4.2 Structure
The structure of the direct cost is shown in Figure 4.1.
Material Cost
Work items (excavation,
embankment, placing
Direct Cost Labor Cost
concrete, asphalt paving
and etc.)
Machinery Cost

Figure 4.4 Component of Structure of Direct Cost
4.3 Material Cost

Materials for construction are classified in three categories, such as “main material” forming
structure (reinforced bar, concrete and so forth.) , “temporary material” (form and support and so
forth.), and “consumable material” (petroleum products and so forth.).
Also, materials are classified in another categories. One is “raw material” such as cement,
aggregate, reinforced bar which are necessary to process at the construction site. Second is “semi-
finished products” such as ready mixed concrete and asphalt mixture, and the other is “products”
which can be used without processing at construction site such as various concretes products,
kinds of fitting manufactured and produced in factory.
Material cost is calculated “required volume” multiplied by “unit price”. Required volume has to
include the wastage through transportation, storage and construction, and the details are stipulated
in Chapter 5.
Regarding the wastage, the wastage factor of material cost shall be changed depending on the
materials, construction methods and construction conditions. This rate shall be surveyed by the
actual condition survey generally.
Material Cost = Quantity by design x (1+Wastage factor) x (Purchase price + transportation fee)
Necessary quantity Unit price of material
Figure 4.5 Formula of Material Cost
[Necessary quantity] means design quantity including appropriate wastage due to execution. This
is decided with wastage factor in each specific material at design stage.
In principle, the price of material is determined based on market prices provided by Department
of Construction. The price of material generally includes purchasing fee by suppliers and
transportation cost from a purchasing place to a construction site. The price varies depending on
the conditions such as purchase location, delivery location, purchase quantity, condition of
payment and so forth.
10
Unit price of material includes purchase price of material from average market price at the time
of estimation and transportation cost to the construction site. Therefore, the material should be
available at the provider nearest to the construction site in order to minimize transportation cost.
(1) Current Practice

1) Unit price of a material is determined in accordance with the specification, quality and kind of the
material used for construction works. It is determined based on i) market prices provided by
eligible organizations, ii) quotations from manufactures, iii) information of prices from suppliers,
or the prices of the material having similar specification and quality which has been used in other
projects, iv) considering transportation to the construction site.
2) A material price data are published by department of construction in Provincial People
Committee in current practice.
3) Transportation costs for temporary material such as scaffolding, formwork and so forth. are
counted in direct cost.
(2) Issues
1) Material prices are constant in any quantity. Generally, if the order is large quantity, a unit price
goes down in accordance with market price.
2) The transportation cost in alleys is insufficient in case of this situation, that narrow road is not
practicable for a large transportation vehicle.
3) The standard method of application of unit price of material is not existing. The target
construction cost of project may be changed without standard method of application.
(3) Improvement Plan

1) Transportation cost
Transportation cost of materials are normally included in the price which published by the
suppliers. Therefore, it is not necessary to calculate its cost. On the other hand, in current
situation, the case of the transportation cost of materials for alleys in a city is incurred. That
transportation cost should be calculated additionally and it is recommended that the quotation
should be obtained separately to consider the transportation cost for alley.
Transportation costs for temporary material such as scaffolding, formwork and so forth. are
counted in common indirect cost because of the definition of direct cost which is stipulated in 4.1.
It is recommended that transportation cost in special case should be computed in the indirect cost
in order to clear the cost estimation based on definition of direct cost.
2) Transaction quantity and price
Transaction quantity shall be considered for prices in major materials (cement, concrete, re-bar
and so forth.). This quantity shall be surveyed by the actual condition survey for unit price of
material.
An average price of the nearest month shall be applied to cost estimation. Therefore, the survey
frequency should be increased for major materials.
3) Special case
In case of obtaining a quotation, in principle, quotations from more than three companies are
required with information like shape dimension, quality, size, specification quantity, delivery
period, delivery location and so forth. The price is an average price excluding abnormal value
from point of applying the real price.
11
4) Actual Condition Survey for Unit Price of Materials

Material prices shall be surveyed through the actual condition survey for unit price of material to
reflect the real price. The material prices are determined by Department of Construction (DOCs)
and verified by MOC in accordance with this guideline.
There are two kinds of material prices such as a published price by manufactures and a real price.
The material price for using to the cost estimation shall be applied a real price. In case a
published price is applied, that price which is discounted is often used to apply due to its
characteristics.
The survey items for market price are the following.
a) Dealings quantity
b) Distribution route and form
c) Condition and location of a delivery
The price of main materials for construction such as reinforced bar, cement, ready-mixed
concrete, and so forth. are surveyed every month.
Guideline for survey on material price shall be formulated by state authorities all over Viet Nam.
The actual condition survey in detail is shown in Chapter 8.
4.4 Labor Cost

Labor cost is calculated “required labor time” multiplied by “unit price”. Required labor time is
computed from work volume and productivity rate*1 of the work concerned.
*1 Productivity rate shall be determined by the actual condition survey with each type of works
and work items and / or average rate from the experiences.

1) Component of the unit labor price
The current public work unit labor price is called “ the unit labor price”. The determination of the
unit labor price is shown in the following box stipulated in Article 4 Determination of unit labor
price of Circular No.05/2016/TT-BXD. Unit labor price is determined in every district and
calculated by multiplying the input base salary and the grade coefficient in cost estimation.
The unit labor price of a worker who performs construction works shall be determined according
to the following formula:
1
GNC =LNC ×H CB ×
t
Where:
- GNC: the unit labor price paid to a worker who performs construction works in a working day.
- LNC: the monthly input base salary which is used to calculate the unit labor price paid to a
worker who directly performs construction works in a working day, including allowances
according to characteristics and the nature of construction works according to market factors
and types of insurance premiums paid by the worker as regulated (including social insurance,
medical insurance and unemployment insurance).
- HCB: the salary coefficient which is applied to workers who perform construction works and
regulated in Annex 2 of this Circular.
- t: 26 working days per a month.
Source: Circular No.05/2016/TT-BXD
12
2) Labor base salary (LNC)

There are four levels to indicate the labor base salary in the current system. The salary levels are
applied by the government regulations to each district and are shown in Table 4.1. The labor base
salary is determined and issued by People’s committees of central-affiliated cities or provinces
with relevant agencies to implement the investigation.
Table 4.2 Range of Labor Base Salary of each District Level
Unit: VND/month
Salary Level I Salary Level II Salary Level III Salary Level IV
2,350,000 - 2,530,000 2,150,000 - 2,320,000 2,000,000 - 2,154,000 1,900,000 - 2,050,000
3) Labor salary coefficient (HCB)

The labor salary coefficient is shown in Table 4.2. The grades of construction worker is indicated
in the norm table in the construction estimation norm.
Table 4.3 Salary Coefficient
Grades of construction worker 1 2 3 4 5 6 7
Group I salary coefficient 1.55 1.83 2.16 2.55 3.01 3.56 4.20
Group II salary coefficient 1.76 2.07 2.44 2.86 3.37 3.96 4.65
4) Grouping
In current cost estimation system, there are two groups consisting of nine kinds in group I and
some kinds in group II. The classification of occupation is shown in Table 4.3.
Table 4.4 Grouping of Occupations
Group Description
Group I Workers who perform the following works:
 1) woodwork, 2) bricklaying, 3) metal work, 4) concrete work (except for asphalt
concrete), 5) formwork, 6) completion work and 7) earthwork (excavation and
embankment, 8) Construction survey(including measurement), 9) operation of construction
machinery and equipment (earthwork machinery, rammer, lifting equipment, drilling
equipment, pile driver, pump, welder, so forth.). This group includes manual workers who
perform construction works.
 This group includes manual workers who perform construction works.
Group II Workers who perform construction works other than those are specified in group I
(2) Issues
1) The current unit labor price does not includes the temporary salary such as bonus and so forth.
2) Kinds of labors seem insufficient to cover all work items.
3) In the current norm system, the labor occupation is not mentioned and unit labor price is mixed
into group I and group II.
4) Both groups are divided into seven grades with coefficient. It is difficult that the criteria of
coefficient is set for every working items.
5) Kinds of labors and calculation do not reflect actual work on site as too theoretical.
13

1) Public work unit labor price
The public work unit labor price is composed of three items in the box below and does not
includes the extra wage such as an overtime wage and so forth. It is recommended that the
temporary salary*2 should be included in the unit labor price. The public work unit labor price
shall be determined each type of occupations by the actual condition survey of wages for labor
conducted by an public organization annually to reflect the market price.
The public work unit labor price excludes the following components.
a) Extra wage such as overtime, holiday and midnight working
b) Allowance for an excessive amount of normal working content or condition
c) Site management cost (legal welfare paid by employer, safety training cost and so forth.) and
various cost of overhead cost.
Public work unit 1. Equivalent 2. Equivalent 3. Temporary

labor price = basic salary + basic allowance + salaries
← Scheduled working hour, per 8 hours → ←Annual working day →
Public work unit 1. Equivalent 2. Equivalent 3. Temporary

labor price = basic salary + basic allowance + salaries
← Scheduled working hour, per 8 hours → ←Annual working day →
The public work unit labor price shall be calculated as follows.

a) Equivalent basic salary
n n
BSi PSi
EBS=∑ ✕ 8 hours /n∨EBS=∑ ✕ 8 hours /n
i=1 SHi i=1 SHi+ EHi
In which:
EBS: Equivalent basic salary
BS: Basic salary
PS: Piecework salary
SH: Scheduled working hour*3
EH: Extra working hour
b) Equivalent basic allowance
n
BAi
EBA=∑ ✕ 8 hours /n
i=1 SHi
In which:
EBA: Equivalent basic allowance
BA: Basic allowance
SH: Scheduled working hour
c) Temporary salaries
14
n
ASi
TS=∑ /n
i=1 ADi
In which:
TS: Temporary salary
AS: Annual total temporary salaries
AD: Annual working days
Figure 4.6 Public Work Unit Labor Price Component
*2 Temporary salary
The temporary salary includes the following items.
1. Bonus: the payment is paid regularly (2~3 times per year) or temporary in accordance with the
work performance of labor and this amount of payment shall be not fixed.
2. Allowance for injury except industrial accident, consolatory present of money and the sudden
and temporary payment.
3. The payment shall occur indeterminately and unusually such as marriage allowance, retirement
allowance, maternity allowance and so forth.
*3 Scheduled working hour

The scheduled working hour means that the working hour which is fixed by labor regulation. For
example, the scheduled working hour in Japan is 8 hours per day and 40 hours per week.
15
The structure of wage is shown in Figure 4.4.

1. Equivalent basic salary
Regular
Wage Basic wage Basic Salary
wage
Piecework salary
Extra wage Wage for overtime work (Overtime pay)
Wage for overtime working on holiday
Wage for midnight work

(Nighttime allowance)
2. Basic allowance
Various
Supplemental allowance Family allowance
allowance
commuting allowance
Allowance for living in city
Housing allowance
Site allowance
Allowance for duties,
abilities and employment
Skilled allowance
Allowance for paid leave
Good attendance allowance
Allowance for absence

Allowance for absence from work
from work
Payment in kind Supplement with commuter pass
Supplement with food
3. Temporary salaries
Temporary
Bonus (Terminal allowance)
salaries
Other temporary salaries
16
1. Equivalent basic salary
Regular
Wage Basic wage Basic Salary
wage
Piecework salary
Extra wage Wage for overtime work (Overtime pay)
Wage for overtime working on holiday
Wage for midnight work

(Nighttime allowance)
2. Basic allowance
Various
Supplemental allowance Family allowance
allowance
commuting allowance
Allowance for living in city
Housing allowance
Site allowance
Allowance for duties,
abilities and employment
Skilled allowance
Allowance for paid leave
Good attendance allowance
Allowance for absence

Allowance for absence from work
from work
Payment in kind Supplement with commuter pass
Supplement with food
3. Temporary salaries
Temporary
Bonus (Terminal allowance)
salaries
Other temporary salaries

Figure 4.7 Structure of Wage
17
2) Type of Occupations
There are group I including nine occupations and group II including the different occupations of
group I in the current system. Even more than nine occupations are indicated in Circular
No.05/2016/TT-BXD, there is only one item of labor in the norm. Therefore it is recommended
that the type of occupation are increased and specified each occupation in the productivity table.
The increased type of occupations is recommended shown in Table 4.4. The definition of each
occupations is indicated in Appendix 3 Definition of Type of Occupations.
Table 4.5 Type of Occupation
Type of Occupations
Infrastructure Work Building Work Other Work
1 Special worker 19 Tunnel special worker 37 Carpenter 53 Construction survey
2 Ordinary worker 20 Tunnel worker 38 Plasterer 54 Survey and testing engineer
3 Worker for light work 21 Tunnel foreman 39 Fitter 55 Traffic guide

4 Landscaping worker 22 Bridge special worker 40 Chipping worker
5 Slope worker 23 Bridge painter 41 Waterproofing worker
6 Scaffold erector 24 Bridge foreman 42 Steel metal worker
7 Mason 25 General foreman 43 Tiler
8 Concrete block mason 26 Diver 44 Sash worker
9 Electrician 27 Diving liaison 45 Interior working
10 Rebar man 28 Diving air supplier 46 Glazier
11 Steel worker 29 Captain (G1~G2) 47 Joiner
Mate I, machine
12 Painter 30 48 Air duct worker
engineer I (G1~G2)
Mate II, machine engineer
13 Welder 31 49 Moisture keeping worker
II (G1~G2)
14 Operator (Special) 32 Sailor 50 Equipment worker
15 Operator (Ordinary) 33 Mechanic, electrician 51 Building block worker
Forest and erosion control
16 Worker for caisson 34 52 Artisans
worker
17 Foreman for caisson 35 Track worker
18 Jumper 36 Timberman
3) Actual Condition Survey for Unit Price of Labors

The public work unit labor price is determined based on the result of the actual condition survey
for unit price of labors. This survey is conducted by Department of Construction in every
province annually by occupational category for every district. This survey is to find the actual
wage of payment including social insurance to post “wage ledger” which is prepared based on the
Labor Code in Viet Nam in the survey form. To get the validity target persons to be surveyed of
labor wage is important to determinate the public work unit labor price.
Guideline for survey on labor price shall be formulated by state authorities all over Viet Nam.
18
From wage ledger Survey From
Wage status
Result of actual
condition survey
Social insurance
participation status
Source; JICA Project Team

Figure 4.8 Image of Actual Condition Survey
4.5 Machinery Cost

Machinery cost is calculated “required machinery time” multiplied by “unit price” of machinery.
Required machinery time is computed from work volume and productivity rate of the work
concerned.
For the cost estimation of machinery ownership cost, there are two methods of calculation by
construction machinery ownership cost and the calculation by construction equipment lease cost.
This guideline adopts the machinery ownership cost.
Unit price of machinery is shown below.
Depreciation Cost
Machinery Ownership Cost Maintenance and Repair Cost
Unit price of Management Cost

Machinery
Fuel, Oil and Electric Cost
Operation Cost Consumable Part Cost
Operator Cost for labor
Miscellaneous Articles Cost

Figure 4.9 Structure of Unit Price of Machinery
Unit price of machinery consists of machinery ownership cost and operation cost. The assembly
cost, disassembly cost and transportation cost are to be included in the indirect cost, the details
are stipulated in Chapter 6.

1) Machinery shift price
Machinery shift price (hereafter referred to as machinery shift price) is the average price for “one
working shift” in accordance with the regulation of construction machinery. “One working shift”
is 8 hours per shift including operation, standby and moving time.
19
Machinery shift prices of construction machines and equipment for works shall be in accordance
with the Price List of machinery shift prices (issued by competent Authorities such as PPCs) or
the Machinery-hiring Price List (following market prices). As for machines and equipment those
are required for construction works but not available in Viet Nam and in need of temporary
import, then their machinery shift prices shall be determined according to their hiring prices in
the region market (ASEAN, Asia) or the machinery shift prices of similar machines and
equipment which have been used in Viet Nam.
Price of machinery shift includes all or part of the cost items like cost of depreciation, repair, fuel
or energy, operator and other costs and is calculated with the formula below:
The price of machine is determined by the formula:

CCM = CKH + CSC + CNL + CNC + CCPK (VND/shift)
In which:
- CCM: machinery shift price (VND/shift)
- CKH: depreciation cost (VND/shift)
- CSC: repair cost (VND/shift)
- CNL: fuel or power cost (VND/shift)
- CNC: operator cost (VND/shift)
- CCPK: other cost (VND/shift)
Source: Circular No.: 06/2016/TT-BXD
a) Depreciation cost
The cost of depreciation is calculated by reduction of prime cost of machinery into an
operation cost during the period of use. The percentage of machinery depreciation are
determined at each type of machinery by Ministry of Finance.
The cost of depreciation in the price of machinery shift is determined by the formula:
(G−GTH )×Đ KH
C KH =
N CA
In which:
- CKH: cost of depreciation in the price of machinery shift (VND/shift)
- G: prime cost of machinery before tax (VND)
- GTH: recovery value (VND)
- DKH: rate of machinery depreciation (% / year)
- NCA: number of working shifts of machinery in a year (shift/year)
Prime cost of machinery

 The prime cost of machinery is calculated on the principle of consistency with the
machinery price level on the market of the type of machinery used for works construction.
 The prime cost of machinery is all costs invested to buy the machinery by the time of putting
the machinery into the state of availability including the machinery buying price (excluding
the cost of materials and accompanied spare parts), import tax (if any), cost of transport,
loading and unloading, storage, technology transfer (if any), trial running and other proper
20
costs directly related to the machinery investment.

 The prime cost to calculate the price of works machinery shift is determined by the
provider’s quotation, under machinery sale contract and other relevant cost to put the
machinery into the state of availability or reference to the prime cost from similar works
which were and are being implemented the principle of consistency with the machinery price
level on the market at the time to calculate the price of machinery shift.
Recovery value
Recovery value is determined as follows.
 The recovery value is the value of remaining part of machinery till deprecation.
 The recovery value is equal to 10 % (in case the prime cost is more than thirty million VND)
Number of working shifts of machinery in a year
Number of working shifts of machinery in a year is determined based on:
 Collection and aggregation of statistical data on the actual time of machinery use;
 Collected number of working shift in a year of machinery is calculated, based on the
statistical data.
 Addition of factors affecting the number of working shift of machinery in a year based on
the specific conditions of works;
 Determination of number of working shift of machinery in a year based on the specific
conditions of works;
Rate of machinery depreciation
 Instructions on regime of management, use and depreciation of fixed assets issued by the
Ministry of Finance;
 The depreciation rate of similar machineries is announced by the Ministry of Construction;
b) Repair cost
The cost of machinery repair includes regularly or irregularly maintenance and repair cost of
machinery during the number working shift of machinery in a year in order to maintain and
restore the operation capacity of machinery.
The cost of repair in the price of machinery shift is determined by the formula:
G×ĐSC
CCS =
N CA
In which:
- CSC: cost of repair in the price of machinery shift (VND/shift)
- DSC: rate of machinery repair (% year)
- NCA: number of working shift of machinery in a year (shift/year)
Rate of machinery repair

 The rate of machinery repair per year is determined on the basis of regulation on technical
maintenance, periodical repair, machinery operation procedure, machinery quality,
21
conditions for machinery use and price level of machinery maintenance and repair on the
market.
c) Fuel and/or power cost
The fuel and energy for one working shift of machinery are diesel / gasoline, oil, power, gas
or compressed air for operation of the construction machineries. Those items are called main
items.
Other than fuel and energy are lubricants, transmission oil and so forth., which are called as
auxiliary fuel in a working shift of machinery.
The cost of fuel and energy in the price of machinery shift is determined by the formula:
n
C NL=∑ Đ NLi ×G NLi ×K Pi
i=1
In which:
- CNL: cost of fuel and energy in the price of machinery shift (VND/shift).
- DNL: fuel consumption rate and energy of the working time of machinery in a shift.
- GNL: price of fuel
- Kp: coefficient of price of auxiliary fuel
- n: number of types of fuel used in a machinery shift.
Fuel consumption rate and energy per one working shift of machinery
Fuel consumption rate and energy per one working shift of machinery is determined on the
principle of conformity with the actual working time of machinery in a shift, consumption of fuel
and energy of machinery and the specific conditions of works or similar machinery issued by
MOC.
Coefficient of price of auxiliary items for one working shift of machinery
 The coefficient of cost of auxiliary fuel is valued within the range as follows.
Petrol engine Diesel engine Electric engine
Coefficient 1.01 – 1.03 1.02 – 1.05 1.03 – 1.07
 In case of determining the price of machinery shift of types of machinery to perform some
activities (survey, testing and others) but the cost of fuel and energy was included in the cost
of materials in the unit price, it shall not be included in the price of machinery shift.
 The main fuel consumption rate of machinery types used for work with the actual working
time (number of hours) of machinery in different shifts, the fuel consumption rate should be
developed on the principle of consistence with the number of actual working hours of
machinery in a shift of each type of work.
d) Determination of operator cost

The operator cost in one working shift of machinery is determined based on the number,
component, group, operator’s grade and regulations on labor unit price in management of
construction investment cost as guided by the provincial People’s Committee and authorized
by MOC.
22
The cost of controlling labor in the price of machinery shift is determined by the following
formula:
n
CNC   Ni  CTLi
i 1
In which:
- N: number of operator's grade of machinery in one machinery shift.
- CTL: workday unit price of worker’s controlling grade of machinery
- n: number and type of operator in one machinery shift.
 In case of determining the price of machinery shift of machinery types to perform some
work (such as survey, testing and others) but the labor cost of machinery operating for
survey, testing and others is included in labor cost in the unit price.
e) Other cost
The other costs are necessary to ensure the machinery operation. The other costs include the
insurance of machinery during the period of use, storage and service for the technical
maintenance in machinery storage, register, and movement of machinery within the
construction site and the other relevant costs directly related to the management and use of
machinery at the construction site.
The other costs in the price of machinery shift is determined by the formula:
G  GK
CK 
NCA
In which:
- CK: other costs in the price of machinery cost (VND/shift)
- GK: rate of other costs of machinery (% year)
- NCA: number of working shifts in a year (shift/year).
The rate of other costs of machinery is determined on the basis:

 Summarization of machinery management costs based on the documents actually collected
of the types of machinery to be calculated.
 Review to remove the improper expenditures and addition of necessary expenditures but not
implemented due to the characteristics of the time of generated data in the documents;
 Allocation costs for each machinery
 Conversion of value of these costs by the percentage compared with the depreciation price
of machinery.
 Allocation of machinery management cost to the number of machinery life years
 Other costs rate of similar types of machinery is announced by the Ministry of Construction;
 The other costs rate of machinery is determined on the principle of consistence with each
23
type of machinery, size of machinery and conditions for operation and use of respective
machinery corresponding to the specific conditions of works.
(2) Issues
1) Depreciation cost is calculated according to the rate promulgated by Ministry of Finance (MOF).
The data using for calculation may not be the same, therefore, there is gaps between calculation
of MOC and MOF.
2) The financial cost is not included in the machinery shift price.
3) The working hour and one working shift are not clear to calculate the unit machinery price for
each machinery.
4) Number of the working day / year is comparatively large.
5) Fuel consumption rate per hour is not clear even the fuel consumption rate per shift converts to
that rate per hour. Because the machinery shift includes operating, waiting and moving hour.
6) Prime cost of machinery seems relatively low, comparing with that as international level
7) Annual working hours of machinery seems relatively long and not reflect practice on site,
comparing with that as international level. The working hours seems theoretical calculation.

1) Formula of Machinery Ownership Cost
Machinery ownership cost is calculated based on the following equation.
Depreciable value per

one day of service
Machinery
Depreciable value per Operation hour per days
ownership cost per = + x
one operation hour of service
days of service
Operation hour per days
of service
Operation hour per days of Standard annual operation hour

=
service Standard annual days of service

Figure 4.10 Formula of Machinery Ownership Cost
The machinery ownership cost is calculated as unit price per one operation hour and unit price
per one day of service based on the above formula for cost estimation.
The unit of machinery ownership cost in current system is applied “machinery shift”. It is
recommended that “machinery shift” should change into “days of service” to clear the
productivity rate and specify the performance and mechanical property of each machinery. The
days of service shall be surveyed by the actual condition survey.
The detail description regarding the “machinery shift” is described in (1).
2) Operation Cost
There are four components in the operation cost. Operation cost for operator and labor and fuel,
oil or electric cost are main items of operation cost. Regarding the operator cost are applied three
types of occupations such as operator (special), operator (ordinary) and special worker depending
on the machinery type. The determination of those unit labor cost is applied from the public work
unit labor price in labor cost.
24
3) Days of service
As stated above, the unit of construction machinery is applied the “one working shift” in current
system. However, the operation hour per day should be different depending on the construction
conditions. Therefore, it is recommended that the days of service should be applied instead of
“one working shift” to reflect the current construction condition at a site.
The concept of days of service is composed with the period which is from the day of carrying-in
the construction machinery at a site to the day of carrying-out a construction machinery from a
construction site and days of assembly and disassembly are included.
The detail of the days of service is shown in the following items.
a) Operation day
b) Number of work pause day on Sunday and National holiday
c) Number of work pause day due to bad weather
d) Number of work pause day for maintenance or replacement consumable
e) Day of assembly and disassembly
The concept of days of service illustrates in Figure 4.8.
Material To bring in Starting of Ending of To bring out Material

storage space equipment construction construction equipment storage space
Construction Flow
Transportation Assembly Construction Disassembly Transportation
Provided by Provided by
Transportation Transportation
cost in Indirect
Operation hour / day cost in Indirect
Cost Cost
Days of service
Material To bring in Starting of Ending of To bring out Material

storage space equipment construction construction equipment storage space
Construction Flow
Transportation Assembly Construction Disassembly Transportation
Provided by Provided by
Transportation Operation hour / day Transportation
cost in Indirect cost in Indirect
Days of service
Figure 4.11 Concept of Days of Service
4) Flow of the determination of machinery cost

The machinery cost includes machinery ownership cost, operator cost and fuel cost and the
quantity of those elements are different with the construction condition. Therefore, it is necessary
to make “machinery operation unit price” to determine the unit price of machinery for each
construction works. The quantities of the above three elements are collected through the actual
condition survey.
After the determination of the unit price of machinery cost, that price is applied for unit price of
the construction work (norm).
25
The flow of determination of machinery cost is shown in Figure 4.9. The example of machinery
operation unit price is shown in Appendix 4 Machinery Operation Unit Price.
Selected the machinery operation price schedule
Carrying out the actual condition survey
Determination of the quantities of operator cost,

machinery ownership cost and fuel cost based on the
actual condition survey.
Calculating the unit price of machinery cost
Applied the unit price of machinery cost to the unit

work price schedule

Figure 4.12 Flow of the Determination of Machinery Cost
5) Prime Cost
Prime cost is base figure to calculate a lot of elements for unit price of machinery. Therefore, the
prime cost has a significant influence for the calculation of unit price. The elements that are
related with the prime cost are “maintenance and repair cost”, “annual management cost”,
“residual value”, “conversion value machinery ownership cost per an operation hour” and
“conversion value machinery ownership cost per a day of service”.
Additionally, the unit price of machinery is considered of depreciation rate for calculation.
Therefore, it is recommended that the prime cost should be surveyed based on new machinery
(not used or old one).
6) Depreciation
The machinery ownership cost consists of the depreciation cost, maintenance and repair cost, and
management cost. The machinery ownership cost can be separated in “variable cost” and “fixed
cost”. The maintenance and repair cost belongs to “variable cost” and management cost belongs
to “fixed cost”. On the other hand, the depreciation cost shall be divided due to its characteristics.
The depreciation cost is necessary whether machinery is operated or not during the occupation at
the site because it cannot be shifted to the other construction site. Therefore, the depreciation cost
shall be divided and the half of depreciation cost shall be calculated taking into the “variable
cost” and other shall be calculated on “fixed cost” because of the above condition.
Therefore, the half of the depreciation cost shall be added in the “variable cost” and the another
shall be added in the “fixed cost”. Figure 4.10 explains recommended Structure of Machinery
ownership cost.
26
Major maintenance such

as overhaul etc.
Maintenance Variable
and Repair Cost expense
Cost for repair at a site (Operation
depreciabl
e value)
1/2 (In proportion to an
operation time or day)
Machinery
Depreciation
Ownership
Cost
Expense
1/2 (In proportion to days
of service) Fixed
expense
Insurance (Days of
service
Management
Tax depreciabl
Cost
e value)
Storage cost
Major maintenance such

as overhaul etc.
Maintenance Variable
and Repair Cost expense
Cost for repair at a site (Operation
depreciabl
e value)
1/2 (In proportion to an
operation time or day)
Equipment
Depreciation
Ownership
Cost
Expense
1/2 (In proportion to days
of service) Fixed
expense
Insurance (Days of
service
Management
Tax depreciabl
Cost
e value)
Storage cost

Figure 4.13 Structure of Machinery Ownership Cost
7) Machinery Ownership Cost Items

The determination of machinery ownership cost items is shown in Table 4.5. The Items (1) to (7)
are results based on the actual condition survey. The items (8) to (15) are the calculation results
with formula mentioned in the table. The annual operation day and days of service are important
factor to calculate the unit price of machinery. It should be studied by the above survey to reflect
the actual condition at a construction site.
Table 4.6 Machinery Ownership Cost Items
Items Description
(1) Prime cost Prime cost shall be set based on sale price / purchase cost exclusive the consumption
tax. A machinery is set with standard accessory. This price should be determined based
on a new machinery price. This cost is accounted for a large proportion to determine
the machinery ownership cost.
(2) Standard life Standard life years in use is years which a machinery can be used to realize sufficient
years in use efficiency and function. It is the different from the durable years.
(3) Annual operation Annual operation hour is determined based on the use result by actual condition survey
hour of this machinery and the same or similar machinery. The component of operation hour
is described as follows.
 Actual operation hour by machinery
 Moving time to carry out the objective work
 Moving and waiting time for except the objective work and so forth.
27
Items Description
(4) Annual operation Annual operation day is determined based on the result as well as operation hour by
day actual condition survey of a machinery and same or similar machinery. It is
accumulated days that machinery is operated in actually.
(5) Annual standard Annual standard days of service is determined based on the use result as well as
days of service operation hour and operation day by actual condition survey of this machinery and
same or similar machinery. It is from a day of carrying in machinery to a day carrying
out at a construction site. Refer to (3) improvement 3) Days of service in Chapter 4.
(6) Maintenance and Maintenance and repair rate is the percentage of the total maintenance and repair cost
repair rate in the period of standard number of life years in use to the prime cost.
(7) Annual Annual management rate is the percentage of the total annual management cost to the
management rate prime cost. This cost is the necessary management cost to have a machinery. The
management cost includes the insurance, tax and storage cost.
Item Rate Remark
Truck X% Except the vehicles cannot travel on the public road
Heavy machinery X% Machinery which required the high skill capacity for operating
Other X% Machinery which prime cost is generally lower
Residual value Residual rate is the percentage of the remaining value after the life years in use to the
Remaining value
prime cost.
Basic Price
Remaining value
Residual rate (%) =
Prime cost
Depreciation rate (%) = 100 – residual rate (%)
(8) Machinery Machinery ownership cost rate per an operation hour (or per day) is related with
ownership cost maintenance and repair cost and half of the depreciation cost.
rate per an 1
operation hour ∗Depreciationrate+(6)
2
(or per day) (8) = ∗1
( 2)
( 3 )∨(4 )
(9) Machinery Machinery ownership cost per an operation hour (or per day)is added the element of
ownership cost “Price” based on the (8).
per an operation (9) = (1) x (8)
hour (or per day)
(10) Machinery Machinery ownership cost per day of service is related with management rate and half
ownership cost of the depreciation cost.
rate per a day of 1
service ∗Depreciationrate
(10) = 2 }∗1
{ +(7)
(2) (5)
(11) Machinery Machinery ownership cost per a day of service is added the element of “Price” based
ownership cost on the (10).
per a day of (11) = (1) x (10)
service
(12) Conversion value Conversion value machinery ownership cost rate per an operation hour is integrated
machinery variable expense and fixed expenses divided by an operation hour.
ownership cost Depreciationrate+(6) }∗1
rate per an (12) = { +(7)
operation hour
(2) ( 3 ) ∨( 4)
It is expressed “per day” rather than “an operation hour” depending on a machinery
type.
(13) Conversion value Conversion value machinery ownership cost per an operation hour is added the element
machinery of “Price” based on the (12).
ownership cost (13) = (1) x (12)
per an operation
hour
(14) Conversion value Conversion value machinery ownership cost rate per a day of service is integrated
machinery variable expense and fixed expenses divided by a day of service.
28
Items Description
ownership cost Depreciationrate+ (6 )
rate per a day of
service (14) = { ( 2)
+ ( 7 ) ∗1
}
(5)
(15) Conversion value Conversion value machinery ownership cost per a day of service is added the element
machinery of “Price” based on the (14).
ownership cost (15) = (1) x (14)
per a day of
service
(16) Fuel Fuel consumption rate per an operation hour is fuel consumption per an operation hour,
consumption rate per 1 kW. The same type machinery is applied the same rate.
per an operation
hour (ℓ / kW•h)
(17) Fuel The fuel consumption is expressed consuming fuel per an operation hour. It is changed
consumption (ℓ / in proportion as a capacity.
h) (17) = capacity x (16)
E: Electric
G: Gasoline
Unless it is not specified, it is diesel.
8) Format of Machinery Ownership Cost

The Figure 4.11 indicates the example of the machinery ownership cost table in Japan based on
calculation of Table 4.5.
29
Standard Year standard operation Per/hour Per/day Conversion value Remark
(1)
(2)
(6)
(7)
use
(%)
(%)
(year)
(3)
(4)
(5)
(8)
(9)
Per/hour for operation Per/day for operation
day
(10)
(11)
(16)
(17)
(l/h)
hour
(day)
(day)
(hour)
service
(x10-6)
(x10-6)
Basic price
(l/kW-h)
cost
cost
(12)
(13)
(14)
(15)
(million VND)
(x10-6 )
(x10-6 )
Output Weight
operation hour
(%)
(thousand VND)
(thousand VND)
Rate of rent
Rate of rent
kW(PS) (t)
per a day of service
Classification
Residual ratio
Specification
per an operation hour
(thousand VND)
(thousand VND)
Annual management rate

rate per a day of service
Annual standard days of

Maintenance and repair rate
rate per an operation hour
Annual standard operation

Annual standard operation
Equipment ownership cost
Equipment ownership
Equipment ownership
Consuming volume per day
Standard number of life years in

Fuel consumption rate per an
Example
073 [Backhoe with crane - Second standard value]
Standard bucket capacity
Full pile [Flat] Suspensi
3 3
(m ) (m ) on (t)
0.28 [0.2] 1.7 41(56) 7.0 1,306 9.0 730 120 190 45 9.0 14 134 175 725 946 323 422 1,240 8,100 0.175 7.2
0.45 [0.35] 2.9 60(82) 11.8 1,802 9.0 730 120 190 45 9.0 14 134 242 725 1,306 323 582 1,240 11,200 0.175 11.0
0.5 [0.4] 2.9 64(87) 12.1 2,080 9.0 730 120 190 45 9.0 14 134 278 725 1,508 323 672 1,240 12,900 0.175 11.0
0.8 [0.6] 2.9 104(141) 19.8 3,000 9.0 730 120 190 45 9.0 14 134 402 725 2,180 323 970 1,240 18,600 0.175 18.0
074 [Backhoe with crane - Third standard value]
Full pile [Flat pile] Suspensi
3 3
(m ) (m ) on (t)
0.8 [0.6] 2.9 104(141) 19.8 3,220 9.0 730 120 190 45 9.0 14 134 432 725 2,340 323 1,040 1,240 20,000 0.175 18.0
30
083 [Backhoe with crane - Ultra-low noise type - Second standard value]
3 3
(m ) (m ) on (t)
0.8 [0.6] 2.9 110(150) 19.4 3,040 9.0 730 120 190 45 9.0 14 134 408 725 2,200 323 982 1,240 18,800 0.175 19.0
084 [Backhoe with crane - Ultra-low noise type - Third standard value]
3 3
(m ) (m ) on (t)
0.8 [0.6] 2.9 117(159) 19.9 3,640 9.0 730 120 190 45 9.0 14 134 408 725 2,640 323 1,176 1,240 22,600 0.175 20.0
092 [Backhoe with crane - Rear ultra small revolving type - Second standard value]
3 3
(m ) (m ) on (t)
0.28 [0.2] 1.7 41(56) 7.0 1,568 9.0 730 120 190 45 9.0 14 134 210 725 1,136 323 506 1,240 9,720 0.175 7.2
0.45 [0.35] 2.9 60(82) 11.8 2,020 9.0 730 120 190 45 9.0 14 134 270 725 1,464 323 652 1,240 12,500 0.175 11.0
0.5 [0.4] 2.9 64(87) 12.1 2,180 9.0 730 120 190 45 9.0 14 134 292 725 1,580 323 704 1,240 13,500 0.175 11.0
0.8 [0.6] 2.9 104(141) 19.8 2,920 9.0 730 120 190 45 9.0 14 134 392 725 2,120 323 944 1,240 18,100 0.175 18.0
Source: Japan Construction Method and Machinery Research Institute

Figure 4.14 Example of Machinery Ownership Cost
9) Unit Price of Machinery

It is recommended that the unit price of machinery should be determined by a construction
condition. As an example, the machinery ownership cost is changed due to the type of soil such
as normal soil or hard rock. The reason is that the wear on the machinery is very severe due to a
heavy work condition. Therefore, it is necessary to correct quantity of days of service. As besides
this example, the quantity of days of service is reflected depending on the type of work.
Hence, the table of the unit price of machinery is required for each work items.
The figure shows the example of unit price of machinery. The quantity shall be studied and
reviewed by the actual condition survey at construction sites as well as the price of labor cost and
fuel cost.
Table 4.7 Example of Operation of Backhoe (0.8m3) Per Days of Service
Common A26 Backhoe 0.8m3 per operation day for Foundation excavating work
Description Specification Unit Quantity Unit Price Amount (VND) Remark

Operator From book of materials and labor unit
Person 1.00 3,460,000 3,460,000
(Special) price
Fuel Cost Diesel L 110 21,900 2,409,000 Ditto
Earth and sand 3,500,000 5,180,000

Machinery
Backhoe Days of (378,000 x 1.10 + 2,040,000 / 3.8) x
Ownership Soft Rock 1.10 1.48 3,620,040 5,357,659
0.8m3 service 3.8 = 3,620,040
Cost
(378,000 x 1.25 + 2,040,000 / 3.8) x
Rock 1.25 3,835,500 5,676,540
3.8 = 3,835,500
1000
Miscellaneous
L.S. 1 3341 Treatment of fractions
Expense
4460
Earth and sand 11,050,000
Total Soft Rock 1.10 Day 11,230,000 Foundation excavating
Rock 1.25 11,550,000
Machinery Ownership Cost correction (C13) = (C9) x coefficient + (C11) / t, t = 730 h / 190 day = 3.8 h [operation time per days of
service]
Common A27 Backhoe 0.8m3 per operation day for Foundation or Backfilling of crushed stone
Operator 0.58 3,460,000 2,006,800 From book of materials and labor unit
Person
(Special) 0.90 3,460,000 3,114,000 price
41 21,900 897,900
Fuel Cost Diesel L Ditto
65 21,900 1,423,500
Machinery 0.79 3,500,000 2,765,000
Days of
Ownership Backhoe 0.8m3
service 1.00 3,500,000 3,500,000
Cost
Miscellaneous 300
L.S. 1 Treatment of fractions
Expense 2500
Foundation of crushed stone 5,670,000 Foundation of crushed stone

Total Day
Backfilling of crushed stone 8,040,000 Backfilling of crushed stone
31
Common A26 Backhoe 0.8m3 per operation day for Foundation excavating work

Operator From book of materials and labor unit
Person 1.00 3,460,000 3,460,000
(Special) price
Fuel Cost Diesel L 110 21,900 2,409,000 Ditto
Earth and sand 3,500,000 5,180,000

Machinery
Backhoe Days of (378,000 x 1.10 + 2,040,000 / 3.8) x
Ownership Soft Rock 1.10 1.48 3,620,040 5,357,659
0.8m3 service 3.8 = 3,620,040
Cost
(378,000 x 1.25 + 2,040,000 / 3.8) x
Rock 1.25 3,835,500 5,676,540
3.8 = 3,835,500
1000
Miscellaneous
L.S. 1 3341 Treatment of fractions
Expense
4460
Earth and sand 11,050,000
Total Soft Rock 1.10 Day 11,230,000 Foundation excavating
Rock 1.25 11,550,000
Machinery Ownership Cost correction (C13) = (C9) x coefficient + (C11) / t, t = 730 h / 190 day = 3.8 h [operation time per days of
service]
Common A27 Backhoe 0.8m3 per operation day for Foundation or Backfilling of crushed stone
Operator 0.58 3,460,000 2,006,800 From book of materials and labor unit
Person
(Special) 0.90 3,460,000 3,114,000 price
41 21,900 897,900
Fuel Cost Diesel L Ditto
65 21,900 1,423,500
Machinery 0.79 3,500,000 2,765,000
Days of
Ownership Backhoe 0.8m3
service 1.00 3,500,000 3,500,000
Cost
Miscellaneous 300
L.S. 1 Treatment of fractions
Expense 2500
Foundation of crushed stone 5,670,000 Foundation of crushed stone

Total Day
Backfilling of crushed stone 8,040,000 Backfilling of crushed stone
Source: Cost Estimation Guideline of MLIT published in 2011.
According to the above example, the unit price shall be different even the same machinery in case
different work item.
10) Fuel Consumption Rate

The fuel consumption per hour is theoretically able to calculate with fuel consumption rate. Fuel
consumption rate is determined by the actual condition survey. However, it is recommended by
this guideline that the unit of machinery cost should be days of service. The construction volume
per days of service is just changed depending on the construction work even the same machinery
is used. Hence, the fuel consumption per days of service should be determined by the actual
condition survey.
The fuel consumption is calculated in the following equation.
32
Fuel consumption
= Capacity (kW) x Fuel consumption rate (ℓ/kW•h)
per hour
Figure 4.15 Formula of Fuel Cost
The example of calculation of fuel consumption per hour is shown below.

Ex. Bulldozer 15t (100kW)
100kW x 0.175 ℓ/kW•h = 17.5 ℓ/h ≈ 18 ℓ/h
11) Actual Condition Survey for Unit Price of Machineries

The unit price of machinery is determined based on the result of the actual condition survey for
unit price of machineries. This survey shall be conducted by independent agency once every two
years in every province. This survey content includes three main items such as usage condition,
management condition and disposition record.
Guideline for survey on the unit price of machinery shall be formulated by state authorities all
over Viet Nam.
33
Chapter 5　 Estimation Method of Direct Cost
5.1 Introduction
The contents of Item 5.4 to 5.7 in this chapter are mainly taken from the cost estimation guideline
of Ministry of Land, Infrastructure and Transport (MLIT) in Japan published in 2011 and 5.8 is
taken from Cost Estimation Guideline of MLIT in Architecture and Building Department
published in 2015. After the review and comparison of the current system of Viet Nam and the
above guideline, some points to be improved have been found.
With review of current cost estimation method in Viet Nam, it turned out that there exist a lot of
independent norm tables and cost estimators have to select most suitable one based on their
experiences and judgements. Therefore, current Vietnamese method has problem that unified
norm cannot be always used at same kind of construction work and it varies with decision of cost
estimator concerned.
In comparison with this, the significant feature of Japanese cost estimation system is that the cost
estimation task is systematically computerized in accordance with the cost estimation guideline.
In this method, the most suitable selection of various parameters for estimation can be done
automatically with consideration of construction conditions at the site. Because the construction
conditions such as construction volume, construction areas, height of construction and so forth.
are clearly described in the guideline, the most suitable norm table can be easily selected and
followed in task process of cost estimation. Therefore, Japanese method is significantly
recommended for improvement of current method of Viet Nam in this guideline.
In addition, the other reasons why Japanese practice should be adopted for improvement are as
follows,
1) Japan's estimation system has a very long history and has high maturity compared to other
countries.
2) Japan is located near the ASEAN nations and business practice, culture, ideas and so forth.
are similar of Japan.
3) Frequent renewal has been implemented based on the actual surveys of material prices, labor
prices and so forth. and their productivities for long years; as a result, real state of
construction cost expenditures is reflected in estimation tasks.
4) Reference of Japan’s practice seems to be very internationally appropriate and suitable to
Viet Nam, which is developing drastically now to the level of advanced countries.
In this section, the productivity (norm) of “earth work”, “concrete work” and “road pavement
work” are described. The reason of the selections for the above construction works is that those
are major and basic construction works among all construction works.
In addition, the temporary work and building work as concrete block work, plastering work and
tiling work have been added for reference.
5.2 Productivity Rate

(1) Definition
Productivity rate is necessary figure for materials, labors, and machineries to calculate the unit
price of each work item for direct cost estimation. The productivity rate of labor is easy to
explain, thus, this rate is cited for detail explanation.
The productivity rate of labor indicates the percentage of the labor to the work volume in case of
the labor cost. The labor or work volume is uncertain factor under the different capacity of labor
and complicate construction condition. Therefore, it is not able to be fixed easily in this
condition. However, in case under the limited condition, the certain productivity rate is able to
fixed through observation by the actual condition survey.
34
The productivity rate is expressed as formula;

Labor ( A)
Productivity rate =
Work volume( V )
In the alternative representation, for example of excavation by man-power, 2 m 3 per person can
be expressed as “work efficiency” based on labor. If the expression is changed into 0.5 person
based on labor per m3, it is “productivity rate”.
After all, the productivity rate is the reciprocal of the work volume.
In order to compute the productivity rate by actual condition survey should be considered
statistical data. It is made a graph of many figures with frequency distribution and generally it
shall be a normal distribution. However, the plots are uneven practically and it is sometimes
difficult to decide the productivity rate based on the result of actual condition survey. To decide
the productivity rate is considered the construction condition of earth work such as condition of
soil, water content, topography, ground, underground and so forth. and common condition such as
construction period, weather and construction difficulty level.
(2) Formula of Direct Cost

In order to calculate the direct cost, the estimation method by piling up is applied in this
guideline. There are material productivity rate, labor productivity rate and machinery productivity
rate in the every element of direct cost. These productivity rate should be decided by the actual
condition survey. The detail of the actual condition survey is explained in Chapter 8. The basic
formula of the piling up method is shown as follows.
Unit price of material x Productivity rate

Design work
Direct Cost = x Unit price of labor x Productivity rate
quantity
Unit price of machinery x Productivity rate
Figure 5.16 Formula of Direct Cost
5.3 Method of Estimation

(1) Present State
The current system of cost estimation in Viet Nam has not been updated since more than thirty
years ago. The construction condition has been changed greatly such as construction machinery,
technology, quality of material, circumstances surrounding construction industry and so forth.
Therefore, in order to grasp the current construction condition, the actual condition survey is one
of the important alternatives. The most significant issue is that the current productivity rates are
not reflective of the current construction condition. The followings are the insufficient and
contradictions found in current cost estimation system.
1) Current Practice
a) There are many norm tables, describing various working items with different machineries to
use.
b) Some work items are unclear and details are not specified.
c) Wastage factors are provided in various materials, some of which seem unrealistic.
d) Labor and machinery norms seem theoretical and not reflected in practice on site.
e) In calculation of labor and machinery norms are not taken into consideration of construction
condition.
f) Machinery norms were determined long ago and not updated for long time.
35
2) Issues Identified
As a result, following issues are pointed in current practice.
a) Some norms are inapplicable to present techniques and site conditions.
b) Since the grades of labors are theoretical, productivity rate of labors for each work item in
construction estimation norms does not reflect the actual workings.
c) The wages of labors are calculated with the grading which is mentioned in Chapter 4. Even
there are many different occupation of labors at construction site, the occupation of labors are
not taken into consideration in the each productivity of labors.
d) The productivity rate of labor is only determined according to one construction condition and
one labor productivity, and different working conditions are not taken into consideration.
e) The productivity rate of machinery shift is calculated as an average distribution per each work
without consideration of the execution organization plan and the actual construction
condition.
(2) Estimation Method Suggested

The estimation method of direct cost in Viet Nam is basically the same of Japanese method as
piling up method. However, the items and quantities in the price schedule must be updated to
reflect the current construction condition compared with Japan’s case.
The guideline shall indicate the process of productivity rate. If the productivity rate is changed in
the work item, it is easy to confirm the change part on the process for guideline user.
The concept of improvement plan for current practice is shown below.
1) The cost estimation system shall be improved based on Japanese cost estimation system and
shall be customized to fit the current Vietnamese construction condition.
2) The productivity rate shall be decided by the actual condition survey every year.
3) The guideline shall indicate the process as the basis of the productivity rate such as
construction volume per day and so forth.
Based on this concept, this chapter indicates the process of productivity rate based on the practice
of Japan.
The items of productivity rate of construction work are different for each construction works
because of construction conditions. Here the main improved items of productivity rate are shown
below.
1) Flow of construction work
2) Selection of machinery and construction volume per day choosing applicable conditions in
several options
3) Wastage factor of material
4) Productivity rate
5) Unit price schedule
5.4 Earth Work

The earth work deals with a natural soils and rocks. The working condition differs depending on
the project scale, topographical condition, construction location, weather condition, construction
period. Cost estimation for earth work adopted in Japan is explained below.
(1) Component
The structure of all kinds of earth work is shown in Figure 5.2. This section indicates the
excavations by a bulldozer and backhoe in the soil, earth and so forth.
36
Earth Work Earth Work Implemented by Soil, earth and etc

Machineries
Rocks Road work and river work
Leveling and compaction Subgrade, roadbed and embankment
Small-scale earth work

Total earth volume is less than
100m3 or average construction
width is less than 1 m
Stabilization work
Soil, earth and etc

Earth Work by only Man-power
Rocks

Figure 5.17 Component of Earth Work
(2) Bulking and Shrinkage Factor of Soil, Earth and so forth.

The volume of soils varies depending on the condition of soil such as natural ground soil,
compacted soil and loosened soil. In order to calculate the excavation volume, compaction
volume and transportation soil volume, bulking and shrinkage factors shall be applied.
Dividing three conditions of soil volume is considered for the bulking and shrinkage factor of
soil. The three conditions are shown in Table 5.1.
Table 5.8 Soil Volume Conditions
Condition Description
(1) Natural ground soil volume Soil Volume to be excavated
(2) Loosened soil volume Soil Volume to be transported
(3) Compacted soil volume Volume to be compacted
Loosened soil volume (m3) Compacted soil volume (m3)
Factor L= 3
Factor C=
Natural ground soil volume (m ) Natural ground soil volume (m3)
The bulking and shrinkage factor of soil, earth and so forth. based on soil classification is shown
in Figure 5.3. the calculation of excavation and embankment is used these factors for the
distribution plan of soil volume.
37
Clay of low
Gravelly soil Sand & Sandy soil Soft rock Hard rock
plasticity
Clay of Rock /
Main
low Cobble
division Clay of
gravelly Sandy plasticity stone Soft rock Soft rock Medium Hard
Gravel Sand low
Name of soil soil of high I II hard rock rock I
Classification plasticity moisture
content
(GW) (GM) (SW)(SP) (SM) (ML) (MH)
(GP) (GC) (Spu) (SC) (CL) (CH)
Mark (GPs) (GO) (S-M) (SV) (OL)
(G-M) (S-C)
(G-C) (S-V)
L 1.20 1.20 1.20 1.20 1.30 1.25 1.20 1.30 1.50 1.60 1.65
Factor
C 0.95 0.90 0.95 0.90 0.90 0.90 1.00 1.15 1.20 1.25 1.40
GW: Gravel of good gain size GM: Silty gravel MH: Silt (high liquid limited) SW, SP: Sand of good/poor gain size
GP: Gravel of poor gain size GC: Clayish silt ML: Silt (low liquid limited) CL: Clay of low plasticity
GPs: Poor gain size GO: Organic gravel S-M: Sand with silt OL: Organic clay of low plasticity
(step)
G-M: Gravel with silt CH: Clay S-C: Sand with clay Spu: Sand of poor gain size ( uniformity)
G-C: Gravel with clay S-V: volcanic sand soil
Source: Cost Estimation Guideline of MLIT published in 2011
Figure 5.18 Bulking and Shrinkage Factor of Soil Based on Soil Classification
(3) Implementation of Earth Work by Machineries (Soil, Earth and so forth.)

The cost estimation of earth work by machineries is calculated the working volume and necessary
cost such as material, labor cost and machinery ownership cost and operation cost. There is other
productivity rate for excavation of rocks.
1) Flow of Construction
The working surround with the dotted line is not included in this item.
Loading
Excavation Transportation
material
Excavation for
Backfilling
foundation
To bring in To bring out
machinery machinery
Rock Loading
Transportation
excavation material
Excavation and
Transportation
loading

A dotted line is not included in this productivity rate.
Figure 5.19 Construction Flow of Earth Work
38
2) Construction Form
In case of excavation work, there are three construction forms divided “wide type cutting”,
“narrow type cutting” and “mixed type cutting”. The machineries are selected based on the
construction form because of taking into consideration of construction condition. The
construction form and selection of machinery type are shown as follows. In case of the
excavation for foundation, the different productivity shall be applied.
Wide type cutting Mixed type cutting Narrow type cutting

Figure 5.20 Construction Form
3) Classification of Machineries Based on Construction Form

In case that the wide type cutting is applied, the selection of machinery refers to Table 5.2 and
the narrow type cutting is applied to Table 5.3.
Table 5.9 Selection of Machinery Type in Wide Type Cutting
Wide type cutting Excavation in zone A
A-Soil Earth, soil and so forth. work by machinery
(i) Excavation / dozing by bulldozer
(ii) Excavation/ loading by backhoe
A-Rock Rock excavation work
(i) Excavation by ripper
(ii) Excavation by ripper with explosives
(iii) Excavation by large breaker
Table 5.10 Selection of Machinery Type in Narrow Type Cutting

Narrow type cutting Excavation in zone B
B-Soil Machinery excavation with man-power
Machinery excavation with man-power
B-Rock
Excavation with explosives
(4) Selection of Machineries and Construction Volume

1) Wide Type Cutting
a) Selection of machinery
The machineries used for cost estimation are shown in Table 5.4. The most suitable
machinery shall be indicated through the actual condition survey by considering construction
volume, construction period as well as construction condition. Sample survey forms are
explain in Chapter 8.
39
Table 5.11 Selection of Machinery

Type of works Contents of works Specification
Less than 30,000m3 Ordinary bulldozer 20t
Excavating and dozing
More than 30,000m3 Ordinary bulldozer 32t
Less than 50,000m3 Backhoe 0.8m3
Excavating and loading
More than 50,000m3 Backhoe 1.4m3
b) Selection of transportation method

The most suitable selection of transportation method shall be decided by actual condition
survey as well as the above item.
Table 5.12 Selection of Transportation Method
Distance Transportation Method
Less than 60m Bulldozer
More than 60m Backhoe + Dump Truck
c) Construction volume per day

In order to calculate the productivity rate, the construction volume per day for each working
item is decided by the actual condition survey. The each construction volume in Table 5.6,
5.7 and other followings table is quoted from “the manual for cost estimation” in Japan.
Table 5.13 Construction Volume per Day Using Bulldozer
(Per day)
Excavating and Dozing for
Specification Soil type Unit
dozing for ground loosened soil
Sand, Sandy soil, gravelly soil, Cohesive
Ordinary m3 320 540
soil
bulldozer 20t 3
Rock, Cobble stone m 200 350
Sand, Sandy soil, gravelly soil, Cohesive
Ordinary m3 710 -
soil
bulldozer 30t 3
Rock, Cobble stone m 440 -
1. Including 60m of dozing distance
2. Excluding compaction work
3. Rock: Lump of big shaped rocks
4. Cobble stone: Cobblestone is a natural material based on cobble-sized stones
Table 5.14 Construction Volume per Day Using Backhoe

(Per day)
Without
With
Type of works Specification Soil type Unit obstacle
obstacles
s
Excavating Backhoe 0.8m3 Sand, Sandy soil, gravelly soil, Cohesive soil m3 300 190
and loading of Rock, Cobble stone m3 230 140
natural ground Backhoe 1.4m3 Sand, Sandy soil, gravelly soil, Cohesive soil m3 500 320
soil Rock, Cobble stone m3 410 260
Loading of Backhoe 0.8m3 Sand, Sandy soil, gravelly soil, Cohesive soil m3 310
loosened soil Rock (Crush), Cobble stone m3 260
Backhoe 1.4m3 Sand, Sandy soil, gravelly soil, Cohesive soil m3 520
Rock (Crush), Cobble stone m3 440
Backhoe Sand, Sandy soil, gravelly soil, Cohesive soil m3 160
0.45m3 Rock (Crush), Cobble stone m3 130
1. The obstacle for excavating and loading of natural ground soil is that there are limitations of construction condition such
40
as surrounding structures, traffic condition and so forth., and in case continuous excavation is not possible.
2. The obstacle for loading of loosened is that there are limitations of construction condition such as surrounding structures,
traffic condition and so forth. and/or strutting and waling.
2) Narrow Type Cutting

The selection of machinery, construction volume per day shall be determined by the actual
condition survey similar to wide type cutting. The labor item is included in case of narrow type
cutting.
The specification of machinery is shown in Table 5.8.
Table 5.15 Selection of Backhoe
Type of works Construction width Specification
Excavating and/or loading Less than 5 m Backhoe 0.8m3
b) Construction volume per day for backhoe

The construction volume per day for backhoe is shown in Table 5.9.
Table 5.16 Construction Volume per Day by Using Backhoe
(Per day)
Without With
Type of works Specification Soil type Unit
obstacles obstacles
Excavating and loading of Sand, Sandy soil, gravelly
Backhoe 0.8m3 m3 220 -
natural ground soil soil, Cohesive soil
c) Productivity rate of excavation by man-power (per 100m 3)

The productivity rate of excavation by man-power is shown in Table 5.10.
Table 5.17 Productivity Rate of Excavation by Man-Power
(Per 100m3)
Description Soil type Unit Quantity
Ordinary worker Sand, Sandy soil, gravelly soil, Cohesive soil Person 3.9
3) Excavating for Foundation

The construction volume per day shall be determined by the actual condition survey similar to
wide type cutting and narrow type cutting. The working item of excavating for foundation
includes the labor cost.
The selection of backhoe based on the construction condition is shown in Table 5.11.
Table 5.18 Selection of Backhoe
Type of works Construction condition Specification
Average width > 2m Backhoe 0.8m3
Excavation for foundation Average width < 2m Backhoe 0.45m3
Average width < 1m Backhoe 0.28m3 or 0.13m3
41
b) Construction volume per day for backhoe

The construction volume per day for backhoe is shown in Table 5.12.
Table 5.19 Construction Volume per Day by Using Backhoe
(Per day)
Without With
Type of works Specification Soil type Unit
obstacles obstacles
Excavation Backhoe 0.8m3 Sand, Sandy soil, Gravelly soil, Cohesive soil m3 220 180
for foundation Rock, Cobble stone m3 160 130
Backhoe 0.45m3 Sand, Sandy soil, gravelly soil, Cohesive soil m3 150 100
Rock, Cobble stone m3 110 70
c) Productivity rate of excavation for foundation with man-power (per 100m 3)

In case of the excavation for foundation work with a way of cofferdam, an ordinary worker
shall be counted to the price schedule.
Table 5.20 Productivity Rate of Excavation for Foundation with Man-power
(Per 100m3)
Work Item Way of Cofferdam Description Unit Quantity
Excavation for foundation Leveling Ordinary worker Person 2.0
Self-standing Ordinary worker Person 0.3
Strutting and waling Ordinary worker Person 0.9
Ground anchor Ordinary worker Person 0.7
4) Transportation
The productivity rate of 10t dump truck per 100 m 3 with two types of backhoe is shown in Figure
5.6.
(Per 100m3)
3
Specification of Machinery for Loading Backhoe 0.8m
Specification of Machinery for Transportation 10t Dump Truck
Less Less Less Less Less Less Less Less Less Less Less Less Less Less Less Less
Transportation
than than than than than than than than than than than than than than than than
Distance(km)
0.3 0.5 1.0 1.5 2.0 3.0 4.0 5.5 6.5 7.5 9.5 11.5 15.5 22.5 49.5 60.0
Number of days to
0.65 0.75 0.85 0.95 1.1 1.3 1.5 1.8 2.1 2.4 2.7 3.1 3.8 4.7 6.3 9.4
Transport
3
Specification of Machinery for Loading Backhoe 1.4m
Specification of Machinery for Transportation 10t Dump Truck
Less Less Less Less Less Less Less Less Less Less Less Less Less Less Less Less Less Less
Transportation
than than than than than than than than than than than than than than than than than than
Distance(km)
0.3 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.5 6.0 7.0 8.5 10.0 12.5 16.5 23.5 51.5 60.0
Number of days to
0.5 0.6 0.7 0.8 0.9 1 1.2 1.3 1.5 1.8 2.1 2.4 2.7 3.1 3.8 4.7 6.3 9.4
Transport
Figure 5.21 Number of Day to Transport per 100 m3 by 10t Dump Truck
In case of Japan, the transportation condition in Densely Inhabited District (DID) section is
considered to determine the productivity rate. In case the transportation vehicle go through DID
section, the productivity rate shall be increased.
42
(5) Format of Price Schedule of Earth Work by Machineries

The format of price schedule for earth work is shown in the following tables.
a) Bulldozer, excavating and dozing per 100m3
Description Specification Unit Quantity Remark
Bulldozer Ordinary bulldozer 20t or 32t Day 100 / D Refer to Table 5.6
Miscellaneous cost L.S. 1
Total
D: Construction volume per day
b) Backhoe, excavating and loading per 100m3

Backhoe Backhoe 0.45m3 or 0.8m3 or 1.4m3 Day 100 / D Refer to Table 5.7
Total
c) Backhoe, excavating per 100m3

Backhoe Backhoe 0.45m3 or 0.8m3 or 1.4m3 Day 100 / D Refer to Table 5.7
Total
d) Backhoe, excavating for foundation per 100m3

Backhoe Backhoe 0.45m3 or 0.8m3 Day 100 / D Refer to Table 5.12
Ordinary worker Person If necessary
Total
e) Backhoe, excavating for narrow type cutting per 100m 3

Backhoe Backhoe 0.8m3 Day 100 / D Refer to Table 5.9
Ordinary worker Person Refer to Table 5.10
Total
The construction volume per day is able to be changed depending on the construction condition
such as soil classification, soil condition and so forth.
5.5 Concrete Work

The concrete work has two types of concrete; ready mixed-concrete which is manufactured in the
ready mixed concrete factory and mixing concrete at a construction site.
This section indicates the applicable structure that is only general concrete structure. The
definition of general concrete structure is shown (1) Application and Component in this section.
43
(1) Application and Component

There are many concrete works in the construction works such as dam concrete, tunnel lining
concrete, retaining wall concrete and so forth.
The objective structures have been classified into three kinds. The component of concrete work in
this guideline is shown in Table 5.14.
Table 5.21 Component of General Concrete Structure
Classification Description
Major structure Plain concrete structure Massive concrete structure such as base concrete for pole, steps,
catch basin and so forth, leveling concrete and so forth.
Reinforced concrete Ditch, water gate, sub-structure of pump station, slab concrete
structure of bridge, upper part concrete of jetty, wall balustrade and a
structure which is large amount of reinforced bar.
Minor structure Consecutive ditch (cross-section area < 1m2), catch basin
(<1m3), base concrete of lighting or road sign
The structures such as retaining wall, pipe and box culvert, abutment and pier of bridge and so
forth are not applicable in this concrete work. The productivity rate of above concrete works
should be prepared separately because of different construction condition.
(2) Implementation of Concrete Work

1) Construction Flow
The construction flow of concrete work is shown in Figure 5.7.
Preparation
Concrete Compaction Surface
of concrete Curing
placing of concrete finishing
placing
Figure 5.22 Construction Flow
2) Selection of Concrete Placing Method

The selection of concrete placing method is shown in Figure 5.8. The selection mechanism is
effective and useful to make a cost estimation systematically. In case it is difficult to apply the
following figure, the concrete placing method is considered in the item separately.
Concrete casting
Major structure Minor structure
More than 10 m3 Less than 10m3 H≦2 m 2 m<H≦28 m
10 m3 - 300 m3 More than 300 m3 L≦20 m L>20 m
concrete placing concrete placing

concrete placing by concrete placing by concrete placing by concrete placing by
by concrete pump by concrete pump
man-power man-power Truck crane Crawler crane
vehicle 1 vehicle 2
H : Concrete placing height above the ground L : Concrete placing horizontal distance
Figure 5.23 Selection of Concrete Placing Method
44
3) Wastage Factor
The necessary quantity is calculated based on the following equation.
[Necessary quantity] = [Quantity by design] x [1 + Wastage factor]
The wastage factor should be differed depending on structure type.
Table 5.22 Wastage Factor of General Concrete Structure
Material Structure Wastage Factor
Ready mixed concrete Plain concrete structure +0.04
Reinforced concrete structure +0.02
Minor structure +0.06
(3) Selection of Machinery and Construction Volume / Productivity Rate

1) Concrete Placing by Concrete Pump Vehicle in the Major Structure
The specification of machinery is the following table as standard.
Table 5.23 Selection of Concrete Pump Vehicle
Description Specification Unit Quantity
Concrete Pump Vehicle 90~110 m3/h, Boom type Piece 1
b) Productivity rate of concrete placing by concrete pump vehicle in the major structure
The productivity rate of concrete placing by concrete pump vehicle in the major structure is
shown in Table 5.17. Depending on the construction volume, the productivity rate shall be
changed.
Table 5.24 Productivity Rate of Concrete Placing by Concrete Pump Vehicle in the Major
Structure
(Per 10 m3)
Design placing concrete volume
10 m3 to 300 m3 300 m3 to 600 m3
Description Unit
Standard placing volume per day
81 400
Foreman person 0.14 0.04
Special worker person 0.40 0.20
Ordinary worker person 0.54 0.22
Concrete pump vehicle Day 0.19 0.05
Miscellaneous cost rate % 1 1
1. This productivity rate is included the tip operation of concrete feed pipe.
2. In case the working range is more than 30 m from a concrete pump vehicle, the machinery ownership cost of concrete
feed pipe is added.
3. The miscellaneous cost includes the depreciations of vibrator and fuel and /or electricity. The miscellaneous cost is
calculated that the miscellaneous cost rate multiplied by the sum of labor cost and concrete pump vehicle cost.
c) Productivity rate of assembly and disassembly of concrete feed pipe (L>30 m)

In case the working range is more than 30 m from a concrete pump vehicle, the productivity
rate of assembly and disassembly of concrete feed pipe is applied for the exceeding part. The
productivity rate is shown in Table 5.18.
45
Table 5.25 Productivity Rate of Assembly and Disassembly of Concrete Feed Pipe
(Per 10 m)
Description Unit Assembly Disassembly
Ordinary worker person 0.26 0.20
2) Concrete Placing by Man-power in the Major Structure

a) Productivity rate of concrete placing by man-power in the major structure
The productivity rate of concrete placing by man-power in the major structure is shown in
Table 5.19.
Table 5.26 Productivity Rate of Concrete Placing by Man-power in the Major Structure
(Per 10 m3)
Description Unit Quantity
Foreman Person 0.57
Special worker Person 0.79
Ordinary worker Person 1.25
Miscellaneous cost rate % 7
1. In case the transportation by man-power in a site is necessary, the ordinary worker, 1.3 persons per 10 m 3 is added in the
transportation distance less than 15 m.
2. The working of the installation of chute and hopper is included in the above table.
3. The miscellaneous cost includes the depreciations of chute, hopper and vibrator, and fuel and /or electricity. The
miscellaneous cost is calculated that the miscellaneous cost rate multiplied by the sum of labor cost.
3) Concrete Placing by Crane in the Minor Structure

a) Selection of Machinery
The standard machinery for concrete placing by crane is selected truck crane. Depending on
the construction site condition, the crawler crane is able to be selected.
Table 5.27 Selection of Crane for Minor Structure
0.6 m3 bucket
Range of Placing
Description Specification
Horizontal Distance of
Height of Placing
Placing
Less than 17 m Less than 17 m
Truck Crane Hydraulic expandable jib type, 16t
Crawler Crane Hydraulic driving type, winch lattice jib type - More than 30 m
b) Productivity rate of concrete placing by crane in the Minor structure

The productivity rate of concrete placing by crane in the minor structure is shown in Table
5.21.
Table 5.28 Productivity Rate of Concrete Placing by Crane in the Minor Structure
(Per 10 m3)
Foreman Person 0.90
Special worker Person 1.02
Ordinary worker Person 3.25
Truck crane or crawler crane Day 0.56
46

1. This productivity rate is included the working of loading of the concrete to a bucket and hitch.
2. The miscellaneous cost includes the depreciations of vibrator, concrete bucket and fuel and /or electricity. The
miscellaneous cost is calculated that the miscellaneous cost rate multiplied by the sum of labor cost and machinery
ownership cost.
3. The bucket capacity shall be 0.6 m3.
4) Concrete Placing by Man-power in the Minor Structure

a) Productivity rate of concrete placing by man-power in the minor structure
The productivity rate of concrete placing by man-power in the minor structure is shown in
Table 5.22.
Table 5.29 Productivity Rate of Concrete Placing by Man-power in the Minor Structure
(Per 10 m3)
Foreman Person 0.91
Special worker Ditto 1.00
Ordinary worker Ditto 2.65
1. In case the transportation by man-power in a site is necessary, the ordinary worker, 1.3 persons per 10 m 3 is added in the
transportation distance less than 15 m.
2. The working of the installation of chute and hopper is included in the above table.
3. The miscellaneous cost includes the depreciations of chute, hopper and vibrator, and fuel and /or electricity. The
miscellaneous cost is calculated that the miscellaneous cost rate multiplied by the sum of labor cost.
5) Curing
a) Productivity rate of curing
The productivity rate of curing work is shown in Table 5.23.
Table 5.30 Productivity Rate of Curing
(Per 10 m3)
Major Structure Minor structure
Description Unit
Plain Concrete Reinforced Concrete
Ordinary worker Person 0.30 0.16 0.69
Miscellaneous cost rate % 17 33 19
1. The miscellaneous cost includes the curing sheet, curing mat, timber, pipe, depreciations of machinery of shrinking water,
and fuel and / or electricity. The miscellaneous cost is calculated that the miscellaneous cost rate multiplied by the sum of
labor cost.
(4) Format of Price Schedule of Concrete Work

a) The price schedule of concrete placing by concrete pump vehicle in the major structure per
10m3
Foreman Person Refer to Table 5.17
Special worker Ditto Ditto
Ordinary worker Ditto Ditto
Concrete m3
Concrete pump vehicle 90~110 m3/h, Boom type Day Refer to Table 5.17
Curing L.S. 1 Refer to Table 5.23
Assembly and disassembly of concrete feed L.S. 1 If necessary
47

pipe
Miscellaneous cost L.S. 1 Refer to Table 5.17
Total
b) The price schedule of assembly and disassembly of concrete feed pipe (L>30 m) per 10m
Ordinary worker Person 0.46 x L / B Refer to Table 5.18
Total
1. “L” means that the length of concrete feed pipe which is exceeding more than 30 m from the working range of concrete
pump vehicle.
2. “B” means that the standard placing volume per day in Table 5.17.
c) The price schedule of concrete placing by man-power in the major structure per 10m 3
Concrete m3
Total
d) The price schedule of concrete placing by crane in the minor structure per 10m3
Concrete m3
Truck crane or crawler crane Day Refer to Table 5.21
Total
e) The price schedule of concrete placing by man-power in the minor structure per 10m3
Concrete m3
Total
f) The price schedule of curing work per 10m3

Total
(5) Implementation of Form Work
48
1) Application and Component

This item indicates the form work that a form average height is less than 30 m. The productivity
rate of the form works for the following works should be prepared separately because of different
condition. The structures such as retaining wall, pipe and box culvert, abutment and pier of bridge
and so forth are not applicable in this form work.
The construction flow of form work is shown in Figure 5.9.
Processing Assembly
To bring in and and Concrete Disassembly To bring out
materials manufacturing installation placing and removal materials
of form of form

3) Productivity Rate of General Form Work

The productivity rate of general form work for manufacturing, installation and removal in
Japanese practice is shown in Table 5.24. The circle shape form, decorative form and leveling
concrete form are applied to the other productivity rate.
In case Japanese practice, the materials cost such as plywood form, steel form, hardware for
form, support, raking shore, form-release agent, machinery ownership cost of electric drill and
power sow, electricity cost, fuel cost and cost of machinery for loading / unloading are included
in miscellaneous cost. Then, the miscellaneous cost is calculated that the miscellaneous cost rate
multiplied by the sum of labor cost. However, the unit price of labor cost between Vietnamese
and Japanese situation is totally different. Therefore, it is recommended that the main items of
materials cost are described in the productivity rate. The small items such as hardware for form
are able to be included in miscellaneous cost.
Table 5.31 Productivity Rate of General Form Work
(Per 100 m2)
Major Structure
Description Unit Minor structure
Plain Concrete Reinforced Concrete
Foreman Person 3.1 3.5
Timberman Ditto 15.7 13.5
Ordinary worker Ditto 10.0 11.1
Miscellaneous cost rate % 23 15
1. This productivity rate includes the installation of drain pipe, form release agent, surface preparation work.
2. Miscellaneous cost of form work includes the material cost of plywood form, metal form, hardware for form, support,
raking shore, form-release agent, machinery ownership cost of electric drill and power sow, electricity cost, fuel cost and
cost of machinery for loading / unloading.
3. The drain pipe material cost is exclusive in the above table.
(6) Format of Price Schedule of Form Work

a) The price schedule of general form work per 100 m2
Timberman Ditto Ditto
Miscellaneous cost L.S. 1 Ditto
Total
49
(7) Implementation of Rebar Work

In Japanese practice, the productivity rate method is not applied from more than 20 years ago in
the rebar work for general concrete work.
This guideline indicates the rebar work of the productivity rate method.
1) Application
The processing and assembly of rebar work of structures such as river and seashore work, road
work, drainage work and bridge work are applied in this productivity rate.
2) Wastage Factor
[Necessary quantity] = [Quantity by design] x [1 + Wastage factor(K)]
K: Wastage factor +0.03 is applied.
3) Productivity Rate of Processing of Rebar Work
The productivity rate of processing of plain reinforced bar as well as deformed reinforced bar is
shown in Table 5.25.
Table 5.32 Productivity Rate of Processing of Rebar Work
(Per 1 t)
Diameter of reinforced bar (mm)
Description Unit
Less than 13 16 to 25 29 to 32
Foreman Person 0.2 0.2 0.1
Rebar man Ditto 1.1 0.9 0.5
Ordinary worker Ditto 0.7 0.6 0.3
1. Miscellaneous cost in the above table includes the depreciations of bar bender and cutter, and machinery ownership cost
of truck crane. The miscellaneous cost is calculated that the miscellaneous cost rate multiplied by the sum of labor cost.
4) Productivity Rate of Assembly of Rebar Work

The productivity rate of assembly is shown in Table 5.26.
Table 5.33 Productivity Rate of Assembly of Rebar Work
(Per 1 t)
Diameter of reinforced bar (mm)
Description Unit
Less than 13 16 to 25 29 to 32
Rebar man Ditto 1.8 1.5 0.9
1. This productivity rate is applied the plain reinforced bar as well as deformed reinforced bar.
2. The transportation by man-power is included.
3. In case the gas pressure welding is necessary due to a structure, its cost should be added additionally.
4. The Miscellaneous cost in the above table includes the binding wire, spacer and so forth. The miscellaneous cost is
calculated that the miscellaneous cost rate multiplied by the sum of labor cost.
(8) Format of Price Schedule of Rebar Work

a) The price schedule of processing and assembly of rebar work per 1 t
50
Rebar ton 1.03

Refer to Table
Foreman Person
5.26
Rebar man Ditto Ditto
Miscellaneous cost rate L.S. 1 Ditto
Total
(9) Market Unit Price Method

The “Market Unit Price Method” is applied in actual Japanese current practice. The market unit
price method is to estimate with market price per construction work without productivity rate. It
is necessary to grasp the transaction price by the survey.
5.6 Road Pavement Work

The road pavement work is included in the sub-base course and base course and pavement work
such as asphalt concrete pavement and concrete pavement.
Therefore, the sub-base course and base course, asphalt concrete surface and / or concrete surface
are covered in “the pavement”.
(1) Component
The structure of the main component of road pavement work is shown in Figure 5.10. This
guideline indicates the sub-base and base course work and asphalt concrete pavement work.
Asphalt concrete pavement work

Road Pavement Work
Composite pavement work
Subbase and base course work Drainable pavement work
Asphalt concrete pavement work Permeable pavement work
Concrete pavement work Concrete pavement work
Roadside work Continuous reinforced concrete

pavement work
Blocks installation work
Figure 5.25 Component of Road Pavement Work
(2) Implementation of Sub-base and Base Course Work

In order to construct the sub-base course, the unevenness correction work shall be done to remove
obstacles and finish the subgrade surface.
In case the base course work implement on the existing sub-base course surface, the unevenness
correction work shall be implemented.
The finishing thickness of sub-case course and base course shall be less than 20 cm and 15 cm,
respectively depending on the technical standard.
51
The construction flow of sub-base and base course work is shown in Figure 5.11. The
unevenness correction work after sub-base course is added if necessary.
To bring in Unevenness correction To bring out
Sub-base course work Base course work
materials work materials

Figure 5.26 Construction Flow of Sub-base and Base Course Work

1) Selection of Machinery
The selection of machinery in the unevenness correction work and sub-base and base course work
is shown in Figure 5.12. The most suitable machinery should be determined by the actual
condition survey.
Unevenness correction work, Subbase and base course work
Carriageway (3.0m≦Construction width) Carriageway (3.0m>Construction width)

Motor grader (3.1m)
Small backhoe (0.11m3 )
Road roller (10~12t)
Vibratory roller (3~4t)
Tire roller (8~20t)
Figure 5.27 Selection of Machinery of Sub-base and Base Course Work
2) Construction Volume Per Day

The construction volume of machinery per day for unevenness correction work and sub-base and
base course work is shown in Table 5.27.
Table 5.34 Construction Volume of Machinery per day of Sub-base and Base Course Work
(Per day)
Working Item Construction width Unit Construction Volume per day
Unevenness correction work - m2 1,580
More than 3 m m2 1,110
Sub-base and base course work
Less than 3 m m2 268
3) Productivity Rate of Labor

The productivity rate of labor for unevenness correction work and sub-base and base course work
is shown in Table 5.28.
Table 5.35 Productivity Rate of Labor
(Per 100 m3 ·1 layer)
Working Item Construction width Unit Ordinary worker Special worker
Unevenness correction work - Person 0.14 -
More than 3 m Ditto 0.24 -
Less than 3 m Ditto 1.00 0.41
4) Miscellaneous Cost Rate

The Miscellaneous cost rate for sub-base and base course work is shown in Table 5.29. However,
52
this rate is not applied for unevenness correction work. The contents of miscellaneous cost are the
water sprinkler by vehicle and necessary cost of auxiliary machinery for narrow width.
Table 5.36 Miscellaneous Cost Rate
Working Item Construction width Unit miscellaneous cost rate
More than 3 m % 9
Less than 3 m % 3
5) Wastage Factor
The necessary quantity for sub-base course and base course is calculated based on the following
equation.
[Necessary quantity (m3)] = [Quantity by design (m3)] x [1 + Wastage factor(K)]
(4) Format of Price Schedule of Sub-base and Base Course Work

a) The price schedule of unevenness correction work and sub-base course and base course work
(construction width ≧ 3.0 m ) per 100m2
Material of sub-base course or base course m3
Motor grader Operation 3.1m Day 100 / D Refer to Table 5.27
Road roller operation Macadam 10~12t Ditto 100 / D Ditto
Tire roller operation 8~20t Ditto 100 / D Ditto
Total
b) The price schedule of unevenness correction work and sub-base course and base course work
(construction width < 3.0 m ) per 100m2
Special worker Person Refer to Table 5.28
Material of sub-base course or base course m3
Vibrator roller 3~4t Day 100 / D Refer to Table 5.27
Backhoe 0.11 m3 Ditto 100 / D Ditto
Total
(5) Implementation of Asphalt Concrete Pavement Work by Machinery

The production of asphalt mixture has two types which are “plant method” and “purchase
method”. It depends on a construction site which one to select. In this guideline, the purchase
method is applied as standard.
1) Application
The cost estimation of asphalt mixture in this guideline is applied to the purchase method. The
53
plant method is considered separately in Japan.

The construction flow of asphalt concrete work is shown in Figure 5.13.
Cleaning of
surface
Distribution of
Installation of asphalt mixture Removal of
and bituminous Leveling Compaction
form form
material
Distribution
of sand
Each layer
Figure 5.28 Construction Flow of Asphalt Concrete Pavement Work
3) Wastage Factor
a) Asphalt mixture
[Necessary quantity] = [Quantity by design (m 2)] x [finishing thickness (mm)] x [Density
after compaction (t/m3)] x [1 + Wastage factor(K)]
Table 5.37 Density After Compaction (t/m3)
Description Density after compaction (t/m3)
Coarse / Dense graded asphalt concrete 2.35
Fine graded asphalt concrete 2.30
Open graded asphalt concrete 1.94
Bituminous stabilization base course 2.35
b) Bituminous material
The quantity of bituminous material is shown in Table 5.31.
Table 5.38 Quantity of Bituminous Material
(Per 100 m2)
Tack coat ℓ 43
Prime coat Ditto 126
4) Selection Flow
The selection of construction method for asphalt concrete pavement work is shown in Figure
5.14. The selection mechanism is effective and useful to make a cost estimation systematically.
For this work, the productivity rate is varied by the construction width.
54
Asphalt concrete pavement work
1.4 > Construction width 1.4 ≦ Construction width
By man-power with small machinery By machinery with man-power
Small machinery item 1.4 ≦ b ≦ 3.0 3.0 < b

1. Vibratory roller (0.5~0.6t) 1. Asphalt finisher 1.4 m ~ 3.0 m 1. Asphalt finisher 2.4 m ~ 6.0 m
2. Vibratory compactor (40~60kg) 2. Vibratory roller 3~4 t 2. Road roller 10 ~ 12 t
3. Tire roller 8 ~ 20 t
b: Construction width (m)
Figure 5.29 Selection of Construction Method and Machinery

The asphalt concrete pavement work by machinery includes the installation and removal of form,
distribution of bituminous material, leveling and compaction work. In case the construction width
is more than 1.4 m, it shall be implemented by machinery.
The selection of machinery is shown in Figure 5.14.
The construction volume per day for asphalt concrete pavement work by machinery is shown in
Table 5.32.
Table 5.39 Construction Volume per day for Asphalt Concrete Pavement Work by Machinery
(Per day)
Working Item Construction width Unit Construction Volume per day
Asphalt concrete pavement work 1.4 ≦ b ≦ 3.0 m2 1,300
by machinery 3.0 < b Ditto 2,300
3) Productivity Rate of Labor Cost

The productivity rate of labor cost for asphalt concrete pavement work by machinery is shown in
Table 5.33.
Table 5.40 Productivity Rate of Labor Cost for Asphalt Concrete Pavement Work by Machinery
(Per day ·1 layer)
Working Item Description Unit 1.4 ≦ b ≦ 3.0 3.0 < b
Asphalt concrete pavement work Foreman Person 1 1
by machinery Special worker Ditto 3 3
Ordinary worker Ditto 5 6
4) Miscellaneous Cost Rate Cost

The Miscellaneous cost rate for asphalt concrete pavement work by machinery is shown in Table
5.34. This rate includes the distribution of bituminous material, tool for paving, form material,
auxiliary machinery, heating fuel and so forth.
Table 5.41 Miscellaneous Cost Rate for Asphalt Concrete Pavement Work by Machinery
Working Item Construction width Unit Miscellaneous Cost Rate
55
Asphalt concrete pavement work by 1.4 ≦ b ≦ 3.0 % 18

machinery 3.0 < b Ditto 19
(7) Format of Price Schedule of Asphalt Concrete Pavement Work by Machinery

The price schedule of asphalt concrete pavement work by machinery (1.4 ≦ construction width)
per 100m2
Foreman Person Table 5.33 x 100 / D Refer to Table 5.33
Special worker Ditto Ditto Ditto
Ordinary worker Ditto Ditto Ditto
Asphalt mixture t
Bituminous material ℓ Refer to Table 5.31
Asphalt finisher operation 1.4 m ~ 3.0 m, wheel type Ditto 100 / D Refer to Table 5.32
Ditto 2.4 m ~ 6.0 m, wheel type Ditto Ditto Ditto
Road roller operation 10 ~ 12 t Ditto Ditto Ditto
Tire roller operation 8 ~ 20 t Ditto Ditto Ditto
Vibratory roller 3~4 t, boarding type Ditto Ditto Ditto
Total
(8) Implementation of Asphalt Concrete Pavement Work by Man-power

The asphalt concrete pavement work by man-power is applied for the construction width less than
1.4 m as well as in case it is difficult to construct by machinery.
The specification of machinery for asphalt concrete pavement by man-power is the following
table as standard.
Table 5.42 Selection of Machinery
Description Specification Unit Quantity
Vibratory roller 0.5~0.6t, hand guide type Piece 1
Vibratory compactor 40~60kg Ditto 2

The construction volume per day for asphalt concrete pavement work by man-power is shown in
Table 5.36.
Table 5.43 Construction Volume Per Day for Asphalt Concrete Pavement Work by Man-power
(Per day)
Working Item Finishing Thickness per layer Unit Construction Volume per day
Asphalt concrete pavement t ≦ 50 m2 250
work by man-power 50 < t ≦ 70 Ditto 230
3) Productivity Rate of Labor Cost

The productivity rate of labor cost for asphalt concrete pavement work by man-power is shown in
Table 5.37.
56
Table 5.44 Productivity Rate of Labor Cost for Asphalt Concrete Pavement Work by Man-
power
(Per day ·1 layer)
Working Item Description Unit t ≦ 50 50 < t ≦ 70
Asphalt concrete pavement work Foreman Person 1 1
by man-power Special worker Ditto 2 3
Ordinary worker Ditto 4 4
4) Miscellaneous Cost Rate Cost

The Miscellaneous cost rate cost for asphalt concrete pavement work by man-power is shown in
Table 5.38. This rate includes the distribution of bituminous material, tools for paving, scattering
protection, form material, auxiliary machinery, heating fuel and so forth.
Table 5.45 Miscellaneous Cost Rate Cost for Asphalt Concrete Pavement Work by Man-power
Working Item Finishing Thickness per layer Unit Miscellaneous Cost Rate
Asphalt concrete pavement t ≦ 50 % 17
work by man-power 50 < t ≦ 70 % 15
(9) Format of Price Schedule of Asphalt Concrete Pavement Work by Man-power

The price schedule of asphalt concrete pavement work by man-power (1.4 m > construction
width) per 100m2
Foreman Person Table 5.37 x 100 / D Refer to Table 5.37
Special worker Ditto Ditto Ditto
Ordinary worker Ditto Ditto Ditto
Asphalt mixture t
Bituminous material ℓ Refer to Table 5.31
Vibratory roller 0.5~0.6t, hand guide type Day 100 / D Refer to Table 5.36
Vibratory compactor 40~60kg Ditto Ditto Ditto
Total
5.7 Scaffolding Work

(1) Application and Component
This item indicates the scaffolding work that a form average height is less than 30 m. The
productivity rate of the scaffolding works for the following works should be prepared separately
because of different condition. The structures such as retaining wall, pipe and box culvert,
abutment and pier of bridge are not applicable in this scaffolding work.
(2) Implementation of Scaffolding Work

The construction flow of scaffolding work is shown in Figure 5.15.
57
To bring in Installation of Disassembly and To bring out

In service
materials scaffolding removal materials

2) Selection of Construction Method

There are 3 types of scaffolding works.
a) Prefabricated scaffold
This is orthodox method in the scaffolding work. The prefabricated scaffolding system made
up of portal frames for the positioning the guardrails and braces
b) Pipe scaffold
Steel pipes (Diameter around 48mm) are used by combining. It is easy to adjust the site
condition such as small working space and so forth.
c) Pipe scaffold along an inclined slope
Steel pipe are used as well as pipe scaffolding. This construction method shall be applied to
the inclined slope.
The selection of construction method for scaffolding work is shown in Figure 5.16. The selection
mechanism is effective and useful to make a cost estimation systematically.
Start
Slope of
structure surface No
(1:n) n<0.1
Yes
Grounding surface No
is flat
Yes
Pipe scaffold
Prefabricated scaffold Pipe scaffold
along an inclined slope
Figure 5.31 Selection of Construction Method
3) Productivity Rate of Scaffolding Work

The productivity rate of scaffolding work in Japanese practice is shown in Table 5.39. This
productivity rate includes the installation and removal of scaffolding.
In case Japanese practice, the materials for prefabricated scaffold such as the wall connector,
plank, vertical frame, brace, horizontal frame, scaffold board, hand rail, arm lock, stair, baseboard
and so forth are included in miscellaneous cost.
Regarding the materials for pipe scaffold, it includes the steel pipe, clamp, joint, plank, wall
connector, stair, baseboard and so forth, they are included in miscellaneous cost.
Regarding the materials for pipe along an inclined slope scaffold includes the steel pipe, clamp,
joint, plank, wall connector, stair, baseboard and so forth, they are included in miscellaneous cost.
The miscellaneous cost is calculated that the miscellaneous cost rate multiplied by the sum of
labor cost and machinery cost. However, the unit price of labor cost between Vietnamese and
Japanese situation is totally different. Therefore, it is recommended that the main items of
58
materials cost are described in the productivity rate. The small items such as joint goods are able
to be included in miscellaneous cost.
Table 5.46 Productivity Rate of Scaffolding Work
(Per 100 m2)
Prefabricated Pipe scaffold
Description Unit Pipe scaffold
scaffold along an inclined slope
Scaffold erector Ditto 5.8 (7.2) 5.8 (7.2) 3.8 (5.2)
Rafter truck crane Day 1.2 0.7 0.7
Miscellaneous cost rate % 36 23 24
1. If the safety net is necessary, the productivity rate in parenthesis shall be applied.
(3) Format of Price Schedule of Scaffolding Work

a) The price schedule of scaffolding work per 100 m 2
Scaffold erector Ditto Ditto
Rafter truck crane Lattice jib type (25t) Day Ditto
Miscellaneous cost L.S. 1 Ditto
Total
5.8 Finishing Work

(1) Component
There are many kind of finishing works such as tiling work, ceiling work, plastering work,
painting work, interior and exterior work and so forth. In this guideline, plastering work and tiling
work have been selected and the concrete block work has been added because of relation of the
wall work.
(2) Implementation of Concrete Block Work

This productivity rate applies the curtain wall reinforced by the reinforced bar, fence which is
height less than 2.2 meter and concrete wall for sanitary facility.
There are main 2 types of concrete blocks. It is shown in Table 5.40.
Table 5.47 Type of Concrete Block
Application Compressive strength
Partitioning wall, underground double wall, exterior wall and fence 16 N/mm2
Concrete wall for sanitary facility 8 N/m m2
Source: Cost Estimation Guideline of MLIT in Architecture and Building Department published in 2015
The construction flow of concrete block work is shown in Figure 5.17.
59
Processing and
To bring in Concrete block To bring out
assembly of Filling of mortar
materials building materials
reinforced bar
3) Productivity Rate of Concrete Block Work

The productivity rate of concrete block work for curtain wall of interior and exterior in Japanese
practice is shown in Table 5.41 and 42.
In case Japanese practice, there are holes in the concrete block and the mortar can be filled and
installed the reinforced bar for increasing the strength. Therefore, the quantity of mortar in Japan
is higher than the quantity in Viet Nam as the result of comparison.
Table 5.48 Productivity Rate of Concrete Block Work for Building of Interior Curtain Walls
(Per 1 m2)
Description Unit t=100 mm t=120 mm t=150 mm t=190 mm
Blocks pcs 13 13 13 13
Cement kg 13.1 16.6 24.2 35.3
Sand m3 0.03 0.03 0.05 0.07
Reinforced bar D10 kg 3.7 3.7 3.7 3.7
Building block worker Person 0.12 0.13 0.14 0.16
Ordinary worker Ditto 0.06 0.07 0.08 0.11
Miscellaneous cost rate % (Material cost + labor cost) x 10~15%
Table 5.49 Productivity Rate of Concrete Block Work for Building of Exterior Curtain Walls
(Per 1 m2)
Description Unit t=100 mm t=120 mm t=150 mm t=190 mm
Blocks pcs 13 13 13 13
Cement kg 13.1 16.6 24.2 35.3
Sand m3 0.03 0.03 0.05 0.07
Building block worker Person 0.12 0.13 0.14 0.16
(3) Format of Price Schedule of Concrete Block Work

a) The price schedule of concrete block work for building of interior curtain walls per 100 m 2
Blocks pcs Refer to Table 5.41
Cement kg Ditto
Sand m3 Ditto
Reinforced bar D10 kg Ditto
Building block worker Person Ditto
Miscellaneous cost L.S Ditto
Total
60
b) The price schedule of concrete block work for building of exterior curtain walls per 100 m 2
Blocks pcs Refer to Table 5.42
Cement kg Ditto
Sand m3 Ditto
Building block worker Person Ditto
Total
(4) Implementation of Plastering Work

The surface of base of concrete and concrete block work and plastering mortar work for wall are
applied.
The requirement of cement and fine aggregate are shown in Table 5.43 and 44.
Table 5.50 Type of Cement
Application Name of Cement
JIS R 5210 Portland cement
JIS R 5211 Portland blast-furnace slag cement
JIS R 5212 Silica cement
JIS R 5213 Flyash cement
Table 5.51 Grain Diameter of Fine Aggregate

Grain Diameter (Mass percentage) Construction Location
Passed through a sifter of 5 mm size: 100% First coat, middle coat, lath sheet and
Passed through a sifter of 0.15 mm size: > 10% mortar for floor
Passed through a sifter of 2.5 mm size: 100%
Last coat
Passed through a sifter of 0.15 mm size: > 10%
The thickness and compounding of mortar is shown in Table 5.45.

Table 5.52 Compounding (volume ratio) and Thickness
Construction First coat Middle coat Last coat Thickness
Base location Cement Sand Cement Sand Cement Sand Admixture (mm)
Concrete Proper
Interior wall 1 2.5 1 3 1 3 20
block / quantity
bricks Exterior wall 1 2.5 1 3 1 3 - 25
Lath sheet Proper
Interior wall 1 2.5 1 3 1 3 15
/ Metal quantity
lath Exterior wall 1 2.5 1 3 1 3 - 20
The construction flow of plastering work is shown in Figure 5.18.
61
To bring in Preparation of To bring out

Plastering
materials mortar materials

3) Productivity Rate of Plastering Work

The productivity rate of plastering work for exterior and interior walls in Japanese practice is
shown in Table 5.46.
Table 5.53 Productivity Rate of Plastering Work for Exterior and Interior Walls
(Per 1 m2)
Exterior wall Interior wall
Description Unit
Brush mark Trowel finish Brush mark Trowel finish
Cement kg 13.0 13.0 10.3 10.3
Fine aggregate (sand) m3 0.03 0.03 0.024 0.024
Admixture (slake lime) kg - - 0.38 0.38
Plasterer Person 0.11 0.13 0.095 0.115
The productivity rate of plastering work for floor in Japanese practice is shown in Table 5.47.
Table 5.54 Productivity Rate of Plastering Work for Floor
(Per 1 m2)
Base for
floor Mortar Base for Base for Base for
Description Unit
material of finishing mosaic tile general tile waterproof
vinyl
Cement kg 13.9 16.9 11.0 18.4 9.0
Fine aggregate (sand) m3 0.035 0.035 0.027 0.046 0.022
Plasterer Person 0.045 0.045 0.04 0.05 0.04
Ordinary worker Ditto 0.034 0.036 0.026 0.044 0.022
(5) Format of Price Schedule of Plastering Work

a) The price schedule of plastering work for exterior and interior walls per 100 m 2
Cement kg Refer to Table 5.46
Fine aggregate Sand m3 Ditto
Admixture (slake lime) Slake lime kg Ditto
Plasterer Person Ditto
Total
b) The price schedule of plastering work for floor per 100 m2
Cement kg Refer to Table 5.47
62
Fine aggregate (sand) m3 Ditto

Plasterer Person Ditto
Total
(6) Implementation of Tiling Work

The materials type which are used of ceramic tile during interior and exterior finishing work are
applied.
Regarding the material requirement, the quality of tiles is accordance with JIS A 5209 and other
detailed standard such as shape, size, division of usage, color and so forth is specified by the
special specification.
The requirement of maximum grain diameter of fine aggregate are shown in Table 5.48.
Table 5.55 Maximum Grain Diameter of Fine aggregate
Application location Maximum grain diameter
General 2.5 mm
Unit tile 1.2 mm
Decorative joint 0.6 mm
The compounding of mortar for tiling work is shown in Table 5.49.

Table 5.56 Compounding (volume ratio)
White Fine
Base Construction location Cement Admixture
cement aggregate
Proper
Adhesive sticking 1 - 1~2
quantity
Improved piling Outdoor 1 - 2~3 Ditto
Wall sticking Indoor 1 - 4~5 Ditto
Improved adhesive sticking 1 - 2~2.5 Ditto
Sticking
Outdoor 1 - 0.5~1 Ditto

Unit tile
Indoor 1 0.5~1 Ditto
Unit tile 1 - Ditto Ditto
Floor
Other 1 - Ditto Ditto
More than 3mm 1 0.5~1.5 Ditto
Decora
joint
tive
Outdoor 1 0.5~1 Ditto

Less than 3mm
Indoor 1 0.5 Ditto
The construction flow of tiling work is shown in Figure 5.19.
To bring in Preparation of To bring out

Tiling
materials mortar materials

63
3) Productivity Rate of Tiling Work

The productivity rate of tiling work for floor and wall in Japanese practice is shown in Table 5.50
and 51.
In case Japanese practice, the different productivity rates have been applied depending on the tile
type.
The base mortar shall be calculated in accordance with introduction of plastering work.
Table 5.57 Productivity Rate of Tiling Work for Floor
(Per 1 m2)
Description Unit 100 x 100 mm 150 x 150 mm
Floor tile pcs 102 45
Cement kg 3.0 2.6
Fine aggregate (Sand) m3 0.004 0.004
Tiler Person 0.22 0.19
Miscellaneous cost rate % (Material cost+ labor cost) x 13~18%
Table 5.58 Productivity Rate of Tiling Work for Exterior and Interior Walls
(Per 1 m2)
Exterior Interior
Description Unit (Improved piling sticking) (Improved piling sticking)
t=100 mm t=100 mm
Exterior tile pcs 102 102
Cement kg 5.8 5.8
Fine aggregate (Sand) m3 0.019 0.019
Tiler Person 0.25 0.25
(7) Format of Price Schedule of Tiling Work

a) The price schedule of tiling work for floor per 100 m 2
Floor tile pcs Refer to Table 5.50
Cement kg Ditto
Fine aggregate (Sand) m3 Ditto
Tiler Person Ditto
Total
b) The price schedule of tiling work for exterior and interior walls per 100 m 2
Exterior / interior tile pcs Refer to Table 5.51
Cement kg Ditto
Fine aggregate (Sand) m3 Ditto
Tiler Person Ditto
64
Total
65
Chapter 6　 Indirect Cost
6.1 Definition
Indirect Cost is not the cost of construction objects targeted like Direct Cost, but the necessary/
supporting cost for completing the objects indirectly. Therefore, what is the targets payed as
Indirect Cost basically does not remain on the site in the final stage of the project. This cost is
calculated based on the Direct Cost with some rates and paid by set.
6.2 Structure
Indirect Cost can be divided into two categories; which are Common Indirect Cost and Site
Management Cost as shown in Figure 6.1.

Figure 6.35 Structure of Indirect Cost
Definition of each cost is as follows.

 Common Indirect Cost
Common Indirect Cost is the cost for setup and preparation of construction project and
management and supporting works for main construction works. This cost includes all
necessary common costs in every project and is closely related to main construction works.
 Site Management Cost
Site Management Cost is specially the cost for construction site management mainly including
various costs of personnel (staffs and workers at site). Therefore, this cost is the cost that does
not have direct relation on construction works.
6.3 Component of Indirect Cost

(1) Common Indirect Cost
As Common Indirect Cost, the following items are listed up, which are those calculated by rate
in Table 6.1 and those calculated by pilling up in Table 6.2.
Table 6.59 Common Indirect Cost Items by Rate
Common Indirect Cost
1) Transportation Costs for Machines, Temporary Materials and Labor
66

(1) Cost of bringing construction machines in and out of the site and transportation within the
site including decomposition and assembly.
(2) Transportation cost of construction machinery by moving by itself
(3) Costs for bringing in and out of the site and transportation within the site of temporary
materials for construction use (such as frame, steel pile, steel plate, supporting materials,
scaffold materials, bent for bridges, tower for bridge erection, facilities for bridge erection
girder and so forth.)
(4) Cost of mobilization and moving within the construction site of workers
2) Preparation Work
(1) Cost for preparation and clean- up
a) Cost of preparation work for commencement
b) Daily preparation and clean- up work
c) Irregular cots for pumping, dredging sludge and unable to be determined volume from
the design
d) Final clean-up of the work
(2) Cost for general survey, ground survey, finishing stake and so forth
a) Basic ground survey before work
b) Check of drawings provided in contract documents
c) Confirmation of construction site
d) Survey works during construction
3) Safety Cost
(1) Cost of monitoring and correspondence for safety management in the whole construction site
(2) Cost of security staffs at site entrance
(3) Cost of setting, removing and maintenance of safety facilities such as mark plate, sign, safety
lighting, guard fence, temporary guardrail so forth.
(4) Cost of lighting in the case of works necessary lighting such as night work
(5) Cost of safety supplies such as helmets, safety belt, safety shoes, gloves and so forth.
(6) Cost of safety committee and other safety activities excluding training
(7) Cost of dust work preventive measures
4) Utility Cost
Basic charge fee for water and electricity used for construction works
5) Technical Management Cost
(1) Cost of all necessary tests described in Standard Quality Management Plan
(2) As build, and all soft data of necessary documents produced by construction works
(3) Cost for storage of quality record of all construction materials used
(4) Cost of quality certificate of construction materials used
(5) Cost of documents made for work schedule management
(6) Cost of survey, drawings, pictures for inspection of completion
6) Temporary Building
(1) Cost of setting, removing, and maintenance of site office and laboratory
(2) Cost of setting, removing, and maintenance of staff and workers’ dwelling house on site
(3) Cost of setting, removing, maintenance of warehouse of some goods and equipment, and
material depository
(4) Land lease fees of above (1)(2)(3)
Table 6.60 Common Indirect Cost Items by Pilling Up
67
Common Indirect Cost Items by Piling Up

1) Transportation Costs for Machines and Materials
Cost for decomposition, assembly and transportation of specialized heavy construction machines
(e.g. TBM drill machine and so forth.)
2) Cost of Facilities for Prevention Measures against Damages by Construction
(1) Cost of setting and removing, and maintenance of temporary facilities that prevent damages
and loss by Construction such as noise, vibration, dust, settlement, loss of underground water
and so forth.
(2) Cost of survey for measures against damages and losses by construction
3) Safety Cost
(1) Cost of traffic safety assurance for construction work
(2) Cost of fire safety measures in long tunnel
(3) Cost of prevention measures against dust and anoxia in underground and/or confined space
(4) Cost of life jacket and lifeboat in river and coastal construction
(5) Cost necessary for prevention of accidents from high voltage work
(6) Cost of monitoring for blasting of rock excavation in dam, tunnel and other construction
(7) Others (in the case of necessary due to site conditions)
e.g.: Security guard necessary for the site near special area such as railways or airport and so
forth.
(1) Cost of special quality control
a) Tests besides those are regulated in quality control standard and standard construction
quality management plan such as soil test and so forth.
b) In-situ tests such as geological survey, plate bearing test, boring, sounding, pile test and
so forth.
(2) Cost of special cases due to site conditions
a) Setting and removing of test equipment, measurements, and data collection for soft
ground research (settlement measurement, water table, pore water pressure and so forth.)
b) Cost of works for test embankment
The details of each item are shown in Appendix 5 and 6. Those items are basically combined with
the cost by rate and estimated together as Indirect Cost with the Site Management Cost described
below. The difference between Common Indirect Cost estimated by rate and that of estimated by
piling up is as follows. The former includes costs of items that are basically necessary besides
Direct Cost items in standard construction works and the latter includes Indirect Cost items that
are especially necessary as features of the concerned construction projects.
(2) Site Management Cost

Site Management Cost is classified in 15 categories and its contents are as shown in the following
Table 6.3. The detail of each item is described in Appendix 7. Site Management Cost is
calculated by only rate and includes the costs necessary for site management at construction site.
As classified in 15 categories, it is composed of various kinds of things; therefore, it is quite
difficult and time-consuming to estimate one by one in detail. The appropriate rate should be
applied for deciding Site Management Cost to estimate it more conveniently.
Table 6.61 Site Management Cost
1) Labor Management Cost
(1) Cost of recruitment and dissolution including the allowance of new post and dissolution
68
(2) Cost of entertainment and welfare for works

(3) Cost of work clothes and work tools
(4) Cost of Commuting
(5) Cost of medical treatment besides compulsory industrial injury insurance
2) Safety Training Cost
(1) Cost of safety activity and training
(2) Cost of meeting for safety and health education
3) Taxes and Dues, Fees, Charges as per Regulation
(1) Cost of land tax
(2) Cost of vehicle tax
(3) Cost of road usage license
4) Insurance
(1) Cost of work insurance
(2) Cost of car insurance
5) Salary of the Employee
(1) Cost of salary of the employee
6) Severance Pay
(1) Cost of the severance pay
7) Compulsory Insurances for Employees Cost
(1) Cost of compulsory insurances for employees
(2) Cost of accident insurance
8) Welfare Cost
(1) Cost of amusement for recreation
(2) Cost of rental clothes
(3) Cost of medical experience
(4) Cost of congratulatory and condolence and culture activity
(5) Cost of miscellaneous
9) Office Supplies
(1) Cost of office facilities of electronic equipment
(2) Cost of office facilities of furniture
(3) Cost of office supplies
(4) Cost of books
(5) Cost of drawings
10) Communication & Transportation Cost
(1) Cost of office telephone
(2) Cost of mobile phone
(3) Cost of mail
(4) Cost of transportation
11) Social Expenses
(1) Cost of entertainment
12) Compensation Cost
(1) Cost of compensation
13) Outsourcing Cost
(1) Overhead cost of the sub-contractor if the contractor outsources the part of construction
works to subcontractor.
14) Work Registration Cost
(1) Cost required for registration of construction performance, and various surveys
15) Miscellaneous Cost
69
(1) Cost of miscellaneous which is not belong to the above items

70
6.4 Notice of Indirect Items

Bidders can recognize common and general items of indirect cost included in Common indirect
cost and Site management cost in contract documents with relevant Circulars stipulating indirect
cost contents. However, there are the projects that have Indirect cost items calculated not by rate,
but by piling up. These items are the items necessary for special conditions in the projects such as
transportation cost of special huge construction machines, costs of special tests for seeking some
quality characteristics and special facilities for prevention measures against damages by
construction and so forth., which are shown in Appendix 6. Bidders cannot know the details of
those indirect works in projects; therefore, those contents must be notified to bidders as
information of condition of contract for cost estimation before bidding. Details shall be described
in particular specification and drawings as designated scaffoldings if necessary.
Moreover, it does not mean that indirect cost rate should be used in all project cases. In some
cases the employers designate, indirect cost estimation can be done by pilling up method not by
rate. The employers shall decide which method to use each time considering budget, construction
contents, construction period, work requirements and so forth.

(1) Present State
Rates of Indirect Cost of civil works are compared between Viet Nam and Japan in the following
Table 6.4.
Table 6.62 Differences of the Rate of Indirect Cost between Japan and Viet Nam
71
Type of Works
Civil Works Civil Works (Bridge)
Max of rate Min of rate Max of rate Min of rate
In case of VN Norm
(1) General Cost 5.5% 4.2% 5.5% 4.2%
(2) Advance Calculated Taxable Income 6% 6% 6% 6%

Cost of temporary office &houses on site for dwelling and
(3)
construction management under General Item
2% 2% 1% 1%
Cost of some works undeterminable in the design under

(4)
General Item
2% 2% 2% 2%
Rate of Indirect Cost in construction cost in VN (to Direct

(5) cost) 16.30% 14.87% 15.18% 13.77%
(5) = [1+ (1)]*[1+(2)]*[1+(3)+(4)] - 1
Rate of Indirect Cost in construction cost in VN (to Direct

cost) excluding the Enterprise's management Cost (to be
(6)
assumed accounting for 20% of General cost)
15.20% 14.03% 14.08% 12.93%
(6) = (5) - (1)*20%
In case of Japan Norm
(7) Common Indirect Cost 26.94% 4.37% 27.04% 7.05%
(8) Site Management Cost 25.89% 22.58% 27.79% 19.33%
Rate of Indirect Cost in construction cost in Japan (to Direct

(9) cost) 59.80% 27.94% 62.34% 27.74%
(9) = [1+ (7)]*[1+(8)] - 1
Comparison
Comparison of Indirect Cost between Japan and VN

(10) (excluding Head Office Cost) 3.93 1.99 4.43 2.15
(10) = (9)/(6)
Type of Works
Road Works Bridge Works
Item
Max of Min of Max of Min of
Rate Rate Rate Rate
In case of VN Norm
(1) General Cost 5.5% 4.2% 5.5% 4.2%
(2) Advance Calculated Taxable Income 6% 6% 6% 6%
Cost of temporary office &houses on site for dwelling and
(3) 2% 2% 1% 1%
construction management under General Item
Cost of some works undeterminable in the design under General
(4) 2% 2% 2% 2%
Item
Rate of Indirect Cost in construction cost in VN (to Direct cost)
(5) 16.30% 14.87% 15.18% 13.77%
(5) = [1+ (1)]*[1+(2)]*[1+(3)+(4)] - 1
Rate of Indirect Cost in construction cost in VN (to Direct cost)
excluding the Enterprise's management Cost (to be assumed
(6) 15.20% 14.03% 14.08% 12.93%
accounting for 20% of General cost)
(6) = (5) - (1)*20%
In case of Japan Norm
(7) Common Indirect Cost 26.94% 4.37% 27.04% 7.05%
(8) Site Management Cost 25.89% 22.58% 27.79% 19.33%
Rate of Indirect Cost in construction cost in Japan (to Direct cost)
(9) 59.80% 27.94% 62.34% 27.74%
(9) = [1+ (7)]*[1+(8)] - 1
Comparison
72
Comparison of Indirect Cost between Japan and VN (excluding

(10) Head Office Cost) 3.93 1.99 4.43 2.15
(10) = (9)/(6)
Source; Viet Nam : Circular No. 06/2016/TT-BXD Japan : Cost estimation Manual (MLIT)
From the comparison of the rates between Viet Nam and Japan in Indirect Cost, the big
differences are found from the results in Table 6.4. The rate of Japan is 4.43 times higher at
maximum and 1.99 times at minimum than Viet Nam. In average, it is 3.13 times higher in Japan.
Focused on each item, all rates are higher in Japan and especially, average of Site Management
Cost is 23.9 % and the highest of all rates. This rate is much bigger compared to 5.5%, which will
be almost equal to Site Management Cost in Viet Nam, Therefore, the rate of Site Management
Cost is supposed to mostly cause the difference of Indirect Cost rate in both countries.
Basis of the present values of rate of Japan is from statistical processing from huge data gained
from the surveys for long years. That is why each content rate of detail items of Indirect Cost
items is not cleared and not specifically decided. Therefore, it is difficult to compare the rate in
detailed items one by one in Indirect Cost.
The rate difference is supposed to be caused by several reasons such as due to some missing
items including Indirect Cost in Viet Nam, difference of cost of personnel and materials in both
countries and so forth. Among them, because biggest cause is the difference of Site Management
Cost rate, analysis is carried out with focusing on this Site Management Cost.
(2) Estimation method analysis for New System

In order to examine difference of Common Indirect Cost and Site Management Cost, study and
analysis are implemented by utilizing case study projects.
a) Methodology
Quality management cost and Safety management cost in Common Indirect Cost and Site
Management Cost, and Personnel cost in Site Management Cost, which are major items in
each cost category, are particularly focused on among all items in order to amend present
estimation system. Cost estimation based on standard quality and safety management methods
and virtual site personnel system as the international standard level are considered with regard
to case study projects to seek appropriate Indirect Cost rate.
b) Cost Estimation of Quality Management
The cost for construction quality management is estimated in accordance with the
requirements specified in the proposed Standard Plan for Quality Management (hereinafter
referred to as “SPQM”), which is one of the products of the project.
The cost required for quality management including necessary item and number of tests,
facilities, equipment, personnel expenses of engineers and miscellaneous expenses are
summed up. Unit costs are based on the standard prices currently used in Viet Nam. Price
quotation is also conducted as necessary. Finally the ratio of indirect cost is proposedly
leaded by comparing the cost of those indirect costs necessary for quality management with
the overall construction cost.
Quality management cost belongs to “cost of rate calculation (direct cost rate)” is basic costs
in quality management cost such as cost for quality test, employment of quality management
engineers and so forth. Quality management cost belongs to “cost of rate calculation” is
calculated based on prepared data in Table 6.5.
Table 6.63 Data to be Prepared for Rate Calculation of Quality Management Cost
Costs of Rate Calculation Items Data to Prepare
73
1) Cost of all necessary tests described in ･ List up of all necessary tests for quality management
Construction Specification (For ･ Decision of number of tests of each test necessary for
Quality Management Plan) quality management
2) Cost for the Quality Management ･ Salary of quality control engineers
Division
Herewith, the study figured out the discrepancy of quality management cost in rate
calculation for case study projects and the case applying SPQM to the project. Through the
comparison, discrepancy in ratio of quality management cost belongs to “cost of rate
calculation” of Indirect cost is identified. Based on the gap analysis in the case study, the rate
of additional necessary quality management cost for infrastructural construction project in
Viet Nam (to the direct cost) is proposed as shown in Table 6.6. Those values have to be plus
on current ones.
Table 6.64 Proposed Additional Rate of Quality Management Cost for Indirect Cost
Proposed Rate to Direct Cost Remarks
1) Cost of all necessary tests described in
0. 61% Common Indirect Cost
Construction Specification
2) Cost for the Quality Management
0.61% Site Management Cost
Division
TOTAL 1.22%
c) Cost Estimation of Safety Management

The cost for safety management is estimated in accordance with the requirements specified in
the proposed Standard Plan for Safety Management (hereinafter referred to as “SPSM”),
which is one of the products of the project.
The cost required for safety management is composed of two types of cost; Common Indirect
Cost and Site management cost as well as quality management cost.
 The cost items related to safety management in common indirect cost by the rate are shown
in Table 6.1).
 The cost items related to safety management in site management cost by rate are shown in
Table 6.7. Site management cost is specially the cost for construction site management
mainly including various costs of personnel (staffs and workers at site) for education and
training of safety.
Table 6.65 Safety Management Cost in Site Management Cost
Cost Items Contents to be Estimated Data to be Prepared
1 Safety Activity and Training
･ Cost of unit price of workers, material and so ･ Number of workers
forth. ･ Days and time schedule for
･ If necessary, cost of safety experts from outside safety activity and training
organization to be calculated.
2 Cost of Meeting for Safety and Health Education
･ Cost of unit price of workers, material and so ･ Number of workers
forth. ･ Days and time schedule for
･ If necessary, cost of safety management safety activity and training
engineer to be calculated.
74
Herewith, the study figured out the discrepancy of safety management cost in rate calculation
for case study projects and the case applying SPSM to the project. Through the comparison,
discrepancy in ratio of quality management cost belongs to “cost of rate calculation” of
Indirect cost is identified. Based on the gap analysis in the case study, the rate of additional
necessary safety management cost for infrastructure construction project in Viet Nam (to the
direct cost) is proposed as shown in Table 6.8. Those values also have to be plus on current
ones as well as Quality management cost rate.
Table 6.66 Proposed Additional Rate of Safety Management Cost for Indirect Cost
Proposed Rate to Direct Cost Remarks
1) Cost of all necessary items as Common Common Indirect
1.08%
Indirect Cost by rate Cost
2) Cost for the training and education for Site Management
0.19%
workers at site Cost
TOTAL 1.27%
d) Personnel Cost in Site Management Cost

To seek its appropriate rate, virtual site personnel system based on the international standard
level is created with regard to case study projects and then compared to actual case projects.
Necessary number of staffs at least and rational organizational system on the site is
established. (Basis is in Appendix 8) Then, after comparison analysis between two cases, the
difference is identified and the results can lead appropriate setting up of rate of Site
Management Cost. For example, in case of Appendix 8, 8.2% is ideal rate to be
recommended. 7.3% is the recommended value calculated in another case in case study
projects.
e) Result and Suggestion for New Estimation System
The result is shown in The Table 6.9.
Table 6.67 Results of Comparison Analysis
In Case of Current VN Norm Case Study
No. Description Norm Remark Rate Remark
(1) Cost of some works 2.0% 2.0% + 0.61%+ Corresponding to
undeterminable in 1.08% = 3.69% Common
the design under Indirect Cost
General Item
(2) Cost of temporary 1.0% or 2.0% 1.0% for 1.0% or 2.0%
office & houses on projects
site for dwelling and besides road
construction 2.0% for road
management under project
General Item
(3) General Cost 5.5%(Max) ―
Site Management 4.4% 5.5%-1.1% 0.61% + 0.19% + Corresponding to
Cost (8.20%+7.30%) / Site Management
2 = 8.55% Cost
Overhead cost 1.1% 20% x 0.055 ―
75
As shown in the table, Both Common Indirect Cost and Site Management Cost rates should
be much increased from current figures in present Norm. Common Indirect Cost is increased
by 1.69% and Site Management Cost is 8.55% and much bigger than 4.4% compared to
current Norm case in accordance with analysis results. It is recognized that personnel cost at
the site, which has the biggest share in site cost, is much more necessary than current case
from those analyses. Those rates are strongly recommended with this study’s results.
76
Chapter 7　 Overhead
7.1 Definition
Overhead is the cost necessary to continue operation of the company in charge of construction
project and is referred to as head and branch offices expenses and profit. Therefore, it includes
actual expenses of head and branch offices and profit of the company; herewith Overhead is
divided into two big categories such as Head and branch offices expenses and Profit.
7.2 Component
(1) Head and Branch Offices Expenses
Head and branch offices expenses are composed of the following 21 components.
Table 7.68 Component of Head and Branch Offices Expenses
Component
a) Executive salaries
b) Employee salaries
c) Severance pay
d) Legal welfare expenses
e) Welfare expenses
f) Maintenance expenses of offices and facilities
g) Office supplies costs
h) Communication transportation expenses
i) Power, water utility costs
j) Research and Development expenses (R&D)
k) Advertising expenses
l) Social expenses
m) Donation
n) Rent expenses of land, office and accommodation
o) Depreciation and amortization
p) Experimental research expenses amortization
q) Development costs amortization
r) Taxes and dues, fees ,charges as per regulation
s) Casualty insurance
t) Contract guaranty costs
u) Miscellaneous expenses
(2) Profit
Profit includes the following components. The extra money will be accumulated as Retained
earnings and prepared for new businesses.
Table 7.69 Component of Profit
Component
a) Various taxes (Corporate tax, Prefectural tax and so forth.)
b) Shareholder dividend
c) Bonuses for executives
d) Retained earnings
e) Others
77

(1) Present State
According to Circular No. 06/2016/TT-BXD, Overhead is assumed to be the total cost of
Enterprise’s Management Cost and Advance Calculated Taxable Income. Enterprise’s
Management Cost is 20% of General Cost, which is 5.5% of Direct Cost (maximum value);
therefore, Enterprise’s Management Cost will be 20% x 0.055=1.1%. As a result, Overhead will
be 1.1% + 6 x (1+5.5%) = 7.43 %. of Direct Cost in existing cost estimation system for
construction project in Viet Nam. It is clarified that some items to be included in Overhead lack
in present Vietnamese Overhead cost items from examination of the standard items to be included
in Overhead shown in Table 7.1 and 2.
Furthermore, some Asian foreign countries’ Overhead rate is shown in Table 7.3. In Japan,
Overhead rate of public project is officially determined, which is between 7.22% - 14.38% to Net
construction cost. It depends on the scale of the project’s budget. The rate of each country in the
table is the average figures of some large contractors in each county.
Table 7.70 Foreign Countries’ Overhead Rate
Japan Philippine Thai Singapore Malaysia Hong Kong
7.22%-14.38% 10.0-18.0% 8.5-9.5% 5.0-8.0% 6.5-9.5% 11.5-13.5%
(Hearing data besides Japan)
Overhead rate is generally calculated by the following formula.
(Net Sales) – (Costs of Goods sold)

Overhead rate (%) = ×100
Net Sales
Table 7.4 shows the overhead rate of some major Vietnamese contractors. Those figures are from
financial statement of those companies.
Table 7.71 Major Construction Company’s Overhead Rate in Viet Nam
Thăng Long–
Company Cienco4–JSC. Cienco1–JSC. Cienco6–JSC.
JSC.
Sales
(Bill. VND) 4,149 5,822 1,458 1,669
Overhead
(%) 7.3% 6.2% 7.0% 10.9%
(2014)
From those actual facts, it is recognized that Overhead rates in Viet Nam distribute between low
one 6.2% to high one 10.9%. Average rate is 7.8%. Further appropriate value shall be determined
by the suggestion in next Chapter.
78
(2) Estimation Method Suggested

1) Method by Data Collection
Overhead rate is generally calculated by following formula.
(Contract amount ) – (Net construction cost)

Overhead rate (%) = ×100
Contract amount
Based on this formula, Overhead rates of many construction projects in the past are calculated
and average rate is extracted. Then, with regression analysis, appropriate Overhead rate in Viet
Nam is determined with referring rates of other Asian countries.
2) Practice of Japan
In Japan, the formula to decide Overhead rate is defined based on statistical analysis with usage
of the data of construction works for long period. This is just applicable to the projects in Japan;
however, this will be applicable to another country including Viet Nam as the maximum value
level because it is formulated with taking account into high quality and long sustainability of the
targeted objects. The rate calculated with this formula will become one of the target value of
Overhead rate. Therefore, this formula is also recommended in cost estimation methodology in
Viet Nam.
Gp = - 4.63586 x log (Cp) + 51.34242

Gp: Rate of Overhead
Cp: Net construction cost
Use this formula based on the following conditions about rate of advanced payment.
a) In case of advance payment rate is less than 35% use the following correction factors.
Advance payment rate 0% ~ 5% 5% ~ 15% 15% ~25% 25% ~35%
Correction coefficient 1.05 1.04 1.03 1.01
b) In case of more than 35% of advance payment rate

Cp Less than 50 thousand From 50 thousand USD More than 30million
USD to 30 million USD USD
Overhead rate Calculate by formula
20.29 % above 7.41 %
79
Chapter 8　 Conclusion and Recommendations
8.1 Direct Cost Estimation

It is recommended that the actual condition surveys are implemented in order to estimate
appropriately and to match the current transaction of construction market. The cost estimation
accuracy shall be improved with the unit price which are reflected in the construction market
multiplied by productivity rate established through the actual condition survey.
The cost estimation stands for total estimating work for target construction cost of project. It is
calculated assuming average construction method by average contractor and using the average
market price of material, labor and machinery.
The target construction cost of project should be calculated appropriately in consideration of the
real price of transaction, current condition of demand-supply, difficulty of implementation,
quantities, long-short of construction period.
Therefore, four types of actual condition survey as below are recommended to make the
appropriate cost estimation in this chapter. The explanation of these surveys are described in the
item 8.2 Recommendation for Improvement of Direct Cost Estimation. The actual condition
surveys for unit price of materials and for unit price of labors are being conducted by Department
of Construction in every provinces(DOCs). The improvement plan in this chapter indicates the
DOCs as the implementing agency in accordance with the current system. However, the
verification of surveys shall be done by Ministry of Construction. The actual condition surveys
for unit price of machineries and for productivity rate have not been conducted, therefore, it is
recommended that the independent organization under MOC shall be established to conduct these
surveys.
Regarding the point of attention, the unit price of material, labor machinery and productivity rate
shall be set up based on the data obtained by the actual condition survey, thus, it is important to
secure the reliability and enough samples of data.
Therefore, it is recommended that the MOC issues the circular notice to implement and cooperate
the following actual condition surveys to the construction industries.
# Name Implementing Agency Contents
1 Actual Condition Survey Department of Transaction quantity, transaction
for Unit Price of Materials Construction price between supplier and
contractor, delivery condition,
settlement condition and so forth.
2 Actual Condition Survey Department of Current status of wage and current
for Unit Price of Labors Construction status of social insurance
participation from wage ledger
3 Actual Condition Survey Independent organization Purchase record, operation record,
for Unit Price of maintenance and repair record,
Machineries management record and
disposition record
4 Actual Condition Survey Independent organization Outline of the Project, Schematic
for Productivity Rate diagram of construction work, Flow
chart, Construction machinery
states, Materials , Construction work
state and pictures of working states
80
8.2 Recommendations for Improvement of Direct Cost Estimation

(1) Summary
The summary of recommendation in the Chapter 4 and 5 is shown in Table 8.1.
Table 8.72 Summary of Recommendation in Chapter 4 and 5
Item Material Labor Machinery
Price  Material prices shall be  Kinds of labor  Prime cost shall be surveyed,
surveyed and occupation are based on new machinery (not used
determined in the recommended to or old one).
market data provide by increase by referring  Duration of depreciation shall be
DOCs. kinds in Japan. defined and determined for each
 Quantity shall be  All kinds of unit price machinery.
considered for prices in of labor shall be  Annual operation hours, days and
major materials surveyed in the market days of service shall be surveyed
(cement, ready-mixed based on wage ledger. to the contractors & rental
concrete, reinforced bar companies and determined based
and so forth.) on actual practice on site.
Productivity  Instead of selecting norm tables, various options shall be provided for selecting applicable
ones.
 Wastage for materials shall be provided in various work conditions.
 Instead of minor activities & material to calculate, those costs shall be summed up.
(2) Actual Condition Survey for Unit Price of Materials

Discussed here is the actual condition survey for unit price of materials. Actually, the unit price
of material shall be changed depending on the suppliers, the regions, relationship between buyer
and seller and so forth. even the same material item. Thus, the most appropriate price shall be set
up through the market price for cost estimation by this survey.
1) Current Condition
 The Provincial People Committee shall assign the Department of Construction (DOCs) to
coordinate with the relevant agencies to determine and announce construction material prices.
 The construction material prices shall be announced periodically per month and quarter.
 Department of construction in each province carry out the actual condition survey for unit price
of material currently.
 The DOCs shall review and compile the public quotations of construction materials for
issuance together with the DOFs. Generally, DOCs and DOF shall together quarterly issue the
public quotations of construction materials.
2) Current Issue
 There is no concept of “the price for large consumers” and “the price for small consumers”.
 The survey stage is unclear to check the unit price of material. The price shall be changed from
which stage to buy a material.
 There is no third party to verify the unit price of material after the survey.
3) Improvement Plan
The appropriate unit price of material setting is the most important thing in the cost estimation of
material cost. The unit price shall be a market price at a bidding period. The unit price of material
is composed of purchase cost, necessary cost to purchase such as administrative fee and the
transportation cost from a purchase place to a construction site. The outline of survey is shown in
Table 8.2.
81
Table 8.73 Outline of Survey for Unit Price of Materials

Item Description
Implementing agency Department of Construction
Persons to be surveyed Manufactures, trading companies, wholesale merchants, special shops and so
forth.
Survey schedule The survey schedule should be changed depending on a survey material.
Survey location Every province / district
Items to be surveyed Construction materials such as steels, reinforced bar, cement, ready-mixed
concrete, aggregates, asphalt mixture, precast products and so forth.
Contents of survey Transaction quantity, transaction price between supplier and contractor, delivery
condition, settlement condition and so forth.
a) Survey flow
The survey flow is shown in Figure 8.1.
Preparation
Preparation of survey plan
stage
Implementation
Implementing the survey
stage
Survey result
Collection of survey result
stage
Arrangement and review of survey result
Setting of unit material price
Decision of price
Verification
stage
Decision of unit material price

Figure 8.36 Survey Flow for Unit Price of Materials
b) Guideline of survey
There are 3 types of survey method such as interview survey, survey by telephone and survey
by email / fax. The interview survey shall be implemented mainly to survey the unit price of
materials.
This survey grasps transaction conditions in the construction market. However, the
transaction price between a seller and a buyer is not opened to a public normally. Therefore, it
is difficult to grasp current transaction condition by surveying with email or some
communications means only.
(i) Preparation stage
Selection of suppliers
The suppliers which have target materials of relatively large amount of handling and high
reliability are selected. In principle, the suppliers should be selected at least three or more.
Survey stage
There are some distribution channels of materials in the market. The image of distribution
channel is shown in Figure 8.2. The survey stage should be checked on the distribution
channel and mentioned with publishing price such as stage I, II and III based on Figure
8.2. The unit price of material shall be changed depending on the survey stage.
82
Special shops
Manufactures wholesale merchants III Contractors
Local special shops
II

Figure 8.37 Distribution Channel
(ii) Implementation stage

It is recommended that the materials should be categorized in order to divide the survey
method and frequency. The example category of materials is shown in Table 8.3. The
survey quality will be simplified by reducing the frequency of the material with a low use
frequency and / or having no fluctuation in price.
Table 8.74 Example Category of Materials
Category Survey method and frequency Materials to be surveyed Representative example
Category A The survey is carried out every month. The material with a high Steels, cements, ready-
The basic surveys are survey by use frequency and / or mixed concrete,
interview and by telephone. having a wide aggregates, concrete mold
fluctuation in price plywood, asphalt mixture
Category B The survey is carried out every month. The material with a not Scaffolding materials,
The basic surveys are survey by high use frequency and / form support metals,
telephone and by email or fax in or having a narrow protection fences for road
written. fluctuation in price facility, bricks
Category C The survey is carried out 2 times per The material with a low Repairing agent for
year. use frequency and / or concrete, expansion
The basic surveys are survey by having no fluctuation in device of bridge,
telephone and by email or fax in price
written.
(iii) Survey result stage

Delivery location and condition
In principle, the publishing price should include the transportation cost to a site and
unloading cost at a site. Depending on the quantity of materials, the transportation cost also
shall be changed. The dividing area is important to decide the transportation cost.
For other materials which do not fit the conditions mentioned above, however, the
condition should be mentioned with publishing price.
Transaction quantity
The transaction quantity is one of the criteria to set the price. The material price depends on
a scale and trust of consumer or total transaction quantity in a year or month. The standard
transaction quantity should be decided for every material. If there are 2 ranges of
transaction quantities, the unit price shall be considered for 2 ranges.
(iv) Decision of price stage
Verification of unit material price
It is recommended that the publishing price should be reviewed and verified by MOC.
83
Deciding of unit material price

The importance of verification is to confirm by third organization.
The publishing price should be the most frequently appearing price in the result of survey.
However, in case the sample numbers are quite insufficient due to the demand of the
market, and / or special material, the publishing price shall be decided based on the demand
and supply of material, trend of market, information from manufactures and so forth.
A material price is changed depending on the survey location and seller such as a
manufacture, trading company, wholesale merchant and special store. Additionally, the
transaction quantity affects to the material price.
Considering the aspect of the construction market condition, the publishing price shall be
applied “the price for large consumers” for enterprise business. However, the publishing
price of some materials shall be considered “the price for small consumers” for personal
use depending on a material type.
c) Survey form
The survey form is shown in Appendix 9.
(3) Actual Condition Survey for Unit Price of Labors

Discussed here is the actual condition survey for unit price of labors. Actually, the unit price of
labor shall be changed depending on the occupations. Thus, the most appropriate price shall be
set up for all occupations through the actual construction condition for cost estimation by this
survey.
 The construction labor unit prices shall be determined and announced based on the guidance of
the MOC.
 DOCs cooperating with relevant Departments of central-affiliated provinces and cities shall
prepare their survey forms for collecting the salaries of labors.
 The DOCs together with the relevant departments shall review and process the data and
compile a statement on unit prices of the labors and shall submit the statement to PPCs for
approval.
 PPCs shall issue the correspondence on the unit prices of labors unit prices. Generally, the time
for the issuance is annually.
2) Current Issue
 The actual labor salary is investigated by the survey. However, that salary is not reflected to the
actual construction condition because the labor occupations have been compiled to one
occupation in the current labor system.
 The temporary salary such as bonus, additional payment and so forth. is not included in unit
price of labor.
 The unit price of labor is not issued by each occupation.
3) Improvement Plan
The target construction cost of project should be calculated appropriately in consideration of the
real price of transaction as well as the public work unit labor price. Therefore, the Actual
Condition Survey for Unit Price of Labors should be conducted to set the real price of unit labor
once a year.
The outline of survey is shown in Table 8.4.
84
Table 8.75 Outline of Survey for Unit Price of Labors

Item Description
Implementing agency Department of Construction
Persons to be surveyed Main contractors of selected project and its directly workers
Survey schedule The survey shall be conducted one time per one year. The survey month should
be decided.
Survey location Every province / district
Survey Item The salary of all labors which mention in Table 4.3 of Chapter 4 including the
labor from sub-contractor who are engaged in the target project during the survey
period.
Contents of survey Current status of wage and current status of social insurance participation from
wage ledger
a) Survey Flow
Before the commencement of the survey, the target project and survey month should be
decided from the public construction works. Depending on the construction works, its
working is not implemented due to the weather condition and so forth. Therefore, the more
appropriate month which is implemented the survey should be considered.
Preparation
Selection of target project
stage
Implementation of actual survey Implementation

stage
Posting a wage ledger in the survey
form
Venue survey
Collection of survey result Survey result

stage
Setting of unit labor price
Verification Decision of price

stage
Decision of unit labor price

Figure 8.38 Survey Flow for Unit Price of Labors
b) Guideline of Survey
This item shows procedure of the actual condition survey for unit labor based on Japanese
system. It shall be adjusted to the Viet Nam condition after the pilot survey.
The venue survey shall be implemented mainly to survey an unit price of labor. The
contractors shall fill in the survey form before the venue survey.
Selection of the contractors
The target project shall be selected by DOC. The main contractor which has taken the
selected project shall correspond this survey.
Flow of survey request
Every project owner request the survey to main contractors. They shall not request the
survey to sub-contractors directly. Main contractors shall request the survey to sub-
85
contractors.
Project Owner
Request for cooperation of survey and participation of

venue survey
Main Contractor

venue survey
Sub-contractor

venue survey
Second Sub-contractor One master

Figure 8.39 Flow of Survey Request

Classification of Occupations
The definition of the occupation and working content is decided for cost estimation. It is
very important to classify the labor level and skills based on the new occupation system.
Actually, labors who work at a site are not sometimes classified and identified based on the
new occupation system. Some labors engage more than two working items. Therefore,
there are some differences between the definition and current condition. However, this
classification shall be affected the survey result. The important point to classify is shown in
the following.
i) Classification of the foreman
 A worker who is engaged only the working such as instruction, guidance and director
is classified in foreman.
 A worker who is engaged the working requiring skill and the instruction and
guidance work is classified in foreman.
ii) Classification of skilled worker
 A worker who is engaged the working requiring skill only.
iii) An apprentice or helper is not applied for this survey
iv) Classification of similar occupation
 Please refer the Appendix 3.
v) Classification of labors who have several occupations
 A labor who works several occupations in survey month, his / her occupation should
be decided one main occupation based on working content in that month.
Period of wage calculation
Depending on companies, a fixed day for closing the wage account is different. Therefore,
the period of wage calculation should be decided after the survey month is fixed. The
example period of wage calculation is shown in Table 8.5.
Table 8.76 Example Period of Wage Calculation
86
a fixed day for a fixed day for

period of wage period of wage
closing the wage closing the wage
calculation calculation
account account
1st October 2nd Sep. to 1st Oct. 17th October 18th Sep . to 17th Oct.
2nd October 3rd Sep. to 2nd Oct. 18th October 19th Sep . to 18th Oct.
3rd October 4th Sep. to 3rd Oct. 19th October 20th Sep . to 19th Oct.
4th October 5th Sep. to 4th Oct. 20th October 21st Sep. to 20th Oct.
5th October 6th Sep. to 5th Oct. 21st October 22nd Sep. to 21st Oct.
6th October 7th Sep. to 6th Oct. 22nd October 23rd Sep. to 22nd Oct.
7th October 8th Sep. to 7th Oct. 23rd October 24th Sep . to 23rd Oct.
8th October 9th Sep. to 8th Oct. 24th October 25th Sep . to 24th Oct.
11th October 12th Sep. to11th Oct. 27th October 28th Sep . to 27th Oct.
14th October 15th Sep. to 14th Oct. 30th October 1st Oct. to 30th Oct.
15th October 16th Sep. to 15th Oct. 31st October 1st Oct. to 31st Oct.
16th October 17th Sep. to 16th Oct.

DOCs shall visit to a construction site in order to confirm whether the site condition
reflects to the entry contents in the survey form before implementing the venue survey. The
survey contents at a construction site are to confirm the labor condition, interview to main
contractors and sub-contractor, working contents, daily work report and labor number.
Filling the survey form
Main contractors request the posting a wage ledger in the survey form to sub-contractors. If
necessary, main contractors should explain how to post its data to them. The overhead cost
should be considered in the unit price of labor if the sub-contractor filled in a form.
Implementing the venue survey
The surveyor from DOCs shall check and review the survey form to every main contractor
and interview to them. The representative at a site and the company’s accounting should be
attended to the venue survey from them. The required documents in the venue survey are
shown in Table 8.6.
Table 8.77 Required Documents in the Venue Survey
Document Name Description
1 Employment contract The contract mentions that working day, working hour, holiday and
wage.
2 Breakdown of each allowance Person who receives allowance only
3 Survey form of extra payment Person who receives an extra payment including pension over the
last year
4 Wage ledger The ledger which mentions social insurance
5 Work daily report The document which mentions working content
6 Working record The document which mentions working, working time and so forth.
7 Construction organization chart For main contractors

Submission of the survey form and other documents
The submission of the survey form shall be at the venue survey. The submission documents
are shown in Table 8.7. The survey forms and relevant documents shall be submitted.
Table 8.78 Submission Documents
87
Document Name Description

1 Survey form Required
2 Breakdown of each allowance Person who receives allowance only
3 Survey form of extra payment Person who receives an extra payment including pension over the
last year
4 Supplemental survey form Required
(iv) Setting price stage

Setting of labor unit price should be implemented by DOC. After setting its price, the
verification and decision of price are carried out by MOC.
c) Survey form
(4) Actual Condition Survey for Unit Price of Machineries

Discussed here is the actual condition survey for unit price of machineries. Actually, the unit
price of machineries shall be changed depending on the machinery type and specification. Thus,
the most appropriate price shall be set up through grasping the actual usage of machineries by
contractors for cost estimation by this survey.
 The unit shift prices of construction machinery and equipment shall be determined and
announced on the basis of guidance of Ministry of Construction and shall be corresponded with
the local market price level at the time of announcement.
2) Current Issue
 Most of the basic data for the determination (such as prime costs, depreciation rates,
consumption rates, and so forth.) is outdated and have not been updated for a very long time.
3) Improvement Plan
The object of this survey is to grasp the current condition of usage, management and disposition
of using the machinery, equipment of construction works and to collect the basic documents.
Based on this data, the machinery ownership cost shall be calculated.
Construction machineries are included in such as excavators, bulldozers, asphalt finishers and so
forth. exclusive the small equipment such as vibrators and so forth.
Table 8.79 Outline of Survey for Unit Price of Machineries
Item Description
Implementing agency Independent organization
Persons to be surveyed Contractors which have construction machinery
Survey schedule The survey shall be conducted one time per two years.
Survey location Every province
Survey Item Machineries which are owned by construction contractor are surveyed. A
rental machinery is not covered by this survey.
Contents of survey Purchase record, operation record, maintenance and repair record,
management record and disposition record
a) Survey Flow
88
The survey flow is shown in Figure 8.5. The implementation of survey includes the survey
by interview, site survey and survey by telephone and by email or fax in written.
Preparation
stage
Implementation
Implementation of survey
stage
Implementation of survey at a site
Survey result
Collection of survey result stage
Setting of unit machinery price
Decision of price
Verification stage
Decision of unit machinery price

Figure 8.40 Survey Flow for Unit Price of Machineries
b) Guideline of Survey
Before implementing the actual condition survey for unit price of machineries, it is
recommended that independent organization should be established.
In the next step, information of contractors and suppliers shall be collected and listed up. This
actual condition survey is done first time in Viet Nam and an independent organization should
have a seminar to explain to contractors and supplies to disseminate it.
Selection of the contractors
The target contractors which are reliable and have good results shall be selected by
independent organization. The criteria of contractor is to retain more than 15 construction
machineries which have been operated during the target survey period.
The interview survey shall be carried out by independent organization. The form of survey
shall be sent to the selected contractors and shall be filled in by them. After the completion
of filling in form, the interview survey shall be carried out based on the daily working
report.
Summary of Survey Items
In order to fill in these survey items, the daily working report is necessary and important
document. Based on the result of the survey, the standard and appropriate value should be
calculated by analyzing.
For example, the loading of machinery varies depending on material types and combination
with other machinery. The difficulty of construction works, space of the work yard,
weather condition, a degree of new and old of its machinery, quality of operation and
management, ability of operation have an impact on the machinery capacity.
Table 8.80 Survey Items for Unit Price of Machineries
89
Items Description
Usage condition
1 Summary of holding and usage Capacity, weigh and specification and so forth.
of machinery
2 Purchase record Date, method, price of purchase, division of new or old and accessory
3 Operation record Number of years in use, number of holding, main operation location,
annual operation hour, annual operation day, annual days of service
4 Maintenance and repair record Annual maintenance and repair cost, cumulated maintenance and
repair cost
Management condition
1 Management record Location of machinery, storage facility cost, management cost, utility
cost (water, gas, electricity and so forth., taxes, insurances and
number of holding machinery
Disposition record
1 Summary of disposition of Capacity, weigh and specification and so forth.
machinery
2 Purchase record Date and price of purchase
3 Disposition record Date, method and price of disposition, objective of disposition
4 Maintenance and repair record Annual maintenance and repair cost, cumulated maintenance and
repair cost

Summary of holding and usage of machinery
i) Capacity
Capacity indicates the output of the motor or electric motor installed in machinery.
In case the capacity is different depending on manufactures even the same class of
machinery, output is calculated with the weight average value based on the total survey
number of the same machineries. The output is a basic material to calculate the fuel
consumption.
ii) Weight
Weight indicate the machinery weight including the standard accessory and the state of
the machinery ready for the start of working. In case the weigh is different depending
on manufactures even the same class of machinery, the weight is calculated with the
weight average value based on the total survey number of the same machineries. The
weight is a basic material to calculate the transportation cost, transportation method
and so forth.
iii) Specification
Specification indicate the machinery feature except the capacity and weight items. The
item differs depending on the machinery.
Prime Cost
Prime cost shall be set based on sale price / purchase cost exclusive the consumption tax. A
machinery is set with standard accessory. This price should be determined based on a new
machinery price. This cost is accounted for a large proportion to determine the machinery
ownership cost.
Number of years in use
Standard life years in use is the years which a machinery can be used to realize sufficient
efficiency and function based on basic usage and maintenance. It depends on usage
90
condition at a site, operation condition and so forth. It is the different from the durable
years.
Operation hour, operation day and days of service
Operation hour, operation day and days of service are surveyed based on the daily working
report which is prepared by contractors. The standard value should be decided based on the
result of survey after analyzation. These data has large variations depending on the total
construction volume in the contract, operation management as well as construction works.
Maintenance and repair cost rate
The maintenance and repair cost rate indicates the proportion of maintenance and repair
cost to the prime cost. This cost does not includes the consumable parts. The maintenance
cost is the cost for prevention of the out of order, periodic inspection to recovery of the
deterioration of performance. This cost is relatively large scale repair.
The repair cost is the cost caused by drive mistakes, an accident during the operating and so
forth. This cost is relatively small scale repair which can be repaired at a site.
Management cost rate
The management cost rate indicates the proportion of annual necessary management cost to
the prime cost. This cost is the necessary management cost to have a machinery. The
management cost includes the insurance, tax and storage cost.
(iv) Decision of price stage
Setting of machinery unit price should be implemented by an independent organization.
After setting its price, the verification and decision of price are carried out by MOC.
c) Survey form
(5) Actual Condition Survey for Productivity Rate

Discussed here is the actual condition survey for productivity rate. The productivity rate shall be
changed by the new technology, tools, machineries and so forth. Thus, the most appropriate rate
shall be set up through the actual construction condition at the site for cost estimation by this
survey.
 Almost the whole system of construction norm has not been updated for a very long time.
 A few number of productivities are established newly.
2) Current Issue
 The productivity rate is not reflected to the current construction condition.
3) Improvement Plan
Productivity rate is a tool to calculate the target construction price of project. The productivity
rate is set up based on the average method by classified construction work.
The construction forms are constantly continuing to change due to the social ambient,
construction machinery, new technology, new construction method and so forth. This survey
grasps these variations of construction forms and reasons of variations.
There are many working items of construction works in current condition in Viet Nam. This
survey needs time to collect the data and analyze the survey result. Therefore, pilot survey for
main construction works is necessary for 1st step. After complete the pilot survey, it is easy to
apply this survey for other construction works items.
91

Table 8.81 Outline of Survey for Productivity Rate
Item Description
Implementing agency Independent organization
Persons to be surveyed Main contractors of selected project
Survey schedule The survey shall be conducted one time per one year.
Survey location Every province
Survey Item The materials, labors and machineries which are put into the said working
Contents of survey Outline of the Project, Schematic diagram of construction work, Flow chart,
Construction machinery states, Materials , Construction work state and pictures
of working states
a) Survey flow
The survey flow is shown Figure 8.6.
Preparation
stage
Implementation
Implementation of survey
stage
Survey result
Collection of survey result
stage
Analysis of survey result
Decision of
Review conference and opinion collection
productivity rate
stage
Amendment / decision of productivity rate

Figure 8.41 Survey Flow for Productivity Rate
b) Guideline of survey
The actual condition survey for productivity rate shall be conducted one time per year.
However, all construction work items are not able to be investigated for 1 time. It is
recommended that the plan to carry out the actual condition survey for productivity rate
should be prepared.
Selection of the contractor
The target project shall be selected by an independent organization. The main contractor
which has taken the selected project shall correspond this survey. the criteria of the project
shall be selected a project which includes the target construction work to obtain the said
productivity rate.
There are two surveys for productivity rate. The survey form shall be sent to the selected
contractors by independent organization. Additionally, the site visit survey shall be
implemented in order to confirm whether the site condition reflects to the entry contents in
the survey form.
92
Type of actual condition survey for productivity rate

There are 2 classes of actual condition survey for productivity rate about; actual condition
survey of productivity rate for setting and for monitoring.
i) Actual condition survey of productivity rate for setting
 The all working day of construction work is investigated. After the analysis of the
survey result, the productivity rate shall be set.
ii) Actual condition survey of productivity rate for monitoring
 The typical working day is decided to investigate the productivity rate during the
construction period. After the analysis of the survey result, the construction form is
changed, the actual condition survey of productivity rate for setting shall be carried
out.
Component of survey form
The list of survey forms is shown in the following. These survey forms shall be filled in by
a main contractor.
i) Form- No.1 Outline of the Project
ii) Form- No.2 Schematic diagram of construction work
iii) Form- No.3 Flow chart
iv) Form- No.4 Construction work states
v) Form- No.5 Materials
vi) Form- No.6 Construction machinery
vii) Form- No.7 Pictures of working states
The survey form in detail is shown in the following. The survey forms are shown in
Appendix 12.
i) Form- No.1 Outline of the Project
This survey form indicates the outline of the project.
Table 8.82 Items of Outline of the Project
Item Description
1 Location Province and district name
2 Project name Same name of the construction contract
3 Construction division Selection of corresponding construction work
4 Working system Working system of labor and average working hour per week
5 Construction period Beginning to ending of the project
6 Survey period Beginning to ending of the survey
7 Outline of the project Construction condition, scale of the project and so forth.
8 Obstacles at a site The effect or not effect to construction work by the obstacles
9 Contact Contact person of PO and a main contractor
ii) Form- No.2 Schematic diagram of construction work

In order to grasp the outline of construction work shall be drawn in this form.
iii) Form- No.3 Flow chart
In order to grasp the whole construction work flow shall be filled in this form.
Table 8.83 Items of Flow Chart
Item Description
93
1 Working contents Checking the working day by each working content

2 Labor number The number of labor who engaged that working
iv) Form- No.4 Construction work states

This survey form indicates the construction work state. This form should be prepared
by each working item of form- No.3.
Table 8.84 Items of Construction Work States
Item Description
1 Operation number Filling in the corresponding number of working item in the form-3 Flow chart.
2 Construction condition The information of working item shall be filled in.
3 Working contents
4 Productivity Regarding the material, usage volume shall be filled in.
Regarding the labor, total working hour and quantity shall be filled in
Regarding the machinery, total operation hour shall be filled in.
5 Material The material number and material name shall be selected in the form-5.
6 Labor The number of working hour by each occupation shall be filled in.
7 Machinery The machinery number and machinery name shall be selected in the form-6.
8 Construction progress When the construction progress is confirmed, the construction volume shall be
filled in.
v) Form- No.5 Materials

This survey form indicates the used materials items.
Table 8.85 Items of Materials
Item Description
1 Operation number Filling in the corresponding number of working item in the form-3 Flow chart.
2 Material name The information of material shall be filled in.
3 Manufacture name
4 Specification
5 Design volume Necessary theoretical volume based on the drawing excluding the wastage volume
6 Usage Actual usage including wastage volume
7 Unit price Purchase price of materials
vi) Form- No.6 Construction machinery

This survey form indicates the used machinery.
Table 8.86 Items of Construction Machineries
Item Description
1 Machinery name The information of machinery shall be filled in.
2 Specification
3 Manufacture name and type
4 Holding division Selection of corresponding holding type
5 Total number of operation hour Total operation hour at a site
6 Operation day Days which a machinery has been used at a site
7 Days of service Days which a machinery has been existed at a site
8 Fuel consumption(L) Total fuel consumption at a site
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Item Description
9 Wear parts name If the wear parts are replaced, its name and quantity are filled
10 Wear parts quantity in.
i) Form- No.7 Pictures of working states

The pictures of each working item shall be pasted in this form.
(i) Decision of productivity rate stage
Setting of productivity rate should be implemented by an independent organization. After
setting its rate, review conference and opinion collection are carried out by MOC and
relevant organization. Regression analysis shall be applied to set the productivity rate. The
decision of productivity rate is carried out by MOC.
c) Survey form
8.3 Indirect Cost Estimation

Through Study of comparison analysis with regard to indirect cost estimation system of public
construction works between Viet Nam and international standard including Japan, it is identified
that Indirect cost of Viet Nam is rather less than international level. Low cost of public works
may cause construction accidents and poor quality of construction objects. Actually, Viet Nam
has recent tendency of increase of labor accidents in construction fields according to survey data
of Ministry of Labor, Invalids and Social Affairs in 2014. Moreover, many problems of
construction quality have occurred in every construction sector in Viet Nam. It is supposed to be
that those facts may be due to cost estimation of low cost of public works.
From this point of view, Indirect Cost including Overhead should be increased more than existing
amount in Viet Nam. Therefore, it is strongly recommended that current cost estimation system
of Indirect Cost be improved to be appropriate as well as international standard. Table 8.16
shows current estimation method of Indirect Cost in Viet Nam and suggested rate of Indirect Cost
from the results of the study.
95
Table 8.87 Recommended Indirect Cost Rate of Construction Project in Viet Nam
In case of current VN Norm Recommended
Description Norm Remark Description Rate Remark
General Cost 5.5% Max value General Cost 5.5%+β
Advance Calculated 6.0% Advance 6.0%+γ
Taxable Income Calculated
Taxable Income
Cost of temporary 1.0 or 2.0% 1.0% for projects Cost of temporary 1.0 or 2.0% 1.0% for
office & houses on besides road office & houses projects besides
site for dwelling and 2.0% for road on site for road 2.0% for
construction project dwelling and road project
management under construction
General Item management
under General
Item
Cost of some works 2.0% Cost of some 2.0%+α Cost of some
undeterminable in the works works
design under General undeterminable in undeterminable
Item the design under in the design
General Item under General
Item
Overhead 7.43% Overhead 7.43% Overhead
Total {(1+0.055) x Total 15.21% Total
(1+0.06) x (16.30%) +δ
15.18% (1+0.01(0.02)+0.
(16.30%) 02)-1} x 100% =
15.18%
(16.30%)
Common 3. 69%+1% From Table 6.9
Indirect Cost (2%)=4.69%
(5.69%)
Site Management 8.55% From Table 6.9
Cost
Overhead 7.43% Same value as
Norm
Total 20.67% 4.69% (5.69%)
(21.67%) +8.55%+
7.43 % =
20.67%
(21.67%)
The rates recommended here are derived from the analysis based on a few case study projects. As
a result, total rate 21.67% is recommended for road project and 20.67% for other projects. More
reasonable values should be determined from studies and analysis on much more number of
projects implemented so far in Viet Nam. The more number of projects, the better results
extracted. Those studies and analysis must be done thereafter by Vietnamese staffs concerned.
These decision methods of appropriate rates are described in next section, which have been
practiced in Japan and should be significantly recommended in Viet Nam as well for
improvement of cost estimation system.
96
8.4 Recommendation for Improvement of Indirect Cost Estimation

(1) Summary
In order to improve existing cost estimation system in Viet Nam, new surveys for deciding
reasonable package price are suggested. Labor costs and prices are changed every year due to
economical state of the country. Depending on the trend, the cost of public projects and profit rate
of the contractors are significantly affected. Therefore, cost estimation system shall also be
improved in terms of the trend as well as them. The system must not be invariant and fixed. It
should be flexible to the change of the economic trend. Reasonable improvement of cost
estimation system can be implemented by the following basic surveys of actual state of
construction site.
(2) Expense Trend Survey

1) Purpose of the Survey
This survey is implemented to grasp the reality of expenses in recent public construction works
and herewith to verify whether existing rates of expense (Indirect cost and Overhead) in present
cost estimation system meet actual situation of executing construction works. If there is some
discrepancy, the rates must be amended based on the results of the recent survey. The survey
shall be done to decide the most appropriate rates of expense every year in this way.
2) Expected Outcome
It is so difficult to pile up all work items including indirect works such as quality control,
administration works, cleaning and so forth. Therefore, regarding indirect works are calculated by
rates to direct cost. With this, cost estimation works are significantly reduced and bidding
procedures are largely labor-saving.
Therefore, the rates decided by the survey are very important in cost estimation work and must be
appropriate and accurate values to reflect actual indirect works in construction projects.
3) Survey Flow
Figure 8.7 shows the all procedures of implementation of the survey. Survey Form (in Appendix
13 and 14) is prepared in advance and delivered to the contractors and finally collected by
Procuring Entities. Form must be filled out exactly and accurately by contractors. If not correct,
the data are not accurately reflected to the rates and it may lead wrong cost estimation. All data
should be true figures and moneys expended.
The data collected are sent to the special Survey Agency, which is established for only this
survey, and analyzed precisely. Through regression analysis, adequate rates in each divided some
regions are presented to Procuring Entities. Finally, the results are authorized and disseminated.
97
Report of
results of
Procuring Entities analysis
(Ministry) Targeted
Projects
decided are
reported
Extraction Report of
request of Targeted Data
Targeted Projects Projects Delivery of accumulation
and approval extracted Survey Form and analysis
(for Owner &
Contractor)
Procuring Entities Survey
(PPC etc.) Agency
Submission
of Survey Form
Delivery of Submission (for Owner &
Survey Form of Survey Form Contractor)
(for Owner & (for Owner &
Contractor) Contractor)
Estimation data input

Project Owner
(PMU)
Question
inquiry&
Delivery of Submission hearing if
Survey Form of Survey Form necessary
(for Contractor) (for Contractor)
Actual data input
Prime Contractor
Delivery of Submission of
Survey Form Survey Form
(for Sub (for Sub
contractor) contractor)
Actual data input
Sub-Contractor
1st Sub contract

2nd Sub contract
3rd Sub contract
・
・

Figure 8.42 Movement of Survey Form
98
(3) Analysis of Financial Statements

As well as the rate of Indirect Cost, in order to grasp the appropriate overhead cost of contractors,
Financial Statements of some extracted construction companies are collected and examined.
These are confidential sources; therefore, they must be carefully preceded. Designated companies
have to submit their management materials including Financial Statements to Agency. Agency
examines all data and implements regression analysis. Finally, the most recent and integrated
overhead cost is confidentially suggested to Procuring Entities. With this results, Overhead rate
of cost estimation system is revised.
(4) Survey Method

1) Establishment of Survey Agency
In order to precede this survey and analysis efficiently and successfully, a new organization
dealing with those activities is necessary as “Survey Agency”. It actually belongs to government,
but needs neutrality and fairness. The detail of this Agency is described in next section.
2) Survey Period
Figure 8.8 shows schedule of all procedures of this Survey in survey period. Amendment of cost
estimation system should be implemented every year to efficiently catch up trend of economical
state in Viet Nam. Therefore, all survey procedures such as actual surveys, analysis and its
reflection to new estimation system shall be carried out within one year in every year and
herewith, Circulars with regard to cost estimation system must be revised along the results of
analysis.
Procedures Month 1 2 3 4 5 6 7 8 9 10 11 12
1) Extraction request of Target Projects
2) Report of Target Projects decided
3) Targeted Projects reported to Agency
4) Making Survey form
5) Delivery of form to Procuring Entities (PPC)
6) Delivery of form to PMU
7) Delivery of form to Contractors
8) Filling out in form by contractors
9) Submission of form to PMU
10) Submissin of form to Procuring Entities
11) Submission of form to Agency
12) Analysis at Agency
13) Report of results of analysis to MO C
14) Decision of new Rates
15) Amendment of estimation system
16) New Circular promulgation
99
Procedures Month 1 2 3 4 5 6 7 8 9 10 11 12
1) Extraction request of Target Projects
2 ) Report of Target Projects de cid ed
3 ) Targeted Projects reporte d t o A gen cy
4) Making Survey form
5 ) Delivery of form to PE (P PC)
6 ) Delivery of form to PMU
7 ) Delivery of form to Contr act ors
8 ) Filling out in form by co ntr act ors
9) Submission of form to PMU
10) Submissin of form to PE
1 1) Submission of form to Ag enc y
12) Analysis at Agency
13) Report of results of analysis to MOC
1 4) Decision of new Rates
1 5) Amendment of estimation sys tem
1 6) New Circular promulgatio n
Figure 8.43 Schedule in Survey Periodof Expense Trend Survey
3) Analysis
It is required that more than 30 targeted projects in every field are necessary for highly accurate
analysis. Regression analysis is used as an analysis method for rate determination of Common
Indirect Cost, Site management Cost, and
Overhead. Figure 8.9 is an example of
regression analysis. From plot of data on
X-Y coordinate axis, linear regression
formula is found as follows.
log (Y) = α × log (X) + β
Y: Amount of money (Common
Indirect, Site management,
Overhead)
X: Amount of money of whole Project
Thus, Rate is calculated by Y/X.
With this analysis, rates reflecting actual
state of construction works can be decided.
Afterwards, evaluation analysis shall be
implemented by taking into account of
rates of international standard level, then
appropriate and suitable rates for Viet Nam Figure . Regression Analysis
are suggested to the Survey Committee
(described later) to be authorized.
8.5 Establishment of New Organization

1) Establishment of Survey Agency
As a recommendation of this Guideline, new organization is proposed for implementing various
surveys and their analysis efficiently in order to improve current cost estimation system.
100
Organization called “Survey Agency” shall be established under the control of MOC as an
auxiliary organization. Beginning from preparation office in MOC, it shall gradually become
substantive organization as real agency.
2) The functions of the Agency
Functions of this agency shall be as follows.
 Making Survey forms and print
 Delivering forms to Procuring Entities to reach the bodies to be surveyed
 Collecting forms filled out from the bodies to be surveyed
 The data collected shall be appropriately analysed
 The results of survey and analysis shall be reported to MOC
3) Management method
Survey Committee
Survey Committee shall be organized in MOC. The purpose of this Committee is to authorize all
values and prices and so forth., resulted from analysis based on collected data in order to regulate
them for new Circular with discussion of members concerned from all relevant sectors and
provinces. Committee member will be composed of Chairman: Vice Minister of MOC, Deputy-
Chairman: DG of SACE, and other members concerned from the ministries and sectors
possessing targeted project such as MOC, MOT and so forth. and/or targeted provinces. The
decision matters with this Survey Committee shall be reflected to regulation smoothly and
disseminated. The Survey Agency shall be as the standing and assisting Agency for the
Committee.
101
Appendix 1 Comparison Tables between Current Regulations on Cost Estimation for

Construction Works and the Contents of GLCE
Table 1. Interpretation of Terms

Terms in GLCE Terms in Viet Nam Remark
1) Construction Package Estimate: 1) Construction Package Estimate: The concept
Construction Package Estimate is the total Construction Package Estimate is the total is the same
amount of Construction Cost, Value added costs necessary for construction
Tax (VAT) and Contingency Cost and the implementation of building tasks, work
all costs of the construction contractor items, and construction works in
necessary for implementation of the accordance with the scope of the
whole construction package till its construction package. Contents of the
completion. construction package estimate consist of
construction costs, cost of general item,
and contingency cost.
2) Construction Cost: 2) Construction Cost: The concept
Construction Cost is the total of Net Construction cost is inclusive of direct is similar
Construction Cost and Overhead and will cost, general cost, advanced calculated
become targeted project cost for bidding. taxable income, and VAT.
3) Contingency Cost: 3) Contingency Cost: The concept
Contingency Cost is the cost for the future Contingency cost is inclusive of is the same
event or circumstance that is possible but contingency cost for arising construction
cannot be predicted with certainty. Cost quantities and contingency cost for price
adjustment will be implemented with escalation during construction
special procedure in cases such as arising implementation.
of construction quantities and price
escalation.
4) Net Construction Cost:
Net Construction Cost is the total of
Direct Cost and Indirect Cost of the
project and the total net amount of money
that is necessary for completion of the
construction package.
5) Overhead: 4) General Cost:
Overhead is the cost for management of General cost is inclusive of enterprise’s
contractors such as expenses of personnel, administration cost, site production
executives and administrative staffs, management cost at the construction site,
office fee, utility cost, insurance, profit worker-serving cost, site construction-
and so forth. serving cost, and enterprise’s other
management costs.
5) Advance Calculated Taxable Income:
Advance calculated taxable Income is the
profit for the construction enterprise
which is estimated in advance in the
construction work estimate.
6) Indirect Cost:
Indirect Cost, which is the other costs not
dealt as Direct Costs, is the necessary/
supporting cost for completing the objects
indirectly. It is composed of Common
Indirect Costs and Site Management
Costs.
A-1

7) Site Management Cost:
Site Management Cost is the cost for
construction site management mainly
including various costs of personnel
(staffs and workers at site).
8) Common Indirect Cost: 6) Cost of General Item:
Common Indirect Cost is the cost for Cost of general item is inclusive of Cost
setup and preparation of construction of temporary office &houses on site for
project and management and supporting dwelling and construction management;
works for main construction works. This Cost of occupational safety and
cost includes all necessary common costs environmental protection for labors and
in every project and is closely related to surrounding environment; Cost for
main construction works. material tests of the contractor; Cost for
moving labor force within the
construction site; Cost for pumping and
dredging mud irregularly; Cost for
bringing special construction machines
and labor force (who have skills under the
enterprise’ management and have long-
term labor contracts with the enterprise)
in and out of the site; Cost for traffic
safety assurance for construction (if any);
Cost for reinstatement of infrastructure
affected by construction (if any); Cost of
construction of covering house for
machines, foundation for machines,
power and compressed air supply system,
and water drainage and supply system at
the site and installation and
dismantlement of some kinds of
machinery (such as concrete batching
plant, asphalt concrete batching plant,
rail-crane, tower crane, some other
machines have the similar properties).
9) Direct Cost: 7) Direct Cost: The concept
Direct cost is the costs directly charged to Direct cost is inclusive of material cost is similar
the desired objects for their construction, (including the materials provided by the
other than indirect construction costs. The PO), labor cost, and construction
costs for temporary works for main machinery cost and determined for works,
structures are included in direct cost. work items, auxiliary works, and
Main items of direct cost are cost of temporary works serving the construction.
materials, labors, machineries for
construction and temporary works.
Temporary works included in direct cost
are form, support, scaffolding, earth
retaining, dewatering, temporary deck and
bridge and various plants for concrete and
asphalt etc.
10) Material Cost: 8) Material Cost: The concept
Material cost is calculated “required The material cost in direct cost is is similar
volume” multiplied by “unit price”. determined by the consumption volume of
Required volume has to include the materials and respective unit prices. The
wastage through transportation, storage total consumption volume of materials is
and construction. determined based on the consumption per
unit quantity of building tasks of work
items and works.
A-2

11) Labor Cost: 9) Labor Cost The concept
Labor cost is calculated “required labor The labor cost in direct cost is determined is similar
time” multiplied by “unit price”. Required by the consumption volume of labors and
labor time is computed from work volume respective unit prices. The total
and productivity rate*1 of the work consumption volume of labors is
concerned. The labor unit price*2 is determined based on the consumption per
composed the daily amount of the public unit quantity of building tasks of work
work unit labor price plus extra wage, if items and works.
necessary.
12) Machinery Cost: 10) Construction Machinery Cost The concept
Machinery cost is calculated “required The construction machinery cost in direct is similar
machinery time” multiplied by “unit cost is determined by the consumption
price” of machinery. Required machinery volume of construction machinery and
time is computed from work volume and respective unit prices. The total
productivity rate of the work concerned. consumption volume of construction
machinery is determined based on the
consumption per unit quantity of building
tasks of work items and works.
13) Productivity Rate: 11) Economic – technical Norm:
Productivity rate is necessary figure for Economic – technical Norm is inclusive
materials, labors, and machineries to of basic norm and construction estimate
calculate the unit price of each work item norm.
for direct cost estimation. 12) Basic Norm:
Basic norm consists of norms on use of
materials, labor norms, and productivity
norms of construction machinery. The
basic norm is used for determining the
construction estimate norm.
13) Construction estimate norm is the required The concept
consumption rate of materials, labor, and is similar
construction machinery which are
determined in accordance with the specific
technical requirement, construction
condition, and construction method in
order to complete one unit of quantity of a
building task.
14) Public Work Unit Labor Price:
The public work unit labor price is
composed of 3 items such as Equivalent
basic salary, Equivalent basic allowance
and temporary salary, and does not
includes the extra wage such as an
overtime wage etc.
15) Machinery Ownership Cost:
Machinery ownership cost is composed of
3 items such as depreciation cost,
maintenance and repair cost, and
management cost.
A-3
Table 2. Direct Cost Items

Direct Cost Items in GLCE Direct Cost Items in Viet Nam Remark
1) Material Cost (Exclusive regarding 1) Material Cost GLCE, VN: Including
the machinery cost) temporary works and support
works serving construction.
2) Labor Cost (Exclusive regarding 2) Labor Cost GLCE, VN: Including
the machinery cost) temporary works and support
3) Machinery Cost 3) Machinery Cost GLCE, VN: Including
temporary works and support
3)-1 Equipment 3)-2 Operation Cost Including depreciation cost, repair
Ownership cost, cost of fuel and power,
Cost operator cost, and other costs
a) Depreciation a) Fuel, Oil and (insurance, storage, registration,
Cost Electric Cost moving within the site, other costs
b) Maintenance b) Consumable related to management and use of
and Repair Part Cost machinery on the site)
Cost
c) Management c) Operator Cost
Cost for Labor
d) Miscellaneous
Articles Cost
A-4
Table 3. Indirect Cost Items of Common Indirect Cost

Indirect Cost Items In GLCE Indirect Cost Items
Remark
Contents by piling up Contents by rate calculation in Viet Nam
 Common Indirect Cost Items In GLCE
1) Transportation costs for machines,
temporary materials and so forth
(1) Cost for (1) Cost of bringing 2.6 Cost for bringing special Cost for transporting
Transportation and construction machines in construction machines and labor (moving) machines
decomposition, and out of the site and force in and out of the site within the site in
assembly and transportation within the site (1) Costs for moving the heavy, GLCE is under the
transportation of including decomposition special construction equipment, Direct Cost in Viet
specialized heavy and assembly and cost of machines in and out of the site. Nam
construction depreciation or rental for 2.9 Cost of construction of
machines (e.g. TBM machines during covering house for machines,
drill machine, etc.) transportation, assembly, foundation for machines, power
and decomposition and compressed air supply system,
and water drainage and supply
system at the site and installation
and dismantlement of some kinds
of machinery (such as concrete
batching plant, asphalt concrete
batching plant, rail-crane, tower
crane, some other machines have
the similar properties).
(2) Transportation cost of
construction machinery by
moving by itself
(3) Costs for bringing in and (3) Costs for bringing
out of the site and in and out of the site
transportation within the site and transportation
of various temporary within the site of
materials for construction various temporary
(such as frame, steel pile, materials for
steel plate, supporting construction (such as
materials, scaffold frame, steel pile, steel
materials, bent for bridges plate, supporting
etc.) materials, scaffold
materials, bent for
bridges etc.) is
included in Direct
cost in Viet Nam
(4) Cost of mobilization and 2.6 Cost for bringing special
moving within the construction machines and labor
construction site of workers force in and out of the site
(2) Costs for moving workers who
have skills under the enterprise’
management and have long-term
labor contracts with the enterprise
in and out of the site.
2.4 Cost for moving labor force
within the construction site
(1) Costs for moving workers
within the site in the case of the
distance of moving more than
30m
2) Preparation for work
(1) Cost for preparation and 2.5 Cost for pumping and
clean- up dredging mud irregularly
a) Cost of preparation work
A-5

Remark
for commencement
b) Daily preparation and
clean- up work
c) Irregular cots for
pumping, dredging sludge
and unable to be determined
volume from the design
d) Final clean-up of the
work
― (2) Cost for general survey, 1.2.4 Site construction-serving
ground survey, finishing Cost
stake and so forth (1) Survey at site serving
a) Basic ground survey construction
before work
b) Collation of design
drawing
c) Piles set for the
construction zone
d) Cost of setting of
finishing stake
3) Cost of facilities for prevention measures
against damages by construction
(1) Cost of setting ― 2.2 Cost of occupational safety (1) Cost of setting and
and removing, and and environmental protection for removing, and
maintenance of labors and surrounding maintenance of
temporary facilities environment temporary facilities
that prevent damages (1) Costs for the facilities and that prevent damages
and loss by method against dust, noise, and loss by
construction such as vibration, settlement of ground, construction such as
noise, vibration, vanishing of underground water noise, vibration,
settlement, loss of due to execution of construction settlement, loss of
underground water work, cleaning the sanitation of underground water in
etc. the site and surrounding area. GLCE can be under
Direct Cost in Viet
Nam
(2) Cost of survey ―
for measures against
damages and losses
by construction.
4) Safety cost
(1) Cost of traffic (1) Cost of monitoring and 2.7 Cost for traffic safety
safety assurance for correspondence for safety assurance for construction
construction work management in the whole
construction site.
(2) Cost of fire safety (2) Cost of security staffs at
measures in long site entrance
tunnel
(3) Cost of (3) Cost of setting, 2.2 Cost of occupational safety
prevention measures removing and maintenance and environmental protection for
against dust and of safety facilities such as labors and surrounding
anoxia in mark plate, sign, safety environment
underground and/or lighting, guard fence, (2) Safety facilities such as
confined space temporary guardrail etc. warning sign, warning light, light
in dark time, fence against enter,
temporary guardrail, safety
scaffold and safety net
(4) Cost of life jacket (4) Cost of lighting in the
A-6

Remark
and lifeboat in river case of works necessary
and coastal lighting such as night work
construction
(5) Cost necessary (5) Cost of safety supplies 1.2.2 Site Production Management
for prevention of (such as helmets, safety Cost
accidents from high shoes, gloves and etc.) (1) Protective goods (such as
voltage work helmets, safety shoes, gloves and
etc.)
(6) Cost of (6) Cost of safety committee
monitoring for and other safety activities
blasting of rock excluding training
excavation in dam,
tunnel and other
construction
(7) Others (in the (7) Cost of dust work (7) Cost of dust work
case of necessary due preventive measures. preventive measures
to site conditions). in GLCE can be
under 2.2 Cost of
occupational safety
and environmental
protection for labors
and surrounding
environment
5) Utility cost
Basic charge of electricity Basic charge of
and water for construction electricity and water
work. for construction. It
can be under 1.2.2
Site Production
Management Cost or
1.2.4 Site
construction-serving
Cost in Viet Nam
6) Technical management cost
(1) Cost of special (1) Cost of all necessary 2.3 Cost for material tests of the
quality control tests described in Standard contractor
a) Tests besides those Quality Management Plan (1) Costs for all of required tests
are regulated in of materials (such as sand, soil,
quality control aggregate, steel bar, cable,
standard and concrete, cement, etc…)
standard construction according to regulations
quality management
plan such as soil test,
etc.
b) In-situ tests such
as geological survey,
plate bearing test,
boring, sounding,
pile test etc.
(2) Cost of special (2) As build, and all soft 1.2.4 Site construction-serving (2) As build, and all
cases due to site data of necessary documents Cost soft data of necessary
conditions produced by construction (1) Survey at site serving documents produced
a) Setting and works completion measurement by construction works
removing of test in GLCE
equipment, can be under 1.2.2
measurements, and Site Production
data reduction for Management Cost in
soft ground research Viet Nam
A-7

Remark
(settlement
measurement, water
table, pore water
pressure etc.)
b) Cost of works for
test embankment
(3) Cost for storage of (3) Cost for storage of
quality record of all quality record of all
construction materials used construction materials
in GLCE can be
under 1.2.2 Site
Production
Management Cost in
Viet Nam
(4) Cost of certificate of
quality for various
construction materials used.
(5) Cost of documents made (5) Cost of documents
for work schedule made for work
management schedule management
in GLCE can be
under 1.2.2 Site
Production
Management Cost in
Viet Nam
(6) Cost of survey,
drawings, pictures for
inspection of completion
(1) Cost of setting, 2.1 Cost of temporary office
removing, and maintenance &houses on site for dwelling and
of site office and laboratory. construction management
(1) Installation, removal, and
maintenance of temporary office
&houses on site for dwelling and
construction management.
(2) Cost of setting,
removing, and maintenance
of staff and workers’
dwelling houses on site
(3) Cost of setting,
removing, and maintenance
of warehouse of some goods
and equipment, and material
depository
(4) Land lease fees of above
(1)(2)(3)
A-8
Table 4. Indirect Cost Items of Site Management Cost

Indirect Cost Items
Indirect Cost Items In GLCE Remarks
in Viet Nam
 Site Management Cost in GLCE
1) Labor management cost
(1) Cost of recruitment and dissolution
including the allowance of new post and
dissolution
(2) Cost of entertainment and welfare for 1.2.2 Site Production Management Cost
workers (2) Entertainment and welfare for workers
1.2.3 Worker-serving Cost
(1) Drinking water
(3) Cost of work clothes and work tools 1.2.2 Site Production Management Cost
(1) Work clothes and simple work tools for
workers
(4) Cost of commuting
(5) Cost of medical treatment besides
compulsory industrial injury insurance
2) Safety training cost
(1) Cost of safety activity and training 2.2 Cost of occupational safety and
environmental protection for labors and
surrounding environment
(3) Safety training for workers
(2) Cost of meeting for safety and health
education
3) Taxes and dues, Fees, Charges as per
regulation
4) Insurance fee
(1) Cost of work insurance VN: To be carried
out by the owner
(2) Cost of car insurance Car insurance in
GLCE can be under
1.2.2 Site Production
Management Cost in
Viet Nam
5) Salary of the employees
Salary and various allowances of the 1.2.2 Site Production Management Cost
employees in site office (4) Salary and various allowances of the
employees in site office.
6) Severance pay
Cost of the severance pay
7) Compulsory Insurances for
Employees Cost
(1) Cost of compulsory insurances for 1.2.2 Site Production Management Cost
employees (4) Insurances and legal welfare for the
employees in site office.
1.2.3 Worker-serving Cost
(2) Social insurance, medical insurance,
unemployment insurance for workers.
8) Welfare cost 1.2.2 Site Production Management Cost
(5) Welfare expenses for the employees in
site office.
A-9
Indirect Cost Items

Indirect Cost Items In GLCE Remarks
in Viet Nam
(4) Cost of congratulatory and condolence
and culture activity
9) Office supplies 1.2.2 Site Production Management Cost
(6) Office materials and equipment
(1) Cost of office facilities of electronic
equipment
(4) Cost of books
10) Communication and transportation 1.2.2 Site Production Management Cost
cost (7) Transportation and communication for
administration department
(3) Cost of mail s
11) Social expenses Social expenses can
be under 1.2.2 Site
Production
Management Cost in
Viet Nam
Cost of entertainment
12) Compensation cost
Cost of compensation 2.8 Cost for reinstatement of infrastructure
affected by construction
(1) Costs for repairing, reinstatement or
reconstruction of the infrastructure works
surrounding the site damaged by the
construction
13) Outsourcing cost
Overhead cost of the sub-contractor if the
contractor outsources the part of
construction works to subcontractor.
14) Work registration fee
Cost required for registration of
construction performance, and various
surveys
15) Miscellaneous expenses
Cost of miscellaneous which is not belong 1.2.5 Enterprise's other Management Costs
to the above items
A-10
Table 5. Overhead Cost Items

Overhead Cost Items In GLCE Overhead Cost Items in Viet Nam Remark
1) Executive salaries
Salary and reward of executives and auditors
2) Employee salary
Salary, allowances and rewards of employees in a 1.2.1 Enterprise’s Administration Cost
head office and branch (1) Salary and allowances for
employees in head and branch offices
3) Severance pay
4) Legal welfare cost
Industrial Injury Insurance, unemployment, 1.2.1 Enterprise’s Administration Cost
health and welfare annuity insurance of (2) Insurances and Legal welfare for
employees in a head office and branch employees in head and branch offices
5) Welfare expense
Amusement, rental clothing, medical expense, 1.2.1 Enterprise’s Administration Cost
congratulatory and/or condolence and culture (3) Welfare and entertainment for
activities employees in head and branch offices
6) Maintenance expenses of office and
facilities
Buildings, machines and devices, stock control in 1.2.1 Enterprise’s Administration Cost
warehouse (4) Maintenance for offices and
equipment
7) Office supplies costs
Office supplies, office equipment not included of 1.2.1 Enterprise’s Administration Cost
fixed assets, newspaper and purchase reference (5) Office materials and equipment
books
8) Communication and transportation costs
Communication, transportation cost and travel 1.2.1 Enterprise’s Administration Cost
expenses (6) Transportation and communication
9) Power, water, utility costs
Electricity, water and gas 1.2.1 Enterprise’s Administration Cost
(7) Electricity and water
10) Research and development cost
Technical research and development cost
11) Advertising costs 1.2.1 Enterprise’s Administration Cost
(8) Public relations
12) Social expenses 1.2.1 Enterprise’s Administration Cost
(9) Social expenses
13) Donation
14) Rent expenses of land, office and
accommodation
Land and building lease cost of office, dormitory 1.2.1 Enterprise’s Administration Cost
and company housing (10) Office
15) Depreciation and amortization
Buildings, vehicles, machine devices and office 1.2.1 Enterprise’s Administration Cost
equipment (12) Depreciation
16) Experimental research cost amortization
Special expenses of new products or new
technology for research
17) Development cost amortization
Special expenses for new technology or accept of
new management organization, development of
research and development of market
18) Taxes and dues, fees, charges as per
regulation
Real estate acquisition tax, taxes of fixed assets
tax, road occupying cost and other tax
A-11
Overhead Cost Items In GLCE Overhead Cost Items in Viet Nam Remark
19) Casualty insurance
Fire insurance and other nonlife insurances 1.2.1 Enterprise’s Administration Cost
(11) Insurances
20) Contract guaranty cost
21) Miscellaneous expenses
Cost of database system, external meeting cost
and association activity cost
22) Profit 1.3 Advantage calculated taxable
Income
a) Various taxes (Corporate tax, Prefectural tax
etc.)
b) Shareholder dividend
c) Bonuses for executives
d) Retained earnings
e) Others
A-12
Appendix 2 Comparison of Structure of Cost
Cost structure of construction packages in GLCE

Material Cost
Machinery Cost
Net Construction Cost
Construction Cost Common Indirect
Overhead Cost
Indirect Cost
Construction Packages Value-added Tax
Site Management Cost
Contigency Cost
Cost structure of construction packages in Viet Nam

Material Cost
Construction Cost General Cost Machinery Cost
Advance calculated
Cost of General Item
taxable Income (Profit)
Construction Packages
Value-added Tax
Contigency Cost
A-13
Detailed cost structure of construction packages in Viet Nam

1.1.1.Material Cost
1.1.Direct Cost 1.1.2.Labor Cost
1.1.3.Machinery Cost
1.2.1.Enterprise's
Administration Cost
1.Construction Cost
1.2.2.Site Production
Management Cost
1.2.3.Worker-serving
1.2.General Cost
Cost
1.3.Advance calculated 1.2.4.Site construction-

taxable Income (Profit) serving Cost
1.2.5.Enterprise's other
Management Costs
2.1.Cost of temporary office&houses on site for

dwelling and construction management
2.2.Cost of occupational safety and environmental

protection for labors and surrounding environment
2.3.Cost for material tests of the contractor
Construction Packages
2.4.Cost for moving labor force within the
construction site
2.Cost of General Item 2.5.Cost for pumping and dredging mud irregularly
2.6.Cost for bringing special construction machines

Value-added Tax
and labor force in and out of the site
2.7.Cost for traffic safety assurance for

construction (if any)
2.8.Cost for reinstatement of infrastructure affected

by construction (if any)
2.9.Cost of construction of covering house for machines, foundation for machines,

power and compressed air supply system, and water drainage and supply system at the
site and installation and dismantlement of some kinds of machinery
Contigency Cost for quantities
Contigency Cost
Contigency Cost for price escalation
A-14
Appendix 3 Definition of Type of Occupations
The definition of type of occupations is shown in this appendix.

1. Special worker
1) Workers having considerable degree skills and advanced physical condition and can subjectively do the
following works.
a) Using a light machine
Excavation, loading and transporting by bulldozer, backhoe, tractor(< 3 ton)
Operation of crawler crane(< 1 ton)
Compacting by vibration roller(< 3 ton), rammer and tamper
Operation of transportable mixer and vibrator to place concrete
Operation of pick hummer to break a concrete and asphalt
Operation of power grass mower
Operation of pump, compressor and generator
b) Leveling and finishing a mixture by man-power
c) Operation of equipment for dam construction such as grizzly hopper, aggregate washing apparatus,
aggregate transporting apparatus, conveyor belt with tripper and etc.
d) Nozzle operation of concrete pump vehicle
e) Implementing the necessary main work for each works
2) Workers having considerable degree skills and advanced physical condition and can do necessary
ancillary works of above works
2. Ordinary worker
1) Workers having normal skills and can subjectively do the following works.
a) Excavating, loading, transporting and leveling for earth work by man-power
b) Loading and transporting for materials by man-power
c) Small works by man-power (e.g., installation of road sign etc.)
d) Sodding work by man-power
e) Weeding work by man-power
f) Implementing the necessary normal work for each works
2) Workers having normal skills and can do necessary ancillary works of above works
3. Worker for light work
1) Workers doing following light work by human power
a) Light cleaning work or tidying work
b) Light weeding work at a park etc.
c) Light transporting work at a construction site
d) Supporting work for preparation survey, work result management and etc.
e) Installation of small articles for safety facility or temporary facility
f) Supporting work for quality management examination and etc.
g) Implementing the necessary light work for each works
2) Workers doing ancillary works of above works
4. Landscaping worker
Workers having considerable degree skills and advanced physical condition about landscaping works and
can subjectively do the following works
1) Tree planting or maintenance
2) The following works at construction of parks, gardens, green spaces and other gardens
a) Planting works of ground-related plants such as lawn
b) Installation of stone which is used in the landscaping
c) Ground preparation
d) Construction of garden road or plaza
e) Construction of pond and water way
f) Various garden facilities
5. Slope worker
Workers having considerable degree skills and advanced physical condition about slope works and can
subjectively do the following works
a) Operation of mortar-concrete shot machine and seed spraying machine
b) Works of shaping slope or setting wire netting and rebar by pick-hammer and breaker on the high and
A-15
steep slope
c) Finishing work of mortar-concrete shot and seed spraying
6. Scaffold erector
Workers having considerable degree skills and advanced physical condition about works at high location
and in the air and can subjectively do the following works
a) Assembly and disassembly of scaffoldings and support works
b) Erection of wood bridges
c) Driving and pull out of piles and sheet piles (excluding operation of pile machine)
d) Setting, assembly and disassembly of temporary elevator, pile driver, winch, cableway etc.
e) Setting and winding up of heavy objects such as huge block and large-size covering plate (excluding
operation of crane)
f) Winding up of steel frames (excluding operation of crane)
7. Mason
Workers having considerable degree skills and advanced physical condition about stone processing works
and can subjectively do the following works
a) Processing of stones
b) Rubble work and stone pitching
c) Finishing by chipping on surface of concrete structures
8. Concrete block mason
Workers having considerable degree skills on block works and can subjectively do the works of piling up
and laying of piling up block, laying block, linking block, and pavement block (excluding block work in
building works)
9. Electrician
Workers having considerable degree skills and necessary qualifications on electric works and can
subjectively do the following works relevant to power receiving facility, substation facility, distribution
line, power facility, power generation facility, and telecommunication facility indoor and outdoor
a) Installation, attachment and removal works of distribution equipment, lighting appliance, generator,
telecommunication equipment, various boards
b) Installation, attachment and removal works of electrical wire and electrical wire pipe
Necessary qualification is division of electricity work in supervision for facility equipment.
10. Rebar man
Workers having considerable degree skills on processing / assembly works of rebar and can subjectively do
the following works such as cutting, bending, shaping, assembly and fixing in reign forced concrete works.
11. Steel worker
Workers having considerable degree skills on assembly works of steel and can subjectively do the
following works such as assembly of steel, tightening high-tension bolts, etc. in construction of steel tower,
steel pier and hi-rise building. (Excluding workers of production in factory, bridge erection and scaffolding
works for steel assembly )
12. Painter
Workers having considerable degree skills on painting works with paint and finishing paint, etc. and can
subjectively do the various painting works including surface treatment for painting. (Excluding workers of
scaffoldings for painting works)
13. Welder
Workers having considerable degree skills on welding works and can subjectively do welding of steel pile,
sheet pile, steel pipe and rebar (including gas-pressure welding) or cutting by the methods of oxygen,
acetylene gas, hydrogen gas and electricity etc. (Excluding workers in factory)
14. Operator (Special)
Operators having official license and considerable degree skills on driving and operation of heavy
machines and can subjectively do the following works with driving and operation of them.
a) Excavation, loading and carrying of earth with driving and operation of bulldozer, tractor, power
shovel, backhoe, clamshell, dragline, loading shovel, tractor shovel, rake-dozer, tire-dozer, scrape-
dozer, scraper, motor-scraper, etc. weighing more than 3 tons.
b) Carrying of equipment with driving and operation of truck, crawler crane, truck crane, wheel crane
with crane equipment capable of lifting more than 1 ton and winch lifting more than 5 tons
c) Scraping and compaction works of earth with driving and operation of road roller, tire roller, vibrating
roller weighing more than 3 tons (self-propelled), stabilizer, motor grader, and etc.
d) Pavement of roads with driving and operation of concrete finisher, asphalt finisher and etc.
A-16
e) Piling and pulling out of pile and sheet pile with driving and operation of pile driver
f) Driving and operation of concrete pumping car and road sweeping car ( 3 wheel-type)
15. Operator (Ordinary)
Operators with official license who can subjectively do the following works with driving and operation of
machine
a) Driving truck carrying equipment
b) Driving watering car
c) Excavation, loading and carrying of earth with driving and operation of tractor (wheel type), tractor
shovel (wheel type), backhoe (wheel type) weighing less than 3 tons.
d) Carrying of equipment with driving and operation of wheel crane and truck with crane equipment
capable of lifting less than 1 ton
e) Emulsion spraying with driving and operation of asphalt distributor
f) Driving and operation of road sweeping car (4wheel-type)
16. Worker for caisson
Workers having considerable degree skills and advanced physical condition about works in a pressurized
closed room and can do the works of excavation and carrying of earth in caisson and shield (high
atmospheric pressure)
17. Foreman for caisson
Workers having considerable degree skills about works in a pressurized closed room and can do the
leadership works for the works in caisson and shield (high atmospheric pressure)
18. Jumper
Workers having considerable degree skills and advanced physical condition about work in rock excavation
and can subjectively do the works of blast and excavation of rock (excluding works in tunnel) with use of
dynamite and rock drill.
19. Tunnel special worker
Workers having considerable degree skills and advanced physical condition about works in tunnel and can
subjectively do the following works
a) Blast and excavation of rock with use of explosive and rock drill.
b) Installation, maintenance, and inspection of tunnel support
c) Placing concrete at arch, sidewall sections and invert
d) Driving work of muck loading vehicle, battery car and mine cars etc.
e) Assembly, installation, and removal of frames of arch and side wall sections
f) Various works of shield work method (excluding works in high atmospheric pressure)
20. Tunnel worker
Workers having normal skills and physical condition about works in tunnel and can do the following
manpower works
a) Auxiliary works for all works in tunnel
b) Material carrying by manpower
c) Auxiliary works for all kinds works of shield method (excluding works in high atmospheric pressure)
21. Tunnel foreman
Workers having considerable degree skills about works in tunnel and can do leadership task
22. Bridge special worker
Workers having considerable degree skills about bridge construction and can do the following works
(excluding works in factory)
a) Grouting and assembly, tension and transverse tighten works of sheathes and cables in construction
works of PC bridge
b) Erection works of concrete or steel bridge and assembly, disassembly and movement works of
temporary facilities for bridge erection
c) Assembly and disassembly works of scaffoldings and support for erection works of concrete or steel
bridge
23. Bridge painter
Workers having considerable degree skills about painting works for bridges and can subjectively do the
work of painting and surface treatment of bridge and flood gate ( including works in factory)
24. Bridge foreman
Workers having considerable degree skills about all bridge works and can mainly do the leadership works
( including works in factory)
A-17
25. General foreman

Workers having considerable degree skill about civil works and driving and operation of heavy machineries
and can mainly do the leadership works (excluding the works of 17. ,21. and 24.)
26. Diver
Workers have official license of diving and can do works under the sea for construction works in the
sea with diving equipment which supply compressed air
27. Diving liaison
Workers who correspond with divers and doing the following tasks
a) Having divers descend and rise appropriately with corresponding them
b) Supplying air to divers appropriately when necessary with corresponding workers for sending air
c) Informing divers of danger when air supply equipment is not working well
28. Diving air supplier
Workers operating cock of sending air to divers to supply air appropriately
29. Captain (G1~G2)
As stipulated in the Decision No. 65/2005/QĐ-BGTVT
30. Mate I, machine engineer I (G1~G2)
31. Mate II, machine engineer II (G1~G2)
32. Sailor
33. Mechanic, electrician
34. Forest and erosion control worker
Workers having considerable degree skills and advanced physical condition about works of forest and
erosion control, engaging in works of forest and erosion control ( mainly in zone of steep slope and narrow
valley) and can subjectively do the following works
a) Cutting slope, setting steps, excavation and carrying earth, and building structures by manpower in
collapsed area
b) Loading, carrying and tidying of materials by manpower
c) Assembly, setting and disassembly of simple cableway and scaffoldings
35. Track worker
Workers having considerable degree skills and advanced physical condition about works of track
construction and maintenance works and can subjectively do the following works
a) Fixing and maintaining interval, balance, straightness, and flatness of rails with light machines like tie
tamper, rammer, power wrench etc.
b) Construction of new track including carrying and arranging rales, sleepers and ballast and building
track by using light machines like tie tamper, rammer, power wrench etc.
36. Timberman
Workers having considerable degree skills about wood works and can subjectively do the following works
a) Producing, assembly, installing and removing works of wood form (including metal form)
b) Producing and setting of wood piles and wood bridges
37. Carpenter
Workers having considerable degree skills about carpentry work and can subjectively do the works of
building residential house and creating its interior
38. Plasterer
Workers having considerable degree skills about plastering work and can subjectively do the works of
making wall and spraying by using materials like earth, mortar, plaster and artificial stone etc.
39. Plumber
Workers having considerable degree skills about plumbing work and can subjectively do the following
works relevant to water supply and drainage, air conditioning, air supply, hot water supply and ventilation
in door and out door
a) Plumbing and removing pipes
b) Processing and fitting of metal and nonmetal pipe products
c) Electro-tactile protection
40. Chipping worker
A-18
Workers having considerable degree skills about chipping work and can subjectively do the following
works
a) Chipping of wall surface made of concrete, stone brick and tile etc.
b) Making holes on floor or wall
41. Waterproofing worker
Workers having considerable degree skills about waterproofing work and can subjectively do the works of
waterproofing of roof, floor in underground and wall by using asphalt, sheet, cement and sealing materials
etc.
42. Sheet metal worker
Workers having considerable degree skills about sheet metal work and can subjectively do the works of
processing and assembly works such as cutting, bending, shaping, and joining sheet metal and roofing with
sheet metal ( excluding works of 48.)
43. Tiler
Workers having considerable degree skills about tile works and can subjectively do the works of tile
sticking and jointing of outer wall, inner wall, floor etc.
44. Sash worker
Workers having considerable degree skills about sash works and can subjectively do the works of
installation of metal sash
45. Interior worker
Workers having considerable degree skills about interior works and can subjectively do the works of
affixing interior materials such as vinyl floor tile, vinyl floor sheet, carpet, flooring, wall paper and gypsum
board on floor, wall and ceiling and works of installation of window shade and curtain rales
46. Glassworker
Workers having considerable degree skills about glass works and can subjectively do the works of
installation of grass into various joinery
47. Joiner
Workers having considerable degree skills about joinery works and can subjectively do the works of
production, processing, and installation of doors, windows and frames etc.
48. Air duct worker
Workers having considerable degree skills about duct works and can subjectively do the works of
production and installation of ventilation duct by processing metal or nonmetal sheet (excluding works of
42.)
49. Heat retention worker
Workers having considerable degree skills about heat retention works and can subjectively do the works of
installation of heat retention materials (including cold insulation, anti-dew and thermal insulation ) on
various building equipment, plumbing and duct
50. Equipment worker
Workers having considerable degree skills about equipment works and can subjectively do the works of
installation, adjustment and removal of heavy weight machines such as freezing machine, blower, boiler,
pump and elevator etc.
51. Building block worker
Workers having considerable degree skills about building block works and can subjectively do the works of
piling up and joint making of cavity concrete brock and brick for construction and refurbishment of
building frame and curtain wall ( excluding contents described in 8.)
52. Artisans
Being highly skilled craft workers and can subjectively do the works of making or creating things by hand
that may be functional or strictly decorative such as furniture, decorative arts, sculptures, etc. for buildings
53. Construction survey
Workers having considerable degree skills about construction survey works and can subjectively do the
works of topographical surveying, geological surveying, etc.
54. Survey and testing engineer
Engineers having professional qualifications about construction survey and testing works and can do the
leadership works, data analysis works and making reports for the works of topographical surveying,
geological surveying, etc. and tests
55. Traffic guide
Traffic induction guide persons possessing official qualification for traffic guide
A-19
A-20
Appendix 4 Machinery Operation Unit Price
M-1 Unit price schedule per an operation day

Name Standard Unit Quantity Application
Special worker Person 1
Fuel Cost Total acquisition cost of machinery Refer to the apparatus fuel consumption
Equipment Ownership Cost (Day) 1
Miscellaneous Expenses L.S. 1
Total

Ship's officer Person
Ordinary crew Person
Fuel Cost L Refer to the apparatus fuel consumption
Equipment Ownership Cost Purpose of disposition 1
Total
M-3 Unit price schedule per an operation time or day

Ship's officer or Ordinary crew Person
Equipment Ownership Cost
Total

Total

(Electric Power) kWh Refer to the apparatus fuel consumption
Total

Fuel Cost L
Equipment Ownership Cost days of service 1
Total

Operator (Special) Person
Fuel Cost L
Equipment Ownership Cost days of service

Total
A-21

Operator (Ordinary) Person
Fuel Cost L

Total

(Electric Power) kWh
Fuel Cost L
Equipment Ownership Cost1 days of service
Equipment Ownership Cost2 days of service

Total

Fuel Cost L

Total

Fuel Cost L
Wear expenses h
Total

Special worker Person
Fuel Cost L

Total

Fuel Cost L

Total


Total
A-22

Ship's officer Person
Ordinary crew Person
Fuel Cost L

Total

Fuel Cost L
Lease fee Day 1
Total

Fuel Cost L
Lease fee days of service

Total

Fuel Cost L

Total


Total

Special worker
Fuel Cost L

Total

Fuel Cost L
Equipment Ownership Cost days of service 1.4
Wear expenses days of service 1.4
Total
A-23
Appendix 5 Detail Explanation on Common Indirect Cost Items by rate
Detail Explanation on Common Indirect Cost Items by rate

1) Transportation Costs for Machines, Temporary Materials and Labor
(1) Cost of bringing construction machines in and out of the site and transportation within the site
including decomposition and assembly.
[items to calculate]
 costs of transportation of machines (e.g. bulldozers etc.) in and out of site: costs of trailer
and/or trucks
 costs of depreciation or rental for machines during transport: costs of depreciation or rental,
latter of which depends on rental agreement
 costs of assembly and decomposition (e.g. tower cranes etc.): costs of workers and machines
(cranes etc.) for assembly and decomposition
 costs of depreciation or rental for machines during assembly & decomposition: costs of
depreciation or rental, latter of which depends on rental agreement
details  costs of transportation of machines within site during construction: costs of trailers and/or
trucks
[data to prepare]
 list of machines (bulldozers, excavators, crawler cranes, tower cranes, generators,
compressors, steel cutters / benders etc.): model, number and duration of use with
classification whether needs assembly &decomposition
 distance between depot of machines and site, and usual mode of transport
 rental agreement of machines: conditions on transportation (Referring the practice of other
similar projects is applicable)
 work force for assembly &decomposition: estimate machines (cranes) and number of workers
(2) Transportation cost of construction machinery by moving by itself
 costs of transportation of machines (dump trucks etc.) in and out of site: costs of depreciation
or rental fees
details
[data to prepare]
 list of machines (dump trucks, trucks, motor graders etc.): model, number and duration of use
 distance between depot of machines and site, and usual mode of transport
(3) Costs for bringing in and out of the site and transportation within the site of temporary materials for
construction use (such as frame, steel pile, steel plate, supporting materials, scaffold materials, bent
for bridges etc.)
 costs of transportation of temporary materials (form, scaffolding materials etc.) in and out of
site: costs of trucks and loading / unloading on to trucks
 costs of depreciation or rental for materials during transport: costs of depreciation or rental,
latter of which depends on rental agreement
 costs of transportation of temporary materials within site during construction: costs of trucks
details
[data to prepare]
 list of temporary materials (form, support & scaffolding materials, steel sheet pile, steel plate
etc.): model, number, duration of use and number of usage during construction (calculation of
costs of transportation within site)
 distance between depot of materials and site, and usual mode of transport
 work force for loading / unloading: estimate number of workers
(4) Cost of mobilization and moving within the construction site of workers
details [items to calculate]
 Costs of travels for workers mobilization and demobilization: travel costs, depending on
contract with workers
 Costs of moves for workers between quarters and sites: cost of transport (buses etc.)
A-24
[data to prepare]
 List of works: number and duration
 Distance between quarters and site, and usual mode of transport
2) Preparation Work
(1) Cost for preparation and clean- up
a) Cost of preparation work for commencement
 Costs of workers, some equipment (excavators etc.) with dump trucks and disposal for debris
in area of temporary facilities (office etc.)
details [data to prepare]
 Area to prepare temporary facilities (office, laboratory, storage area, workshop, precast yard
etc.): estimate number of workers and equipment based on area
(note: Clearing of site for permanent works to be calculated under direct works)
b) Daily preparation and clean- up work
 Costs of workers for clean-up (tidy up on site) every day
 Estimate of number of worker to involve daily clean-up: e.g. 20 % of work group in last 30
minutes of working hours
c) Irregular cots for pumping, dredging sludge and unable to be determined volume from the
design
 Costs of machine for pumping and dredging and labor for working on them
details
[data to prepare]
 Number of machines and equipment necessary and workers involved
d) Final clean-up of the work
in whole site for permanent works
in area of temporary facilities (office etc.)
details
[data to prepare]
 Area of whole site: estimate number of workers and equipment based on area (e.g. 5days with
50 % of all workforce)
 Area of temporary facilities (office, laboratory, storage area, workshop etc.): estimate number
of workers and equipment based on area
(2) Cost for general survey, ground survey, finishing stake and so forth
a) Basic ground survey before work
 Costs of survey group (assistants, workers, equipment, car or small truck, pegs & other
consumables): field survey only (review of data provided by PO/PMU to be done within site
details management staff)
[data to prepare]
 Area of whole site: estimate required days for basic survey (e.g. 1 week, 10days, 2 weeks or
more in case hilly or mountainous area with cutting trees and clearing bushes
b) Check of drawings provided in contract documents
details materials): field survey only
[data to prepare]
 Number of drawings to be reviewed with field survey: estimate required days for check survey
c) Confirmation of construction site
A-25
details materials): field survey for set of boundary position with PO/PMU
[data to prepare]
 Area of whole site & length of boundary perimeter: estimate required days for set of boundary
d) Survey works during construction
details materials): field survey only (calculation for survey to be done within site management staff)
[data to prepare]
 Whole work volume: estimate required number of survey group
3) Safety Cost
(1) Cost of monitoring and correspondence for safety management in the whole construction site
 Cost of regular safety patrol: safety experts from outside organization (site management staff
shall carry out together, cost of which is within site management cost).
details
[data to prepare]
 Frequency of safety patrol and number of safety experts: e.g. once in a month with an expert
or several experts depending on size and complexity of construction work
(2) Cost of security staffs at site entrances
 Cost of security with some tools
 Number of securities on working days and on off days: estimate required number, depending
on size of construction works and number of entrances
(3) Cost of setting, removing and maintenance of safety facilities such as mark plate, sign, safety
lighting, guard fence, temporary guardrail etc.
 Cost of depreciation or rental for facilities: transportation is included in 1) (2)
 Cost of workers with small tools and consumable goods (wires, nails etc.) for setting &
details removing as well as maintenance
[data to prepare]
 List of safety facilities: kinds, size, number and duration of use
 Estimate of number of worker for setting & removing as well as maintenance
(4) Cost of lighting in the case of works necessary lighting such as night work
 Cost of depreciation or purchase for lighting facilities
 Cost of workers with small tools and consumable goods (wires, tapes etc.) for setting &
details removing as well as maintenance
[data to prepare]
 List of lighting facilities (cables, lump, connectors etc.): kinds, size, number ad duration of use
(5) Cost of safety supplies such as helmets, safety belt, safety shoes, gloves etc.
 Cost of safety supplies
 Number of workers: kinds of supplies and frequency of supplies to each worker (e.g. once per
6 months or one year)
(6) Cost of safety committee and other safety activities excluding training
 Cost of work heads for safety committee (once in a month), some selected workers for safety
patrol (fortnight) and all for safety assembly (once in a year)
A-26
[data to prepare]
 Details of safety committee: to hold once in a month for 2hours and site managers of
subcontractors to attend
 Details of safety patrol: to carry out once in fortnight for half a day and experts of
subcontractors to attend
 Details of safety assembly: to hold once in a year for full day, including emergency drill and
all workers to attend
(7) Cost of dust work preventive measures
 Cost of team consisting of machines (graders, compactors, truck with water sprinkler), some
workers and materials (gravel or crusher run etc.) in order to keep site area clean with no dust
details
[data to prepare]
 Area of site area including access: estimate working days (e.g. 2- 3 hours in a week etc.) and
volume of materials required (e.g. 5 m3 in each time)
4) Utility Cost
Basic charge fee for water and electricity used for construction works
 Costs of Initial burden and basic charge fees for usage of electricity and water at the
construction site
details
[data to prepare]
 Invoice of initial burden cost and monthly basic charge for electricity and water from power
company and water supply organization
(1) Cost of all necessary tests described in Standard Construction Quality Management Plan
 Costs of all tests described in Standard Construction Quality Management Plan (Concrete
mixture test, tension strength test of reinforcing bar, soil density, CBR etc.)
details  Cost of test devices for above tests
[data to prepare]
 List up of all necessary tests for quality management
 Decision of number of tests of each test necessary for quality management
(2) As build, and all soft data of necessary documents produced by construction works
 Costs of making as build and soft data produced by construction works such as construction
pictures, results of all quality control tests
details
[data to prepare]
 Drawings for final construction objects constructed based on design and contract documents
 List up of all necessary documents to complete construction work
(3) Cost for storage of quality record of all construction materials used
 Costs of collecting and filing documents for quality records of all construction materials to be
details used for construction works
[data to prepare]
 List up of quality records of all construction materials to be used for construction works
(4) Cost of quality certificate of construction materials used
 Costs of making certificates of main construction materials used (Cement, aggregate,
bituminous material, steel etc.)
details
[data to prepare]
 Invoice from material supplier for issuing certificate of construction materials used (Referring
the practice of other similar projects is applicable)
(5) Cost of documents made for work schedule management
A-27
 Costs of making documents for work schedule management such as scheduling, work flow
chart workforce management and so forth
details
[data to prepare]
 Estimate of work schedule by using critical path to finish all construction works during
contract construction period
(6) Cost of survey, drawings, pictures for inspection of completion
 Costs of survey of constructed objects, making drawings for final measurements of objects
and pictures of construction for inspection of completion
 Survey data of all objects constructed, data of measurements records for reflecting and
checking original design and gathering construction pictures including already closed portions
after completion such as pile work, reinforcing, embankment etc.
(1) Cost of setting, removing, and maintenance of site office and laboratory
 Costs of building, removing, and maintenance of site office including exterior
 Costs of building, removing, and maintenance of laboratory at the site including exterior
 Area, location, capacity for necessary personnel for construction project on site office
 Area, location, inner arrangement of test facility and storage space of test pieces on site
laboratory
(2) Cost of setting, removing, and maintenance of staff and workers’ dwelling house on site
 Costs of building, removing, and maintenance of staff and workers’ dwelling house on site
including exterior and interior facilities
details
[data to prepare]
 Area, location, accommodation capacity for necessary personnel including all work force for
construction project
(3) Cost of setting, removing, maintenance of warehouse of some goods and equipment, and material
depository
 Costs of building, removing, and maintenance of warehouse of some goods for construction
(rubber corn, rope, sign, tools etc.),and equipment (welding machine, generators, reinforcing
bar cutter and bender, vibrator, compressor etc.)
 Costs of building, removing, and maintenance of material depository such as aggregates,
details
cement, crasher run and so forth
[data to prepare]
 Area, location, capacity for necessary goods and equipment on warehouse
 Area, location, capacity for necessary construction materials to be used on construction
schedule
(4) Land lease fees of above (1)(2)(3)
 Costs of lease fees for land using for site office, laboratory, staff and workers’ dwelling house,
warehouse of some goods and equipment, and material depository
details
[data to prepare]
 Invoice for monthly lease fees of land using for site office, laboratory, staff and workers’
dwelling house, warehouse of some goods and equipment, and material depository
A-28
Appendix 6 Detail Explanation on Common Indirect Cost Items by piling up
Detail Explanation on Common Indirect Cost Items by piling up

Common Indirect Cost Items by Piling Up
1) Transportation Costs for Machines and Materials
Cost for decomposition, assembly and transportation of specialized heavy construction machines (e.g.
TBM drill machine, etc.)
[item to calculate]
 Same to description in (1)and/or (2) in 1) of Indirect Cost Items by Rate (Appendix 5)
 Same to description in (1) and/or (2) in 1) of Indirect Cost Items by Rate (Appendix 5) except
the list of machine, which shall be defined (e.g. cranes more than 50 ton capacity, TBM etc.)
2) Cost of Facilities for Prevention Measures against Damages by Construction
(1) Cost of setting and removing, and maintenance of temporary facilities that prevent damages and
loss by Construction such as noise, vibration, dust, settlement, loss of underground water etc.
[item to calculate]
 Cost of temporary facilities (Noise barrier, observation facilities for vibration, dust, ground
details settlement and well for underground water, etc.) to set and removal, including monitoring
[data to prepare]
 List of facilities: kind, size and number of facilities and duration for maintenance
(2) Cost of survey for measures against damages and losses by construction
[item to calculate]
 Cost of survey before and after construction (houses and other structures etc. nearby)
details
[data to prepare]
 List of survey: kind, size and number of objects to survey
3) Safety Cost
(1) Cost of traffic safety assurance for construction work
[item to calculate]
 Cost of staffs for traffic guidance for vehicles and machines in site
details
[data to prepare]
 Number of locations and persons in charge and duration
(2) Cost of fire safety measures in long tunnel
 Cost of depreciation or rental for fire protection facilities (extinguishers, water supply pipe as
hydrant etc.): transportation is to calculate in similar manner described in (1) in 1) of Indirect
Cost Items by Rate (Appendix 5)
details  Cost of workers with small tools and consumable goods (wires, nails etc.) for setting &
removing as well as maintenance
[data to prepare]
 List of fire protection facilities: kinds, size, number and duration of use
(3) Cost of prevention measures against dust and anoxia in underground and/or confined space
 Cost of depreciation or rental for prevention facilities against dust and anoxia (ventilation,
oxygen measure apparatus etc.): transportation is to calculate in similar manner described in
(1) in 1) of Indirect Cost Items by Rate (Appendix 5)
 Cost of workers with small tools and consumable goods (wires, nails etc.) for setting &
removing as well as maintenance
A-29
[data to prepare]
 List of prevention facilities: kinds, size, number and duration of use
(4) Cost of life jacket and lifeboat in river and coastal construction
 Cost of depreciation or rental for facilities on or near water (life jackets, lifeboat etc.):
transportation is to calculate in similar manner described in (1) in 2) of Indirect Cost Items by
details Rate (Appendix 5)
[data to prepare]
 List of facilities on or near water: kinds, size, number and duration of use
 Estimate of number of worker for maintenance
(5) Cost necessary for prevention of accidents from high voltage work
 Cost of depreciation or rental for facilities (high voltage incoming pane, insulating devices
etc.): transportation is to calculate in similar manner described in (1) in 2) of Indirect Cost
details Items by Rate (Appendix 5)
[data to prepare]
 List of facilities: kinds, size, number and duration of use
 Estimate of number of worker for maintenance
(6) Cost of monitoring for blasting of rock excavation in dam, tunnel and other construction
 Cost of monitoring members with small tools (hand mike and silent etc.)
 Duration of blasting works and number of blasting in a day as well as size of blasting
 Composition of members for monitoring
(7) Others (in the case of necessary due to site conditions)
e.g.: Security guard necessary for the site near special area such as railways or airport etc.
(1) Cost of special quality control
a) Tests besides those are regulated in quality control standard and standard construction quality
management plan such as soil test, etc.
b) In-situ tests such as geological survey, plate bearing test, boring, sounding, pile test etc.
 Costs of all special tests such as ultrasonic wave test, triaxle compression test etc.
details  Cost of test devices for above tests
[data to prepare]
 List of special tests, including in-situ tests: kind, number etc.
(2) Cost of special cases due to site conditions
a) Setting and removing of test equipment, measurements, and data collection for soft ground
research (settlement measurement, water table, pore water pressure etc.)
b) Cost of works for test embankment
 Costs of all special cases mentioned above
details  Cost of required devices for above cases
[data to prepare]
 List of special cases: kind, size, number etc.
A-30
Appendix 7 Detail Explanation on Site Management Cost Items
Detail Explanation on Site Management Cost Items

1) Labor Management Cost
(1) Cost of recruitment and dissolution including the allowance of new post and dissolution
 Cost of advertising and publicity to recruitment for some magazine, newspaper, and other
advertisement medium etc.
 Cost of transportation of workers for recruitment and dissolution
details  Cost of allowance of workers for recruitment and dissolution
[data to prepare]
 List of magazines, newspapers, other advertisement medium and etc.
 Distance between site office and center of city: depend on the location of construction site
 Average allowance of workers (depend on the type of work)
(2) Cost of entertainment and welfare for labors
 Cost of meal: when workers have overtime
 Cost of season presents: some foods and etc.
 Cost of ceremony
 Cost of others
details
[data to prepare]
 List of workers: number and duration
 Information of restaurant which is near the construction site ( if any, distance between
construction site and restaurant to calculate the transportation fee)
 Presents list
(3) Cost of work clothes and work tools
 Cost of working clothing, helmets, clothes, shoes, safety belts and etc. that not included the
details direct cost and common indirect cost
[data to prepare]
 List of workers and their size: number and duration
(4) Cost of commuting
 Cost of commuting for workers depending on contract with workers
 Cost of moves for workers between quarters and sites: cost of transport (buses etc.)
details
[data to prepare]
 Distance between quarters and site, and usual mode of transport
(5) Cost of medical treatment besides compulsory industrial injury insurance
 Cost of insurance of death, physical impediment, closure and etc.
details
[data to prepare]
2) Safety Training Cost

(1) Safety activity and training
 Cost of unit price of workers, material and etc.
 If necessary, cost of safety experts from outside organization to be calculated.
A-31
[data to prepare]
 Number of workers
 Days and time schedule for safety activity and training
(2) Cost of meeting for safety and health education
 Cost of unit price of workers, material and etc.
 If necessary, cost of safety management engineer to be calculated.
details
[data to prepare]
 Number of workers
 Days and time schedule for safety activity and training
3) Taxes and Dues, Fees, Charges as Per Regulation

 Area of the site office, construction material yard and construction area.
 Construction area
 Price of land for rental.
 Vehicle tax
 Number of vehicles, type, model
 Period of operation
 Unit price of land near the construction site
 Road usage rate
 Using area in the road side
4) Insurance
(1) Cost of work insurance
 Cost of work insurance: the objectives of insurance are construction structure, temporary
structure, materials for construction structure and temporary structure and etc.
 Construction cost excluding the VAT
 Rate of insurance
 Period of insurance
(2) Cost of car insurance
 Cost of car insurance
[data to prepare]
details
 Number of cars
 Period of insurance
 Type of car
5) Salary of the Employee
A-32
(1) Cost of salary of the employee

 Cost of basic salary
 Cost of the managerial position, qualification, field, overtime, holiday working
allowance, bonus and etc.
detail
[data to prepare]
s
 Number of the staffs in the project
 Years of experience, age and qualification of the staffs
 Working period of the staffs
 Information of the staffs
6) Severance Pay
(1) Cost of the severance pay
 Cost of basic salary
 Cost of the managerial position, qualification, field, overtime, holiday working allowance,
bonus and etc.
details
[data to prepare]
 Number of the staffs in the project
 Years of experience, age and qualification of the staffs
 Working period of the staffs
7) Legal Welfare Cost

(1) Cost of legal welfare
 Cost of the social includes the health insurance, employment insurance and etc.
[data to prepare]
details  Amount of salary of staffs in the site
 Amount of salary of workers in the site
 Number of staffs and workers
 Rate of legal welfare
 Cost of accident insurance
[data to prepare]
details
 Total man-month of staffs and workers
 Number of workers and staffs
 Construction period
8) Welfare Cost
 Cost of social gathering, dining party, year-end party / new-year party and etc.
 Cost of newspaper and magazines
details
[data to prepare]
 Number of the staffs
 Number of times for above parties
A-33
 Cost of rental clothes

[data to prepare]
 Number of staffs
 Cost of regular medical supplies
 Cost of medical examination: medical examination shall be conducted one time per year
 List of medical supplies: cold tablets, antiseptic available, adhesive tape, bandage and etc.
 Estimated number of each medical supplies
(4) Cost of congratulatory and condolence and culture activity
 Cost of congratulations and condolences: wedding ceremony, celebration of a birth and etc.
 Cost of condolences: condolatory money, solatium and etc.
details
[data to prepare]
 List of staffs
 Estimate of number of congratulatory and condolence
 Cost of operation and maintenance of company house for staff
 Cost of meal aid for staffs
details
[data to prepare]
 Number of staffs who use company house
 Estimate of number of overtime days
9) Office Supplies
(1) Cost of office facilities of electronic equipment
 Personal computers (depreciation rate)
 Printer (depreciation rate)
 Rental copy machine
details
[data to prepare]
 Number of personal computer and printer
 Period and fee of rental copy machine
 Rate of depreciation
 Cost of desk, chair, cabinet, meeting table and shelves
[data to prepare]
details
 Number, kind, size of furniture
 Number of staffs
 Area of office
 Cost of papers, office supplies (stationary, extension cord and etc.)
details
[data to prepare]
 Estimate of number of office supplies
(4) Cost of books
A-34
 Cost of newspapers, magazines, reference book and etc.
 List of newspapers, magazines, reference book
 Cost of print and copy of drawings
details
[data to prepare]
 Estimate of number of drawings
10) Communication & Transportation Cost

 Cost of telephone set
 Cost of installation
 Cost of call charge
details
[data to prepare]
 Number of telephone set
 Estimate of number and call time
 Cost of mobile phone
 Cost of call charge
 Number of mobile phone
 Estimate of number and call time
(3) Cost of mail
 Cost of mail service, telegraph and etc.
details
[data to prepare]
 Estimate of number of mail service, telegraph and etc.
 Cost of fuel for private car including the micro bus for transportation of works
 Cost of Parking
 Cost of tall payment
 Cost of short distance business trip
details  Cost of commuter pass
[data to prepare]
 Number of the private car and micro bus
 Distance between company house and construction site.
 Estimate of number of business trip
 Working days
11) Social Expenses

(1) Cost of entertainment
A-35
 Cost of entertainment for clients and visitors
 Cost of gift for clients and visitors
details  Cost of congratulatory and condolence for clients and visitors
[data to prepare]
 List and number of clients
 Estimate of number of visitors
12) Compensation Cost

(1) Cost of compensation
 Cost of repair for existing structure by implementing the construction of road, river and etc.
 Cost of compensation for adjacent building
details  Cost of other compensation such as accident and work completion reserve fund
 Cost of compensation for car accident
[data to prepare]
 Construction drawing including the building, trees such as landscape information
13) Outsourcing Cost

(1) Overhead cost of the sub-contractor if the contractor outsources the part of construction works to
subcontractor.
 Overhead cost of the sub-contractor
[data to prepare]
details
 List of subcontractor
 Contract of construction
 Construction cost which is part of subcontractor
14) Work Registration Cost

(1) Cost required for registration of construction performance, and various surveys
 Cost of registration of construction performance and various surveys to submit to Ministry of
Construction
details
[data to prepare]
 Construction performance list (civil works, building work, carpenter, plasterer
 Company information
15) Miscellaneous Cost

(1) Cost of miscellaneous which is not belong to the above items
 Cost of the teacake and meals for guests, midnight meal, bedclothes and ordinary other cost.
 Cost of the membership fee of organizations
 Percentage of miscellaneous cost of other similar project.
 List of the related company
 Estimate the number of critical days and staffs in that time
A-36
Schedule 2014 2015
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
considered.
Construction Schedule 18 Months
Preparation 2 Months
Sub-Structure Construction 12 Months
Super-Structure Construction 14 Months
Approach Road Construction 17 Months
Project Manager
A-37
Bridge Section Road Section Quality Section Safety Section
Manager
Chief Engineer Chief Engineer Engineer (Safety)
(Quality)
Engineer Engineer Engineer Engineer

Appendix 8 Schedule and Organization Chart
Administration (Approach Road Administration

(Super-Structure 1) (Sub-Structure 1) (Quality 1)
Engineer Engineer Engineer Engineer

Officer x2 Officer x2
(Super-Structure 2) (Sub-Structure 2) (Approach Road (Quality 2)
Supervisor 1 Supervisor 2 Laboratory

This figure shows the necessary system of personnel (engineer staffs) at site office for one of case
at least for successful completion of construction project. At cost estimation, this system has to be
study project from the view of internationally standard level. These numbers of engineers are required
Form-1(Ma) Actual Condition Survey for Unit Price of Materials
Supplier Name Contact person Settlement condition
Address Tel
Average transaction Average transaction

# Material Name Manufacture name Specification Type Unit Condition of delivery Selling area Remark
price quantity
A-38
5
8
Appendix 9 Survey Form of Unit Price of Material
10
11
Working day / y ear Office number of employee's pension insurance
Form-1(L) Actual Condition Survey for Unit Price of Labors Project Name
Month
Contractor
Month Necessary cost rate Name

＜Form－１＞ M D to Social welfare insurance, labor Office number of health insurance
Period of
management cost % Payer Address
Wage M D
※ Project Owner
Site management cost, safety T el
Day of
M D management cost and etc. %
payment
Creator of this form
T otal necessary cost Office number of employment insurance
%
Main or Sub 1 Number of permission of
0
Contractor payer
Amount deducted from social welfare insurance

Working day Working time Wage (by currency)
(Paid by employee)
Basic Workin
T ime of A Basic B Basic Payment in
No. Name No. Paid payment per g day / Health insurance
Age
Prescribed paid leave allowance that allowance that T emporary salary kind Employment Pension
No. of
Years of
leav Overtime Holiday day Basic salary Paid by the piece year including long
time
experience
Occupation
time object of extra not object of （ bonus etc.） / year insurance insurance
Employment
Type of wage
e term insurance
Prescribed
coefficient extra coefficient
1 1 ● ● ● ● - - - - - - - - - - - - 0 0 0 0 - - - 0
2 2 ● ● ● ● - - - - - - - - - - - - 0 0 0 0 - - - 0
3 3 ● ● ● ● - - - - - - - - - - - - 0 0 0 0 - - - 0
4 4 ● ● ● ● - - - - - - - - - - - - 0 0 0 0 - - - 0
5 5 ● ● ● ● - - - - - - - - - - - - 0 0 0 0 - - - 0
A-39
6 6 ● ● ● ● - - - - - - - - - - - - 0 0 0 0 - - - 0
7 7 ● ● ● ● - - - - - - - - - - - - 0 0 0 0 - - - 0
8 8 ● ● ● ● - - - - - - - - - - - - 0 0 0 0 - - - 0
9 9 ● ● ● ●
- - - - - - - - - - - - 0 0 0 0 - - - 0
0 0 ● ● ● ● - - - - - - - - - - - - 0 0 0 0 - - - 0
1 1 ● ● ● ● - - - - - - - - - - - - 0 0 0 0 - - - 0
2 2 ● ● ● ● - - - - - - - - - - - - 0 0 0 0 - - - 0
3 3 ● ● ● ● - - - - - - - - - - - - 0 0 0 0 - - - 0
Appendix 10 Survey Form of Unit Price of Labor No.1
4 4 ● ● ● ● - - - - - - - - - - - - 0 0 0 0 - - - 0
5 5 ● ● ● ● - - - - - - - - - - - - 0 0 0 0 - - - 0
6 6 ● ● ● ● - - - - - - - - - - - - 0 0 0 0 - - - 0
7 7 ● ● ● ● - - - - - - - - - - - - 0 0 0 0 - - - 0
8 8 ● ● ● ● - - - - - - - - - - - - 0 0 0 0 - - - 0
9 9 ● ● ● ● - - - - - - - - - - - - 0 0 0 0 - - - 0
0 0 ● ● ● ● - - - - - - - - - - - - 0 0 0 0 - - - 0
Month
Form-2(L) Actual Condition Survey for Unit Price of Labors
Project Name
＜Form-1-1＞ Main Contractor
Payer
※ Project Owner
Creator Name
Number of
Circumstance of employment Working day by PO Out of the basic allowance
Non-working Number of
non- balance per
Plural occupations condition
Qualification acquisition Allowance for working day due to the
No. Name No. （If a worker has plural
condition outside working Allowance for time non-working
Ranking
occupation except form1） Other State Other Per year
time, holiday and absent from work （Subject day
Private
No. of occupation
municipalities
midnight month）
Object month
Office Address
Prefectures and
1 1 0 0 0 0 0 0 - - - - - - ●
- - - - - - - -
2 2 0 0 0 0 0 0 - - - - - - ●
- - - - - - - -
3 3 0 0 0 0 0 0 - - - - - - ●
- - - - - - - -
4 4 0 0 0 0 0 0 - - - - - - ●
- - - - - - - -
5 5 0 0 0 0 0 0 - - - - - - - - -
●
- - - - -
A-40
6 6 0 0 0 0 0 0 - - - - - - ●
- - - - - - - -
7 7 0 0 0 0 0 0 - - - - - - ●
- - - - - - - -
8 8 0 0 0 0 0 0 - - - - - - ●
- - - - - - - -
9 9 0 0 0 0 0 0 - - - - - - ●
- - - - - - - -
0 0 0 0 0 0 0 0 - - - - - - ●
- - - - - - - -
1 1 0 0 0 0 0 0 - - - - - - ●
- - - - - - - -
2 2 0 0 0 0 0 0 - - - - - - ●
- - - - - - - -
3 3 0 0 0 0 0 0 - - - - - - ●
- - - - - - - -
4 4 0 0 0 0 0 0 - - - - - - ●
- - - - - - - -
Appendix 10 Survey Form of Unit Price of Labor No.2
5 5 0 0 0 0 0 0 - - - - - - ●
- - - - - - - -
6 6 0 0 0 0 0 0 - - - - - - ●
- - - - - - - -
7 7 0 0 0 0 0 0 - - - - - - ●
- - - - - - - -
8 8 0 0 0 0 0 0 - - - - - - ●
- - - - - - - -
9 9 0 0 0 0 0 0 - - - - - - ●
- - - - - - - -
0 0 0 0 0 0 0 0 - - - - - - ●
- - - - - - - -
Form-1(Mc) Actual Condition Survey for Unit Price of Machineries (Usage condition)
1 2 3 4 5 6
1 Name of construction machinery
2 Manufacture name
3 Type name of manufacture
4 Machinery type
of machinery
5 Specification
6 Output (kW / PS)
1. Summary of retention and usage

7 Weight (t)
8 Date of acquisition
9 Division of new or old ,
10 Method of acquisition
A-41
11 Price of acquisition
2. Acquisition record
12 Accessory
13 Number of retention
14 Main operation location
15 Annual operation hour
16 Annual operation day
3. Operation record
Appendix 11 Survey Form of Unit Price of Machinery No.1
17 Annual days of service
18 Annual maintenance and repair cost
19 Main replaced parts
20 Main replaced wear parts
repair record
Cumulated maintenance and repair
21
4. Maintenance and
cost from acquisition

Form-2(Mc) Actual Condition Survey for Unit Price of Machineries (Management condition)
Category # Items 1 2 3 4 5 6
Location of retention of
1
machinery
Total acquisition cost of
2
machinery
3 Storage yard cost
4 Storage facility cost

Management cost for labor
5
cost
Management cost for out
6
sourcing cost
Management cost for
7
repairing cost
1. Management record
A-42
8 Utility cost at storage facility
Number of machinery
9
retention
Taxes and other public
10
duties of machinery
11 Insurances of machinery
Form-3(Mc) Actual Condition Survey for Unit Price of Machineries (Disposition record)
Category # Items 1 2 3 4 5 6
1 Name of machinery
Total acquisition cost of
2
machinery
3 Name of manufacture type
4 Machinery type
machinery
5 Specification
6 Output (kW / PS)
1. Summary of disposition of
7 Weight
8 Date of acquisition
2.
n record
9 Division of new or old
A-43
10 Date of disposition
11 Price of disposition
12 Method of disposition
13 Purpose of disposition
3. Disposition recordAcquisitio
Total operation hour until
14
disposition
4.
record
Total maintenance and
15
Maintenanc
e and repair
repair cost
Appendix 12 Survey Form of Productivity Rate No.1
Form-1(P) Actual Condition Survey for Productivity rate (Outline of the Project)
1. Location
2. Project name
3. Construction division
4. Working system 4 weeks 8 holidays 4 weeks 6 holidays 4 weeks 4 holidays
Other ( ) Average working hour per week:
5. Construction period
6. Survey period
7. Outline of the project

Main construction work and
its quantity, contract amount
and etc.
Obstacles at a site Is there an obstacle which is effect to a construction?
Yes No
What is the concrete content of an obstacle?
Contact Name Telephone / mobile phone Organization
PO
Contractor Name
A-44
Section
Form-2(P) Actual Condition Survey for Productivity rate (Schematic diagram of construction work)
Plan
A-45
Form-3(P) Actual Condition Survey for Productivity rate (Flow chart)
Operation
Working item / / / / / / / / / / / / / /
number
A-46
8
10
11
12
13
14
15
Total number of labor (person)

Form-4(P) Actual Condition Survey for Productivity rate (Construction work states)
Operation number in form-3
Working item
Productivity rate / / / / / / / Quantity Working / operation day
Unit
Name of material, labor and machinery Monday Tuesday Wednesday Thursday Friday Saturday Sunday Sub-total In total Sub-total In total
Material / wear
number Material / wear name
Material
Occupation Working contents
A-47
Labor
M achinery number Machinery name
Machinery
Construction progress Construction volume
Form-5(P) Actual Condition Survey for Productivity rate (Materials)
Material Operation
Material name Specification Manufacture name Unit Design volume Usage Unit price
number number in
1
A-48
8
10
11
12
13
14
15
Form-6(P) Actual Condition Survey for Productivity rate (Construction machinery)
Machinery Total number of Fuel Wear parts Wear parts

Name of machinery Specification Manufacture name Type Retention dividion Operation day Days of service
number operation hour consumption(L) name quantity
A-49
8
10
11
12
13
14
15

Form-7 Pictures of working states
A-50
Appendix 13 Expense Trend Survey Form for Project Owner
A. CONSTRUCTION INFORMATION
1 Project Name
2 Construction Package Name
3 Organization in charge (1)
6 Name of Contractor
7 Final Approved Cost of Package
7-1 Construction Cost in above amount
7-2 VAT
7-3 Contingency
8 Initial Contract Amount of Package
8-2 VAT
8-3 Contingency
9 Final Contract Amount of Package
9-2 VAT
9-3 Contingency
10 Construction Category
11 Initial Construction Period

12 Final Construction Period
13 Bidding Method/Contract Method
14 Score of Work (Main Work)
A-51
B. GENERAL INFORMATION
1) REGISTRANT
1 Mail Address
2 Name
3 Position
4 Name of Organization
5 Department, Division
6 Tel. No.
7 Fax No.
2) WORK INFORMATION
1 Jurisdiction
2 Work Category
3 Work Registration No.
4 Construction Site Area
5 Other Index
A-52
C. CONSTRUCTION COST
DIRECT COST (1000VND)

1 Material cost
2 Labor Cost
3 Machine Cost
4 Utility Cost (Electlicity, water etc.)
Total
INDIRECTCOST (1000VND)
Transportation cost
1
(machine,labor,material)
2 Preparation Work
Cost of Facilities for Prevention
3 Measures against Damages by
Construction
4 Safety Cost
5 Utility Cost
6 Technical Management Cost
7 Temporary Building
Total
OVERHEAD (1000VND)
Overhead
TAX (1000VND)
VAT
CONTINGENCY (1000VND)
Contingency
GRAND TOTAL (1000VND)
Grand Total
A-53
Chapter 9　
A-54
Appendix 14 Expense Trend Survey Form for Contractor
A. GENERAL INFORMATION
1) REGISTRANT
1 Mail Address
2 Name
3 Position
4 Name of Organization
5 Department, Division
6 Tel No.
7 Fax No.
2) WORK INFORMATION
1 Name of Work
2 Name of Project Owner
3 PMU
4 Name of Construction Office
5 Construction Site
6 Name of Contractor
7 Contract Amount in final
8 Tax in Amount
9 Contract Construction Period
10 Main Construction Objects
3) SUB CONTRACTOR
1 First Sub Contractor
2 Second Sub Contractor
3 Third Sub Contractor
A-55
B. CONSTRUCTION PERIOD
1) CONTENTS OF CONSTRUCTION PERIOD

1 Commencement Date
2 Completion Date
3 No. of Days in Total
4 No. of Days of Work
5 No. of Days of Non Work
6 No. of Days of Holiday
7 No of Inoperable Days
2) CONTENTS OF NON WORK DAYS

1 National Holiday
2 Fixed Holiday of the Site
3 Other Holiday
4 Inoperable Days by Weather
5 Inoperable Days by Other Causes
3) WORKING HOUR
1 Normal Work Hour (Time to Time)
2 Hours of Overtime (in total)
3 Days of Night Work
4 Hours of Night Work
A-56
C. CONSTRUCTION COST-1
DIRECT COST (1000VND)
MAIN S UB
ITEM TOTAL CONTRACTOR CONTRACTOR
1 Materiail cost
2 Labor Cost
3 Machine Cost
4 Utility (Electlicity, water etc.)
5 Others (Special Expense)
Total
INDIRECT COST (1) (1000VND)

MAIN S UB

Transportation cost
1
(machine,labor,material)
1-1 Construction Machines 1(Normal)
1-1 Construction Machines 2(Big one)
1-2 Staffs and Workers at Site
1-3 Construction Materials
1-4 Temporary Material
2 Preparation Work
2-1 Beginning and final clean up
2-2 Surveys
Cost of Facilities for Prevention
3 Measures against Damages by
Construction
4 Safety Cost
4-1 Safety Management Cost
4-2 Security Staff
4-3 Safety Facilities
4-4 Lighting in night work
4-5 Safety Supplies
4-6 Safety Committee
4-7 Dust Prevention Measures
4-8 Traffic safety assurance
A-57
C. CONSTRUCTION COST-2
INDIRECT COST (1) (1000VND)
MAIN S UB
4-9 Safety measures in long tunnel

Cost of prevention measures
4-10 against dust and anoxia in
underground and/or confined space
Cost of life jacket and lifeboat in
4-11
river and coastal construction
Cost necessary for prevention of
4-12
accidents from high voltage work
Cost of monitoring for blasting of
4-13 rock excavation in dam, tunnel and
other construction works
Others (in the case of necessary
4-14
due to site conditions)
5 Utility Cost
6 Technical Management Cost
6-1 All Necessary Standard Tests
6-2 As build and all Soft data
Storage of quality record and
6-3
Certificate of Material used
6-4 Work Schedule Management
6-5 Cost of all Inspections
6-6 Cost of Special Tests
Cost of special cases due to site
6-7
conditions
7 Temporary Building
7-1 Site Office and Laboratory
7-2 Dwelling House of Workers
7-3 Warehouse for Equipment etc.
Total
A-58
INDIRECTCOST (2) (1000VND)

MAIN S UB

1 Labor Management Cost
Workers recruitment
1-1
and dissolution
1-2 Entertainment and welfare
1-3 Work Clothes and Tools etc.
1-4 Commuting cost
1-5 Medical Treatment
2 Safety Training Cost
3 All Taxes and Dues
4 Insurance
5 Salary of Employee
6 Severance Pay
7 Legal Welfare Cost
7-1 Employment Insurance
7-2 Accident Insurance
8 Welfare Cost
8-1 Recreation and Amusement
8-2 Rental Work Clothes
8-3 Medical exam and supply
8-4 Other miscellaneous cost
9 Office Supplies
Electronic equipment (Computer,
9-1
Printer, Copy machine etc.)
9-2 Facilities such as desk, chair etc.
Office expendables such as
9-3
stationary, paper etc.
Cost of Reference Books for
9-4
Work, News paper etc.
9-5 Drawings
Communication and
10
Transportation
10-1 Telephone and Mail Cost
Relevant Cost of Vehicles at Site
10-2 (Fuel, Repair, toll etc.) and Commuter
Pass Fee
A-59
(1000VND)
MAIN S UB
11 Social Expenses
12 Compensation Cost
13 Outsourcing Cost
14 Work Registration Cost
Other Cost not Included in
15
above Items
Total
OVERHEAD (1000VND)
MAIN S UB
Overhead
TAX (1000VND)
MAIN S UB
VAT
GRAND TOTAL (1000VND)
TOTAL MAIN CONTR ACTOR S UB CONTRACTOR
Grand Total
* Colum of Sub Contractor is filled with total amount of all Sub Contractors
A-60

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THE SOCIALIST REPUBLIC OF VIET NAM

MINISTRY OF CONSTRUCTION (MOC)

JAPAN INTERNATIONAL COOPERATION AGENCY

Ha Noi, January 2018

Chapter 2 Related Regulation...................................................................................................................2

Chapter 3 Mechanism of Cost Estimation................................................................................................3

Chapter 4 Component of Direct Cost.....................................................................................................10

Chapter 5 Estimation Method of Direct Cost.........................................................................................31

5.3 Method of Estimation.......................................................................................................32

(3) Format of Price Schedule of Concrete Block Work.........................................................57

Chapter 6 Indirect Cost...........................................................................................................................63

Chapter 8 Conclusion and Recommendations........................................................................................75

Chapter 2 Related Regulation

Chapter 3 Mechanism of Cost Estimation

3.1 Definition of Cost Estimation

(3) Construction Package Estimate

Source: JICA Project Team

(4) Condition for Estimation

Execution Plan Cost Estimation

Source: JICA Project Team

3.2 Structure of Cost

Direct Cost Material Cost

Construction Common Indirect

Source: JICA Project Team

(2) Component and Contents

3.3 Construction Period

(2) Purpose and Importance

(3) Procedure of Setting Period

(Calendar days) – (Holidays) –(Non-working days) +

Required number of days

(4) Construction Period

Chapter 4 Component of Direct Cost

Source: JICA Project Team

4.3 Material Cost

Necessary quantity Unit price of material

Figure 4.5 Formula of Material Cost

(1) Current Practice

(3) Improvement Plan

4) Actual Condition Survey for Unit Price of Materials

4.4 Labor Cost

(1) Current Practice

2) Labor base salary (LNC)

3) Labor salary coefficient (HCB)

(3) Improvement Plan

Public work unit 1. Equivalent 2. Equivalent 3. Temporary

← Scheduled working hour, per 8 hours → ←Annual working day →

Public work unit 1. Equivalent 2. Equivalent 3. Temporary

← Scheduled working hour, per 8 hours → ←Annual working day →

The public work unit labor price shall be calculated as follows.

b) Equivalent basic allowance

*3 Scheduled working hour

The structure of wage is shown in Figure 4.4.

Extra wage Wage for overtime work (Overtime pay)

Wage for overtime working on holiday

Wage for midnight work

Allowance for living in city

Allowance for paid leave

Good attendance allowance

Allowance for absence

Payment in kind Supplement with commuter pass

Supplement with food

Other temporary salaries

1. Equivalent basic salary

Chapter 2　 Related Regulation

Chapter 3　 Mechanism of Cost Estimation

Chapter 4　 Component of Direct Cost