Average construction cost in 2021 will increase by more than 5%

The Ministry of Construction announced the National Construction Price Index for 2021, this decision takes effect from March 9. According to the decision of the Ministry of Construction, the average construction price index of the whole country is 105.4% compared to the base year 2020 – the base year is set at 100%.

The specific construction price index will vary according to the type of popular works (average for the whole country) divided into groups such as civil construction, industrial works, technical infrastructure, traffic, agriculture. and rural development…

In which, the construction price index of housing works is 106.6 percent, office buildings are 105.3%, medical, educational and cultural works (cinemas, museums, etc.) , theater…) are 102.7 %, 104.9% and 105.8% respectively.

For industrial works, the construction price index of works producing construction materials (brick and tile factories) is 101.9%, energy works such as electric wires and transformer stations are respectively. 109.9% and 101%.

Besides, for traffic works, the construction index of road and bridge works (Cement concrete bridge) is 109.9 %, cement concrete road is 103.6 %, asphalt concrete road is 103.6%. 105.5%.

The remaining construction price indexes are related to irrigation works, dyke works, irrigation pumping stations, water supply works…

The average construction cost in 2021 will increase by more than 5% - Photo 1.

Illustration. Photo: Quang Anh.

National construction price index is a relative indicator reflecting the fluctuation of construction prices over time on a national scale. Therefore, this index is used as a basis for determining the investment rate, as a reference in the analysis of the average price volatility of the construction price index when determining the provisioning cost in the total investment and works related to assessment of price fluctuations of construction works in service of macro management and administration.

However, the published national construction price index is not used to adjust construction contract prices, the Ministry of Construction said.

The National Construction Price Index 2021 has taken into account the fluctuations of construction costs, equipment, project management, construction investment consulting and a number of other cost items of construction investment costs. construction works. Some cost items will not be included in the calculation such as compensation, support and resettlement costs, mine and explosive material clearance costs, loan interest during construction for projects using Loans, initial working capital for production and business projects…

The method of determining the national construction price index in 2021 will be based on the Circular No. 13 dated August 31, 2021 of the Ministry of Construction, which contains instructions on the method of determining the economic and technical indicators and the volumetric measurement. quantity of works.

In addition, the input cost factors to determine the construction price index also include the price of construction materials, the unit price of construction labor, the price of machine shift and construction equipment based on the price announcement of the Department of Construction. Construction of localities.

According to Quang Anh

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