Cost estimates for construction projects to be slashed
Cost estimates for construction projects to be slashed
The estimated initial cost of State-funded construction projects in 26 provinces and cities could be cut as much as VND10.2 trillion (US$451.6 million) compared to early projections. The findings were made by the Ministry of Construction in a recently conducted cost review.
Reviews of 9,129 construction projects found that VND9.6 trillion ($424 million) could be trimmed from the total initial estimated cost of VND163 trillion ($7.2 billion). A review of an additional 1,369 construction projects scaled back another VND624.8 billion ($27.6 million).
Deputy Minister of Construction, Do Duc Duy, said the governing of construction investment has been undergoing positive reforms in line with the Law on Construction and related guiding documents, leading to a substantial boost in construction quality, loss and waste prevention, and improved efficiency of capital usage.
Generally speaking, Duy added, competent authorities have paid due attention to the evaluation of project planning, design and estimated cost. The more stringent evaluation processes are, the better the works’ quality and the fewer the risks, he said.
In 2017, the Ministry of Construction will step up the inspection of State management agencies in terms of their designated responsilities, as well as the adherence of entities involved in construction activities to laws and policies.
