Construction Design and Cost Estimate Appraisal

Construction design and cost estimate appraisal is a mandatory legal procedure in construction investment management. This process reviews the compliance of design and cost estimate files with technical regulations, applicable standards, and legal provisions. This article by Long Phan Consulting Company analyzes the regulations on authority, dossiers, and the implementation process for this procedure.

Competent Authorities for Construction Design and Cost Estimate Appraisal Today

Current law clearly assigns specialized construction agencies to perform the appraisal procedure. This authority is demarcated based on the type, grade of the works, and the investment capital source. According to Clause 1, Article 44, Decree No. 175/2024/ND-CP, the appraisal authority (specifically for construction design appraisal after the basic design and cost estimates) is determined as follows:

• First, specialized construction agencies under Ministries managing specialized construction works. These agencies preside over appraisals for projects of national importance, projects assigned by the Prime Minister, or projects with special-grade works. This authority applies regardless of the capital source. Central agency appraisal focuses on large-scale, technically complex projects with widespread impact.
• Second, specialized construction agencies under provincial-level People’s Committees (e.g., Department of Construction). These agencies preside over the construction design and cost estimate appraisal for projects invested within the province’s administrative territory. This authority excludes works already under the jurisdiction of the ministerial-level agencies mentioned above. Decree 175/2024/ND-CP has thoroughly decentralized most appraisal procedures to localities, including Grade I and Grade II works.
• Third, communal-level People’s Committees. The law also provides for decentralization or authorization to specialized agencies under communal-level People’s Committees. This decentralization aims to simplify administrative procedures for small-scale works.

Dossier Requirements

The investor must prepare a complete set of legal and technical documents for submission to the competent authority. The dossier for construction design and cost estimate appraisal must ensure legality and informational accuracy. Detailed requirements for dossier components are specified in Clause 2, Article 45, Decree 175/2024/ND-CP.

The submission dossier must comply with current regulations. The investor is responsible for the legality and content of the dossier. Below are the primary components:

• Appraisal Submission Form: This document is prepared according to Form No. 08, Appendix I, issued with Decree No. 175/2024/ND-CP. The form states information about the investor, project, works, and the content proposed for appraisal.
• Accompanying Legal Documents: Includes the construction investment project approval decision; the notification of feasibility study report appraisal results (if any); and documents for fire protection design appraisal (PCCC) or environmental impact assessment (EIA) as required by relevant laws.
• Survey and Design Dossiers: The approved construction survey dossier must be submitted. The construction design dossier for the appraisal step (technical design or construction drawing design) must include specifications and drawings.
• Capacity Profiles: Requires providing the construction activity capacity certificate codes for participating contractors (survey, design, verification). Also, provide the practicing certificate codes for project managers and lead designers.
• Construction Cost Estimate: For projects using public investment capital or state capital other than public investment, the construction cost estimate is mandatory. For other capital source projects, the investor organizes the appraisal and approval of the cost estimate.

Implementation Process for Construction Design and Cost Estimate Appraisal

The appraisal process follows a strict administrative procedure. This ensures state control over construction activities. The construction design and cost estimate appraisal process reviews legal compliance and technical requirements.

The procedure for appraising construction design deployed after the basic design is conducted according to Article 47, Decree No. 175/2024/ND-CP, through the following steps:

1. 1. Step 1: Dossier Submission. The investor submits one (01) set of documents to the competent specialized construction agency. Submission can be done directly, via postal service, or online through the Public Service Portal.
   2. Step 2: Receipt and Verification. The specialized construction agency receives the dossier. If the dossier is incomplete, the appraisal agency instructs the investor to supplement it. If the dossier is valid, the agency begins processing.
   3. Step 3: Appraisal Execution. The agency presides over the appraisal of content specified in Article 46, Decree 175/2024/ND-CP. Key contents include: checking compliance with legal regulations on dossier preparation; verifying contractor capacity conditions; assessing design suitability against the approved basic design; checking compliance with technical regulations and applied standards; and inspecting requirements for work safety, PCCC, and environment.
   4. Step 4: Suspension and Supplementation (if needed). During the appraisal, the agency may suspend the process (no more than 01 time). The agency will promptly notify the investor of errors or omissions in the dossier that prevent a conclusion. The investor is responsible for providing explanations or completing the dossier.
   5. Step 5: Return Results. At the end of the appraisal period, the specialized construction agency issues a Notification of Appraisal Result. This document is sent to the investor, and the agency stamps the appraised design drawings (if compliant).

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Resolution Timeframe

The time limit for resolving the appraisal procedure for construction design deployed after the basic design at the specialized construction agency is clearly defined in Clause 8, Article 47, Decree 175/2024/ND-CP, and related guidelines. This timeframe is categorized based on the grade of the works, reflecting the project’s complexity and scale.

Clear timeframes help investors and stakeholders proactively plan subsequent implementation steps. The specific time limits are:

• Not exceeding 40 days: Applies to special-grade and Grade I works.
• Not exceeding 30 days: Applies to Grade II and Grade III works.
• Not exceeding 20 days: Applies to the remaining works (usually Grade IV).

Consulting and Support Services

The construction design and cost estimate appraisal process involves complex legal and technical procedures. Long Phan Consulting Company provides comprehensive legal solutions related to the appraisal procedure. We assist clients in ensuring dossier compliance and optimizing the implementation timeline. Our services are designed to resolve specific challenges during the construction investment process.

Long Phan Consulting Company supports clients with the following:

• Analyzing project legal files, accurately identifying the competent appraisal agency under new regulations.
• Reviewing design and cost estimate dossiers, assessing compliance with technical regulations and standards.
• Checking and advising on compliance with related specialized legal requirements (PCCC, environment).
• Assisting in drafting the Appraisal Submission Form (Form No. 08 of Decree 175/2024).
• Compiling and organizing contractor capacity profiles and related documents as required.
• Verifying the completeness and validity of the entire dossier before submission.
• Representing the client in submitting the dossier and working directly with the specialized construction agency.
• Actively tracking the processing status, preparing content, and explaining any requests from the appraisal agency.
• Monitoring and providing updates until the Notification of Appraisal Result for the construction design and cost estimate appraisal is received.

Frequently Asked Questions

Below are frequently asked questions regarding the construction design and cost estimate appraisal procedure.

Which agency has the authority to appraise Grade I and Grade II construction designs within a province?

The specialized construction agency under the provincial-level People’s Committee (e.g., Department of Construction) presides over the appraisal of Grade I and Grade II works invested within the province (excluding works under Ministry authority). Legal basis: Clause 1, Article 44, Decree No. 175/2024/ND-CP.

Which form must the submission for appraisal follow?

The appraisal submission form must be prepared according to Form No. 08 in Appendix I, issued with Decree No. 175/2024/ND-CP. Legal basis: Clause 2, Article 45, Decree 175/2024/ND-CP.

What is the time limit for appraising the design of a Grade III works?

The resolution time limit for appraisal (from the date of receiving a complete, valid dossier) for a Grade III works is not exceeding 30 days. Legal basis: Clause 8, Article 47, Decree 175/2024/ND-CP.

Does the specialized agency check the design contractor’s capacity during appraisal?

Yes. One of the main appraisal contents is to check the construction activity capacity conditions of contractors (survey, design, verification) and the practicing conditions of project managers. Legal basis: Article 46, Decree 175/2024/ND-CP.

How many times can the appraisal agency suspend the appraisal process?

During the appraisal, the specialized agency may suspend the process no more than one (01) time if errors are found in the dossier. Legal basis: Article 47, Decree No. 175/2024/ND-CP.

Conclusion

The regulations for construction design and cost estimate appraisal are the legal foundation for managing work quality. The investor is responsible for complying with the correct authority, preparing a complete dossier, and following the correct process. If clients face challenges, please contact Long Phan Consulting Company via hotline 1900636389 to receive our professional legal support.