Decree 206/2026/ND-CP on Construction Investment Cost Management: Key Changes Replacing Decree 10/2021

Decree No. 206/2026/ND-CP, dated 15 June 2026, provides detailed rules on construction investment cost management. It takes effect on 1 July 2026 and replaces Decree No. 10/2021/ND-CP. The Decree is a key instrument implementing Vietnam’s Construction Law 2025 (Law No. 135/2025/QH15) and directly affects how owners and contractors prepare, manage and control costs.

Mục 011. Scope and subject matter

The Decree governs construction investment cost management, including: preliminary total investment and total investment; construction cost estimates; bid-package prices; the system of construction norms; construction prices and price indices; project management and consulting costs; and the rights, obligations and responsibilities of the parties.

Mục 022. Why it replaces Decree No. 10/2021/ND-CP

Decree 10/2021/ND-CP revealed practical difficulties, particularly regarding cost norms, price fluctuations and the authority to adjust costs. Decree 206/2026/ND-CP was issued to align with the Construction Law 2025, resolve these issues and give owners greater initiative.

Mục 033. Key new points of Decree No. 206/2026/ND-CP

3.1. Adjusted scope of application

The Decree clarifies its scope and adds cost management for projects and tasks funded by recurrent expenditure that have a construction-investment nature, rather than focusing only on public-investment projects.

3.2. Cost-determination tools from the preparation stage

It adds tools and methods to determine costs from the preliminary step, improving the accuracy of the total investment and limiting overruns during implementation.

3.3. Norms and price indices closely tracking the market

It improves the system of construction norms, prices and price indices so they are updated and reflect market movements, supporting contract and estimate adjustments.

3.4. Use of foreign standards and norms in certain cases

For works with special technical requirements or where no suitable domestic norm exists, the Decree provides a basis for referencing and applying foreign standards and norms.

3.5. Clearer equipment, operation and maintenance costs

It defines the composition of equipment costs more clearly, including related operation and maintenance costs within an appropriate scope, enabling fuller and more transparent estimates.

3.6. Greater decentralisation to project owners

Owners are granted more initiative to adjust certain costs and make decisions within the approved total investment, coupled with accountability and post-inspection. The Decree also allows establishing a council to handle norm-related issues where necessary.

Mục 044. Impact on owners and contractors

• Owners should update their cost preparation, verification and management processes under the new framework before 1 July 2026.
• Contractors should review price, escalation and adjustment clauses to fit the new norms and price indices.
• Transitional projects should clearly determine the application principles between Decree 10/2021 and Decree 206/2026 under the transitional provisions.

Mục 055. Frequently asked questions (FAQ)

When does Decree No. 206/2026/ND-CP take effect?

It takes effect on 1 July 2026 and replaces Decree No. 10/2021/ND-CP.

Which costs does it govern?

Total investment, construction estimates, bid-package prices, norms, construction prices and price indices, project management and consulting costs.

What additional powers do owners gain?

Owners gain more initiative to adjust certain costs within the approved total investment, subject to accountability and post-inspection.

Mục 06HTIC by your side

HTIC Law Firm advises owners and contractors on applying Decree No. 206/2026/ND-CP: reviewing cost and escalation clauses, handling transitional projects and managing legal risk on construction investment costs. Contact HTIC for support tailored to each project.