The latest method for calculating project management cost norms for 2026 according to Circular 12

In construction investment management, controlling cash flow is a vital factor. Project management cost norms are a crucial element in planning and the success of every project. The article below will help you clearly understand the definition, the latest regulated rates, and how to calculate project management cost norms accurately to avoid exceeding the budget.

I. What expenses are included in construction project management costs?

Determining project management costs is the maximum expenditure required to manage a project in accordance with the time and scope of work that has been reviewed and approved for the project.

Construction project management costs are determined based on percentage norms or by creating an estimate that aligns with the project management organizational structure, project duration, scale, and work characteristics.

According to the provisions in Clause 2, Article 30 of Decree 10/2021/ND-CP, project management costs include the following items:

• Salaries for project management staff, wages paid to contract employees, salary allowances, bonuses, collective welfare, and contributions.
• Costs for applying science and technology, and training to enhance the capacity of project management staff.
• Payment for public services.
• Expenditure on office supplies.
• Costs for communication and outreach.
• Costs for organizing project-related conferences.
• Travel expenses.
• Costs for renting, repairing, and purchasing assets for project management.
• Other contingency costs.

Read now: What is a project management model? How to choose the most accurate project management model

II. Regulations on determining construction investment project management costs

To ensure that all project management costs are reasonable and that all project members are treated equitably, there are specific regulations on investment cost management.

According to the provisions in Decree 32/2015/ND-CP on construction investment cost management:

“The content of project management costs includes salaries of project management staff; wages paid to contract employees; salary allowances; bonuses; collective welfare; contributions (social insurance; health insurance; unemployment insurance; trade union fees, and other deductions as prescribed by law for individuals receiving salaries from the project); application of science and technology, management of construction information systems, training to enhance the capacity of project management staff; payment for public services; office supplies; information, outreach, and communication; organizing project-related conferences; travel expenses; renting, repairing, and purchasing assets for project management; other costs and contingency costs.”

For projects using non-state budget capital and projects with special characteristics, if only a project management consultant is hired, the consulting cost is determined by an estimate based on the content and volume of project management work agreed upon by the investor and the consulting organization in the project management contract.

• Based on the above regulations, relevant individuals, agencies, and organizations must adhere to the following principles in determining project management cost norms for construction investment:
• Management must be carried out according to the plan and investment policy. The project implementation time must meet the requirements specified in Article 51 of the 2014 Construction Law and not contradict relevant legal regulations.
• The management of capital sources used for construction investment must be appropriate for each type of project.
• The investment decision-maker will decide which construction parts are to be managed based on the scale, nature, capital source, and project implementation conditions.
• For projects using state budget capital, and specialized projects of economic groups and state-owned corporations using non-state budget capital, the project’s impacts on the landscape and environment must be considered. Issues of community safety, national defense, and security must be managed in accordance with the objectives and investment scale as stipulated in Article 62 of the 2014 Construction Law.
• The investment policy, investment objectives, and project implementation costs, including for construction investment projects using state capital. This ensures proactive management of aspects including: landscape, environment, national defense, security, and community.

III. The latest method for calculating project management cost norms for 2026

Formula for determining project management costs:

The project management cost norm for an investment is calculated as the sum of all project management costs and construction investment costs, specifically:

1. For construction projects with a total construction investment and equipment cost of 20 billion VND or less (excluding VAT), as specified in the decision:

• The management cost norm is 2.784% for civil engineering projects
• The management cost norm is 2.930% for industrial projects
• The management cost norm is 2.491% for transportation projects
• The management cost norm is 2.637% for agricultural and rural development projects
• The management cost norm is 2.344% for technical infrastructure projects.

2. For cost norms of 50 billion VND or less, the specific cost levels are regulated as follows:

• 2.486% for civil engineering projects
• 2.616% for industrial projects
• 2.225% for transportation projects
• 2.355% for agricultural and rural development projects
• 2.093% for technical infrastructure projects.

Similarly, for different standardized cost levels, we have corresponding project management cost norms:

See more: What is the Agile model? Applying Agile in enterprise project management

IV. 5 common mistakes that cause project management cost norms to spiral out of control

Despite clear regulations on project management cost norms, in reality, many businesses still face budget overruns. Here are the most common mistakes:

• Misunderstanding or misapplying the norm rate: Applying the wrong norm for the project type or investment phase, leading to cost discrepancies.
• Not separating project management costs from other expenses such as consulting and supervision costs – causing management costs to be bundled and exceed the limit.
• Not updating with the latest government regulations, still using old decrees, which leads to costs being disallowed during settlement.
• Lacking a cash flow control plan for each phase, causing costs to accumulate at the end of the period, making them difficult to control.
• Not standardizing reports according to government templates, causing delays in appraisal and settlement.

V. Checklist for controlling project management cost norms before, during, and after investment

VII. Automate Professional Project Cost Management on 1Office with AI

Today, with the development of technology, by using project management software, managers can easily and effectively solve the above issues. 1Office’s project management module is not only a powerful tool for managing costs but also a lever that helps businesses enhance their competitive strength in the market, thanks to outstanding features such as:

• Cash Flow Management:The cash flow management feature in the software allows tracking of planned and actual cash flow on a monthly/yearly basis. It helps in estimating project costs and assessing the business’s capacity to meet them, thereby evaluating feasibility before implementation.
• Project Budget Management: The software replaces manual effort in estimating costs for each work item. It then breaks down the budget to begin implementation.
• Overall Project Management: Project management includes: material quantity estimation (BOQ); searching, evaluating, and selecting main contractors and subcontractors; tracking the progress of each contractor; monitoring payments to contractors; managing material import-export, etc.

Furthermore, with the support of the AI Agent platform and Lowcode technology, 1Office makes the cost control process more automated, accurate, and proactive:

• 1AI Process: reads and understands project documents, automatically creates cost approval workflows that align with the business’s operational logic
• 1AI Monitor: automatically monitors compliance with project management cost norms based on pre-set policies, and sends alerts if there are signs of exceeding the budget
• 1AI Dashboard: aggregates data from multiple sources to build real-time budget and cost reports, helping leaders make timely decisions
• 1AI Assistant: assists users in quickly looking up cost norm rates, project cost history, or settlement steps through a single line of conversation

With 1Office, businesses not only “apply the correct norms” but also control costs more intelligently, minimizing errors and risks during settlement. The entire system is built to be personalized to the specifics of each project type, helping businesses operate flexibly while ensuring strict compliance.

 Experience 1Office project management software for free

VII. Frequently Asked Questions

Who determines the project management cost norms?

Usually, it’s the investor, the project management board, or the finance department in coordination with the project manager. The determination must be based on the scale, nature, and actual resources of each project.

Why do project management costs often exceed the budget?

This is often due to new tasks arising, schedule extensions, changes in project scope, or loose cost control. When the initial plan is not realistic, management costs can easily increase.

How do project management costs and construction costs differ?

Project management costs are expenses for operating, supervising, coordinating, and administering the project. Construction costs are direct expenses for carrying out the work, such as materials, labor, and construction machinery.

What do project management costs include?

They typically include items such as project management personnel, administrative costs, supervision, coordination, meetings, reporting, and other costs that serve the overall management of the project.

Is there any software that helps businesses track project management costs more centrally?

Yes. If a business wants to track costs, progress, and project tasks on a single system, they can consider 1Office work management software for centralized management and clearer project control.

Through the article above, we hope that useful information about determining project management cost norms has been conveyed to managers. If you have any questions, please contact us via:

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