The Law on Tendering and Bidding (promulgated in 1999), which has been in force for 22 years, has been overhauled and has made new progress! New regulations may not be far off!
This revision is mainly aimed at hot content such as the lowest price winning bid, the evaluation method, the winning candidate, and the evaluation separation, which has been greatly changed compared with before, and is also the part that the entire industry is most concerned about.
Successful candidates are no longer ranked
The original Article 40 of the Law on Tendering and Bidding was amended to read:
Article 47 ... After the bid evaluation committee completes the bid evaluation, it shall submit a written bid evaluation report to the bidder, recommend no more than three qualified winning candidates, and explain the advantages and risks of each winning candidate; Except where the solicitation documents expressly require ranking, the recommended successful candidates do not indicate the ranking.
Based on the written bid evaluation report submitted by the bid evaluation committee and the recommended successful candidate, the bidder shall independently determine the successful bidder within 20 days from the date of receipt of the bid evaluation report in accordance with the bid determination method specified in the bidding documents, combined with the review of the winning candidate's ability to perform the contract and the risk.
The lowest price wins
The Revised Draft mentions:
1. Bidders shall not bid at an unusually low price at a price below cost that may affect the performance of the contract.
If it is found that the bidder's quotation is abnormally low, which may affect the performance of the contract, the bidder shall be required to clarify or explain within a reasonable period of time and provide the necessary supporting materials. If it cannot be explained that the reasonableness of its quotation leads to an excessive risk of contract performance, its bid shall be rejected.
2. The bidder shall, in accordance with the actual needs and technical characteristics of the bidding project, select and determine the bid evaluation method from the following methods:
(1) Comprehensive assessment method, that is, the method of clarifying that the bidding documents can meet the comprehensive evaluation criteria specified in the bidding documents to the greatest extent possible as the successful candidate.
(b) The evaluated minimum bid price method, that is, the bid documents can meet the substantive requirements of the bid documents, and the bidder with the lowest bid price evaluated is the bid evaluation method for the successful bidder candidate; except where the bid price is lower than the cost and may affect the performance of the contract at an abnormally low price.
(3) Other bid evaluation methods provided for by laws, administrative regulations, and departmental rules.
3. Before determining the successful bidder, the bidder shall not negotiate with the bidder on the substantive content of the bidding price, bidding plan and so on.
About EPC
This revision reads:
The successful bidder may, in accordance with the contract or with the consent of the bidder, subcontract some of the non-main and non-key work of the winning project to others to complete. Where the main body and key work of the winning project shall not be subcontracted, and the State has other provisions on the subcontracting of general contracting projects, government-private partnership projects, etc., those provisions shall prevail. Except as otherwise provided by laws and administrative regulations, the successful bidder may independently determine the subcontractor. The person accepting the subcontract shall have the corresponding qualifications and shall not subcontract again.
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