The Bidding Law of the People's Republic of China (2017Amendment)

The Bidding Law of the People's Republic of China (2017Amendment) The Bidding Law of the People's Republic of China (Adopted by the Standing Committee of the Ninth National People's Congress at the 11th Session on August 30, 1999; and amended in accordance with the Decision on Amending the Bidding Law of the People's Republic of China and the Metrology Law of the People's Republic of China adopted at the 31th Session of the Standing Committee of the Twelfth National People's Congress on December 27, 2017.) CONTENTS Chapter One General Provisions Chapter Two Invitation to Bid Chapter Three Bidding Chapter Four Opening, Evaluation and Winning of Bids Chapter Five Legal Liabilities Chapter Six Supplementary Provisions Chapter One General Provisions Article 1 This law has been enacted for the purpose of regulating the activities of Invitation to Bid and bidding, safeguarding the rights of the rights of the State, the social public and the parties concerned in the process of bidding, enhancing the economic performance, and ensuring the quality of projects. Article 2 This law shall be applicable to the bidding activities within the territory of the People's Republic of China. Article 3 Bidding shall be carried out for the following construction projects, including the survey, design, construction, supervision of the project, and the procurement of the important equipment, materials relevant to the construction of the project: large projects of infrastructure facility or public utility that have a bearing on the social public interest and the safety of the general public; projects entirely or partially using state-owned funds or loans by the state; projects using loans of international organizations and foreign governments and aid funds. The specific scope and size criteria of the projects as mentioned in the previous paragraph shall be formulated by the department of development and planning of the State Council and other relevant departments of the State Council. Where the scope of other projects that must be carried out through bidding is provided by laws or the regulations of the State Council, such laws and regulations shall remain applicable. Article 4 As pertains to projects legally requiring bidding, no entity or individual evade bidding by any means including the dismembering of projects. Article 5 The principles of openness, fairness, justice, honesty and credit-worthiness shall be be applied to bidding activities. Article 6 As pertains to projects legally requiring bidding, the bidding activities shall not to be subject to district or departmental restrictions. No entity or individual shall illegally restrict or exclude the participation of legal persons or other organizations beyond the region or industry in the bidding, nor illegally interfere with the bidding activities in any other means. Article 7 The bidding activities and the parties concerned shall accept legally conducted supervision. The relevant administrative supervision departments shall conduct supervision over the bidding activities and investigate illegal activities the bidding process. The State Council shall stipulate the administrative supervision of bidding activities and division of authority of the relevant departments. Chapter Two Invitation to Bid Article 8 The term "tenderee" refers to a legal person or other organization that propose a project and put forth an Invitation to Bid. Article 9 Where a bidding project is subject to examination and approval in accordance with the relevant provisions of the State, approval shall be obtained in advance. A tenderee shall possess sufficient funds for the bidding project, or have definite resources of funds for the project, and shall truthfully state related facts in the bid-invitation documents. Article 10 An Invitation to Bid shall be made through either public notices or special requests. "Public Invitation to Bid" refers to that the tenderee putting forth an invitation to unspecified legal persons or other organization to tender bids. "Invitation to Bid by Request" refers to that the tenderee requesting specified legal persons or other organizations to tender bids. Article 11 Invitation to Bid by Request may be used for both key national projects confirmed by the National Development Planning Department of the State Council and key local projects confirmed as unsuitable for public bidding by the People's Government of the province, autonomous region or municipality having been ratified by either the National Development Planning Department of the State Council or the People's Government of the province, autonomous region or municipality. Article 12 The tenderee shall be entitled to independent selection of bidding agencies for the execution of bidding operations. No entity or individual shall in any way designate any bidding agency on behalf of the tenderee. The tenderee who has the capacity to formulate Bid-invitation documents and organize bid evaluations may handle bidding operations on its own initiative. No entity or individual may compel the tenderee to entrust any bidding agencies with bidding operations. For projects subject to bidding in which the tenderee chooses to handle the bidding operations, the tenderee shall report to the relevant administrative supervisory departments. Article 13 The term "bidding agency" refers to the legally established social intermediary organizations, acting as agents in bidding operations and providing relevant services. A bidding agency shall satisfy the conditions as mentioned below: Bidding agency shall possess a place of business and funds for acting as agent in bidding operations; Bidding agency shall consist of professionals capable of making Bid- invitation documents and organizing bid evaluations; Article 14 There shall not be any relationship of subordination or other interest between the bidding agency and the administrative departments or other organs of state power. Article 15 A bidding agency shall handle bidding operations within the limit of authorization of the tenderee, and shall observe the provisions of This law concerning the tenderee. Article 16 In cases of Public Bidding, the tenderee shall publish bidding notices. The bidding notices for projects that are subject to bidding shall be published in the newspapers, information networks or other mass media as designated by the State. The bidding notices shall clearly set forth the title and address of the tenderee, the nature, quantity, place and time for execution of the bidding project, ways of obtaining Bid-invitation documents, etc.. Article 17 Where the Invitation to Bid by Request is used, the tenderee shall send invitations to no less than three specified legal persons or other organizations that are capable of handling bidding operations and with good credit standing. The invitation shall clearly set forth the items as mentioned in Article16.2 of This law. Article 18 The tenderee may, according the specific condition of the bidding project, request the tenderer provide relevant credentials and evidence of performance in the bidding notices or invitations, and examine the qualifications of the potential tenderers. Where there are other provisions by the State concerning the qualifications of the tenderer, such provisions shall be applied. No tenderer shall restrain or "squeeze out" potential tenderers by imposing unreasonable conditions, nor shall it discriminate against the potential tenderers. Article 19 The tenderee shall make Bid-invitation documents according to the features and requirements of the bidding project. The Bid-invitation documents shall include all substantial requirements and all key terms for the conclusion of contracts, including: the project's technical requirements, the criteria for examination of the tenderer, the requirements for the bid price and the standard of evaluation of the bid, etc. Where there are state provisions concerning the technology and criteria of the bidding project, the tenderee shall clearly specify corresponding provisions in the Bid-invitation documents. If necessary, the tenderee shall properly divide the bidding project into sections or phases, and provide clear information on the sections and phases in the Bid-invitation documents. Article 20 The Bid-invitation documents shall neither postulate nor set forth a specific producer or supplier or other contents favoring or excluding potential tenderers. Article 21 The tenderee may, according to the specific condition of the project, arrange for on-site inspections by potential tenderers. Article 22 The tenderee shall not disclose to any other person the title, quantity of the potential tenderers that have obtained Bid- invitation documents or any other information that may affect fair competition. Where there is a minimum bid, it shall be kept confidential. Article 23 In cases where the tenderee has to make necessary clarifications or modifications to the Bid-invitation documents, he shall inform all receivers of the Bid-invitation documents in writing within 15 days prior to the deadline of the submission of bidding documents, as mentioned in the Bid-invitation documents. Article 24 The tenderee shall specify a reasonable period of time for the tenderer to formulate bid documents. However, in cases of projects legally subject to bidding, the period of time from the first day the Bid-invitation documents are sent out to the deadline for the tenderers' submission of bidding documents shall not be shorter than twenty days. Chapter III Bidding Article 25 A tenderer shall be a legal person or other organization that makes a response to a bid and participates in the competition for a bid. Where individuals are permitted to participate in the bidding of projects of scientific research, the provisions of This law, as concern the t......