Detailed regulations on contractor selection under the Law on Bidding

The government has just issued Decree No. 63/2014/ND-CP detailing the implementation of several articles of the Law on Bidding regarding contractor selection.

A section of road belonging to the project connecting Nhat Tan Bridge with Noi Bai Airport. Photo: VNA.

This Decree provides detailed regulations for the implementation of certain articles of the Law on Bidding regarding the selection of contractors for bidding packages falling within the scope of regulation specified in Clauses 1 and 2 of Article 1 of the Law on Bidding.

The selection of contractors in the oil and gas sector, as stipulated in Clause 4, Article 1 of the Law on Bidding, applies to investment and development projects specified in Points a, b, and c, Clause 1, Article 1 of the Law on Bidding, except for the selection of contractors directly related to the exploration, development, and exploitation of oil and gas fields.

In cases where an international treaty or agreement stipulates the application of contractor selection procedures, the provisions of Clauses 3 and 4 of Article 3 of the Law on Bidding shall apply. The procedures for submission, appraisal, and approval shall be carried out in accordance with the provisions of the Decree.

In cases where international treaties or agreements do not stipulate the application of contractor selection procedures, the contractor selection shall be carried out in accordance with the Law on Bidding and this Decree.

To ensure fair competition in bidding, the Decree stipulates that interested bidders and those participating in the pre-qualification process must meet the requirements of Clauses 1 and 2 of Article 6 of the Law on Bidding.

Contractors participating in a mixed tender package must be legally and financially independent from the contractor preparing the feasibility study, technical design documents, and construction drawings for that tender package, except where these work items are part of the mixed tender package.

A consulting contractor may participate in providing one or more consulting services for the same project or package, including preparing pre-feasibility studies, preparing feasibility studies, preparing technical design documents, preparing construction drawings, and providing supervision consulting services.

Contractors are evaluated as legally and financially independent from other contractors; from consulting contractors; and from the investor/procuring entity, provided they meet the following conditions: they do not belong to the same agency or organization directly managing the public service unit; the contractor and the investor/procuring entity do not hold more than 30% of each other's shares or capital contributions; contractors do not hold more than 20% of each other's shares or capital contributions when participating in the same tender package in a restricted tender; contractors participating in the tender with the consulting contractor for that package do not hold shares or capital contributions from each other; and neither party holds more than 20% of the shares or capital contributions of another organization or individual.

In the case of state-owned economic groups, if the products or services included in the tender package are the group's main business activities and serve as outputs for one company within the group while also being inputs for another company within the group, then the group and its subsidiaries are permitted to participate in each other's tender selection process.

In cases where the product or service included in the tender package is the output of one company and the input of another company within the same group, and is unique in the market, the regulations of the Prime Minister shall apply...

The decree takes effect from August 15, 2014.

From the effective date of this Decree, Government Decree No. 85/2009/ND-CP dated October 15, 2009, guiding the implementation of the Law on Bidding and the selection of construction contractors under the Construction Law; Government Decree No. 68/2012/ND-CP dated September 12, 2012, amending and supplementing a number of articles of Government Decree No. 85/2009/ND-CP dated October 15, 2009; and Prime Minister's Decision No. 50/QD-TTg dated November 9, 2012, on the application of the direct contracting method for special cases considered and decided by the Prime Minister, shall cease to be in effect.

According to Vietnam+