Bid Negotiation Process

A Bid opening and evaluation (bid negotiation)

1. After the closing of the bidding, the bid opening shall be organized and presided over by the bidding unit at the specified time and place in the presence of the legal representative or authorized agent of the bidding unit.

2. The process of opening and evaluating the bids (negotiation) shall be conducted under the supervision of the bidding management organization.

3. Bid evaluation principles, evaluation methods by the bidding unit based on the "construction bidding and bidding management approach". And reported to the bidding management organization for review.

4. Bid evaluation team consists of bidding unit, construction unit of the higher authorities, the bidding unit invited by the relevant technical experts, (mainly economic and technical experts).

5. Conformity appraisal of bidding documents

6. Comprehensive evaluation and comparison

The bidding unit based on the bid evaluation principles, bid evaluation methods, the bidding unit's offer, duration, quality, the amount of major materials, the construction program or organizational design, past performance, social credibility, and preferential terms and conditions of a comprehensive evaluation. Bid evaluation shall be fair and reasonable, detailed, and select the winning bidder.

Second, the winning

1. Determine the winning unit bidding unit should be held within 5 days of the bid evaluation report to the bidding management organization for approval, the bidding management organization within 2 days to put forward the approval of the views approved by the approval of the bidding unit to the winning unit to issue a "notice of award".

2. After receiving the notice of award, the successful bidder shall submit the required performance guarantee and sign the contract with the construction unit at the specified date, time and place.

Three, contract signing

1. The construction unit and the successful bidder to sign the contract within the specified period. Within 7 days for small and medium-sized projects with less complex structure, and within 14 days for large-sized projects with complex structure. At the agreed date, time and place; in accordance with the provisions of the "Chinese people's **** and the State Economic Contract Law", "Construction Contract Management Measures", based on the bidding documents, bidding documents the two sides to sign the construction contract.

2. If the successful bidder refuses to submit the performance guarantee and sign the contract within the stipulated time, the bidding unit shall report to the bidding management organization for approval and consent to disqualify it from bidding, and confiscate the bidding deposit in accordance with the regulations, and instead, consider signing the contract with another bidding unit participating in the bidding.

3. Construction units, such as the refusal to sign a contract with the winning unit in addition to double the return of the bid deposit without compensation for the loss.

4. After the construction unit and the winning unit signed the contract, the bidding unit promptly notify the other bidding units whose bids were not accepted, as required to return the bidding documents, drawings and related technical information, while returning the bid deposit (interest-free). The bid deposit which is confiscated due to violation of regulations shall not be returned.

5. The construction unit and the successful unit before signing the construction contract to the competent department of construction administration or its authorized units for contract review.

*After the completion of the bidding work, the bidding unit will open the bids, bid evaluation process related minutes, information, bid evaluation report, a copy of the winning unit's bidding documents reported to the bidding management organization for the record.

Expanded Information:

Practically, the procurement methods of open and invited tendering require that quotations and technical terms and conditions are not negotiable, whereas negotiated tenders allow for one-on-one The negotiation of the tender allows one-to-one negotiation on quotations and so on. Therefore, some projects such as some small construction projects using negotiated tender with clear objectives, save time and effort, more flexible; for service bidding, because the price of services is difficult to determine publicly, the quality of service also need to be resolved through negotiation, the use of negotiated tenders is not an appropriate procurement method.

But the bidding is not open and competitive, the use of easy to produce behind-the-scenes transactions, backroom operations, breeding corruption, it is difficult to protect the quality of procurement, according to some provincial statistics, 40% of all cases of economic crime with the bidding and tendering, and the vast majority of such criminal cases and bidding with the bidding method of the bidding related to the use of the bidding. Bidding law according to the basic characteristics of bidding and the problems existing in our practice, not as a bidding method to be stipulated.

Therefore, the negotiation of bids is not a legal bidding method. In accordance with the provisions of the bidding law, all the bidding law, article 3 of the project must be bidding, and in accordance with the provisions of article 2 of the bidding law voluntarily bidding procurement projects, shall not be used in the way of negotiation.

For the owner, through the negotiation of bids, can make the bid price lower or make other conditions in the bid more favorable to their own. For example, the first successful candidate for the lowest bid, but in other areas such as deferred payment conditions are not as good as the second lowest bidder. At this time, the owner will be on the one hand with the first candidate to negotiate a more favorable terms of deferred payment, on the other hand, with the second candidate to negotiate a lower bid. For the bidder through the bidding, can clarify the bid a vague and unclear terms, improve the contract conditions, or enhance their own bidding ability.

1, reduce the bid price

2, shorten the construction date

3, improve the payment terms

4, put forward new construction or design program

5, free additional construction machinery

"The People's Republic of China *** and the State Bidding and Tendering Law" is designed to regulate bidding and tendering activities, to protect the national interest, social public **** interest and the legitimate rights and interests of the parties involved in bidding and tendering activities, to improve economic efficiency and ensure the quality of the project formulated by the law.

Adopted on August 30, 1999 at the Eleventh Meeting of the Standing Committee of the Ninth National People's Congress. Amended in accordance with the Decision on Amending the <Chinese People's **** and State Bidding and Tendering Law>, <Chinese People's **** and State Measurement Law> of the Thirty-first Meeting of the Standing Committee of the Twelfth National People's Congress on December 27, 2017.

References:

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Baidu Encyclopedia: Bidding

Reference:

Baidu Encyclopedia: The Law of the People's Republic of China on Tendering and Bidding