The Peoples Republic of China Bidding and Tendering Law
The Peoples Republic of China Bidding and Tendering Law, which came into effect on March 1, 1995, is intended to promote fair competition in the bidding and tendering process and ensure a smooth, efficient and effective tendering environment. The law applies to state-owned enterprises and other investors, public institutions (excluding schools and hospitals) and government procurement processes. Its purpose is to promote the standardization and formalization of tendering processes, regulate the conduct of bidders and protect the legal rights and interests of the parties in the tender.
The People’s Republic of China Bidding and Tendering Law consists of six chapters and forty-four articles. These articles cover the scope of application, the content of the tendering process, the rights and obligations of the participants of the tendering process, the privileges and obligations of the tenderers, the tender stratification and evaluation process, the resolution of disputes and the conditions for invalidation of the tendering process.
The scope of application under the People’s Republic of China Bidding and Tendering Law applies to any entities, state-owned enterprises, public institutions, and government procurement and trading activities within the territorial scope of the Peoples Republic of China. The law applies both to international and domestic tenders, provided that the invitation and tender documents are properly prepared and signed.
The content of the tendering process includes three stages. The first is the invitation stage, during which a tender document is issued to interested parties. This document outlines the project objectives and requirements, type of project and any special requirements, as well as contractual and payment conditions. The second stage is the submission stage, during which bids are prepared and submitted. The third stage is the evaluation stage, during which the bids are evaluated and a tender winner is chosen.
The rights and obligations of the participants of the tendering process are clearly outlined in the law. Bidders must comply with the requirements of the tender document and may not engage in unfair practices such as bid rigging or collusion. The tenderees should be fair, impartial and transparent in all aspects of the tender process, and should ensure that all bidders have enough time and opportunity to prepare and submit their bids. The law also prohibits any bribery or corruption involving tenderers.
The privileges and obligations of the tenderers are specified in the law. Tenderers must process the tenders in accordance with the tendering rules laid down in the law. Tenderers should make sure that the bidding and tender process is open, transparent and fair and to the extent possible, bidders should be given equal opportunity and information. In the case of publicly funded projects, tenderers should make sure that the best interests of the public are safeguarded and that bids are evaluated on the basis of their quality, cost and other criteria outlined in the tender document.
The tender stratification and evaluation process is an important part of the tender. Tenderers must ensure that they understand the requirements laid down in the tender document and that they use the appropriate bidding and stratification criteria when evaluating the bids. Tenderers must also ensure that the evaluation process is transparent and fair and that the winning bidder is selected on the basis of the highest cost effective ratio or lowest bid/tenderer.
Finally, the resolution of disputes is set out in the People’s Republic of China Bidding and Tendering Law. Both tenderers and bidders can use the legal mechanisms available to resolve any disputes or disagreements concerning the tender. Moreover, the law also sets out various conditions under which the tender may be invalidated, such as the use of fraudulent tactics during the tender process, the non-compliance with the requirements of the tender document, or the lack of sufficient evidence to support the selection of the winning bidder.
In summary, the People’s Republic of China Bidding and Tendering Law is a comprehensive legal framework designed to promote fair competition and ensure a smooth, efficient and effective tendering environment. This law will help to protect the rights and interests of the parties involved in the tender, and to create a level playing field for all participants of the tendering process.
