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How to conduct equipment bidding – should it be done through a bidding agency or by oneself?

2009-02-20View Original

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Our company (a private enterprise) is constructing a methanol plant; how should we conduct the bidding for the equipment – through an auction agency or directly? Are there any mandatory regulations in this regard?
Reply #22009-02-20
If you are financing everything entirely on your own, it’s generally no problem to conduct the bidding yourself. If there is a bank loan (there usually is, right? ), then one must find an agent; otherwise it is illegal: lol
Reply #32009-02-20
1. Scope of mandatory bidding: In accordance with Article 3 of the Law on Bidding and Tendering, for the following engineering construction projects carried out within the territory of the People’s Republic of China, including project exploration, design, construction, supervision, as well as the procurement of important equipment and materials related to project construction, bidding is required: (1) Projects related to public interests and public safety, such as large-scale infrastructure and public utilities; (2) Projects that are fully or partially funded by state-owned capital or through financing; (3) Projects that utilize loans or assistance funds from international organizations or foreign governments. The specific scope and scale criteria for the projects listed in the preceding paragraph shall be established by the development planning department of the State Council in conjunction with relevant departments of the State Council, and submitted to the State Council for approval. In accordance with the basic principles of the Law on Bidding, the former **Planning Commission issued the Regulations on the Scope and Scale Standards for Bidding in Engineering Construction Projects, stipulating that for construction activities of various types of engineering projects, bidding is required if one of the following criteria is met: (1) The estimated cost of a single construction contract is 2 million RMB or more; (2) For the procurement of important equipment, materials, etc., the estimated cost of a single contract is 1 million RMB or more; (3) For the procurement of services such as surveying, design, and supervision, the estimated cost of a single contract is 500,000 RMB or more. To prevent the splitting of projects that should be subject to bidding in order to avoid such requirements, even if the estimated cost of a single contract is below the thresholds specified in points (1), (2), and (3) above, projects involving surveying, design, construction, supervision, as well as the procurement of important equipment and materials related to construction projects, where the total investment exceeds 30 million RMB, must still be assigned through bidding. 2. Scope of projects for which bidding is not required: Relevant regulatory documents specify the range of projects for which bidding is not necessary; namely, projects involving **, ** secrets, emergency rescue and disaster relief, or those that involve the use of poverty alleviation funds for work-based assistance and require the use of migrant workers – such special circumstances make bidding inappropriate, and according to **relevant regulations, bidding may be omitted. 3. Regarding the tenderer: In accordance with Article 12 of the Law on Bidding and Tendering, if a tenderer has the capability to prepare tender documents and organize evaluations, it may handle the bidding procedures on its own. No entity or individual may force it to entrust a bidding agency to handle bidding matters. If the tenderer does not meet the aforementioned requirements regarding tendering capabilities, it is necessary to entrust a qualified intermediary agency to handle the tendering on its behalf. For reference! This post was last edited by clguan on 2009-2-20 16:45]
Reply #42009-06-07
Hehe, it’s not illegal. If a private enterprise pays for it itself, does it still need to hire an agent?? **They won’t interfere.**
Reply #52009-06-07
It mainly depends on the nature of the investment in your project. If it’s a personal investment, then what’s the need for a bidding agency? haha, what’s the point of spending that extra money? If it’s an investment of a significant amount, then it’s generally necessary to use a bidding agency for that purpose. 1# hljrjh
Reply #62014-09-22
Our company used to take out loans in the hundreds of millions; all the equipment and materials were procured through bidding
Reply #72014-09-22
The people upstairs have already explained it very clearly, especially the person from the 3rd floor who was even more explicit. As long as your company does not have any state-owned components, you are free to decide how to conduct bidding processes. By \"state-owned components\" we mean that if you are a private company but have a joint venture with a state-owned company, even if it’s just 10%, then when the amount involved exceeds the specified limit, you must go through the bidding authority or bidding agency.
Reply #82014-09-22
Either one will work; it depends on the needs. We have just set up a methanol production facility, with all procurement processes handled through competitive bidding. If you have any questions, feel free to contact me at QQ 1319069916

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