【Weekly Topic】10-11-15 Project Management: What types of projects should be subject to public bidding

There are two methods of tendering: open tendering and invited tendering. So, what kind of projects should be subject to open tendering? Social, public.

Public bidding is required for the following engineering construction projects carried out within the People’s Republic of China, including project survey, design, construction, supervision, as well as the procurement of important equipment and materials related to project construction: (1) Projects related to large-scale infrastructure and public utilities that are of significance to the public interest and public safety； (II) Projects that are wholly or partially funded by state-owned capital or **financed with such capital ； (III) Projects that utilize loans or aid funds from international organizations or foreign countries.

(1) **Key construction projects identified by the *** development planning department**； (2) Key local construction projects designated by the people’s ** governments of various provinces, autonomous regions, and municipalities directly under the Central Government ； (3) Engineering construction projects that are entirely funded by state funds, or in which state funds play a controlling or dominant role in financing.

Project projects that meet the following conditions shall be subject to public bidding: (1) **key construction projects designated by the *** development planning department； (2) Key local construction projects designated by the people’s ** governments of various provinces, autonomous regions, and municipalities directly under the Central Government ； (3) Engineering construction projects that are entirely funded by state funds, or in which state funds play a controlling or dominant role in financing.

The last edit to this post was made by ms3210 on 2010-11-15 at 13:59. “In the People’s Republic of China, tendering is required for the following engineering construction projects, including project survey, design, construction, supervision, as well as the procurement of important equipment and materials related to project construction: (1) Projects related to large-scale infrastructure and public utilities that are of significance to the public interest and public safety.”； (II) Projects that are wholly or partially funded by state-owned capital or **financed with such capital ； (III) Projects that utilize loans or aid funds from international organizations or foreign countries. The specific scope and scale criteria for the items listed in the preceding paragraph shall be formulated by the *** development planning department in conjunction with the relevant *** departments, and submitted to *** for approval. If laws or *** stipulate the scope of other projects that require bidding, such provisions shall be followed. ”

Reply to 1# ms3210: In accordance with Article 3, Chapter 1 of the Law of the People’s Republic of China on Bidding and Tendering, the following engineering construction projects carried out within the territory of the People’s Republic of China, including project survey, design, construction, supervision, as well as the procurement of important equipment and materials related to project construction, must be subject to bidding: (1) Projects related to large-scale infrastructure and public utilities that are of significance to the public interest and public safety； (II) Projects that are wholly or partially funded by state-owned capital or **financed with such capital ； (III) Projects that utilize loans or aid funds from international organizations or foreign countries. The specific scope and scale criteria for the items listed in the preceding paragraph shall be formulated by the *** development planning department in conjunction with the relevant *** departments, and submitted to *** for approval. If laws or *** stipulate the scope of other projects that require bidding, such provisions shall be followed. ”

Personal opinion: Except for confidential projects, all should be subject to open bidding; for particularly challenging projects, invitation bidding should be used

According to the Law of the People’s Republic of China on Bidding, bidding is divided into open bidding and invited bidding. Public bidding refers to the practice where the tenderer invites unspecified legal entities or other organizations to submit bids through a tender announcement. Invited bidding refers to the practice where the tenderer invites specific legal entities or other organizations to submit bids through an invitation to bid. ***For **key projects identified by the development planning department** and local key projects designated by the people’s governments of provinces, autonomous regions, and municipalities directly under the Central Government that are not suitable for open bidding, invitation bidding may be carried out upon approval by the relevant development planning department or the people’s government of the respective province, autonomous region, or municipality directly under the Central Government. In what is defined as bidding activities, there are actually two situations: one is mandatory bidding, and the other is voluntary bidding. Projects that require mandatory bidding are limited to three categories, namely: large-scale infrastructure, public utilities, and other projects that are related to the public interest and public safety ； Projects that use all or part of state funds or **financing ； Projects that utilize loans or aid funds from international organizations or foreign countries. The scope of mandatory bidding is not limited to these items alone; laws or other regulations may stipulate additional projects that require mandatory bidding, thereby expanding the scope of such bidding or adjusting it according to actual needs. Public bidding must meet the following conditions: (1) The tenderer must issue invitations to bid for public bidding to unspecified legal entities or other organizations; in the case of some research projects, individuals may also be included in those who can receive such invitations. The tenderer shall issue invitations to unspecified parties by announcing information such as its tender projects, the specific equipment to be purchased, or the details of the works, through public media familiar to the industry. Any legal person, other organization, or individual that believes it meets the requirements of the tenderer has the right to request the tender documents from the tenderer and submit a bid at that time. In the case of open bidding, the tenderer shall not refuse to sell the tender documents to qualified bidders under any pretext. For projects that are required by law to be subject to bidding, the tenderer shall not illegally restrict any potential bidder from participating in the bidding on the grounds of differences in region or department. 　　(2) Public bidding must be carried out through announcements, clearly stating the bidding requirements to the general public so that as many potential bidders as possible can obtain the bidding information and submit bids, thereby ensuring the transparency of public bidding. In real life, people often see “XXX tender announcement” in newspapers; this is the method of announcing tenders. Methods of solicitation such as sending letters to individual suppliers or contractors are not considered public announcement methods, and should not be adopted by open tenderers. There are various ways to publish tender announcements, such as through public media like newspapers, radio, and the internet. The advantage of open bidding is that it allows for the selection of bidders on the widest possible scale, resulting in greater competition and a higher standard of quality. It also helps to prevent bribery in bidding processes to a large extent; therefore, this method is commonly used for procurement internationally.

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