Tendering and Bidding Law of the People's Republic of China (Amended in 2017)
Tendering and Bidding Law of the People's Republic of China (Amended in 2017)
Tendering and Bidding Law of the People's Republic of China (Amended in 2017)
Order of the President of the People's Republic of China No.86
December 27, 2017
(Adopted at the 11th Session of the Standing Committee of the Ninth National People's Congress on August 30, 1999, and amended according to the Decision on Amending the Tendering and Bidding Law of the People's Republic of China and the Metrology Law of the People's Republic of China at the 31st Session of the Standing Committee of the 12th National People's Congress on December 27, 2017)
Contents
Chapter I General Provisions
Chapter II Tendering
Chapter III Bidding
Chapter IV Opening, Evaluation and Winning of Bids
Chapter V Legal Liability
Chapter VI Supplementary Provisions
Chapter I General Provisions
Article 1 This Law is enacted in order to regulate tendering and bidding activities, protect the interests of the State and the public as well as the lawful rights and interests of the parties involved in tendering and bidding activities, increase economic benefits and ensure project quality.
Article 2 This Law is applicable to any tendering and bidding activities conducted within the territory of the People's Republic of China.
Article 3 The following construction projects to be undertaken within the territory of the People's Republic of China, including the surveying, design, construction and supervision of such projects as well as the purchase of key equipment and materials for such projects, shall be subject to a tender:
(1) large infrastructure and public utility projects that concern public interests and security;
(2) projects invested completely or partly with State-owned funds or financed by the State; and
(3) projects using loans or aid funds from international organizations or governments of other countries.
The specific scope and threshold for bidding of the projects listed in the preceding paragraph shall be formulated by the development planning department under the State Council, together with the relevant departments under the State Council, and be submitted to the State Council for approval.
Where there are provisions in other laws or in the regulations of the State Council governing scope of other projects for which tendering is required, such provisions shall be followed.
(Relevant articles: Legislation 1)
Article 4 No units or individuals may break up into parts a project for which tendering is required by law or try to dodge tendering by any other means.
(Relevant articles: Legislation 1)
Article 5 Tendering and bidding activities shall be conducted in adherence to the principles of openness, fairness, impartiality and good faith.
Article 6 Tendering and bidding for projects for which tendering is required by law shall be subject to limitations imposed by the local authorities or departments. No units or individuals may, in violation of law, impose limitations on legal persons or other organizations from other regions or departments or exclude them from participating in bidding or illegally interfere, by any means, in tendering and bidding activities.
Article 7 All tendering and bidding activities and the parties involved shall be subject to supervision in accordance with law.
Relevant departments for administrative supervision shall, in accordance with law, exercise supervision over tendering and bidding activities, and investigate and deal with any violations of law in such activities.
The division of specific duties and powers among the departments for administrative supervision over tendering and bidding activities and the relevant departments shall be determined by the State Council.
Chapter II Tendering
Article 8 A tenderee is a legal person or other organization that, in accordance with the provisions of this Law, presents a project for bidding and calls for bids.
Article 9 Where a project for bidding is required by relevant State regulations to undergo examination for approval, it shall do so before obtaining approval.
A tenderee shall have the funds needed for the project for bidding or confirmed sources of funds and the fact shall be truthfully stated in its tender documents.
Article 10 Tenders are classified into two categories: public invitation and invited bidding.
Public invitation means that the tenderee, in the form of announcement for bidding, invites unspecified legal persons or other organizations to bid.
Invited biding means that the tenderee, in the form of written invitation, to invite specified legal persons or other organizations to bid.
Article 11 Where a national key project determined by the development planning department under the State Council or a local key project determined by the people's government of a province, an autonomous region or a municipality directly under the Central Government is not suited for public invitation, it may be subject to invited bidding with the approval of the said department and the said people's government respectively.
Article 12 A tenderee shall have the right to choose, on its own, a tender agency and entrust it with the handling of the matters of the tender. No units or individuals may, by any means, designate a tender agency for the tenderee.
A tenderee who has the capability of preparing documents for the tender and arranging for bid evaluation may handle the matters of the tender on its own. No units or individuals may compel the tenderee to entrust a tender agency with the handling of such matters.
Where a tender handles, on its own, the matter of the tender for a project for which tendering is required by law, he shall register with the relevant department for administrative supervision.
Article 13 A tender agency is an intermediary organization set up in accordance with law to engage in tendering services as an agent and provide service in this field.
A tender agency shall satisfy the following conditions:
(1) having a place and the necessary funds for serving as a tender agency;
(2) having the necessary professionals to prepare documents for tenders and arrange for bid evaluation; and
Article 14
There shall be no subordination or other relationship of interest between a tender agency and an administrative organ or any other State organ.
Article 15 A tender agency shall handle tendering matters within the scope entrusted to it by the tenderee and shall abide by the provisions of this Law regarding the tenderees.
Article 16 Where a tenderee adopts public invitation, it shall make an announcement for bidding. An announcement for bidding made for which tendering is required by law shall be published in newspapers, information networks or other medium as are designated by the State.
In the announcement for bidding shall be clearly stated such particulars as the name and address of the tenderee, the nature, number, site and time of the projects involved and the means of obtaining the tender documents.
Article 17 Where a tenderee adopts invited bidding, it shall send written invitation to at least three specified legal persons or other organizations that are capable of undertaking the project for bidding and have a good reputation and qualification.
In the written invitation for bidding shall be clearly stated the particulars specified in Paragraph 2 of Article 16 of this Law.
Article 18 Based on the requirements of the project for bidding, a tenderee may, in its announcement or written invitation for bidding, request potential bidders to provide certificates and information concerning their competence and business achievements and examine the qualifications of the potential bidders.
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