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Contractors according to Vietnamese law

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When building a project, we often hear the name of a construction contractor and an investor or homeowner. So what is a contractor? What types of contractors are there? We may have heard a lot, but not everyone is clear on this issue. So, let Lawyer X answer this question for you in the content below!

– Bidding Law 2013

Consulting content

What is a contractor or investor?

The nature of bidding activities is competition between contractors to perform a job or a request. Their objective when participating in the bidding is to win the right to supply and purchase such goods or services at a price sufficient to cover input costs and ensure the highest possible profit.

So, the contractor defined as an organization/unit with full capacity to execute construction works for investors. They will sign a contract with the investor and contractor for all jobs and projects related to that work.

Conditions to become a contractor, investor

Is an eligible organization. Therefore, before carrying out the tender opening procedure, they need to meet the following conditions:

– Registered on the national bidding network system;

– Besides, ensuring competition in bidding as prescribed in Article 6 of the Law on Bidding 2013;

– Not in the period of being banned from bidding;

– Shortlisted for shortlisted cases;

– Must enter into a partnership with a domestic contract or use a domestic sub-contractor for foreign investors when participating in international bidding in Vietnam, unless the domestic contractor is not qualified to participate in any part of the contract.

For individuals, the conditions for becoming an investor are also supplemented with the following provisions: not in the period of being banned from bidding.

See more:

Features of bidding activities by Vietnamese law

Issuing construction permits for foreign contractors

Responsibilities of contractors and investors

Is it an investor to invest capital? Or how specifically does the law prescribe? Under Article 77 of the Law on Bidding 2013 stipulating the responsibilities of contractors and investors, the specific contents are as follows:

– Request the bid solicitor to clarify the request for expression of interest, the dossier of invitation for pre-qualification, the bidding dossier, and the request for proposals.

– Implement commitments under the signed contract and commitments with subcontractors (if any).

– Proposals, complaints, and denunciations during the bidding process.

– Comply with the provisions of the law on bidding.

– Then, ensuring honesty and accuracy in the process of bid participation, recommendations, complaints, and denunciations.

– Besides, provide relevant information and documents and explain the implementation of the provisions of the Law.

– Perform other responsibilities by the Law on Bidding and other relevant laws.

Conditions for issuance of bidding documents and dossiers of requirements

Bidders wishing to participate need to satisfy all conditions for participation in bidding by current legal regulations. The same, similar. Bidding dossiers, dossiers of requirements may only be released for contractor selection when the following conditions are fully satisfied:

– Selection plan approved;

– The approved bidding documents and request dossiers include the required contents on bidding procedures, bidding datasheet, evaluation criteria, bid form, and bid volume table;

– requirements on schedule, technique, quality; general and specific conditions of the contract, a sample of contract documents, and other necessary contents;

– Bidding notices, notices of solicitation of offers, or shortlists are posted by this Law;

– Funds for the bidding package shall be arranged according to the bidding package’s implementation schedule;

– Contents, list of goods and services, and cost estimates approved by the competent person in the case of regular or concentrated procurement;

– Ensure handover of the construction site according to the schedule of implementation of the bidding package.

Frequently asked questions

Is it mandatory to post tender results?

According to the law, the contractor selection results must be posted on the national bidding network system, the Procurement Newspaper. At the same time, according to regulations, the Ministry of Planning and Investment must be responsible for posting about bidding. If the bidding results are not posted, the units will be handled for violations.

How to handle illegal bidding?

Currently, the law has many measures; as well as the form of handling cases of winning bids contrary to regulations. According to the provisions of Article 121 of Decree 63/2014/ND-CP; guiding the Law on Bidding, there are currently 4 forms of handling violations; in the field of bidding, including:
1. Warning, fine;
2. Prohibit participation in bidding activities;
3. To examine individuals for penal liability; violate the law on bidding which constitutes a crime;
4. Against cadres and civil servants who commit violations of the law on bidding; was also handled according to the provisions of the Law on Cadres and Public Officials and the revised Law on Public Employees 2019.

Does not registering on the national bidding network count as a bidder?

The current Bidding Law stipulates. Only institutional contractors need to register on the national bidding network to have grounds to determine the contractor’s eligibility, and individual contractors do not need to register.

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