Bidding in accordance with Vietnamese law

Bidding is a special transaction method, the person who wants to build a work (the caller) announces in advance the requirements and conditions for the construction of the work, etc. LSX Lawfirm will give you an article about: “Bidding in accordance with Vietnamese law”, as follows:

Legal grounds

• Law on Bidding 2013

Bidding overview in Vietnam

So, Bidding is a special transaction method, the person who wants to build a work (the caller) announces in advance the requirements and conditions for the construction of the work, the bidder announces the price he wants to receive, the person calling for the bid through comparison to choose the most profitable contractor according to the conditions set forth by them.

Then, Bidding – a method used to select consultants, purchase goods, construct and install, and select partners to implement a project or part of a project. Participating in the bidding includes:

1. The bid solicitor (the bid solicitor) is the project owner, the investor or the legal representative of the project owner, the owner is assigned the responsibility to perform the bidding work;
2. Contractor is an economic organization with full legal status to participate in bidding. Particularly for the bidding for selection of consultants, the contractor can be an individual. The bidding only attended by domestic contractors called a domestic bidding. Bidding with domestic and foreign contractors participating called international bidding. International bidding a relatively common form carried out in developing countries, due to the lack of capacity and technology to undertake the construction of large basic works by themselves. Bidding can only conducted when all the conditions prescribed by law are satisfied.

The method of bidding applied depending on the bidding object. The basic process of bidding includes: The bid solicitor issues a notice of invitation for bids, based on the notice of invitation for bid, the contractor preliminarily evaluates the contents of the invitation to bid and prepares a dossier for participation in the bidding. The contractor will select the contractor capable of meeting his requirements in the most profitable way. When a contractor selected, the bid solicitor shall carry out the approval procedures and announce the bidding results.

Bidding concept in Vietnam

According to the provisions of Clause 12, Article 4 of the Law on Bidding 2013:

“Bidding is the process of selecting contractors to sign and perform contracts for the provision of consulting services, non-advisory services, goods procurement, construction and installation; select investors to sign and perform contracts on investment projects in the form of public-private partnerships, investment projects using land on the basis of ensuring competition, fairness, transparency and business efficiency.”

Thus, we can see, bidding is the process by which the investor selects a contractor that meets his requirements. In which, the buyer will organize a bidding for the seller (contractors) to compete with each other.

The buyer’s objective is to obtain goods and services that satisfy his requirements in terms of technology, quality and lowest cost. The contractor’s purpose is to obtain the right to supply and purchase such goods or services at a price sufficient to cover input costs and ensure the highest possible profit. Thus, the nature of bidding recognized by society as a healthy competition to be able to do something, a certain request.

Features of bidding in Vietnam

As mentioned above, “Bidding is the process of selecting contractors to sign and perform contracts for the provision of consulting services, non-consulting services, procurement of goods, construction and installation; select investors to sign and perform contracts on investment projects in the form of public-private partnerships, investment projects using land on the basis of ensuring competition, fairness, transparency and business efficiency.”

So we can draw some characteristics of bidding as follows:

Firstly:

Bidding is a commercial activity. In which the bidder is a qualified trader and the target of the bidder is profit, and the bid solicitor is to establish a contract to buy and sell goods and use services with good conditions. best for them.

Secondly:

Bidding is a pre-contract stage. Bidding activities always associated with the relationship of buying and selling goods and providing services. In the economy bidding does not take place as an independent activity, it only appears when people have a need to purchase goods and use services. The ultimate purpose of bidding is to help the bid solicitor find the entity capable of providing goods and services with the best quality and price. After the bidding process completed, the successful bidder will negotiate with the bidding organizer to sign a contract for the sale of goods, provision of services or construction and installation of works.

Thirdly:

Subjects participating in the bidding relationship for goods and services. According to the Commercial Law, in bidding activities, there may appear third parties such as consulting companies helping to prepare bidding documents, helping experts, and evaluating bids.

However, this is an activity without intermediaries, with no traders providing the service of bidding for goods and services for other traders to receive remuneration. Meanwhile, the Bidding Law 2013 further stipulates on professional bidding organizations including bidding agents, established non-business units and professional bidding functions. The establishment and operation of Bidding agents comply with the law on enterprises. Bidding relationship always established between 1 bid solicitor and many bidders. But there are exceptions such as in the case of investment designations.

Fourthly:

The legal form of the bidding relationship for goods and services is the bidding documents and the bidding documents. Bidding document – a legal document made by a bid solicitor, which contains all technical, financial and commercial requirements of goods to be procured and services used. The bid documents show the capacity and responsiveness of the bidders to the requirements in the bidding documents.

– Fifthly:

Price of the bidding package: from the point of view of the price, it is necessary for the bidding to have a price control, called the package price or the estimate _ given by the bid solicitor according to the financial ability of the contractor. bid solicitor. If a bidder offers a price higher than the financial capability of the bid solicitor, no matter how good it is, it is unlikely to win the bid. The bidder that meets the requirements of the bid solicitor with the lower the price will have a better chance of winning.

You can also refer to the article related to Procedures for opening bids by Vietnamese law, Features of bidding for goods and services in Vietnam.

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