Administrative Measures of Shanghai Municipality for Tendering and Bidding for Construction Engineering

Administrative Measures of Shanghai Municipality for Tendering and Bidding for Construction Engineering
Administrative Measures of Shanghai Municipality for Tendering and Bidding for Construction Engineering

Order of Shanghai Municipal People's Government No.50

January 9, 2017

The Administrative Measures of Shanghai Municipality for Tendering and Bidding for Construction Engineering, which were adopted at the 138th executive meeting of the Shanghai Municipal People's Government on January 3, 2017, are hereby issued for implementation as of March 1, 2017.

Mayor Yang Xiong

Administrative Measures of Shanghai Municipality for Tendering and Bidding for Construction Engineering

(Issued by the Order of the Shanghai Municipal People's Government No.50 dated January 9, 2017)

Chapter I General Provisions

Article 1 (Purposes and Bases)
With a view to regulating tendering and bidding activities of construction engineering in Shanghai Municipality and protecting the state interests, public interests and legitimate rights and interests of the parties concerned during such activities, the Administrative Measures of Shanghai Municipality for Tendering and Bidding for Construction Engineering (these "Measures") are hereby formulated in combination with the actual conditions of Shanghai Municipality and in accordance with the Bid Invitation and Bidding Law of the People's Republic of China, the Implementing Regulations on the Tendering and Bidding Law of the People's Republic of China, the Administrative Regulations of Shanghai Municipality on the Construction Market and other relevant laws and regulations.

Article 2 (Scope of Application)
These Measures apply to tendering and bidding activities for the survey, design, construction and supervision of construction engineering and the purchase of important equipment, materials, etc. relating to engineering construction within the jurisdiction of Shanghai Municipality.

Article 3 (Management Duties)
The administrative department for construction of Shanghai Municipality is the competent authority of tendering and bidding activities for construction engineering in Shanghai Municipality. The Management Office of Tendering and Bidding for Construction Engineering of Shanghai Municipality (the "Tendering and Bidding Office") is responsible for concrete work of tendering and bidding activities. The administrative departments for construction of districts are, within the scope of respective duties, responsible for the management of the tendering and bidding activities for construction engineering in the region with their respective jurisdiction.
The departments for development and reform, planning of land and resources, finance, state-owned assets, audit, supervision, finance, traffic, water affairs, ocean, landscaping and city appearance, civil defense, etc. of Shanghai Municipality shall collaboratively implement these Measures as per their respective duties.

Article 4 (Scope of Transactions at the Exchange)
The administrative departments for construction of Shanghai Municipality and districts thereof shall consolidate the supervision of the tendering and bidding activities for construction engineering invested in by the government.
Where the construction engineering invested in by the government or that invested in by a state-owned enterprise or public institution with proprietary capital and with the actual right of control possessed by the investor of the state-owned assets meets the statutory bid invitation scale standards, whole-process tendering and bidding activities shall be conducted at the unified tendering and bidding exchange for construction engineering of Shanghai Municipality or the district concerned (the "Tendering and Bidding Exchange").
Where any other construction engineering meets the statutory tendering scale standards, the tenderee concerned may independently determine whether to conduct the tendering and bidding activities at the Tendering and Bidding Exchange. If the tenderee determines not to enter the Tendering and Bidding Exchange, the said Tenderee shall independently organize the tendering and bidding activities in accordance with the law; the administrative department for construction concerned may provide services such as the issue of announcements and notices and the provision of experts.
For the purpose of these Measures, the words "invested in by the government" mean the fixed asset investment activities conducted with government funds. Government funds include the investment funds within the financial budget, different special construction funds, unified foreign loans and other government funds.

Article 5 (Information Construction)
The administrative department for construction of Shanghai Municipality shall consolidate the information construction of the Tendering and Bidding Exchange, impel the electronic tendering and bidding work for the construction engineering in Shanghai Municipality, and intensify the information sharing with relevant administrative departments.

Chapter II Tendering and Bidding

Article 6 (Bid Invitation Types for Engineering)
A tenderee may invite bids for the survey, design, construction and supervision of construction engineering and the purchase of important equipment, materials, etc. relating to construction engineering respectively, or for the general contracting of engineering.
As for the design of construction engineering, bids may be invited for scheme design, preliminary design, construction drawing design, etc. in phases, or for the consolidation of different phases.

Article 7 (Bid Invitation by Design Scheme or Design Institution)
According to the project characteristics and actual demands, the invitation of bids by design scheme or design institution may be adopted for the bid invitation for construction engineering. Concerning the bid invitation by design scheme, the bid winner is determined by the comprehensive appraisal focusing on the design scheme; regarding the bid invitation by design institution, the bid winner is determined by the comprehensive appraisal of the composition, performance and experience, the quotation for design costs and design ideas of the personnel to be engaged in the engineering design and so on of the tenderer.

Article 8 (Start of the Bid Invitation)
A tenderee may independently determine the start of bid invitation activities, and bear the risks of failure in the bid invitation incurred by a change in any condition. Before the start of the bid invitation for construction engineering with the transaction at the Tendering and Bidding Exchange, a tenderee shall submit the letter of commitment on risks to the Tendering and Bidding Office or the administrative department for construction of the district concerned.
Regarding the bid invitation for construction engineering invested in by the government, there shall be construction drawing design documents; concerning the bid invitation for construction supervision, there shall be approved preliminary design documents.

Article 9 (Re-contracting out for Engineering General Contracting)
If an engineering general contracting entity lawfully re-contracts out the survey, design or construction undertaken by it to an enterprise with corresponding qualifications, it may adopt the way of bid invitation for contracting out or direct contracting out; the corresponding design and construction general contracting enterprise may lawfully sub-contract partial professional engineering.

Article 10 (Bid Invitation by Batch and Advance Bid Invitation)
If a tenderee implements several similar projects in the same period, the said tenderee may invite bids by means of bid invitation by batch.
The advance bid invitation may be adopted for emergency rescue engineering and frequently occurring house repairs, garden virescence maintenance, repairs of municipal facilities and water conservancy facilities and other engineering.

Article 11 (Division of Bid Sections)
A tenderee shall reasonably divide bid sections as per the characteristics of the construction engineering, and shall not reduce the qualification conditions for tenderers by virtue of the division of bid sections. The division standards of bid sections of the construction engineering shall be determined by the administrative department for construction of Shanghai Municipality together with the relevant administrative department.

Article 12 (Circumstances without Bid Invitation)
Where a construction entity acquiring a construction project by any competitive method such as bid invitation, competitive negotiation or competitive consultation, etc.
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