Administrative Measures for the Bidding for Construction of Buildings and Municipal Infrastructure Projects

Administrative Measures for the Bidding for Construction of Buildings and Municipal Infrastructure Projects
Administrative Measures for the Bidding for Construction of Buildings and Municipal Infrastructure Projects

Order of the Ministry of Construction [2001] No.89

June 1, 2001

The Administrative Measures for the Bidding for Construction of Buildings and Municipal Infrastructure Projects, adopted upon discussion at the 43th executive meeting of the Ministry of Construction on May 31, 2001, are hereby promulgated, effective as of the date of promulgation.

Minister of Construction: Yu Zhengsheng

Appendix: Administrative Measures for the Bidding for Construction of Buildings and Municipal Infrastructure Projects

Chapter 1 General Provisions

Article 1 The Measures are formulated in accordance with the laws and administrative regulations such as the Construction Law of the People's Republic of China and the Bidding Law of the People's Republic of China for the purpose of regulating the bidding activities for the construction of buildings and municipal infrastructure projects and safeguarding the legitimate rights and interests of the parties to bidding activities.

Article 2 The Measures shall apply to the bidding activities for construction of buildings and municipal infrastructure projects (hereinafter referred to as "projects" in short) within the territory of the People's Republic of China, as well as the regulation of such activities.
For the purpose of the Measures, buildings projects refer to all types of buildings and their ancillary facilities and the supporting wiring, piping and equipment installation projects and indoor and outdoor renovation projects.
For the purpose of the Measures, municipal infrastructure projects refer to civil works, pipelines and equipment installation projects of urban roads, public transportation, water supply, drainage, gas, heat, gardening, environmental sanitation, sewage treatment, garbage disposal, flood control, underground public facilities and auxiliary facilities thereof.

Article 3 Where the estimated value of a single construction contract for a building or municipal infrastructure project (hereinafter referred to as "project") exceeds CNY2 million, or the total investment of the project exceeds CNY30 million, such project shall be subject to bidding.
The construction administrative department of the people's government of a province, autonomous region or municipality directly under the Central Government may, upon approval of the people's government at the same level, prescribe the specific scope and scale standards for the projects subject to bidding within its own jurisdiction according to the actual situation, provided that it shall not narrow the scope of projects subject to bidding as prescribed in the Measures.

Article 4 The competent administrative department of construction under the State Council shall be responsible for the supervision and administration of bidding activities for construction of projects nationwide.
The administrative department of construction of a people's government at the county level or above shall be responsible for the supervision and administration of bidding activities for construction of projects within its jurisdiction and may entrust the project bidding regulatory agency with specific supervision and administration work.

Article 5 No entity or individual may violate any law or administrative regulation, restrict or exclude any legal persons or other organizations from other regions or systems to participate in the bidding, or illegally interfere with construction bidding activities by any means.

Article 6 The activities of bidding for construction as well as the parties thereto shall be subject to supervision according to law.
The competent administrative department of construction shall supervise the activities of bidding for construction in accordance with the law, and investigate and punish illegal acts in such activities.

Chapter II Invitation for bid

Article 7 Any construction bid inviter shall organize and implement bid invitations in accordance with the law. No bid inviters may restrict or exclude potential bidders by setting unreasonable conditions, may discriminate against potential bidders, may impose excessive qualification requirements and other requirements for potential bidders, which are not in compliance with the actual requirements of the project under bidding.

Article 8 The following conditions shall be satisfied for an invitation for bid for a construction project:
(1) Having fulfilled the examination and approval procedures for those that are required perform project examination and approval procedures in accordance with relevant State regulations;
(2) Having engineering funds or the source of funds has been in place;
(3) Having design documents and other technical materials needed for the invitation for bid for construction; and
(4) Other conditions provided for in laws, regulations and rules.

Article 9 Invitations of bids for construction projects include open bid invitations and selected bid invitations.
For any projects that must be subject to bidding in accordance with the law, open bid invitation shall be carried out for those that are completely financed by state-owned capital or the state-owned capital has a controlling or dominant position, with the exception of the key construction projects that may be subject to selective bid invitation upon the approval of the State Development Planning Commission or the people's government of the province, autonomous region or municipality directly under the Central Government. Selective bid invitation may be carried out for other projects.

Article 10 Where a project is under any of the following circumstances, upon the approval of the construction administrative department of the local people's government at or above the county level, the construction bid invitation may be exempted:
(1) The unit project is resumed after the construction is suspended or delayed and the Contractor is not changed;
(2) Construction works constructed by the construction enterprise for its own use, and its qualification grade is in compliance with the construction requirements;
(3) Additional minor works or main floor works attached to the project under construction, without change to the Contractor; or
(4) Any other circumstance under laws, regulations and rules occurs.

Article 11 For a project subject to construction bidding in accordance with the law, the bid inviter shall have the abilities to prepare bidding documents and organize the bid evaluation if handling the matters of construction bidding by itself:
(1) Having a special organization for construction bid invitation; and
(2) Having technical professionals in terms of project expertise, budget estimate and budget and project management in proportion to the scales and complexities of the projects with experience in invitation for bid for similar project construction and are familiar with the of the laws and regulations concerning bid invitation for construction of projects.
If the above conditions are not met, the bid inviter shall entrust a bidding agency with corresponding qualification with the invitation for bid for construction.

Article 12 Where a bid inviter handles the matters of construction bidding by itself, it shall, within 5 days prior to the issuance of the announcement on bid invitation or the letter of bid invitation, file the same with the competent administrative department of construction of the local people's government at or above the county level where the project is located for record and submit the following materials:
(1) Various approval documents for examination and approval formalities pursuant to the relevant provisions of the State;
(2) Proof materials for the criteria stipulated in Article 10 of the Measures, including proof materials for the list of professional technical personnel, their job title certificate or practicing qualification certificate and their work experience; and
(3) Other materials as provided for in laws, regulations and rules.
If the bid inviter does not satisfy the criteria for handling of bidding matters independently, the competent administrative department of construction shall, within five days from receipt of the filing materials, order the bid inviter to stop handling bidding matters by itself.

Article 13 Projects which are fully funded by State-owned funds, or in which State-owned funds constitute controlling stake or dominant position, and for which construction bids shall be organized pursuant to the law shall enter the tangible construction market for bidding activities.
The relevant administrative authorities of the government may process the relevant formalities centrally in the tangible construction market and implement supervision pursuant to the law.

Article 14 For a construction project subject to open bid invitation pursuant to law, a bid invitation announcement shall be published on the newspapers, periodicals, information networks or other media as designated by the state or the local government, and a bid invitation announcement shall be simultaneously published on the website of China Engineering Construction and Construction Industry Information.
The bid invitation announcement shall specify the name and address of the bid inviter, the nature, scale, location of the project under bidding and the methods for obtaining the bidding document.

Article 15 In case of invited bidding, the bid inviter shall issue letters of bid invitation to more than three construction enterprises that meet the qualification conditions.
The letter of bid invitation shall specify the matters as prescribed in the second paragraph of Article 13 of the Measures.

Article 16 A bid inviter may, according to the needs for a bidding project, make preliminary qualification examinations on the bidding applicants, and may also entrust a bidding agency to make preliminary qualification examinations on bidding applicants.
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