The process of selecting contractors to sign and execute contract items is known as bidding. Contracts play an important role in bidding. So, what factors should be considered while creating bidding contracts to ensure strictness? Hong Bang Law Firm, with a skilled and highly specialized team, would like to provide the following consultancy to clients when preparing bidding contracts:

Types of contracts for contractors applicable in bidding

Package contract

A package contract is a fixed-price contract for the entire work in the contract. The payment for the package contract is made several times during the execution or one-time payment upon the completion of the contract. The total amount paid by the contractor until the fulfillment of contractual obligations is at the correct price stated in the contract.

Fixed-price contracts

A fixed-price contract is a contract whose unit price remains unchanged throughout the duration of the work in the contract. The contractor is paid according to the actual quantity and workload to be tested as prescribed on the basis of fixed unit price in the contract.

Contracts at adjusted unit prices

An adjusted unit-price contract is a contract with a unit price that can be adjusted based on the agreement in the contract for the entire work content in the contract. The contractor is paid according to the quantity and actual workload to be tested as prescribed on the basis of the unit price stated in the contract or the unit price has been adjusted.

Contract from time to time

A contract over time is a contract that applies to a procurement of consulting services. The contract price is calculated on the basis of working time by month, week, day, hour and expenses in addition to remuneration. The contractor is paid according to the actual working time on the basis of the remuneration corresponding to the titles and jobs stated in the contract.

The basic terms required of the bidding contract

In essence, the contract in bidding is also a type of civil contract, which respects the agreement between the parties and is expressed in written form.

The contents of the contract must be made according to the form specified in the bidding dossier, dossier of request, and at the same time in accordance with the results of contract negotiation, the results of contractor selection on the basis of the requirements of the procurement and the guidance of specialized state management agencies.

Prior to the conclusion of the contract, the parties may agree on the use of arbitration to resolve disputes that occur during the performance of the contract.

In addition, the basic provisions required of the bidding contract should be such as: The contract subject, the component of the contract, the responsibilities of the parties, the contract price, the payment method, the form of the contract, the form and validity of the contract,…

Conditions for bidding contracts to take effect

Contractors after being selected are allowed to sign contracts when meeting the conditions specified in Article 64 of the Bidding Law 2013. These are:

• At the time of signing, bids and proposals of selected contractors are still valid.
• At the time of signing, the selected contractor must ensure that it meets the requirements of technical and financial capacity to implement the bidding package.
• In case of necessity, the investor for the project, the procuring entity for regular procurement, the centralized procurement unit or the unit wishing to procure for procurement shall focus on verifying information on the capacity of the contractor, if it still meets the requirements for the implementation of the bidding package, it shall sign the contract.
• The investor for the project, the bid solicitor for regular procurement, the centralized procurement unit or the unit wishing to procure for concentrated procurement must ensure the conditions of advance capital, payment capital, implementation premises and other necessary conditions to implement the bidding package on schedule.

Basic contents of the bidding contract

The bidding contract includes the following basic contents:

• Based on the contracts, according to legal documents under current regulations adjusting the bidding issue;
• Subject of the contract: basic information of the investor and contractor;
• The subject of the contract is detailed in the attached annex;
• Contract components Contract documents, minutes of negotiation for completion of contracts, decisions approving contractor selection results, specific conditions of contracts, general conditions of contracts, bid dossiers and documents clarifying bid dossiers of winning bidders (if any), bid solicitor dossiers and documents amending bidding dossiers (if any), other accompanying documents (if any);
• Responsibilities of the investor;
• Contractor’s responsibilities;
• Contract price and payment method;
• Contract type;
• Duration of contract execution;
• Contract validity;
• Appendix attached.

If you need more detailed advice and answers as well as how to access this service, please contact directly our Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the toll free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com

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