How are the Law on Bidding and the guiding papers regulating the manner in which contractors and investors are chosen? What exactly is the case for each type of contractor selection, and how does it apply to each type of contractor selection? To assist investors, contractors in better understanding this issue, Hong Bang Law Firm would like to submit the following form of contractor and investor selection:

Legal basis

Law on Bidding No. 43/2013/QH13.

Forms of selection of contractors and investors

The forms of selection of contractors and investors are currently regulated by the law on bidding from Article 20 to Article 27 of the 2013 Law on Bidding. Thereby, the law recognizes 7 forms of selection of contractors and investors including:

• Extensive bidding;
• Limited bidding;
• Appointment of bids;
• Competitive offers;
• Direct shopping;
• Self-realization;
• Selection of contractors and investors in special cases;
• Join the community’s implementation.

With each form of contractor selection, investors, the case of application will also be different.

Extensive bidding

Extensive bidding is a form of selection of contractors and investors in which there is no limit to the number of bidders and investors attending.

Extensive bidding is applied to bidding packages and projects within the scope of the Law on Bidding, except for bidding packages or projects applying one of the remaining forms of contractor selection.

Limited bidding

Limited bidding is applied in cases where the bidding package has high technical or technical requirements of a specific nature that only some contractors meet the requirements of the bidding package.

Contractor designation

Contractor designations are applicable in the following cases:

• The procurement should be carried out for immediate remediation or to promptly handle the consequences caused by force majeure incidents; procurements need to be carried out to ensure state secrets; the procurement should be implemented immediately to avoid directly endangering the lives, health and property of the community in the area; procurements for purchase of drugs, chemicals, supplies and medical equipment for the implementation of disease prevention and control in case of emergency;
• Urgent procurements should be implemented with the aim of protecting national sovereignty, national borders and islands;
• Procurements providing consultancy services, non-consulting services, procurement of goods must be purchased from contractors previously implemented due to ensuring compatibility in technology and copyright; bidding packages of research and testing nature;
• The procurement of consultancy services for making feasibility study reports, construction design is assigned to the author of the architectural design of the successful or selected works when the author is qualified as prescribed; construction packages for monuments, reliefs, monumental paintings, works of art associated with copyright from composition to construction;
• Procurement of relocation of technical infrastructure works; procurement of clearance of bombs, mines and explosives to prepare construction premises;
• Bidding packages providing public products, services and bidding packages are valid within the limits assigned to contractors.

Note:

For bidding packages in the case of contractor designation as mentioned above, meeting the conditions for contractor designation in accordance with law but still applying other forms of contractor selection, it is recommended to apply other forms of contractor selection.

The designation of bids for investors is applied in the case of:

• Only one registered investor performs;
• Only one investor is able to do so due to intellectual property, trade secrets, technology or capital arrangements;
• The investor proposes the project to meet the requirements of implementing the most feasible and effective project as prescribed by the Government.

Competitive offer

Competitive offers are applicable to packages that are valid within the limits prescribed by the Government and fall under one of the following cases:

• The package of non-consulting services is common and simple;
• Procurement of common goods, available on the market with standardized and equivalent technical characteristics in quality;
• The simple construction and installation package has an approved construction drawing design.

Direct shopping

Direct procurement is applicable to the procurement of similar goods belonging to the same project, procurement estimate or other procurement project or estimate.

Note: If the contractor performing the previous contract is unable to continue to perform the procurement package directly, the procurement shall be applied directly to another contractor if it meets the requirements of capacity, experience, technique and price according to the bidding dossier and the result of previous contractor selection.

Self-actual

Self-implementation shall apply to the procurement under the project or procurement estimate in case the organization directly manages and uses the bidding package with technical, financial and experience capacity to meet the requirements of the bidding package.

Selection of contractors and investors in special cases

In case bidding packages or projects appear specific and specific conditions that cannot be applied to the forms of selection of contractors and investors, including: extensive bidding, limited bidding, bidding designation, competitive offer, direct procurement, self-implementation, the competent person shall submit to the Prime Minister for consideration, decide on the selection of contractors and investors.

Participation in community implementation

The local communities, organizations, organizations and groups of workers where the bidding package is assigned to carry out all or part of such bidding packages in the following cases:

• The procurement belongs to the national target program, the poverty alleviation support program for districts, mountainous communes, remote areas, islands, socio-economic zones with special difficulties;
• Small-scale bidding packages that local communities, organizations, organizations and groups of workers can undertake.

Above is our advice on the form of selecting contractor, investors.

Hong Bang Law Firm provides service on procedures for applying for operating licenses for contractors and investors that will bring clients comprehensive and high-quality legal services.

If you need more detailed advice, please contact: Deputy Director in charge of business Lawyer: Nhat Nam via hotline: 0912.35.65.75, call the free legal consultancy call center: 1900 6575 or send a service request via email: lienheluathongbang@gmail.com .

Wish you and your family healthy, peaceful and successful!

Best regards!