| THE GOVERNMENT ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------- |
| No: 111/2006/ND-CP | Hanoi, September 29, 2006 |
DECREE
GUIDING THE IMPLEMENTATION OF THE BIDDING LAW AND THE SELECTION OF CONSTRUCTION CONTRACTORS UNDER THE CONSTRUCTION LAW
THE GOVERNMENT
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to November 29, 2005 Bidding Law No. 61/2005/QH11 and November 26, 2003 Construction Law No. 16/2003/QH11 of the National Assembly;
At the proposal of the Minister of Planning and Investment and the Minister of Construction,
DECREES:
Chapter I
GENERAL PROVISIONS
Article 1.- Governing scope
1. This Decree guides the implementation of November 29, 2005 Bidding Law No. 61/2005/QH11 and the selection of construction contractors under November 26, 2003 Construction Law No. 16/2003/QH11 of the National Assembly.
2. The selection of contractors for bidding packages of ODA projects shall comply with the provisions of Clause 3, Article 3 of the Bidding Law. The procedures for submission, appraisal and approval of contents of bidding plans and results of selection of contractors for those projects shall comply with the provisions of this Decree.
Article 2.- Interpretation of terms
In this Decree, the following terms are construed as follows:
1. Use of state capital according to the provisions of Clause 1, Article 1 of the Bidding Law covers also expenditures in forms of purchase, hire or hire-purchase. If a project is executed in the form of joint venture or business cooperation contract or joint-stock company, the state capital portion of 30% or more shall be determined in proportion to the state capital portion in the legal capital, contributed capital or joint stock capital of that project.
2. Dossier of requirements means the entire documentation used for the appointment of contractors, competitive offers, direct procurement or contractor selection in special cases, including requirements for a bidding package, which serve as legal grounds for contractors to prepare dossiers of proposals and for the bid solicitor to evaluate such proposals in order to select a contractor that satisfies the requirements in the dossier of requirements; and serve as a basis for negotiation, finalization and conclusion of contracts. Investors shall decide on the contents of dossiers of requirements.
3. Dossier of proposals means the entire documentation prepared by a contractor based on the dossier of requirements and submitted to the bid solicitor according to the terms in the dossier of requirements;
4. Contractor-selection results means bidding results for open or restricted bidding or selection results for other selection forms;
5. Violation of bidding law means an act of failing to implement or to fully implement the provisions of bidding law;
6. Bidding participation means the contractors' participation in open or restricted bidding;
7. Bidding package for selection of general construction contractors covers the selection of a general contractor to undertake an engineering bidding package (E); a construction bidding package (C); an engineering and construction bidding package (EC); an engineering, procurement and construction bidding package (EPC); and the formulation of projects, engineering, procurement and construction (turn-key).
Article 3.- Assurance of competition in bidding
The Prime Minister shall specify an appropriate roadmap to assure competition in bidding according to the provisions of Article 11 of the Bidding Law.
Article 4.- Preferences in international bidding
1. Preferences in international bidding provided for in Article 14 of the Bidding Law apply as follows:
a/ For consultancy service bidding packages: Contractors eligible for preferences may have the total points of their bids added with 7.5% of that total; for consultancy service bidding packages with high technical requirements, the contractors’ technical points are added with 7.5% of those points;
b/ For construction and installation bidding packages: Evaluation prices of bids submitted by contractors not eligible for preferences must be added with a sum of money equal to 7.5% of bidding prices after errors or flaws of those contractors are corrected or adjusted respectively;
c/ For procurement bidding packages: Evaluation prices of bids submitted by contractors not eligible for preferences must be added with a sum of money corresponding to the value of import tax, export tax, import-related charges and fees payable under legal provisions, which, however, may not exceed 15% of goods prices, except for goods subject to import tax or import-related charges and fees;
d/ For bidding packages for selection of general engineering contractors, the determination of preferences is based on the provisions of Point a of this Clause. For other bidding packages for selection of general construction contractors, the determination of preferences complies with the provisions of Point b of this Clause.
2. When bids of foreign contractors are ranked equally, the ranking priority is given to the bids proposing higher domestic expenses. When bids of domestic contractors and foreign contractors are ranked equally after the application of preferences according to the provisions of Clause 1 of this Article, the ranking priority is given to the bids of domestic contractors.
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