New Rules for Construction Projects: Supplements to the Bidding Law

May 02, 2003 | BY

clpstaff &clp articles

The body of laws governing the bidding process for construction projects in the PRC has seen an important new addition, with the Invitation and Submission of Bids for Construction Projects Procedures (the New Procedures) issued on March 8 2003 and effective May 1 2003.

By Helen Chang and Richard Foley, Masons, Shanghai and Hong Kong

It seems clear that compared with previously issued regulations, the New Procedures will have a more significant regulatory effect on the invitation and submission of bids for construction works and also will have a wider application.

The importance of the new regulations can be seen in several areas. The New Procedures were issued by several government departments, led by the State Development Planning Commission (the SDPC). It appears that the New Procedures represent a joint effort to supplement the contents of the PRC Invitation and Submission of Bids Law (中华人民共和国招标投标法) (the Bidding Law), which was issued in 1999. The New Procedures also try to harmonize the existing guidance and regulations in relation to bidding for construction projects by consolidating past experience and addressing issues that have arisen since the promulgation of the Bidding Law. Moreover, the New Procedures have further regulated the tender process for construction projects funded or financed by the state.

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