National Development and Reform Commission, Ministry of Construction, Ministry of Railways, Ministry of Communications, Ministry of Information Industry, Ministry of Water Resources and Civil Aviation Administration of China, Invitation and Submission of Bids for the Supply of Goods in Construction Projects Procedures

Promulgated: January 18 2005
Interpreting authority: National Development and Reform Commission in conjunction with relevant departments
Applicability: The Procedures apply to invitation and submission of bid activities for the supply of goods in construction projects in China for which invitation for bids must be conducted in accordance with the law. The aforementioned goods refers to relevant important equipment and materials of construction projects (Article 2).
Invitation and submission of bid for supply of goods for fixed asset investments not of the nature of construction projects shall be handled with reference to these Procedures (Article 61).

Main contents: The Procedures are divided into six parts:
Part One: General Provisions
Part Two: invitation for bids
Part Three: Submission of Bids
Part Four: Opening of Bids, Evaluation of Bids and Determination of the Winning Bidder
Part Five: Penal Provisions
Part Six: Supplementary Provisions
The Procedures set forth (for the supply of goods in construction projects):

• whether invitation for bids shall be carried out by the bid inviting party or the general contracting bid winner of the construction project;
• the qualification requirements for conducting invitation for bids;
• circumstances for conducting private invitation for bids;
• procedures for carrying out qualification review of the bidders;
• requirements concerning the bid documents;
• requirements concerning consortium bidders;
• the amount of the bid bond at not more than 2% of the bid value with the maximum at Rmb800,000; and
• the amount of the performance bond at within 10% of the contract value

Article 34 allows construction projects to omit invitation for bids or to conduct bidding with only two qualified bidders after record filing with relevant administrative regulatory department if there are still fewer than three bidders after repeating the invitation for bids.
Related legislation: PRC Invitation for and Submission of Bids Law, Aug 30 1999, CLP 1999 No.8 p34; Standards for the Scope and Size of Construction Projects Requiring invitation for bids Provisions, May 1 2000, CLP 2000 No.5 p4