Beijing Municipality, Administration of Invitation for and Submission of Bids for Sub-contracting for Work on Construction Projects Procedures

Issued: February 7 2005
Effective: March 1 2005
Applicability: The term "construction projects" refers to the installation work and the internal and external renovation work of all types of housing construction, their supplementary facilities and other ancillary circuits, pipelines and equipment, as well as public infrastructure projects (Article 2). The term "sub-contracting for work on construction projects" refers to the activities by which a construction enterprise, in accordance with the law, contracts out the technical or labour work among the work on construction projects contracted by it to other construction enterprises for completion thereof (Article 3). In the event of a conflict between the provisions concerning the invitation for and submission of bids for sub-contracting for construction work of the Beijing Municipality, Administration of Transactions Involving the Contracting out and Contracting of Technical and Labour Work of Construction Projects Provisions and these Procedures, these Procedures shall prevail (Article 27).

Main contents: Where an invitation for bids was carried out for the general contracting of a construction project, and where the following standards of size are reached for sub-contracting work, there shall be an invitation for bids: (1) slice contracts for sub-contracted technical work valued at Rmb2 million or more; (2) slice contracts for sub-contracted technical work valued at less than Rmb2 million, but with government investment or financing of Rmb1 million or more in the construction project; and (3) slice contracts for sub-contracted labour work valued at Rmb500,000 or more (Article 5). invitation for bids for technical work sub-contracting shall be carried out after the bid winner for the general contracting has been determined. Sub-contracting of technical work shall be agreed upon in the general contract of the construction project, and where there is no such agreement, written authorization shall be obtained from the construction work unit. invitation for bids for labour work sub-contracting shall be carried out after the bid winner for general contracting or technical work contracting has been determined (Article 9). The method of invitation for bids for technical work sub-contracting shall be consistent with that for the general contracting. The method of invitation for bids for labour work sub-contracting shall be determined by the bid inviting party at its own discretion (Article 11). Bidders of sub-contracting for work on construction projects shall have the corresponding technical contracting enterprise qualifications or labour sub-contracting enterprise qualifications, and shall participate in submission of bids within the scope permitted by their qualification grades. No individuals may sub-contract labour work (Article 14). For sub-contracting work that legally requires the invitation for bids, the bid inviting party shall, within 15 days on which the winning bidder is determined, submit written reports on the details of invitation for and submission of bids to the municipal construction commission, or the district or county construction commission (Article 20). The bid inviting party and the winning bidder of sub-contracting for work on a construction project shall conclude a written contract in accordance with the law within 30 days of the date of issuance of the letter of acceptance. The bid inviting party and the winning bidder may not subsequently conclude other agreements that contravene the substantial content of the contract (Article 22).
Related legislation: PRC Construction Law, Nov 1 1997, CLP 1998 No.1 p6; PRC Invitation for and Submission of Bids Law, Aug 30 1999, CLP 1999 No.8 p13; Administration of Sub-contracting for Work on Housing Construction and Public Infrastructure Projects Procedures; Beijing Municipality, Supervision and Administration of Invitation for and Submission of Bids for Construction Projects Procedures; Beijing Municipality, Standards for the Scope and Size of Construction Projects Requiring invitation for bids Provisions, Dec 1 2001, CLP 2002 No.2 p17; Beijing Municipality, Invitation for and Submission of Bids Regulations, Sep 6 2002, CLP 2002 No.8 p14 and Beijing Municipality, Administration of Transactions Involving the Contracting out and Contracting of Technical and Labour Work of Construction Projects Provisions, 2000