Beijing Municipality, Several Provisions on the Setting and Use of Reserve Prices in Invitation for Bids for Works of Construction Projects

Main Contents: No work unit or individual may force the bid inviting party to set a reserve price or submit the same for examination, or interfere with the determination of the reserve price. There shall only be one reserve price for each bid-inviting project (Article 3). Personnel who sets the reserve price must be a cost engineer or cost personnel registered at the reserve price setting work unit (Article 4). The reserve price shall be determined reasonably according to the investment budget for the approved preliminary design, based on the relevant construction cost calculation methods of the state and the municipality as well as the bid invitation document, with reference to the relevant project quota, in light of market supply and demand, and the actual situation of construction, and by consolidating factors, such as investment, construction period and quality (Article 5). The reserve price shall reflect the market price at the price-setting period (Article 6). The bid-inviting party may set a limit price with a reasonable upward floating range on the basis of the reserve price to reject excessively high bids. The bid-inviting party may set a reasonable downward floating range below the reserve price as an alert level for the minimum construction cost for the project. The downward floating range below the reserve price for bids for overall contracting of construction works shall not exceed 6% in general. The ranges of bid limit price and alert level shall be clearly stipulated in the bid invitation document (Article 10).