These common terms in bidding activities are easy to confuse and confused? After reading it, I understand everything

Different industries have different jargon terms, and bidding is no exception. There are many different concepts and some terms that are easily confused. Today, China Bidi Tendering Network has compiled five common and confusing terms for tendering and bidding to share with you the specific distinctions.

1. Bidding documents, bidding documents

Tendering documents are offer invitation documents issued by the tenderer to potential bidders and informing them of project requirements, bidding activity rules, contract conditions and other information. It is the main basis for project bidding activities and is legally binding on all parties involved in the bidding activities. Bidding documents can be divided into three parts according to their functions:

(1) It is the bidding announcement or bidding invitation, instructions to bidders, bid evaluation methods, bidding document format, etc., which mainly describes the overview of the bidding project needs and the bidding process. Activity rules are binding on all parties participating in project bidding activities, but generally do not constitute a contract document; (2) It is the bill of quantities, design drawings, technical standards and requirements, contract terms, etc., A comprehensive description of the bidding project requirements is not only the main basis for bidding activities, but also an important part of the contract document, which is binding on the bidder and the winning bidder;

(3) It is a reference material for bidders to understand Analyze reference information related to bidding projects, such as project address, hydrology, geology, meteorology, transportation and other reference materials.

Bidding documents refer to responsive documents prepared by bidders in response to the requirements of bidding documents, and generally consist of business documents, technical documents, quotation documents and other parts. Tender documents generally include three parts, namely the business part, the price part, and the technical part.

(1) The business part includes a series of contents such as company qualifications and company introduction, as well as other relevant documents required by the bidding documents, including the company's performance and various certificates, reports, etc.

(2) The technical part includes the description of the project, technical plans such as design and construction plans, bill of quantities, staffing, drawings, tables and other technology-related information.

(3) The price part includes bid quotation description, total bid price, price list of main materials, etc.

The bidding document is initiated by the tenderer (buyer), and the bidding document is initiated by the bidder (intended seller). Therefore, bidding and tendering are not a matter of difference at all. They are two relative concepts in themselves and are not similar. The concepts are different!

2. Does "day" refer to "working day" or "calendar day"?

"Regulations on the Implementation of the Tendering and Bidding Law of the People's Republic of China" (hereinafter referred to as the "Regulations") is an important guiding document for the bidding work in the future. Articles 16 and 17 of the "Regulations" stipulate the sale period of pre-qualification documents or bidding documents, as well as the time period from the date when pre-qualification documents stop selling to the submission of pre-qualification documents, both of which are described as "not less than 5 day".

Article 15 of the "Measures for Tendering and Bidding for Engineering Construction Projects" (National Development Planning Commission Order No. 30 of 2003, hereinafter referred to as "NDRC Order No. 30"), and the "Measures for Tendering and Bidding for Goods in Engineering Construction Projects" "(National Development and Reform Commission Order No. 27 of 2005, hereinafter referred to as "NDRC Order No. 27") Article 14 stipulates that "from the date of sale of bidding documents or pre-qualification documents to the date of cessation of sale, the minimum period shall not be Less than five working days”.

Since the "Regulations" do not clearly define the "day" referred to in the document, whether it is a "working day" or a "calendar day". However, "NDRC Order No. 30" and "NDRC Order No. 27" are still valid documents. Therefore, when dealing with the release time of bidding documents and pre-qualification documents, the author recommends complying with the requirement of no less than 5 working days, so that both the old and the new are in compliance with the requirements. Regulation. This is to prevent such issues from being attacked by relevant stakeholders as procedural flaws during the later stages of the project, using different regulatory requirements.

3. A supply, A control

A supply: both supplied by the owner.

Because the general project contract has the owner as "Party A", it is referred to as "Party A" for short. For example, materials provided by A and equipment provided by A refer to being supplied by the owner.

Control A: The owner does not directly supply materials or equipment, but the suppliers of materials or equipment should be on the short list drawn up by the owner.

IV. Pre-qualification and post-qualification review

In addition to following the "openness, fairness, impartiality and good faith" of bidding, the qualification review should also follow the principles of science, qualification and applicability . Article 17 of Order No. 30 of the Seven Ministries and Commissions of the "Construction Tendering and Bidding Measures for Engineering Construction Projects" stipulates that the qualification review is divided into pre-qualification review and post-qualification review.

(1) Pre-qualification

Pre-qualification is when the tenderer issues a bidding invitation to unspecified potential bidders by issuing a pre-qualification announcement. It is organized by the tenderer or is established by it in accordance with the law. The Qualification Review Committee shall review the business qualifications, professional qualifications, financial status, similar project performance, contract performance reputation and other conditions of the pre-qualification applicants in accordance with the review methods, qualification conditions and review standards determined in the pre-qualification documents to determine the candidates who have passed the pre-qualification review. applicant. Applicants who have not passed the pre-qualification are not eligible to bid. Pre-qualification methods include qualified system and limited quantity system. Under normal circumstances, the qualified system should be adopted. If there are too many potential bidders, the limited quantity system can be adopted.

(2) Post-qualification review

Post-qualification review is a qualification review of bidders conducted by the bid evaluation committee after the bid opening. When post-qualification review is adopted, the tenderer shall, after the bid opening, have the bid evaluation committee review the bidder's qualifications in accordance with the standards and methods specified in the bidding documents. Post-qualification review is an important part of the bid evaluation work. For bidders who fail the post-qualification review, the bid evaluation committee shall reject their bids.

The following picture can clearly see the difference between pre-qualification and post-qualification:

5. Maximum price, minimum bid, bidding control price, and bid-blocking price

(1) The maximum price is the bid price after list pricing is implemented. The bid price cannot be higher than the maximum price. If it is higher than the maximum price, it will be deemed to be out of bid;

(2) The lowest bid price It is the bid control price when calculating fixed quotas. The bid price can be higher or lower than the base price within the scope specified in the bidding document;

(3) The bid control price is the maximum price, which means that the bid price cannot exceed The bid control price, otherwise the bid will be invalid.

(4) In previous tenders, the lowest bid was used. Generally, whoever is closest to the lowest bid wins, regardless of whether it is high or low. Nowadays, there is basically no need for minimum bids. They all use the list quotation method and use bidding to control the price.

(5) Finally, there is the bidding price, which refers to the maximum limit standard of the total price of the project that the tenderer announces to the bidders during the bidding process. It is the price expected by the tenderer and requires the bidder to bid. It cannot be exceeded, otherwise the bid will be invalid. The base price is the price expected by the tenderer. It is compiled based on local consumption quotas, information prices from online magazines, local charging standards and reasonable construction organization design.

The bid price can be higher (upper limit bid price) or lower (lower limit bid price). In practice, it can be divided into explicit bid price (publicly telling each bidder in written form) and implied bid price (announced at bid opening). Some bidding prices are related to the average quotation of the construction unit, and are also called dynamic bidding prices.

After reading the above analysis of common tendering and bidding terms, do you have a certain understanding of these terms? If you don’t understand, you may wish to read it a few more times... Are there any confusing terms that you can’t distinguish? Welcome to leave a message in the comment area , let’s discuss and study together.

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