Bidding process of construction industry

Bidding method of engineering contract

Bidding (invitation to bid) refers to a method in which one party (the tenderer) wants to sell or buy goods, or solicit applicants for construction projects according to certain procedures, and conduct transactions without consultation. According to the requirements of the tenderer, the applicant puts forward a specific plan and sends it to the tenderer. The procedures of international competitive bidding are roughly divided into the following stages:

1. Preparation before bidding

(1) Composition of Project Bidding Committee

The bidding committee is organized by the national competent department and composed of experts in engineering, commerce, foreign exchange, law and other related fields. It is responsible for solving various problems encountered in the project bidding and giving specific guidance to the bidding work.

(2) Tender announcement

Before the tender, the tender announcement should be published in influential newspapers and periodicals at home and abroad. It includes two parts: tender announcement and tender advertisement. Tender notice refers to the written notice issued by the relevant departments of various countries related to the project that have established diplomatic and commercial relations with the host country. Tender advertisement refers to the tender advertisement published in influential newspapers and periodicals at home and abroad. The contents of the notice and advertisement shall include: project name, project location, general situation of project content, project scope, date, address and deadline for requesting bidding documents, bidding conditions, price and consulting units for related matters, etc.

(3) prequalification

Pre-qualification refers to the pre-examination of the financial status, technical ability and credit status of bidders who are willing to undertake bidding projects. The purpose is to select bidders with contracting ability.

(4) Preparation of pre-tender estimate

After the tender committee publishes the tender advertisement, it shall compile the contract price, and determine the contract price level through the project budget estimate, which is also called the "pre-tender estimate". It is the card held by the tender committee and is absolutely confidential.

2. Open tender

Public bidding refers to the bidding process in which the bidding committee informs the bidders who have obtained the bidding qualification or advertises that the bidders have requested or purchased the bidding documents and invited them to bid.

3. Bid opening

Bid opening means that the tender committee publicly reads out the bidding conditions of all bidders at the specified date, time and place in the presence of all bidders or their representatives, so that all bidders can know the bidding price of each company. This procedure is called bid opening.

4. Bid evaluation and award

After the bid opening, it will be transferred to the bid evaluation stage. The bidding committee lists the bidding price and other conditions of the bidding documents one by one, selects four or five bidding documents with the lowest price, and conducts examination, identification and comparison until the winning bidder is determined. This stage is carried out under secret conditions.

On the basis of the bid evaluation report and its recommendation, the bid invitation committee decides the winning bidder and issues a letter of acceptance to the winning bidder. Generally, the unsuccessful bidder may not be notified, or the XX contractor may simply be notified of winning the bid.

sign a contract

The winning bidder shall sign a project contract with the project owner within the specified time after receiving the formal Letter of Acceptance. This contract is first drafted by one party and signed after reaching an understanding through consultation on the basis of the draft.