What are cases of bid cancellation in cases of contractor selection in Vietnam? What are responsibilities of employers upon bid cancellation in Vietnam?
What are cases of bid cancellation in cases of contractor selection in Vietnam?
Pursuant to Clause 1, Article 17 of the Law on Bidding 2023 which stipulates the bid cancellation in Vietnam:
Article 17. Bid cancellation
1. In case of contractor selection, bid cancellation shall occur when:
a) All expressions of interest, prequalification documents, bids, and proposals failing to meet the requirements of the invitation for expressions of interest, the prequalification document, the bidding document, and the request for proposals;
b) Changes in the objectives or investment scope in the approved investment decision that alter the volume of work or evaluation criteria stated in the invitation for expressions of interest, the prequalification document, the bidding document, or the request for proposals;
c) The invitation for expressions of interest, the prequalification document, the bidding document, or the request for proposals not complying with the provisions of this Law or other relevant laws leading to the selected contractor not meeting the requirements to execute the package;
d) The winning contractor engages in prohibited acts stipulated in Article 16 of this Law;
dd) Other organizations or individuals, excluding the winning contractor, engage in prohibited acts stipulated in Article 16 of this Law leading to a distorted outcome in contractor selection.
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Hence, the bid cancellation in contractor selection occurs in the following scenarios:
- All expressions of interest, prequalification documents, bids, and proposals failing to meet the requirements of the invitation for expressions of interest, the prequalification document, the bidding document, and the request for proposals
- Changes in the objectives or investment scope in the approved investment decision that alter the volume of work or evaluation criteria stated in the invitation for expressions of interest, the prequalification document, the bidding document, or the request for proposals
- The invitation for expressions of interest, the prequalification document, the bidding document, or the request for proposals not complying with the provisions of this Law or other relevant laws leading to the selected contractor not meeting the requirements to execute the package
- The winning contractor engages in prohibited acts as follows:
+ Giving, receiving, or brokering bribes
+ Abusing positions or powers to unlawfully influence or interfere with bidding activities in any form
+ Conspiring in bids
+ Fraud
+ Obstruction
+ Failing to ensure fairness and transparency
+ Disclosing documents or information regarding the contractor selection process, except for information disclosure as prescribed
+ Unlawfully transferring the contract
+ Organizing contractor selection without determining the funding source
- Other organizations or individuals, excluding the winning contractor, engaging in prohibited acts leading to a distorted outcome in contractor selection.
What are cases of bid cancellation in cases of contractor selection in Vietnam? The investor's responsibility in bidding cancellation. (Image from the Internet)*
What are responsibilities of employers upon bid cancellation in Vietnam?
Pursuant to Article 78 of the Law on Bidding 2024 which regulates the responsibilities of employers in Vietnam:
Article 78. Responsibilities of employers
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- Annual reporting on the implementation of bidding activities.
- Cancelling bids in cases specified in point a, clause 1, Article 17 of this Law.
- Providing related information, documents, and explanations regarding the implementation of responsibilities stipulated in this Article upon request from the competent authority, inspection, audit, and regulatory agencies in charge of bidding activities.
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Therefore, the investor is responsible for cancelling bids in cases where all expressions of interest, prequalification documents, bids, and proposals fail to meet the requirements of the invitation for expressions of interest, the prequalification document, the bidding document, or the request for proposals.
What are responsibilities of procuring entities upon Bid Cancellation in Vietnam?
Pursuant to Clause 2, Article 79 of the Law on Bidding 2023 which regulates the responsibilities of procuring entities:
Article 79. Responsibilities of procuring entities
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2. For selecting investors, besides the responsibilities stipulated in point h, clause 1 of this Article, the procuring entity also has the following responsibilities:
a) Preparing for investor selection; organizing the investor selection; organizing the evaluation of bids according to the provisions of this Law;
b) Deciding on the establishment of an expert group;
c) Requesting the investor to clarify the bids during the bid evaluation process;
d) Submitting for approval the bidding documents and the investor selection results; approving the bidding documents in case of being authorized;
dd) Negotiating the contract with the investor; signing and managing the contract with the investor in case of being authorized;
e) Cancelling bids under the provisions of point a, clause 2, Article 17 of this Law;
g) Ensuring the confidentiality of information and documents related to the investor selection process;
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Therefore, the procuring entity is responsible for cancelling bids in cases where all bids fail to meet the requirements of the bidding document.
