First Contractor's Unsuccessful Negotiation Results in Bid Guarantee Refund

Section 7, Article 11 of the 2013 Bidding Law stipulates:

The bid solicitor is responsible for returning or releasing the bid security to the contractors or investors who are not selected within the period specified in the bidding documents or request for proposals, but not exceeding 20 days from the date the bid result is approved. For selected contractors or investors, the bid security is to be returned or released after they take measures to ensure the performance of the contract as prescribed in Articles 66 and 72 of this Law.

Thus, if the first contractor's negotiations are unsuccessful, the bid security will be returned or released.

However, note that in the following cases the bid security will not be returned (Section 8):

- The contractor or investor withdraws the bidding documents or proposal after the bid closing time and during the validity period of the bidding documents or proposal;

- The contractor or investor violates procurement laws, leading to bid cancellation as prescribed in Section 4, Article 17 of this Law;

- The contractor or investor fails to take measures to ensure contract performance as prescribed in Articles 66 and 72 of this Law;

- The contractor does not proceed or refuses to finalize the contract within 20 days from the date of receiving the bid winning notice from the bid solicitor or has finalized the contract but refuses to sign the contract, unless due to force majeure;

- The investor does not proceed or refuses to finalize the contract within 30 days from the date of receiving the bid winning notice from the bid solicitor or has finalized the contract but refuses to sign the contract, unless due to force majeure.

Sincerely!