Regulations on expenses incurred during the selection of contractors in Vietnam

Regulations on expenses incurred during the selection of contractors in Vietnam

 Expenses incurred during the selection of contractors in Vietnam shall comply with the provisions of Article 9 of Decree 63/2014/ND-CP, specifically as follows:

(1) Based on the size and nature of the contracts, investors decide the selling price of one set of bidding documents and request for proposals (taxes included) for the domestic bidding, including the maximum price of VND 2,000,000 for the bid envelope and VND 1,000,000 for the Request for Proposals; as for the international bidding, such selling prices shall adhere to the international bidding practices.

(2) Expenses incurred by the composition and evaluation of the Request for EOI and Prequalification:

- Expenses incurred by the composition of the Request for EOI and Prequalification account for 0.05% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 30,000,000;

- Expenses incurred by the evaluation of the Request for EOI and Prequalification account for 0.03% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 30,000,000;

(3) Expenditure on compilation and evaluation of the Invitation for Bids and Request for Proposals:

- Expenses incurred by the composition of the Invitation for Bids and Request for Proposals account for 0.1% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 50,000,000;

- Expenses incurred by the evaluation of the Invitation for Bids and Request for Proposals account for 0.05% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 50,000,000;

(4) Expenses incurred by the evaluation of the EOI Response, Prequalification, Bid Envelope and Proposals:

- Expenses incurred by the evaluation of the EOI Response and Prequalification account for 0.05% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 30,000,000;

- Expenses incurred by the evaluation of Bid Envelopes and Proposals account for 0.1% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 50,000,000.

(5) Expenses incurred by the evaluation of the result of the selection of contractors, even when there are none of selected contractors, account for 0.05% of the bid price but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 50,000,000.

(6) In respect of the contracts that elaborate the same contents in the same project and purchase estimate as well as the contracts that require redoing the selection of contractors, expenses incurred by the composition and evaluation of the Request for EOI and Prequalification; Invitation for Bids and Request for Proposals account for maximum 50% of the expense regulated in (2) and (3).

In case of the contracts that require another selection of contractors, expenses on the selection of contracts for the project and purchase estimates must be accounted for and supplemented to meet the actual requirements mentioned in the contracts.

(7) The above expenses shall be applicable to investors and procuring entities who are directly involved in the bidding. In case bidder’s consultants are hired to carry out the contents specified in (2), (3), (4), (5), (6) above, expenses are defined on the basis of the content, scope of work, execution period, competence and experience of consultants and other elements.

(8) Expenses paid to a council in charge of considering the contractor's recommendations on the selection of contractors account for 0.02% of the quoted bid of the bidders who have made recommendations but are identified at the minimum price of VND 1,000,000 and the maximum price of VND 50,000,000.

(9) Expenses incurred by the dissemination of bidding information and participation in the national bidding network and the use of receipts during the selection of contractors shall follow the instructions from the Ministry of Planning and Investment and the Ministry of Finance.

Principles of cost management and use in contractor selection process in Vietnam

The cost management and use in the process of contractor selection must ensure the principles specified in Article 3 of Circular 190/2015/TT-BTC:

- The investor, the project management board, and other related organizations and individuals must manage and use the expenses in the process of selecting contractors for investment projects funded by the state budget and government bonds, which must be for the right purposes, for the right subjects, economically and effectively.

- The advance, payment, and settlement of expenses during the contractor selection process must comply with current law provisions on the management, use, payment, and settlement of investment capital funded by the state budget and government bonds specified in this Circular and other relevant regulations.

Mai Thanh Loi

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