What is an electronic bond, relative to the traditional paper bond, electronic bond has what advantages and highlights?

Electronic bid bond (single) as a new application derived from the fusion of the two fields of public **** resources trading and finance, how to further standardize, and can adapt to the regulatory requirements of the two fields, but also play its own attributes of the due role, is a new topic. For the electronic bid bond (single), there are several points of view as follows.

Electronic bid bond (single) guarantee content

According to the definition of the electronic bid bond (single), the electronic bid bond (single) is mainly guaranteed by the bidders in the bidding process need to fulfill the relevant responsibilities, generally the content of its guarantees and exemptions, etc. need to be clear in the terms of the electronic bond (single) document, once the bidders have violated the relevant guarantees of the content of the behavior, the bond of the beneficiary will have the right to apply for a guarantee in accordance with the terms of the bond, the bidder will have the right to apply for a guarantee in accordance with the terms of the electronic bid bond. Once the bidder violates the relevant guarantee content, the beneficiary of the guarantee will have the right to make a claim to the guarantor according to the guarantee document. In the process of promoting the application of electronic guarantee (single) in the field of public *** resources transactions, as a trading center, we must focus on the electronic guarantee (single) text content, to avoid the risk of deductible therein, to protect the smooth progress of public *** resources transactions, to avoid the occurrence of the guarantee liability coverage incomplete guarantee documents, and ultimately let the interests of the bidders are damaged.

For example, on September 12, 2019, the China Insurance Industry Association publicly released for the first time the Model Clauses for Bid Guarantee Insurance for Construction Contracts of Construction Projects, the model clauses mainly contain: insurance liability, exemption of liability, insurance amount and deductible (amount), insurance period, insurer's obligations, obligations of the policyholder and the insured (beneficiaries), compensation handling, dispute handling, other matters, Interpretation, termination of the contract, etc. It focuses on stipulating the responsibilities and obligations of the policyholder and the insured (beneficiary), thus protecting the rights of both the insurer and the insured (beneficiary).

Electronic bid bond (single) information transmission process security

With the rapid development of computer technology, information networks have become an important guarantee of social development, information security construction has become one of the core tasks in the construction of information technology, into the electronic era of public **** resources transactions as a guarantee of market order "open, Entering the electronic era of public *** resources trading field as a typical representative of the market order to protect "open, fair and just", the construction of its information security is urgent, so in the process of promoting the application of electronic bid bond (single) in the field of public *** resources trading, how to do a good job in avoiding information leaks, such as information security prevention and control is the top priority. It is recommended that the following points be considered in the design of risk control in docking with the electronic bonding platform.

List confidentiality design

Sensitive data encryption. In accordance with the requirements for confidentiality of list data in the pre-bid segment of public *** resource transactions, encryption is performed on the information related to bond applications for unopened bids in the e-bonding platform, and the encrypted data includes bond application data, premium payment data, and bond document data. The encrypted data is decrypted after the opening of the bid to ensure the confidentiality of the bond application data before the opening of the bid, so as to "recognize only the enterprise and not the bidding section".

Automatic review of the letter. Financial institutions through the intelligent audit mode, the system automatically audit the letter, no artificial participation, to eliminate the artificial leakage channels.

List time control. Bidding units can query the result of applying for a letter of guarantee in the business system after applying for an electronic letter of guarantee (list), but they can only download the letter of guarantee documents in the letter of guarantee platform, and they can only query the details of the application for a letter of guarantee as well as download the specific letter of guarantee documents in the business system after the time of opening the bids.

Interface security design

Access restrictions. Access restrictions are imposed on the interface between the electronic trading system and the electronic guarantee platform, so that only the export IP of the electronic guarantee platform can access this interface to prevent the interface from being illegally invoked.

Data signature encryption. The interface data between the electronic transaction system and the electronic guarantee platform is encrypted for transmission, and digital signatures are used to ensure the legitimacy and security of the data.

Risk control of financial institutions

Electronic letter of guarantee (single) breaks through the traditional approval process of the letter of guarantee and the wind control model, financial institutions for the approval of the bidders to obtain the materials are through the online docking, based entirely on the Internet big data wind control model for automatic approval of the letter, the financial institutions for the risk of the enterprise to recognize the more reliant on the data for the authenticity of the data, The authenticity, validity and timeliness of the data are all very high requirements.

So, in the process of promoting the application of electronic letter of guarantee (single), the enterprise voluntarily and does not affect the security of public **** resource transactions as a prerequisite for the financial institutions to identify the risk of the enterprise to provide a higher quality of data is to help reduce the risk of the effective means.

The way to pay the guarantee fee for the bond

The Bidding and Tendering Law stipulates that the supervision and management of bidding is the responsibility of the State Council, which has issued a document stipulating that the Development and Reform Commission is responsible for the management of the national bidding and tendering, but the supervision of the bidding and tendering to implement the supervision of the industry. Various industries in this issue and further refinement, "the Chinese people's *** and the implementation of the State Bidding Law Regulations" in the clear "must be carried out in accordance with the law for bidding projects within the bidding unit, in the form of cash or cheque bidding deposit should be submitted from the basic account transfer", many ministries and commissions have also made similar provisions for tenders Many ministries and commissions have also made similar provisions of the bidding deposit must be transferred from the basic account, for example, the Ministry of Transportation (see "Highway Engineering Standard Construction Bidding Documents (2009 Edition)") its purpose is to prevent the bidding enterprise borrowing qualifications, rounding up, crosstalk occurs. How to continue the traditional bond basic account payment on the bidding market order control role, but also in the process of promoting electronic bond (single) need to pay attention to the problem.

In response to the "People's Republic of China *** and the State Bidding Law Enforcement Regulations" relevant requirements, some regions in the process of promoting the application of electronic letter of guarantee (single), the requirement for bidders to purchase the electronic letter of guarantee (single) services of the security costs must be paid by the bidder's basic account. On the one hand, the continuation of the laws and regulations on the "security deposit payment from the basic account transfer" requirements, on the other hand, in reducing the institutional costs while increasing the difficulty of bid rigging, and control the risk.

For example, the Shandong Provincial Department of Housing and Urban-Rural Development, Shandong Provincial Development and Reform Commission, Shandong Supervision Bureau of China Insurance Regulatory Commission, Qingdao Supervision Bureau of China Insurance Regulatory Commission, "Opinions on Carrying Out the Work of Bid Guarantee Insurance for Housing Construction and Municipal Engineering (Trial)" (Lu Jianjianjianjianzheng word 〔2018〕 No.11) has made a clear requirement; and some cities and municipalities in Zhejiang Province have also made similar requirements. made similar requirements, the effect is remarkable.

Bond receiver receives electronic bidding bond (single)

Traditional paper bond, the trading center or the bidding party needs to designate a person to collect the bond, and at the same time, the bond archiving, return, record, etc., the procedures are cumbersome, time-consuming and labor-intensive, and at the same time, the authenticity of the letter of guarantee can not be effectively discerned.

Electronic letter of guarantee adopts the platform of automatic reception, automatic verification, automatic filing, through the system docking with financial institutions, and through the data message and electronic signature verification, not only to avoid the problem of fake letter of guarantee, but also to reduce the workload of the receiver of the letter of guarantee.

Electronic letter of guarantee (single) of the payout

Electronic letter of guarantee (single) to replace the bond, not only to replace the bond from the form, the substance should also be with the bond to achieve the same effect. Bidding is a serious legal activity, the bidder's bidding is an invitation to act as an offer, the bidder as the offeree, to the bidder (offeror) after the submission of tender documents, that is to say, in response to the invitation to bid issued by the bidder, should comply with the bidding documents and relevant laws and regulations, requirements, provisions. Therefore, the bid bond can produce a binding effect on the bidder's bidding behavior, which is the most basic function of the bid bond. As the electronic letter of guarantee (single) is used by financial institutions to guarantee the way, the bidding party or the trading center did not directly receive to the bidder's deposit, once the bidder defaults on the situation, the financial institutions need to pay the bidder for the deposit, so the financial institution's ability to perform, the ability to pay, and the payout process is the application of electronic letter of guarantee (single) need to focus on the issue of the application of the advancement of the problem, or else there will be a refusal to pay or Payment is not timely, etc. will damage the legitimate rights and interests of the bidders and trading centers in the bidding process, and lose the binding effect on the behavior of the bidders.

According to the market situation in each region, first of all, we should formulate appropriate access standards for financial institutions, select the financial institutions with claims protection, and secondly, we should form a set of standardized system and process for the payment of claims under the guarantee to improve the efficiency of claims settlement. At present, there are already some advanced regions have begun to try the program of electronic guarantee online claims payment.

Financial institutions' ability to pay claims: Benefiting from the opening up of the national financial reform, more large and small financial institutions have been established, but the credit rating of many financial institutions is very general, therefore, the e-bond platform should introduce large-scale financial institutions with high ratings at home and abroad, so as to ensure that the financial institutions have sufficient ability to pay claims when the conditions of claims payment are triggered.

Compensation efficiency, process: the traditional compensation is slow, easy to produce legal problems, conditions can be used to "see the claim that is paid, the first compensation after the claim", that is, the financial institutions first pay to the trading center, and then to the bidding unit to claim compensation, to ensure that the stable operation of the government agencies. If the compensation process can then be electronic, online, will open up the entire electronic bid bond electronic process, for the bidders, trading centers, bidders to provide a better service experience.

▎This article is excerpted from the "China's public **** Procurement Development Report (2020)" Blue Book; China Federation of Public **** Procurement Branch of the official WeChat public, such as involving copyright issues, please contact the timely processing.