Types of bidding methods and their respective characteristics

What are the characteristics of the bidding method?

1. Open tender: refers to the tender inviting unspecified legal persons or other organizations to bid by means of tender announcement. Open bidding, also known as competitive bidding, refers to the bidding method in which the tenderer publishes a tender announcement in newspapers, electronic networks or other media to attract many enterprises to participate in bidding competition, and the tenderer selects the winning bidder from it. According to the degree of competition, public bidding can be divided into international competitive bidding and domestic competitive bidding.

2. Invitation to bid: means that the tenderer invites a specific legal person or other organization to bid in the form of an invitation to bid. Invited bidding, also known as limited competitive bidding, is a kind of bidding method in which the tenderer selects several suppliers or contractors and sends them invitations to bid, and the invited suppliers and contractors compete for bidding and select the winning bidder. The characteristics of inviting public bidding are:

(1) The tender does not adopt the method of announcement;

(2) The unit that accepts the invitation is a qualified bidder;

(3) The number of bidders is limited.

3. There is a third commonly used bidding method in the world: negotiation, also called non-competitive bidding or designated bidding. In this way, the owner invites one contractor, not more than two contractors, to negotiate directly. It is actually a form of contract negotiation. This method is suitable for projects with low engineering cost, tight construction period, strong professionalism or military secrecy. Its advantages are that it can save time, reach an agreement easily and start work quickly. The disadvantage is that you can't get a competitive offer.

4. Invitation to bid is that the purchaser first makes certain deletion and selection, and then negotiates and selects among the designated bidders;

responsibility for breach of contract

The Employer shall pay the progress payment to the Contractor within 14 days after the measurement confirmation by both parties; If the Employer fails to pay the project progress payment within the time limit, the Contractor may send a dunning notice to the Employer; If the Employer still fails to pay as required after receiving the notice from the Contractor, it may negotiate with the Contractor to sign a deferred payment agreement, and the payment may be postponed after the consent of the Contractor. If the employer fails to pay the project payment (progress payment) as agreed in the contract, and both parties fail to reach an agreement on deferred payment, the contractor may stop the construction, and the employer shall bear the liability for breach of contract.

If the Employer fails to pay the project completion settlement price within 28 days after receiving the completion settlement report and settlement data without justifiable reasons, it shall pay the arrears of project price interest according to the loan interest rate of the contractor to the bank for the same period from the 29th day, and bear the liability for breach of contract.

If the payment is not made within 56 days, the contractor may negotiate with the employer to discount the project, or apply to the people's court for auction of the project according to law, and the discounted project or auction price shall be paid to the contractor first.

Legal basis:

Bidding Law of People's Republic of China (PRC)

Article 3 The following construction projects within the territory of People's Republic of China (PRC), including engineering survey, design, construction, supervision and procurement of important equipment and materials related to engineering construction, must be subject to tender:

(a) large-scale infrastructure, public utilities and other projects related to social interests and public safety;

(2) Projects that are wholly or partially invested with state-owned funds or financed by the state;

(3) Projects that use loans or aid funds from international organizations or foreign governments.

The specific scope and scale standards of the projects listed in the preceding paragraph shall be formulated by the development planning department of the State Council in conjunction with the relevant departments of the State Council and submitted to the State Council for approval.

Where the law or the State Council has provisions on the scope of other projects that must be subject to tender, such provisions shall prevail.