Until
Under Government Decree No. 58/2008/ND-CP of May 5, guiding the implementation of the Bidding Law and the selection of contractors under the Construction Law, contractors that have made technical designs or construction drawing designs for a bidding package may not participate in biddings for construction or provision of supplies for this package, except for EPC (engineering, provision and construction) bidding packages.
To ensure fair competition in bidding, the new regulation clearly specifies conditions of independence of contractors from one another and from investors. The investor and a contractor participating in a bidding for a package of a project are considered organizationally and financially independent from each other if they have no shareholding or contributed capital portion equal to over 50% of the other’s capital, and institutional contractors must operate under the 2005 Enterprise Law.
Two contractors are considered independent from each other if they are not established and managed by the same state agency or armed forces unit, except for contractors organized under the 2005 Enterprise Law that have no shareholding or contributed capital equal to over 30% of the other’s capital.
The decree also prescribes fines of VND 5-50 million for violations of the bidding law. Entities that examine bid dossiers, make proposals, evaluate or approve selection of contractors not based on requirements of bidding dossiers, or commit illegal acts which make bidding results invalid are subject to a fine of VND 5-30 million.
Collusion among contractors and between contractors and investors to fix bidding results; intentional falsification of contractor selection results resulting in cancellation of bidding or selection of incapable contractors; collusion between construction or provision contractors and consultation or supervision contractors or acceptance of test-conducting agencies or organizations for false certification of quality of construction works are subject to a fine of VND 20-50 million.-