Bid cancellation cases and bid cancellation procedures from January 15, 2025

Article overview

Bid cancellation is the decision to terminate the bidding process due to many different reasons. This decision may come from the bidding party or due to objective factors. This article will present details about bid cancellation cases, bid cancellation process from January 15, 2025, consequences and bidding consulting solutions at Long Phan.

Regulations on bidding cancellation procedures
Regulations on bidding cancellation procedures

What is bid cancellation?

Bid cancellation is the termination of contractor selection activities before signing a contract. According to the Law on Bidding 2023, cancellation of bids can only be done in certain specific cases and must follow strict procedures. The decision to cancel the bid can be made by the bidding party or at the request of a competent state agency.

Bid cancellation is different from “bid cancellation”. Cancellation of bidding applies when the bidding process has serious violations, requiring the bidding to be re-started from the beginning. Canceling a bid usually does not require re-bidding, except in special circumstances.

Understanding the regulations on bid cancellation helps bidding parties protect their legal rights and avoid unnecessary disputes.

Cases of bid cancellation from January 15, 2025

The Law amending the Law on Planning, Law on Investment, Law on Public-Private Partnership Investment and Law on Bidding 2024 has added a number of new cases of bid cancellation, effective from January 15, 2025. Specifically, in addition to the cases specified in Clauses 1 and 2, Article 17 of the Law on Bidding 2023, there will be additional cases of bid cancellation as prescribed in Clause 5, Article 42 of the Law on Bidding 2023, amended and supplemented in 2024. Accordingly, cases of bid cancellation from January 15, 2025 will include:

  1. Cases of bid cancellation for contractor selection:
  • All expressions of interest, prequalification applications, bids, and proposals do not meet the requirements: This happens when no bidder meets the technical requirements and financial capacity. or other criteria set by the bidding entity.
  • Changes in investment objectives and scope: When there is a significant change in the scale, content, evaluation standards or capital source of the bidding package, cancellation of the bid is necessary to readjust the bidding documents.
  • The invitation for expression of interest documents, invitation for pre-qualification documents, bidding documents, and request documents do not comply with regulations: If the bidding documents contain errors, omissions or violate the Law on Bidding, leading to selection results. If the contractor is selected incorrectly, cancellation of the bid is required.
  • Winning bidders who commit prohibited acts specified in Article 16 of the Law on Bidding 2023, amended in 2024 will have their bid canceled. For example: Contractors who commit collusion, fraud, obstruction or violate other regulations… will have their bid canceled.
  • Organizations and individuals other than the winning bidder commit prohibited acts specified in Article 16 of the Law on Bidding 2023, amended in 2024: This means that if there is any unauthorized interference or influence from a third party that distorts the contractor selection results, the bid will be canceled.
  • Canceling the bid according to the provisions of Clause 5, Article 42 of the Law on Bidding 2023 (amended 2024): In case the project is not approved or the international treaty or foreign loan agreement is not signed and capital cannot be arranged. Otherwise, the investor cancels the bid and does not have to reimburse costs related to the contractor’s participation in the bid.
  1. Cases of bid cancellation for investor selection:
  • All bids do not meet the requirements of the bidding documents;
  • Changing the objectives, scale, location, investment capital, and duration of implementation of a business investment project due to force majeure reasons, changing the evaluation standards in the issued bidding documents;
  • Bidding documents contain one or more contents that do not comply with the provisions of this Law and other relevant laws, leading to erroneous investor selection results or the selected investor no longer meets the requirements. Meet the requirements to implement business investment projects;
  • The winning investor commits prohibited acts specified in Article 16 of the Law on Bidding 2023, amended in 2024;
  • Organizations and individuals other than the winning investor commit prohibited acts specified in Article 16 of the Law on Bidding 2023, amended in 2024, leading to misleading investor selection results.
Cases of bid cancellation
Cases of bid cancellation

Bid cancellation process from January 15, 2025

The bid cancellation process is specifically regulated in the Law on Bidding 2023. After the decision to cancel the bid, the bid solicitor must notify all participating bidders and publicize the information on the National Bidding Network System.

Contractors have the right to appeal the decision to cancel the bid if they believe that the decision is not in accordance with the law.

The bid cancellation process includes the following basic steps:

  • Determining cases of bid cancellation: The bid solicitor must base on the cases specified in the Law on Bidding to determine whether there are sufficient grounds to cancel the bid or not.
  • Prepare a Minute of Bid Cancellation: The Minutes must clearly state the reason for canceling the bid, the legal basis and the person with decision-making authority.
  • Notice of bid cancellation: The notice must be sent to all bidders and posted on the National Bidding Network System.
  • Return of documents and security money: The bidding party must return bidding documents and bid security money (if any) to contractors.
  • Handling the consequences: If the bid cancellation causes damage to the contractor, the bidding party must be responsible for compensation according to regulations.

Consequences of bid cancellation

Cancellation of bids causes many consequences for both the bid solicitor and the contractor.

For the bidding party, canceling the bid slows down the project progress, affects reputation and may require compensation to the contractor.

For contractors, canceling bids wastes time, effort and costs of participating in bidding. Contractors may also lose business opportunities.

To minimize the consequences of bid cancellation, the parties need to firmly understand the law, follow the correct process and carefully evaluate the documents before making a decision.

Bidding consulting services at Long Phan
Bidding consulting services at Long Phan

Comprehensive bidding consulting at Long Phan

Long Phan is a reputable unit with a team of experienced experts in the field of bidding. We provide full bidding consulting services for customers, including:

  • Consulting and drafting bidding documents and bidding documents.
  • Evaluation of bidding documents.
  • Representative participating in the bidding process.
  • Consulting on handling bidding disputes.
  • Consulting on compliance with new regulations on bidding from January 15, 2025.

Long Phan commits to accompanying customers, helping customers successfully implement bidding projects, ensuring legal rights and economic efficiency.

Bid cancellation is a complex issue, requiring a deep understanding of the Law on Bidding and its guiding documents. For detailed advice and professional support, please contact Long Phan via the hotline 0906735386. Thank you!