When is a contractor eligible to participate in bidding?

Eligibility to participate in bidding of the contractor when fully meeting the conditions prescribed by the law on bidding. Determining the eligibility of contractors to ensure competitiveness, fairness and transparency in the bidding process. The following article will analyze in detail the conditions for contractors to be eligible to participate in bidding along with regulations on ensuring competition in bidding.

What is the eligibility of a contractor?

The eligibility of a contractor is understood as the fact that the contractor fully meets the conditions prescribed by law to participate in the bidding process. Meeting these conditions is mandatory for contractors to consider and evaluate their bids.

Eligibility conditions for participating in bidding of organizations

According to the provisions of Clause 1, Article 5 of the Law on Bidding 2023, a contractor is an organization with valid status when it meets the following conditions:

1. For domestic contractors and investors: enterprises, cooperatives, cooperative unions, cooperative groups, public service units, and economic organizations with foreign investment registered for establishment, operate in accordance with Vietnamese law. For foreign contractors and investors: registered to establish and operate under foreign law.
2. Independent financial accounting.
3. Not being in the process of implementing dissolution procedures or having the business registration certificate, cooperative registration certificate, cooperative union, or cooperative group revoked; not subject to insolvency.
4. Be named on the National Bidding Network System before approving the results of contractor and investor selection.
5. Ensuring competition in bidding.
6. Not being banned from bidding.
7. Not being prosecuted for criminal liability.
8. Name on the short list in cases where the short list has been selected.
9. For foreign contractors, they must enter into a joint venture with a domestic contractor or use a domestic subcontractor, unless the domestic contractor is not qualified to participate in any part of the bidding package.

Eligibility conditions for business households to participate in bidding

Contractors that are business households are eligible when they fully meet the following conditions, as prescribed in Clause 2, Article 5 of the Law on Bidding 2023:

• Have a business household registration certificate;
• Not in the process of terminating operations or having the business household registration certificate revoked; The business owner is not being prosecuted for criminal liability;
• Meet conditions (4), (5), (6) and (8) regarding the organization’s eligibility to participate in bidding.

Eligibility conditions for individuals to participate in bidding

A contractor is an individual with valid status when meeting the following conditions, as prescribed in Clause 3, Article 5 of the Law on Bidding 2023:

• Have full civil act capacity according to the laws of the country of which the individual is a citizen;
• Have appropriate professional certificates in cases where required by law;
• Meet conditions (6) and (7) regarding the organization’s eligibility to participate in bidding.

Ensuring competition in bidding

The Law on Bidding 2023 stipulates principles to ensure competition in bidding to create a fair and transparent environment for all participating contractors. Specifically, Article 6 of the Law on Bidding 2023 stipulates:

1. Contractors submitting expressions of interest and prequalification documents must be legally independent and financially independent from consulting contractors who prepare documents of interest and prequalification documents; Evaluate applications of interest and prequalification applications; Appraisal of invitation for interest results and pre-qualification results.
2. Bidders participating in bidding must be legally independent and financially independent from the following parties:

• Investor, bidding party;
• Consulting contractors prepare, verify and evaluate design documents and estimates; Prepare and evaluate bidding documents and request documents; evaluate bids and proposals; appraise the results of contractor selection for that bidding package;
• Other contractors participate in the same bidding package for limited bidding.

3. The consulting contractor supervising contract implementation must be legally independent and financially independent from the contractor implementing the contract and the consulting contractor inspecting that bidding package.
4. Investors participating in the bidding must be legally independent and financially independent

Consulting service on eligibility conditions to participate in bidding for contractors in Long Phan

Long Phan provides in-depth consulting services on bidding, helping customers understand the regulations on contractors’ eligibility conditions. Our services include:

• Consulting on eligibility conditions for organizations, households and individuals to participate in bidding;
• Support contractors to prepare bid documents for each specific bidding package;
• Detailed instructions on the process of preparing full bidding documents;
• Consulting on regulations on ensuring competition in bidding;
• Representing contractors to participate in resolving disputes related to bidding;
• Consulting and answering other issues related to bidding activities.

Determining a contractor’s eligibility is the first important step in participating in any bidding package. Customers need to clearly understand the regulations on eligibility conditions and ensure competition so that the bidding process can go smoothly. For detailed advice and in-depth support, please contact Long Phan via the hotline: 0906735386.