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Decree eases - and confuses - bid process

06/08/2010 - 187 Lượt xem

One of its purposes was to create unified regulations on bidding which previously were spread through different legal documents.

To this end, on September 29, the Government issued Decree No 111/2006/ND-CP to guide the implementation of the Law on Tendering and the selection of construction contractors under the Law on Construction.

This decree provides for procurement, construction and installation, as well as selection of consultants of partners for the execution of projects.

The decree attempts to undo past inconsistencies between the Law on Tendering and provisions in the Law on Construction on the selection of construction contractors.

The new decree's regulations differ from those in the earlier Decree No 88/1999/ND-CP and provides a level playing field for both foreign and local contractors to join in bidding in Vietnam.

Accordingly, it is no longer compulsory for foreign companies to form alliances with domestic firms or use local sub-contractors when they win an internationally competitive bid.

Some articles of the new decree, however, impose more requirements for the bidding process. For instance, in Article 5, the decree provides that individuals other than construction contractors directly participating in bidding must have professional training and certification (item a, clause 1).

However, item b in clause 4 states that such certification can be obtained after only a three-day training course. In effect, this requirement is a sort of "sub-licence," and just the sort of additional complication that runs counter to the goals of legal and administrative reform.

There is also no provision in the decree specifying just who the individuals directly participating in bidding are. If interpreted expansively, this could even be understood to include everyone involved the bidding, such as the persons in charge of evaluating and approving bids, like the Prime Minister, ministers, and People's Committee chairman, which would make this a very odd regulation indeed.