Understanding Regulations on partnership in Bidding

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What is a partnership Contractor?

A partnership contractor or a contractor partnership is when two or more businesses team up to bid together, acting as a partnership contractor, and execute the package as per the bidding documents issued. 'partnership contractor' and 'Contractor partnership' essentially refer to a single contractor entity formed by several members.

Regulations on partnership

To form a partnership in bidding, the first thing is that the contractors must make a partnership agreement. DauThau.info will discuss more about the contents and work distribution later. Members of the partnership must also have the capability and experience corresponding to the part they are responsible for in the package. There is no concept of 'carrying the team' here, meaning that a business does not join a partnership because it lacks the capacity or experience to independently assure eligibility to execute the package, but rather to guarantee the capability and experience for the part of the work they are responsible for.

If a contractor has participated as a member of a partnership for a specific package, they are not allowed to participate independently or with another party for that same package. In limited bidding, contractors listed in the shortlist are not allowed to form a partnership to participate in the bid.

For international bidding, foreign contractors must form a partnership with domestic contractors or use domestic subcontractors when participating in international bids in Vietnam, except where domestic contractors are not capable of participating in any part of the package.

Regulations on partnership Agreements

A partnership agreement is a very important document in bidding when forming a partnership. This agreement must be signed and stamped by the participating parties (if bidding online, it is digitally signed on the system). The content of the partnership agreement must include at least the following mandatory parts:

• Name of the partnership: Agreed upon by the members.
• Assign which member will lead the partnership (in online bidding, the leading member must submit the bid for the entire partnership).
• Allocate work to the leading member and other members.
• Divide the content of work and the proportion of value in the total estimated bid value.
• Responsibilities for non-compliance with partnership obligations.
• Signatures and seals.

Important Considerations for partnership in Bidding

When participating in a bid as a partnership, some important considerations include:

• Which member is responsible for providing the guarantee for the entire partnership? If guarantees are provided separately, they must ensure the total value is no less than the requirement of the bidding documents.
• The division of work must be clear and not overlap, and the proportions must be specifically stated to ensure a total of 100%.
  For procurement packages consisting of only one item and without any accompanying services, partnership are not allowed to participate.
• Previously, according to the regulations, the work of the partnership corresponding to the proportion in the agreement meant that each member's capacity and experience documents had to correspond to that proportion (Financial reports, similar contracts). However, according to the current bidding document templates issued with Circular No. 08/2022, financial data (revenue) no longer needs to meet this proportion; it is sufficient if the total revenue of the partnership meets the bidding document requirements (without each member having to meet the revenue requirements corresponding to their proportion).
• If one member of the partnership violates the rules, the entire partnership is considered in violation.
• When negotiating and signing the contract, all partnership members must participate in signing; delegation is not permitted.

Thus, the above article on DauThau.info has analyzed the regulations on partnership in bidding, the regulations on partnership agreements, and important notes when forming a partnership. If you need clarification on other bidding content or legal advice for a specific case, contractors can contact DauThau.info through the information below for quick consultation and support: