Important situations that make the bid guarantee invalid

Friday, 22 September 2023 10:30 AM
If a bid guarantee is not valid, the contractor will be disqualified. So what cases can lead to a bid guarantee being invalid? Let's analyze with DauThau.info through the article below.
Important situations that make the bid guarantee invalid
Important situations that make the bid guarantee invalid

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Form of bid guarantee for online bidding

Regulations on bid security and the form of using a bid guarantee letter issued by a legal credit institution or bank have been mentioned in our previous article at: Important notes on bid security. bid guarantees, the above article also noted important issues related to bid guarantees. In this article, we will analyze situations where letters of guarantee are used for online bidding packages.
 
As we know, when participating in online bidding, contractors must provide bid security measures before the bid closing time in the form of a letter of guarantee issued by a bank or credit institution legally operating in Vietnam. onion. For banks and credit institutions connected to the System, contractors provide online bid guarantees. For banks and credit institutions that do not have a connection to the System, the contractor scans the bank's letter of guarantee and attaches it when submitting the E-bid. Currently, most banks are not connected to the Government's bidding system, so the contractor still has to scan the bank's letter of guarantee and attach it when submitting the bid, so the original letter of guarantee is This document is still kept by the contractor and is responsible for submitting this original copy to the Procuring Entity when:

1. Contractors are invited to negotiate contracts;
2. Contractors violate the provisions of law on bidding, leading to non-refund of the bid security value in the following cases:
  • The Bidder withdraws the E-Bidding in writing after the bid closing time and within the validity period of the E-Bidding;
  • The contractor violates the law on bidding, leading to the cancellation of the bid according to regulations;
  • The contractor does not take measures to ensure contract performance according to regulations;
  • The contractor fails to conduct or refuses to negotiate a contract within 5 working days from the date of receipt of the invitation to negotiate a contract from the Procuring Entity, except in cases of force majeure;
  • The Contractor does not proceed or refuses to complete and sign the contract within the time specified in the Notice of E-Bidding Acceptance and Contract Award of the Procuring Entity, except in cases of force majeure.

Actual situations lead to invalid bid guarantee letters

In all bidding documents, whether online or non-online, there is always a standard bid guarantee form. When done, the contractor usually needs to request the bank to issue it according to this form. However, in actual implementation, sometimes some banks use available templates. When the contractor receives a letter of guarantee from the bank, they only check the name of the beneficiary (the Bid Inviting Party), and the effective time. The validity of the guarantee and the value of the guarantee according to the requirements of the bidding documents without specifically checking whether each clause meets the requirements of the guarantee form attached to the bidding documents. Normally, the conditions are stated in the guarantee form when the bidding party requests the guarantee issuer to pay in case the contractor violates one of the following requirements:
  • The Bidder withdraws the E-Bidding after the bid closing time and during the validity period of the E-Bidding;
  • The contractor violates the law on bidding, leading to the cancellation of the bid according to regulations;
  • The contractor fails to conduct or refuses to negotiate a contract within 5 working days from the date of receipt of the invitation to negotiate a contract from the Procuring Entity, except in cases of force majeure;
  • The contractor fails or refuses to complete the contract within 20 days from the date of receipt of the notice of winning bid from the Procuring Entity or has completed the contract but refuses to sign the contract, except in cases of unexpected circumstances. resistance;
  • The contractor did not take measures to ensure contract performance as prescribed.
Returning to the common situation is that the bank often lacks at least one of the five terms mentioned above, which leads to the letter of guarantee being judged invalid due to accompanying conditions that are disadvantageous to the party. tenderer. This is also the actual situation that we received through feedback from the customer who is the bidding party via the hotline number 0904.634.288. The situation reflected is that the letter of guarantee completely lacks the requirements stated in items No. 2 and No. 4. Unfortunately, the letter of guarantee is considered invalid and the contractor's bid will be rejected.
thu bao lanh du thau
Bid guarantee form

Some notes to avoid errors in the bank's bid guarantee letter

To avoid encountering the same unfortunate situation as our readers, contractors should note the following two steps:
  • Firstly, you should send a sample letter of guarantee to the issuing bank and request the issuing bank with the content according to this form.
  • Second, after receiving the original from the issuing bank, it is necessary to check and compare it with the requirements stated in the guarantee form in the bidding documents, if any discrepancies are detected (especially lack of conditions). Clause) then it is necessary to request re-issuance.
Hopefully this article on cases of invalid bid guarantees for online bidding will bring useful information to contractors. If you need support in providing software solutions related to the bidding field, please contact:
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