Subcontractors are becoming more and more popular, especially in the field of construction. So what is a subcontractor? How will the most common problems related to subcontractors be answered? All will be answered in the article below of DauThau.info!
TOP 5 most frequently asked questions about "subcontractors" in bidding
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What is a subcontractor?
As stipulated in Clause 36, Article 4 of the 2013 Bidding Law, subcontractors are understood as follows:
“A subcontractor is a contractor participating in implementing a bidding package under a contract signed with the main contractor. A special subcontractor is a subcontractor that performs important work of the bidding package proposed by the main contractor in the bidding documents and proposal documents based on the requirements stated in the bidding documents and request documents.”
Can be understood simply: A subcontractor is a contractor who signs a contract with the main contractor to perform part of the main contractor's work in a certain bidding package.
TOP 5 most frequently asked questions about "subcontractors" in bidding
Below are 5 frequently asked questions about "subcontractors" that DauThau.info receives from contractors. Let's see the answer now!
1. What parts of work can subcontractors participate in?
A new contractor participating in the bidding sent questions to DauThau.info as follows:
“I just participated in bidding and am learning about subcontractors. Could you please tell me what parts of work I can participate in as a subcontractor?”
To this question, DauThau.info's bidding expert answered as follows:
As a subcontractor, you will be able to participate in the work assigned by the main contractor based on the volume of work declared using the subcontractor in the bidding documents and proposal documents. In case of additional work that the Main Contractor wants the subcontractor to perform, it must be approved by the Investor.
Subcontractor - Main contractor
2. What is the maximum percentage of the contract value that subcontractors are allowed to participate in?
A contractor sent the following question to Fanpage DauThau.info:
“Your company can tell me, we are participating in the construction and installation package. Due to the nature of the work, we have invited B to be a subcontractor. So as a subcontractor, what percentage (%) of the contract value is B allowed to participate in?
To this question, DauThau.info's bidding expert answered as follows:
According to the provisions in Section No. 27.3, Chapter I - Instructions for contractors, in the online construction and installation bidding document form issued with Circular 08/2022/TT-BKHDT dated May 31, 2022 of the Ministry of Planning and Investment:
27.3. The main contractor may only use subcontractors to perform work with the total value for subcontractors not exceeding the percentage (%) of the contractor's bid price as specified in data sheet E.
Thus, currently the Law on Bidding does not have any specific regulations on the percentage of subcontractors participating in the bidding package, but the percentage of work that subcontractors can participate in must not exceed percentage (%) of the bidder's bid price as specified in data sheet E.
Normally, this ratio will be decided by the investor in the bidding documents depending on the scale and nature of the bidding package. Contractors need to comply with regulations to give appropriate percentages to subcontractors, avoiding cases of taking advantage of the use of subcontractors to affect the progress and quality of the project.
3. Are subcontractors considered the company's capacity when declaring their bid participation?
DauThau.info's customer service department received the following question:
“We are a construction survey and design consulting unit. Previously, we performed consulting services as a subcontractor, so is it considered the company's capacity when declaring participation in bidding for similar bidding packages?"
To this question, DauThau.info's bidding expert answered as follows:
Currently, there are no legal documents regulating or prohibiting contractors from declaring their capacity in similar contracts, so any contract that has been performed will be counted as the capacity to perform the contract. and can be declared in similar bidding packages.
Subcontractor - Main contractor
4. Forgot to declare subcontractor information in the bid documents, is it allowed to use subcontractors?
A contractor sent DauThau.info to ask for answers to the following question:
"Let me ask, when entering the bidding documents (bid) we forgot to fill in the name of the subcontractor, but when negotiating the contract, we submitted a document to the investor asking for permission to use the subcontractor. So acceptable? And what percentage of subcontractors will be taken on?"
To this question, DauThau.info's bidding expert answered as follows:
Whether or not you can use a subcontractor depends on whether the bidding party/investor allows it and stipulates in the bidding documents (HSMT) or not? If in the bidding documents there is a provision that it is allowed to use subcontractors at a rate of a percent but the contractor does not declare it, the subcontractor is only allowed to take on no more than 10 percent of the contract value.
5. How are subcontractor contracts in joint venture bidding handled?
Contractors on DauThau.info asked for advice on the following questions:
"Your company, let me ask, I (party A) am a joint venture with another contractor (party B) to carry out the construction and installation package, the package price is 10 billion and divided at the ratio of 50:50. If you use an additional subcontractor, C, will C sign a contract with A or B or both?"
To this question, DauThau.info's bidding expert answered as follows:
If it is a joint venture contractor, there will be a joint venture agreement to divide the work. If C performs the work of A or B, then sign a contract with one of them; if C performs the work of A and B, then sign a contract with both. However, it is necessary to ensure that the investor accepts the use of subcontractors, otherwise the contractor is not allowed to replace or supplement subcontractors outside the list of subcontractors stated in the specific conditions. body of the Contract.
Above is the concept of subcontractors and the answers of Mr. Son Vu, DauThau.info's bidding expert, on questions related to "subcontractors". In case you need to answer questions about other bidding content or need legal opinions for a specific case, contractors can contact DauThau.info via hotline 0904.634.288 or 024.8888.4288 or messenger: https://m.me/en.dauthau.info for quick advice and support!
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