Latest regulations on machinery and equipment in bid submissions under current law

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What Are Machinery and Equipment in a Bid Proposal?

Machinery and equipment in a bid proposal refer to the vehicles, tools, production lines, or equipment that a bidder declares to demonstrate its capability to perform the contract in accordance with the requirements of the bidding documents.

Depending on the nature of the procurement package, the procuring entity/project owner may require bidders to declare different types of equipment, such as:

• Construction machinery for construction works contracts;

• Surveying and measuring equipment for consulting service contracts;

• Specialized equipment for technically complex or specialized contracts;

• Transportation, lifting, or inspection and testing equipment.

Information on machinery and equipment is commonly used to assess a bidder’s capacity and experience, ensuring that the bidder possesses sufficient resources to perform the contract in accordance with the required schedule, quality standards, and technical specifications.

Regulations on machinery and equipment in bid proposals under current procurement laws

Under current regulations, bidders are required to declare machinery and equipment in accordance with the requirements of the bidding documents and prepare supporting documents demonstrating their ability to mobilize such equipment. Below are some important points that bidders should note.

Requirements for declaring machinery and equipment in bid proposals

In procurement procedures (particularly construction works contracts and contracts involving the procurement of machinery and equipment), bidders are required to declare the key construction equipment necessary to meet the requirements of the bidding documents and commit to its availability for contract execution.

However, current regulations also contain provisions aimed at protecting bidders (specifically under Form No. 06D, Chapter IV – Bidding and Bid Submission Forms, included in Form No. 3A issued together with Circular No. 79/2025/TT-BTC):

• Only key equipment must be declared: Bidders are not required to list all machinery and equipment. They only need to declare the specialized and essential equipment required for the implementation of the contract package.

• Ownership is not mandatory: Declared equipment does not necessarily have to be owned by the bidder. Bidders may demonstrate their capability through equipment lease agreements or commitments to lease or mobilize equipment from third parties.

• No excessive documentary requirements at the bidding stage: At the bid submission stage, bidders only need to complete the prescribed forms and attach supporting documents if required by the bidding documents. Original documents (such as registration certificates, inspection certificates, or purchase invoices) are generally required only from the first-ranked bidder during the verification process conducted by the procuring entity.

Important Note:

• Bidders must provide truthful declarations and only declare equipment that is actually available for mobilization for the contract package. Fraudulent declarations or false claims regarding equipment availability may be considered fraudulent conduct and may result in bid rejection or debarment from procurement activities.

• Depending on the specific contract package, bidders should carefully review the Capacity and Experience Evaluation Criteria in the bidding documents to prepare accurate information and supporting documents.

Regulations on ownership and mobilization of machinery and equipment

According to Form No. 06D, Chapter IV – Bidding and Bid Submission Forms, included in Form No. 3A issued together with Circular No. 79/2025/TT-BTC:

…Key construction equipment may either be owned by the bidder or mobilized by the bidder…

Accordingly, current regulations do not require all machinery and equipment declared in a bid proposal to be owned by the bidder. Bidders may mobilize equipment from various sources to satisfy contract implementation requirements, including:

• Equipment owned by the bidder;

• Equipment leased from other organizations or individuals;

• Equipment mobilized from joint venture partners;

• Equipment secured through framework agreements or equipment supply commitments.

However, bidders must demonstrate their ability to legally mobilize such equipment and ensure compliance with the requirements of the bidding documents. In many cases, the procuring entity or project owner may require supporting documents such as equipment lease agreements, lease commitments, ownership documents, or other relevant evidence.

Therefore, when declaring machinery and equipment in a bid proposal, bidders should carefully review the requirements of the bidding documents and prepare all necessary supporting documents to avoid being assessed as non-compliant with the capacity and experience requirements.

Supporting Documents for Construction Equipment

According to Section 31.1, Chapter I – Instructions to Bidders, under Form No. 3A issued together with Circular No. 79/2025/TT-BTC:

• For key construction equipment owned by the bidder: the bidder must provide either an equipment registration certificate, purchase contract, purchase invoice, or inspection/certification document as required by law. The bidder is only required to submit one of these documents and is not required to provide any additional documents to demonstrate its ability to mobilize the equipment, even if the project owner requests otherwise.

• For key construction equipment not owned by the bidder: the bidder must provide a framework lease agreement (or lease commitment) with the lessor, together with one of the following documents proving the lessor’s ownership of the equipment: an equipment registration certificate, purchase contract, purchase invoice, or inspection/certification document as required by law. The bidder is not required to provide any additional documents to demonstrate its ability to mobilize the equipment, even if the project owner requests otherwise.

Accordingly, bidders are only required to submit the documents prescribed by law to demonstrate ownership or the ability to mobilize key construction equipment. Beyond these documents, the project owner is not permitted to require additional evidence to prove the bidder’s equipment mobilization capability.

Common Mistakes When Declaring Machinery and Equipment in a Bid Proposal

The declaration of machinery and equipment is an important part of a bid proposal, particularly for construction works contracts or contracts involving high technical requirements. In practice, however, many bidders are found non-compliant due to errors related to the declaration of equipment and the demonstration of their ability to mobilize such equipment.

Below are some common mistakes that bidders should pay attention to:

• Incomplete declaration of machinery and equipment: The bidder fails to declare the required quantity or types of equipment specified in the bidding documents, resulting in a determination that the bidder does not meet the capacity requirements for contract performance.

• Equipment does not meet technical requirements: The declared machinery or equipment has capacity, load-bearing capability, or technical specifications lower than the minimum requirements set out in the bidding documents.

• Insufficient supporting documents: The bidder declares equipment but fails to provide documents proving ownership or the ability to mobilize such equipment in accordance with applicable regulations.

• Invalid equipment lease agreements: In some cases, framework lease agreements are incomplete, lack signatures, or do not clearly specify the commitment to provide equipment for the contract package.

• Expired equipment documentation: Documents such as inspection certificates, testing certificates, or technical certifications have expired and have not been renewed or updated.

• Inconsistent information: Information regarding machinery and equipment differs across declaration forms, supporting documents, or the bidder’s qualification dossier, affecting the validity and consistency of the bid proposal.

To minimize these issues, bidders should carefully review the requirements of the bidding documents and prepare all relevant supporting documents before submitting their bids. In addition, bidders may refer to the types of construction equipment used in similar contract packages to ensure that their equipment declarations are appropriate and compliant with the procurement requirements.

Conclusion

Machinery and equipment are among the key factors used to assess a bidder’s capability to perform a contract package. A clear understanding of the regulations governing machinery and equipment in bid proposals helps bidders make accurate declarations, prepare the required supporting documents, and avoid mistakes that could result in a non-compliant evaluation. Therefore, bidders should regularly stay updated on new procurement regulations and carefully review the bidding documents before participating in any procurement process.

If you would like to learn more about procurement regulations or explore bidding solutions, please contact DauThau.info for assistance:

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