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Some terms used in bidding (according to the Bidding Law 2013)

If you are new to and interested in bidding, you may find it somewhat challenging to understand the sequence and procedures of bidding due to a series of terms used in the bidding process. This article will help you familiarize yourself with 45 commonly used bidding terms found in all legal documents related to bidding. Mastering them will give you the confidence to comprehend most texts in this field
Some terms used in bidding (according to the Bidding Law 2013)

Some terms used in bidding (according to the Bidding Law 2013)

Nhấn VÀO ĐÂY để chuyển bài viết sang bản tin tiếng Việt

1. Bid security is the act of contractors or investors implementing measures such as placing a deposit, signing a guarantee, or submitting a letter of guarantee from a credit institution or a foreign branch established under Vietnamese law to ensure the bidding responsibility of the contractor or investor within a specified period as required by the bidding documents or requirements.

2. Performance security is the act of contractors or investors implementing measures such as placing a deposit, signing a guarantee, or submitting a letter of guarantee from a credit institution or a foreign branch established under Vietnamese law to ensure the responsibility for contract fulfillment of the contractor or investor.

3. The inviting party is an organization with expertise and capacity to conduct bidding activities, including:
a) The investor or the organization established or selected by the investor;
b) The unit directly using funds for regular procurement;
c) Centralized procurement unit;
d) Competent state agency or organization selected by the competent state agency.

4. Bid withdrawal is the manner in which contractors/investors state their bid prices (bid/withdraw) when participating in the bidding process.

5. Bid submission is the method by which contractors submit price quotes or personnel capabilities to the inviting party to demonstrate their qualifications and competitiveness for a specific bidding package.

6. Investor refers to an organization that owns capital or an organization assigned to act on behalf of the capital owner, directly managing the project implementation process.

7. Digital certificate is an electronic certificate issued by an organization providing digital signature authentication services for online bidding on the national bidding network system.

8. Competent state agency is the entity authorized to sign contracts with investors.

9. Shortlist is the list of pre-qualified contractors, investors for open pre-qualification bidding; list of invited contractors for limited bidding; list of interested contractors meeting the requirements of the invitation documents.

10. Consulting services encompass one or more activities, including: planning, evaluating planning reports, master plans, architecture; surveying, preparing feasibility study reports, feasibility study reports, environmental impact assessment reports; surveying, designing, estimating; preparing expressions of interest, pre-qualification invitations, bidding invitations, requirement documents; evaluating expressions of interest, pre-qualification documents, bidding documents, proposal documents; inspection, appraisal; supervision; project management; financial arrangement; auditing, training, technology transfer; and other consulting services.

11. Non-consulting services include one or more activities such as logistics, insurance, advertising, installation not covered by the definition in clause 45, trial operation acceptance, training organization, maintenance, repair, mapping, and other activities not classified as consulting services as defined in clause 8.

12. Project enterprise is an enterprise established by the investor to implement an investment project in the form of public-private partnership or a project that utilizes land.

13. Investment development project (hereinafter referred to as the project) includes: programs, newly constructed investment projects; projects for the renovation, upgrading, and expansion of previously constructed projects; asset procurement projects, including non-installation equipment and machinery; asset repair, upgrading projects; planning projects, research projects, technology development, technology application, technical support, basic survey projects; other development investment programs, projects, initiatives.

14. Bidding is the process of selecting contractors to sign and execute contracts for consultancy services, non-consulting services, goods procurement, construction and installation; selecting investors to sign and execute contracts for investment projects in the form of public-private partnerships, projects that utilize land based on ensuring competitiveness, fairness, transparency, and economic efficiency.

15. Online bidding is bidding conducted through the use of the national bidding network system.

16. International bidding is bidding in which domestic and foreign contractors, investors participate.

17. Domestic bidding is bidding in which only domestic contractors, investors are allowed to participate.

18. Bid package price is the approved value of the bid package in the contractor selection plan.

19. Bid price is the price stated by the contractor in the bid document, quotation, including all costs to implement the bid package as required by the bidding documents, requirements.

20. Evaluation price is the bid price after being corrected, adjusted for deviations according to the bidding documents' requirements, subtracting any discount value (if applicable), and adding factors for conversion over the same basis for the entire lifespan of the goods or construction. The evaluation price is used to rank bid proposals for procurement packages of goods, construction, and mixed packages applied in open or restricted bidding forms.

21. Bid-winning proposed price is the bid price of the contractor proposed to win the bid after being corrected, adjusted for deviations according to the bidding documents, requirements, subtracting any discount value (if applicable).

22. Bid-winning price is the price recorded in the decision approving the contractor selection results.

23. Contract price is the value stated in the contract document, serving as the basis for advance payment, payment, liquidation, and settlement of the contract.

24. Bid package is a part or the entirety of a project, procurement estimate; a bid package may include similar procurement contents from various projects or be the quantity of one-time procurement, the quantity for a period in regular procurement, centralized procurement.

25. Mixed bid package is a bid package that includes design and supply of goods (EP); design and construction (EC); supply of goods and construction (PC); design, supply of goods, and construction (EPC); project development, design, supply of goods, and construction (turnkey).

26. Small-scale bid package is a bid package with a bid package price within the limit specified by the Government.

27. Goods include machinery, equipment, raw materials, fuel, materials, supplies, spare parts; consumer goods; pharmaceuticals, medical supplies used in healthcare facilities.

28. The national bidding network system is an information technology system managed by the state agency overseeing construction bidding activities and management for the purpose of uniformly managing information about bidding and conducting online bidding.

29. Expression of interest documents, pre-qualification invitation documents comprise all materials containing requirements for capabilities and experience for contractors, investors, serving as a basis for the inviting party to select the list of pre-qualified contractors, the list of pre-qualified investors, and the list of interested contractors evaluated to meet the requirements of the expression of interest documents.

30. Expression of interest documents, pre-qualification documents consist of all documents prepared and submitted by contractors, investors to the inviting party as required by the expression of interest documents, pre-qualification invitation documents.

31. Bidding documents comprise all materials used for open bidding, restricted bidding, including requirements for a project, bid package, serving as a basis for contractors, investors to prepare bid documents and for the inviting party to organize the evaluation of bid documents to select contractors, investors.

32. Requirement documents comprise all materials used for direct procurement, direct purchase, competitive bidding, including requirements for a project, bid package, serving as a basis for contractors, investors to prepare proposal documents and for the inviting party to organize the evaluation of proposal documents to select contractors, investors.

33. Bid documents, proposal documents consist of all documents prepared and submitted by contractors, investors to the inviting party as required by the bidding documents, requirements.

34. Contract is an agreement document between the investor and the selected contractor in implementing the bid package of the project; between the inviting party and the selected contractor in regular procurement; between the centralized procurement unit or the purchasing unit with the selected contractor in centralized procurement; between the competent state agency and the selected investor or between the competent state agency and the selected investor and the project enterprise in investor selection.

35. Appeal is when a contractor, investor participating in the bid requests a review of the contractor selection results, investor selection results, and related issues in the contractor selection, investor selection process when they perceive that their rights and interests are affected.

36. Authorized person is the person who approves the project or decides on procurement as prescribed by law. In the case of investor selection, the authorized person is the head of the competent state agency as stipulated by law.

37. Main contractor is the contractor responsible for participating in the bid, submitting the bid, and directly signing and implementing the contract if selected. The main contractor can be an independent contractor or a member of a joint venture.

38. Subcontractor is a contractor participating in the implementation of a bid package under a contract signed with the main contractor. A special subcontractor is a subcontractor performing essential work proposed by the main contractor in the bid documents, proposal documents based on requirements specified in the bidding documents, requirements.

39. Foreign contractor is an organization established under the laws of a foreign country or an individual holding foreign nationality participating in bidding in Vietnam.

40. Domestic contractor is an organization established under Vietnamese law or an individual holding Vietnamese nationality participating in bidding.

41. Public products, services are essential products, services for the economic and social life of the country, the community, or ensuring national defense, security that the state must organize in the fields of health, education and training, culture, information, communication, science and technology, resources and environment, transportation, and other areas as stipulated by the Government. Public products, services include public utility products, services, and public career services.

42. Appraisal in the contractor, investor selection process is the examination and evaluation of the contractor selection plan, investor selection plan, expression of interest documents, pre-qualification documents, bidding documents, requirement documents, and the results of expression of interest, pre-qualification, contractor selection, investor selection for consideration and approval as stipulated by this law.

43. Bid closing time is the deadline for receiving expression of interest documents, pre-qualification documents, bid documents, and proposal documents.

44. Validity period of bid documents, proposal documents is the number of days specified in the bidding documents, requirement documents, and is calculated from the bid closing time to the last effective day as stipulated in the bidding documents, requirement documents. From the bid closing time until the end of 24 hours of the bid closing day is counted as 01 day.

45. Expert team consists of individuals with the capacity and experience established by the inviting party or the bidding consulting unit to evaluate expression of interest documents, pre-qualification documents, bid documents, proposal documents, and perform other tasks in the contractor, investor selection process.

46. Winning bid is the result of contractor selection after the bid opening; this is another way of saying that a contractor participating in the bid is chosen to execute the bid package.

47. State capital includes state budget capital; national bonds, government bonds, local government bonds; official development assistance capital, preferential loans from sponsors; capital from development project operation funds; state investment credit capital; government-guaranteed credit capital; asset-backed loans guaranteed by the state; state enterprise development investment capital; land use rights value.

48. Construction includes activities related to the construction and installation process of projects, construction items.

Source: Article 4 - Public Procurement Law 2013
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