Can newly established contractors participate in bidding?

Monday, 30 October 2023 2:44 PM
Many newly established businesses have the same question: can they participate in bidding? How long after being established can they participate in bidding? Today's article will find the answer to the question: Can newly established contractors participate in bidding? Let's look forward to the article!
Can newly established contractors participate in bidding?
Can newly established contractors participate in bidding?

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

1. What is a contractor?

Contractor is an organization/unit or individual with full capacity to carry out the bidding package required in the bidding documents issued by the investor/bidder. They will sign a contract with the investor and bid on all or part of the work or project related to the request or job being invited to bid.

2. Can newly established contractors participate in bidding?

In cases where the contractor is a newly established enterprise, we will consider many of the following specific cases:

Case 1: Competitive bidding package in shortened form

For this bidding package, there will be no requirement for financial reports, which means the number of years of establishment will not be required. Thus, contractors can absolutely participate in these bidding packages, as long as the contractor is capable of providing the services/goods required by that bidding package at competitive prices.

Case 2: The bidding package is implemented in the form of self-implementation

Bidding packages in this form also do not require requirements on the number of years of establishment or financial reports, because the investor himself has the capacity and ability to implement the bidding package.

Case 3: Bidding package with community participation

This is a special form and does not require a legal entity to perform.

Case 4: Bidding packages implemented in other forms (Competitive offering; Open bidding; Limited bidding; Appointed contractor...)

Bidding packages implemented in this form all require financial data for a certain number of years, so if a new contractor is established in the year and is planning to participate in that bidding package (ie, there is no report yet). previous fiscal year) will not be qualified to participate in the bidding, or if they do participate, they will be assessed as not meeting the requirements of the bidding documents.

3. How many years must a contractor be established to participate in bidding?

The nature of the year of establishment of the contractor is not important, but the root of the problem is whether the contractor has had any financial reporting period since its establishment (Financial reporting period must be understood as according to the reporting period with tax authorities, usually ending the year on December 31). For example:
The enterprise was established in April 2022, the intended bidding time is October 2023, in 2022 the contractor has had a financial report submitted to the tax authority and has been determined not to owe tax in 2022, then this is a necessary condition for contractors to participate in bidding. As for the sufficient conditions, we must consider the average revenue requirement over the most recent years as required by the bidding documents, for example, the bidding documents stipulate that the contractor must have a large average revenue over the most recent 3 years. more than 1 billion VND. If the above enterprise participates in the bidding and has revenue from April 2022 (Revenue recorded on the financial report) to December 31, 2022 of VND 1.1 billion, it will meet the requirements of the bidding documents. , if the above period's revenue is not enough 1 billion VND, it will not be met.
Here, many contractors are often misunderstood. If the bidding documents are specified as above, but the newly established contractor calculated as above for more than 1 year will not meet the requirements or misunderstand, then the average revenue must be Calculation is to take the revenue of that adjacent year (2022)/3 and compare it with the requirements of the bidding documents. This is completely incorrect in the bidding document templates issued by the Ministry of Planning and Investment, see picture:
năm tài chính
Financial year regulations​​​​
Also taking the same example above, if the contractor was established in January 2023, it means that by October 2023 the contractor has not had any financial reports submitted to the tax authority, even though the revenue from that time established by October 2023 may be much larger than required, but the contractor will still not meet the requirements of the bidding documents. Therefore, if the contractor participates in the bidding, it will also be disqualified.

The above article of analyzed situations in which newly established contractors can participate in bidding. In case you have questions or answers, please contact via the following channels:
 Tags: bidding, contractor

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