Ⅱ.Civil and Commercial Law

Creditor's Rights

Regulations for the Implementation of the Law of the People's Republic of China on Bid Invitation and Bidding

(Adopted at the 183rd Executive Meeting of the State Council on November 30，2011，and promulgated by Decree No.613 of the State Council of the People's Republic of China on December 20，2011)

ChapterⅠ　General Provisions

Article　1　These Regulations are formulated in accordance with the Law of the People's Republic of China on Bid Invitation and Bidding (hereinafter referred to as the Bid Invitation and Bidding Law)，for the purpose of regulating activities of bid invitation and submission.

Article　2　The term“project construction”in Article 3 of the Bid Invitation and Bidding Law means goods and services related to the construction of a project，as well as the project itself.

The term“project”in the preceding paragraph means the construction project，including any new construction，alterations and expansions of buildings and structures，as well as the involved decorations，demolitions，repairs，etc.; the term“goods related to the construction of project”means the equipment，materials，etc.that constitute an integral part of the project and are necessary to achieve the basic function of the project; and the term “services related to the construction of project”means services necessary in order to complete the project，including surveying，designing，supervision，etc.

Article　3　The specific scope and scale standards of construction projects that legally require the invitation of bids shall be set by the development and reform department of the State Council jointly with other relevant departments of the State Council，shall be promulgated and implemented upon approval by the State Council.

Article　4　The development and reform department of the State Council shall direct and coordinate the bid invitation and submission nationwide，and shall supervise and inspect the activities of bid invitation and submission related to significant national construction projects.The departments of the State Council for industry and information technology，housing and urban-rural development，transport，railways，commerce，etc.shall，in light of the division of their functions and duties as prescribed，supervise the activities of bid invitation and submission.

The development and reform departments of the local people's governments at or above the county level shall direct and coordinate the activities of bid invitation and submission within their respective administrative areas.Relevant departments of the local people's governments at or above the county level shall，in light of the division of their functions and duties as prescribed，supervise the activities of bid invitation and submission and investigate and deal with the illegal acts related to the bid invitation and submission.Where the local people's government at or above the county level otherwise specifies the division of functions and duties of its subordinate departments with respect to the supervision of the activities of bid invitation and submission，such provisions shall apply.

Finance departments shall，in accordance with law，supervise the implementation of budgets for construction of government procurement projects subject to bid invitation and submission，and the implementation of government procurement policies.

The supervisory organs shall supervise the objects of supervision related to the activities of bid invitation and submission in accordance with law.

Article　5　The local people's government at or above the level of a city divided into districts may，based on actual needs，establish a unified and standardized exchange for bid invitation and submission in order to provide services for the same.Such exchanges shall be not subordinated to any administrative supervision departments and shall not operate for profit.

The State encourages the adoption of an electronic system to handle bid invitation and submission through the use of information networks.

Article　6　State staff members are prohibited from illegally interfering with the activities of bid invitation and submission in any means.

ChapterⅡ　Bid Invitation

Article　7　Where a project that legally requires the invitation of bids needs to go through the formalities for examination，approval or verification as prescribed by the relevant provisions of the State，the scope，manner and organizational form of bid invitation shall be submitted for examination，approval and verification to the relevant examination，approval and verification departments.Said departments shall notify relevant administrative supervision departments of the examined，approved or verified scope，manner and organizational form of the bid invitation in a timely manner.

Article　8　The bid invitation process shall be open for projects that legally require the invitation of bids and in which State-owned funds hold a controlling or dominant role; provided that under any of the following circumstances，the selective bidding may be done:

(1)There are only limited potential bidders to choose from owing to technical complexities，special requirements or natural environmental restrictions; or

(2)The expense for holding an open bid invitation process would be unreasonably excessive in proportion to the total value of the project contract amount.

Where a project specified in Article 7 of these Regulations falls into subparagraph (2)of the preceding paragraph，the examination，approval and verification departments shall determine how to proceed during the examination，approval and verification process; all other projects shall be determined by relevant administrative supervision departments upon the application by the bidder.

Article　9　In addition to special circumstances whereby bid invitation may not be required as provided in Article 66 of the Bid Invitation and Bidding Law，bid invitation may not be required under any of the following circumstances:

(1)Use of an irreplaceable patent or proprietary technology is required;

(2)The procurer is lawfully able to independently construct，produce or provide the project，goods or service;

(3)An investor who has received special permission to manage the project that has been selected through the bidding process is lawfully able to independently construct，produce or provide the project，goods or service;

(4)Projects，goods and services are required to be procured from the original winning bidder，failing which construction or functional requirements shall be affected; or

(5)Other special circumstances as prescribed by the State.

If the bid inviter provides false information in order to satisfy the conditions set out in the preceding paragraph，such behavior shall constitute circumvention of bidding as set out in Article 4 of the Bid Invitation and Bidding Law.

Article　10　A bid inviter who has the capacity to prepare the bid invitation documents and organize evaluation as prescribed in the second paragraph of Article 12 of the Bid Invitation and Bidding Law，means a bid inviter who has such specialized personnel familiar with the technical，economical and other aspects compatible with the degree of the project's scale and complexity.

Article　11　The qualifications of a bid invitation agency shall，in accordance with law and the provisions of the State Council，be determined by the relevant departments.

The departments of the State Council for housing and urban-rural development，commerce，development and reform，industry and information technology，etc.shall supervise and administer the bid invitation agencies in accordance with the division of their functions and duties as prescribed.

Article　12　The bid invitation agency shall have a defined number of professionals who possess professional bid invitation qualification.The specific measures for obtaining such professional qualification shall be formulated by the human resources and social security department of the State Council jointly with the development and reform department of the State Council.

Article　13　The bid invitation agency shall carry out bidding activity on behalf of abid inviter within the scope of its qualification and in accordance with the scope of entrustment by the bid inviter，and no unit or individual may illegally interfere with the said activity.

Where a bid invitation agency carries out bidding activity on behalf of a bid inviter，the said agency shall abide by the provisions of the Bid Invitation and Bidding Law and these Regulations pertaining to bid inviters.No bid invitation agency may bid on，submit a bid on behalf of another for，nor provide consulting services for a bidder for，a project in which the said agency is already acting for a bid inviter.

No bid invitation agency may alter，lease，lend or transfer its qualification certificate to a third party.

Article　14　A bid inviter shall enter into a written entrustment contract with the bid invitation agency it has appointed.The agreed fee standards in the entrustment contract shall comply with the relevant provisions of the State.

Article　15　For projects that are carried out through the open bidding，bid invitation notices shall be published and bid invitation documents shall be prepared in accordance with the relevant provisions of the Bid Invitation and Bidding Law and these Regulations.

Where a bid inviter opts to utilize a pre-qualification approach to examine potential bidders' qualifications，it shall publish a pre-qualification notice and prepare the prequalification documents.

The pre-qualification notice and bid invitation notice of a project that legally requires the invitation of bids shall be published via the media as designated by the development and reform department of the State Council in accordance with law.The contents of each notice shall be the same，despite such notices being published in different forms of media.Designated media shall not charge any fees for the publication of the domestic notices for projects that legally require the invitation of bids where such notices relate to prequalifications or call for bid invitation.

The standard texts，as formulated by the development and reform department of the State Council jointly with the relevant administrative supervision departments，shall be used for preparation of pre-qualification and bid invitation documents for projects that legally require the invitation of bids.

Article　16　A bid inviter shall issue and sell the pre-qualification or bid invitation documents pursuant to the time，date and place as specified in the pre-qualification or bid invitation notice or bid invitation letter.Pre-qualification or bid invitation documents shall be issued and sold for not less than five days.

All issuances and sales of pre-qualification or bid invitation documents shall not be for profit，and fees shall only be charged for purposes of covering printing and postage costs.

Article　17　A bid inviter shall specify a reasonable deadline for the submission of pre-qualification applications.For projects that legally require the invitation of bids，the deadline for the submission of such applications shall be not less than five days from the date on which the issuances and sales of the pre-qualification documents stop.

Article　18　The pre-qualification process shall be carried out in accordance with the criteria and methods as specified in the pre-qualification documents.

The bid inviter shall organize a qualification examination committee to examine the prequalification application documents for projects that legally require the invitation of bids and in which State-owned funds hold a controlling or dominant role.The qualification examination committee and its members shall abide by the relevant provisions of the Bid Invitation and Bidding Law and these Regulations pertaining to bid evaluation committee and its members.

Article　19　Following completion of the pre-qualification examination，the bid inviter shall issue a notice to each of the pre-qualification applicants setting out the results of the pre-qualification process in a timely manner.Applicants who fail the said pre-qualification shall not be eligible to bid.

Where fewer than three applicants pass the pre-qualification stage，a new bid invitation shall be conducted.

Article　20　Where the bid inviter opts to utilize a post-qualification approach to examine the qualifications of bidders，the bid evaluation committee shall，after opening of the bids，examine the qualifications of bidders in accordance with the criteria and methods specified in the bid invitation documents.

Article　21　The bid inviter may clarify or modify the pre-qualification or bid invitation documents that has already been issued where necessary.Where the said clarifications or modifications could potentially impact the preparation of pre-qualification application or bidding documents，the bid inviter shall，either at least three days prior to the deadline for the submission of pre-qualification application documents or at least 15 days prior to the deadline for the submission of bids，inform all potential bidders in writing who have received the said documents; in the event that the said time requirement cannot be satisfied by the bid inviter，the bid inviter shall postpone the deadline for the submission of pre-qualification application or bidding documents accordingly.

Article　22　Where any potential bidders or other interested parties object to the prequalification documents，the said objection shall be put forward at least two days prior to the deadline for submitting the pre-qualification application documents; if such potential bidder or interested party has an objection to the bid invitation documents，it shall raise the same at least ten days prior to the deadline for the submission of bids.The bid inviter shall respond to the said objection within three days from the date of receipt of the same，and shall temporarily suspend the relevant activities of bid invitation and submission prior to providing a response.

Article　23　Where the content contained within any pre-qualification or bid invitation documents prepared by the bid inviter violates any mandatory provisions of laws or administrative regulations，or violates the principles of openness，equality，impartiality or good faith，thereby affecting the results of pre-qualification or the bidding by potential bidders，the bid inviter for a project that legally requires the invitation of bids shall modify the pre-qualification or the bid invitation documents and carry out a new bid invitation procedure.

Article　24　Where the bid inviter divides a project up into bid lots，it shall do so in accordance with the relevant provisions of the Bid Invitation and Bidding Law and shall notuse the said division of bid lots to restrict or preclude any potential bidders.The bid inviter for a project that legally requires the invitation of bids shall not take advantage of such division in order to circumvent any bid invitation.

Article　25　The bid inviter shall indicate a validity period for bid submission in the bid invitation documents.Such period shall be effective from the deadline for submission of the bidding documents.

Article　26　Where the bid inviter states in the bid invitation documents that it requires a bidder to provide bid deposits，the amount of such deposits shall not exceed 2% of the estimated value of the project.The validity period of bid deposits shall be the same as that for bid submission.

Where domestic units participate in bidding on projects that legally require the invitation of bids，bid deposits provided by the said units in either cash or check shall be transferred from the units' basic accounts.

The bid inviter shall not misappropriate the bid deposits.

Article　27　The bid inviter may unilaterally decide where or not to set a reserve price.Each project shall have only one reserve price.The reserve price shall be kept confidential.

Intermediary agencies entrusted with setting the reserve price shall not bid on the said project，or prepare bidding documents for or provide consulting services for bidders on the said project.

Where the bid inviter sets a ceiling price for bids，it shall present said ceiling price or the method for calculating the same in the bid invitation documents.The bid inviter may not set a floor price for bids.

Article　28　The bid inviter may not arrange for on-site inspections of the project by any individual or group of potential bidders.

Article　29　The bid inviter may invite bids for all or a portion of a project as well as that of goods and services related to construction of the project within the total contract in accordance with law.Where the project，goods or services included in the total contract in the form of temporary valuation fall within the scope of a project that legally requires the invitation of bids and reach the size criterion as set by the State，such bid invitation shall be carried out in accordance with law.

The term“temporary valuation”in the preceding paragraph means the amount of the project，goods and services as temporarily estimated by the bid inviter and set out in the bid invitation documents，where the price cannot be determined in the total contract.

Article　30　The bid inviter may divide bid invitation process up into two stages where a project involves complex technology or where it is impossible to accurately state technical specifications.

During the first stage，bidders shall be required to submit technical proposals without including any quotes in accordance with the bid invitation notice or the bid invitation letter.The bid inviter shall prepare the bid invitation documents and determine the technical standards and requirements based upon the technical proposals submitted by the bidders.

During the second stage，the bid inviter shall provide the bid invitation documents to the bidders that submitted technical proposals during the first stage; the bidders shall，in accordance with the requirements set out in the bid invitation documents，submit bidding documents that include both final technical schemes and bidding prices.

Where the bid inviter requires bidders to provide bid deposits，it shall do so in the second stage.

Article　31　Where the bid inviter terminates the bid invitation process，it shall，in a timely manner，publish a notice or notify the potential bidders who have already been invited or obtained the pre-qualification or bid invitation documents in writing.Where prequalification or bid invitation documents have been issued and sold or bid deposits have been collected，the bid inviter shall refund the fees collected for such documents as well as the bid deposits together with interests thereon at the rate set for bank deposits over the same period.

Article　32　The bid inviter may not restrict or preclude any potential bidders or bidders with any unreasonable conditions.

Any of the following acts committed by a bid inviter shall be construed as the bid inviter acting unreasonably to restrict or preclude potential bidders or bidders:

(1)Providing different information related to the same project to different potential bidders，or bidders;

(2 )Specified qualifications，technological or other commercial requirements are inconsistent with the specific features and actual requirements of the project or are unrelated to the performance of the contract;

(3)Awarding additional points for，or conditioning the winning of the bid on setting a specific administrative area or the performance in or awards of a particular industry，for a project that legally requires the invitation of bids;

(4)Applying different qualification examination or bid evaluation criteria for different potential bidders or bidders;

(5)Restricting or designating specific patents，trademarks，brands，places of origins or suppliers;

(6)Illegally placing restrictions on the form of ownership or organizational form of the potential bidders or bidders for a project that legally requires the invitation of bids; or

(7)Restricting or precluding potential bidders or bidders with any other unreasonable conditions.

ChapterⅢ　Bidding

Article　33　Bidders participating in projects that legally require the invitation of bids shall not be restricted by regions or sectors，and no unit or individual may illegally interfere with their relevant activities.

Article　34　No legal persons，organizations or individuals that have an interest with the bid inviter，which could affect the impartiality of the bid invitation，may participate in the bidding process.

Different units which either have the same responsible person or have a controlling or managing relationship with each other shall not participate in bidding for the same bid lot or for the same project that is divided into bid lots.

Any relevant bid in violation of the provisions of either of the preceding paragraphs shall be invalid.

Article　35　Where a bidder is to withdraw its bidding documents submitted，it shall notify the bid inviter thereof in writing prior to the deadline for the submission of bids.If the bid inviter has already collected bid deposits from the bidder，it shall refund the same within five days from the date of receipt of the written notice to withdraw from the bidder.

Where a bidder withdraws its bidding documents after the deadline for the submission of bids has passed，the bid inviter shall not be required to refund the bid deposits.

Article　36　The bid inviter shall reject bidding documents from applicants who fail to pass the pre-qualification examination，who are late in submitting bidding documents or who fail to seal their bidding documents as required.

The bid inviter shall accurately record the date of service of the bidding documents and the manner in which such documents is sealed.The records shall be kept on file for future inquiries.

Article　37　The bid inviter shall specify in the pre-qualification notice，bid invitation notice or bid invitation letter whether bids from consortiums are to be accepted.

Where a bid inviter accepts bids from consortiums and has already carried out a prequalification examination，the said consortiums shall be formed prior to submitting prequalification application documents.Where a consortium adds，removes or replaces its members after the pre-qualification examination，the bid submission by the consortium shall be invalid.

Where a concerned party to a consortium individually submits a bid in its own name or jointly submits a bid with another consortium for the same project，the bid submission shall be invalid.

Article　38　Where a material change in a bidder occurs，such as a merger，division，or bankruptcy，it shall notify the bid inviter thereof in a timely manner.Where a bidder ceases to satisfy the requirements of pre-qualification documents or the requirements of bid invitation documents，or its bid affect the impartiality of the bid invitation，the bid submission shall be invalid.

Article　39　Bidders are forbidden from colluding with respect to the submission of bids.

Any of the following circumstances shall be collusion among bidders:

(1)Bidders reach agreement with each other through consultations on the substantive particulars of their bidding documents，such as bid prices;

(2)Bidder reach agreement on who the winning bidder will be;

(3)Bidders agree that certain bidders shall renounce their bids or their winning of the bid;

(4)Bidders who are members of the same group，association，chamber of commerce or other similar organizations coordinate the submission of their bids pursuant to the organization's requirements; or

(5)Where any other joint action is taken by the bidders in order to win the bid or to preclude other particular bidders.

Article　40　Any of the following circumstances shall be deemed as collusion among bidders:

(1)The same unit or individual formulates bidding documents for different bidders;

(2)Different bidders appoint the same unit or individual to carry out bid submission work;

(3)Different bidders designate the same person in the bidding documents to manage the project;

(4)The bidding documents of different bidders are unusually similar to each other，or the differences in bid prices of different bidders show a regular pattern of dissimilarities;

(5)Bidding documents of different bidders are interchangeably mixed; or

(6)The bid deposits from different bidders are transferred from the account of the same unit or individual.

Article　41　Bid inviters are forbidden from colluding with bidders in bidding.

Any of the following circumstances shall be collusion between bid inviters and bidders:

(1)The bid inviter opens the bidding documents prior to the opening of the bids and discloses the relevant information to a bidder;

(2)The bid inviter directly or indirectly discloses the reserve price，the members of the bid evaluation committee or such other information to a bidder;

(3)The bid inviter expressly or implicitly indicates to a bidder that it should lower or raise its bid price;

(4)The bid inviter suggests to a bidder that it withdraw，replace or amend its bidding documents;

(5)The bid inviter expressly or implicitly suggests that a bidder facilitate the winning of the bid by a particular bidder; or

(6)The bid inviter and a bidder engage in other collusive acts to have a specific bidder determined to be the winning bidder.

Article　42　Submitting a bid by utilizing qualifications or certificates obtained through means of acquisition，lease or otherwise shall constitute the submission of a bid in the name of a third party as specified in Article 33 of the Bid Invitation and Bidding Law.

Any of the following circumstances committed by a bidder shall constitute provision of false information by other means as prescribed in Article 33 of the Bid Invitation and Bidding Law:

(1)Using forged or altered licenses;

(2)Providing fraudulent financial conditions or results;

(3)Providing fraudulent resume or proof of employment with respect to the responsible person of the project or the main technological personnel;

(4)Providing a fraudulent credit rating; or

(5)Engaging in other acts of fraud.

Article　43　Applicants submitting pre-qualification application documents shall abide by the provisions of the Bid Invitation and Bidding Law and these Regulations with respect to bidders.

ChapterⅣ　Opening，Evaluation and Determination of the Winning Bid

Article　44　The bid inviter shall open the bids at the time and place specified in the bid invitation documents.

Where there are fewer than three bidders，the bids shall not be open and the bid inviter shall conduct a new bid invitation.

Where a bidder objects to the opening of the bids，the said bidder shall raise the same on the spot at the bid opening，and the bid inviter shall respond on the spot and make a record of the same.

Article　45　The State shall implement uniform professional classification criteria and the administration measures for bid evaluation experts.The specific criteria and measures shall be formulated by the development and reform department of the State Council jointly with the relevant departments of the State Council.

The local people's governments at the provincial level and the relevant departments of the State Council shall establish a comprehensive pool of bid evaluation experts.

Article　46　With the exception of special projects specified in the third paragraph of Article 37 of the Bid Invitation and Bidding Law，the expert members of the bid-evaluation committee for a project that legally requires the invitation of bids shall be determined at random from the list of experts with respect to the relevant profession in the bid-evaluation experts pool.No unit or individual may use any express，implicit or disguised manner to designate the expert members on a bid evaluation committee.

The bid inviter for a project that legally requires the invitation of bids shall not replace the lawfully determined members of the bid evaluation committee for any reasons not prescribed in the Bid Invitation and Bidding Law and these Regulations.Replacement of any expert member shall be carried out in accordance with the provisions of the preceding paragraph.

Any member of the bid evaluation committee who has an interest in a bidder shall recuse himself from the committee voluntarily.

The relevant administrative supervision departments shall，within the scope of division of their prescribed functions and duties，supervise the method used to determine the members of the bid evaluation committee，the selection of bid evaluation experts and the bid evaluation activities.No staff member from an administrative supervision department may serve as a member of the bid evaluation committee for any project that is being supervised by the department that the said staff member belongs to.

Article　47　The term“special project”in the third paragraph of Article 37 of the Bid Invitation and Bidding Law means a project that involves technological complexity，that is highly specialized or is subject to special requirements of the State，and whereby it would be difficult to ensure that experts determined at random method would be competent enough to carry out the bid evaluation work.

Article　48　The bid inviter shall provide all information necessary for the evaluation of the bids to the bid evaluation committee，provided that the bid inviter shall not explicitly or implicitly indicate to the committee that it favors or wishes to preclude any specific bidder.

The bid inviter shall set a reasonable period of time for evaluating bids based on certain factors，such as the size of the project or the technological complexity.Where more than one -third of the members of the bid evaluation committee deem the bid evaluation period to be insufficient，the bid inviter shall extend such period appropriately.

During the course of evaluating bids，if any member of the bid evaluation committee is unable to proceed with evaluating bids due to his having to recuse himself or herself，being absent from his duties without proper authorization，for health reasons or other reasons，such member shall be promptly replaced.Any evaluation conclusions rendered by the replaced member shall be invalid，and his replacement shall carry out the said evaluation anew.

Article　49　Each member of the bid evaluation committee shall objectively and impartially issue an evaluation opinion in respect of the bid invitation documents in accordance with the provisions of the Bid Invitation and Bidding Law and these Regulations，and in compliance with the bid evaluation criteria and methods specified in the bid invitation documents.The evaluation criteria and measures that are not specified in the bid invitation documents shall not serve as the basis for evaluating bids.

No member of the bid evaluation committee may privately contact a bidder，accept things of value or other benefits from any bidder，inquire with the bid inviter as to the preference to who the bid winner should be，accept an express or implied request made by a unit or individual favoring or precluding a specific bidder，or act in a non-objective or partial manner when performing their duties.

Article　50　Where a reserve price has been set for a bidding project，the bid inviter shall announce the said reserve price at the time the bids are opened.A reserve price shall serve as reference only with respect to evaluating bids; and the proximity of an actual bid price to the reserve price shall not be set as a condition for determining the winner of a bid; and the proximity of a bid price in relation to the lower or upper range of the reserve price may not be used as a condition for rejecting a bid.

Article　51　A bid shall be denied by the bid evaluation committee under any of the following circumstances:

(1)The bidding documents do not bear the stamp of the bidding unit or the signature of the responsible person of the unit;

(2)A bidding consortium fails to submit its joint bid agreement;

(3)A bidder fails to satisfy the qualification conditions as prescribed by the State or the bid invitation documents;

(4)The same bidder submits two or more different bidding documents or two or more bid prices，except for situations where the bid invitation documents require the submission of alternative bids;

(5)The bid price is less than the cost price or exceeds the ceiling bid price set out in the bid invitation documents;

(6)The bidding documents fail to address the substantive requirements and conditions set out in the bid invitation documents; or

(7)The bidder engages in an illegal act，such as bid collusion，providing false information，or bribery.

Article　52　Where the bidding documents contain ambiguous content or blatant typographical or calculation errors，and the bid evaluation committee deems it necessary for the bidder to provide necessary clarifications or explanations，it shall notify such bidder in writing of the same.The clarifications or explanations shall be made by the bidder in writing and shall not exceed the scope of the bidding documents nor alter the substantive content contained within the bidding documents.

The bid evaluation committee shall not implicitly ask or induce a bidder to provide a clarification or explanation，and shall not accept clarifications or explanations offered by a bidder of its own volition.

Article　53　After the evaluation of bids has been completed，the bid evaluation committee shall submit to the bid inviter a written bid evaluation report and a list of names of winning candidates for the bid.The number of candidates shall be not more than three and the candidates shall be ranked in order.

The bid evaluation report shall be signed by all members of the bid evaluation committee.Any members who disagree with the bid evaluation results shall explain his dissenting opinions and provide the reasons in writing.The bid evaluation report shall state such dissenting opinions clearly.If a member of the bid evaluation committee refuses to sign the bid evaluation report and fails to explain his dissenting opinions and the reasons thereof in writing，he shall be deemed to be in agreement with the results of the said report.

Article　54　For projects that legally require the invitation of bids，the bid inviter shall，within three days from the date of receipt of the bid evaluation report，make public the winning candidates for the bid.The period of publication shall be no less than three days.

Where a bidder or other interested party has an objection to the bid evaluation results for a project that legally requires the invitation of bids，the said bidder or party shall raise the same during the period of publication of the winning candidates.The bid inviter shall，within three days from the date of receipt of the said objection，provide a response.The activities of bid invitation and submission concerned shall be temporarily suspended until the bid inviter provides a response.

Article　55　For a project that legally requires the invitation of bids and in which the State-owned funds hold a controlling or dominant role，the bid inviter shall determine that the candidate ranked first as the winning bidder.If the said candidate renounces its winning of the bid，is unable to perform the contract due to an event of force majeure，fails to submit a bid performance bond as required by the bid invitation documents，or is found to commit a violation of the law that affects the awarding of the bid and therefore，no longer satisfies the conditions for winning the bid，the bid inviter may either determine the winning bidder basedon the rankings on the list of candidates provided by the bid evaluation committee or invite bids anew.

Article　56　Where a significant change occurs in the business or financial position of a winning candidate for a bid or the said candidate commits an illegal act，and the bid inviter considers that such change could affect the bidder's capacity to perform，the same shall be examined and confirmed by the original bid evaluation committee in accordance with the criteria and measures specified in the bid invitation documents before the notice of winning of the bid is issued.

Article　57　The bid inviter and the winning bidder shall conclude a written contract in accordance with the provisions of the Bid Invitation and Bidding Law and these Regulations.The substantive provisions of the contract，such as the subject matter of contract，the price，quality，term of the contract shall be consistent with those in the bid invitation documents and the winning bidder's bidding documents.The bid inviter and the winning bidder shall not conclude any other agreement that runs counter to the substantive provisions of the contract.

The bid inviter shall，within five days after the conclusion of the written contract，refund all bid deposits and corresponding interests at the rate for bank deposits over the same period to the winning bidder and all losing bidders.

Article　58　Where the bid invitation documents require the winning bidder to provide a contract performance bond，the winning bidder shall do so in accordance with the requirements set out in the bid invitation documents.The amount of the performance bond shall not exceed 10% of the contract amount.

Article　59　The winning bidder shall perform its obligations and complete the project in accordance with the terms of the contract.The winning bidder may not transfer the project to any other parties，nor break up the project into parts and transfer the said parts to third parties.

The winning bidder may subcontract non-major or non-crucial parts of the project it has won in accordance with the provisions of the contract or with the consent of the bid inviter.All subcontractors shall possess the appropriate qualifications and shall not further subcontract any of their obligations.

The winning bidder shall be liable to the bid inviter for all subcontracted parts of the project，and the subcontractor shall bear the joint and several liability for all subcontracted projects.

ChapterⅤ　Complaints and Handling

Article　60　Where a bid inviter or as interested party considers that the activities of bid invitation and submission are not in conformity with the provisions of laws or administrative regulations，it or he may，within ten days from the date on which it or he becomes aware or should have become aware of the same，file a complaint with the relevant administrative supervision department.The complaint shall state the specific claim and contain all necessary materials of proof.

Prior to filing a complaint in respect of an issue specified in Article 22，44 or 54 of these Regulations，an objection shall first be raised relating to the same to the bid inviter.The time required to respond to the said objection shall not be factored into the time period prescribed in the preceding paragraph.

Article　61　Where a complainant files a complaint in respect of the same matter with two or more administrative supervision departments that have jurisdiction to accept the same，the complaint shall be handled by the department that receives the initial complaint.

The administrative supervision department shall，within three working days from the date of receipt of a complaint，decide whether or not to accept the said complaint，and shall make a written decision on handling the complaint within 30 working days from the date of acceptance of the said complaint.Where an inspection，testing，assessment or expert evaluation is required，the time required to undertake the same shall not be factored into the aforesaid time period.

Where a complainant fabricates facts，forges information or obtains materials of proof through illegal means in order to file a complaint，the said complaint shall be rejected by the administrative supervision department.

Article　62　When handling complaints，the administrative supervision department shall have the power to look through and make copies of relevant documents and information and to investigate relevant issues.All relevant units and individuals shall cooperate with respect to the investigation.If necessary，the administrative supervision department may order suspension of the activities of bid invitation and submission.

The staff members of the administrative supervision departments shall，in accordance with law，keep confidential the State secrets and trade secrets to which they are privy to during the course of the supervision and inspection process.

ChapterⅥ　Legal Liability

Article　63　Where a bid inviter commits any of the following acts that restrict or preclude any potential bidders，the relevant administrative supervision department shall impose penalties in accordance with Article 51 of the Bid Invitation and Bidding Law:

(1)It fails to publish a pre-qualification notice or bid invitation notice in the designated media in accordance with the provisions for a project that legally requires the invitation of bids; or

(2)Inconsistency exists between the pre-qualification or bid invitation notice，for the same project as published in different media，which affects the potential bidders' applications for pre-qualification or bid submission.

Where the bid inviter of a project that legally requires the invitation of bids fails to publish the pre-qualification or bid invitation notice，and the same constitutes bid circumvention，penalties shall be imposed in accordance with Article 49 of the Bid Invitation and Bidding Law.

Article　64　Where a bid inviter commits any of the following acts，the relevant administrative supervision department shall order it to make corrections，and may impose on it a fine of not more than 100，000 yuan:

(1)It carries out selective bidding for a project that is legally required to be carried out through an open bid invitation process;

(2)The deadline for the issuance and sale，clarification or amendment of the bid invitation documents or pre-qualification documents，or the deadline for the submission of the pre-qualification application documents or bidding documents does not conform to the provisions of the Bid Invitation and Bidding Law and these Regulations;

(3)It permits participation in the bidding process by a unit or individual that fails the pre-qualification examination; or

(4)It accepts the bidding documents that it is required to refuse.

Where the bid inviter commits any of the acts set forth in subparagraph (1)，(3)or (4)of the preceding paragraph，the person in charge of the unit with competent accountability and other persons with competent accountability shall each be given a sanction in accordance with law.

Article　65　Where a bid invitation agency submits a bid，submits a bid on behalf of another or provides consulting services to a bidder for a project in which it is already acting as a bid invitation agent，or an intermediary agency entrusted with setting the reserve price for a project participates in，prepares bidding documents for or provides consulting services to a bidder for such project，legal liability shall be investigated for in accordance with Article 50 of the Bid Invitation and Bidding Law.

Article　66　Where the bid inviter collects the bid deposits or performance bond in excess of the percentage as specified by these Regulations or fails to refund the bid deposits with interests at the rate for bank deposits over the same period in accordance with the provisions of these Regulations，the relevant administrative supervision department shall order it to make corrections，and may impose on it a fine of not more than 50，000 yuan.If a third party incurs a loss as a result of the said activity，the bid inviter shall be liable for compensation in accordance with law.

Article　67　Where a bidder colludes with one or more bidders or with the bid inviter with respect to its bid submission，or where a bidder seeks to wins bid by offering a bribe to the bid inviter or to a member of the bid evaluation committee，its winning of the bid shall be void; if a crime is constituted，criminal liability shall be investigated for in accordance with law; or if no crime is constituted，penalties shall be imposed in accordance with Article 53 of the Bid Invitation and Bidding Law.If such bidder is not the winning bidder，a fine shall be imposed on the unit calculated based on the contract amount for the project at the percentage specified in the Bid Invitation and Bidding Law.

Where a bidder commits any of the following acts，the same shall constitute a serious act as specified in Article 53 of the Bid Invitation and Bidding Law and the relevant administrative supervision department shall disqualify the bidder from bidding on projects that legally require the invitation of bids for one to two years:

(1)It seeks to win a bid through offering a bribe;

(2)It colludes with respect to the submission of bids twice or more within three years;

(3)Its collusion harms the lawful rights and interests of the bid inviter，other bidders or those of the State，the collective or citizens，causing direct economic losses of not less than 300，000 yuan; or

(4)It commits other serious acts of collusion with respect to the submission of bids.

Where，within three years from the date of expiration of the penalty period specified in the second paragraph of this Article，a bidder again commits an illegal act specified in the said paragraph，or colludes with respect to the submission of bids or wins a bid by offering a bribe，and the circumstances thereof are particularly serious，the administrative department for industry and commerce shall revoke its business license.

Where laws or administrative regulations provide otherwise with respect to penalties related to collusion on bid pricing，those provisions shall be applicable.

Article　68　Where a bidder submits a bid in the name of a third party or uses other fraudulent means to win the bid，its winning of the bid shall be void; if a crime is constituted，criminal liability shall be investigated for in accordance with law; or if no crime is constituted，penalties shall be imposed in accordance with Article 54 of the Bid Invitation and Bidding Law.If such bidder is not the winning bidder，a fine shall be imposed on the unit calculated based on the contract amount for the project at the percentage specified in the Bid Invitation and Bidding Law.

Where a bidder commits any of the following acts，the same shall constitute a serious act as specified in Article 54 of the Bid Invitation and Bidding Law and the relevant administrative supervision department shall disqualify the bidder from bidding on projects that legally require the invitation of bids for one to three years:

(1)It wins the bid by forging or altering its qualification certificates or other licenses;

(2)It submits a bid in the name of a third party on twice or more within three years;

(3)It wins the bid through fraudulent means，causing direct economic losses of not less than 300，000 yuan to the bid inviter; or

(4)It otherwise uses fraudulent means，the circumstances of which are serious，to win the bid.

Where，within three years from the date of expiration of the penalty period specified in the second paragraph of this Article，a bidder again commits an illegal act specified in the said paragraph，or wins the bid through fraudulent means and the circumstances thereof are particularly serious，the administrative department for industry and commerce shall revoke its business license.

Article　69　Where a qualification certificate is transferred or leased to a third party in order to submit a bid，administrative penalties shall be imposed in accordance with laws and administrative regulations; if a crime is constituted，criminal liability shall be investigated for in accordance with law.

Article　70　Where the bidder for a project that legally requires the invitation of bids fails to assemble a bid evaluation committee in accordance with provisions，or the selection or replacement of a member of the bid evaluation committee violates the Bid Invitation andBidding Law and these Regulations，the relevant administrative supervision department shall order it to make corrections and may impose on it a fine of not more than 100，000 yuan，and shall impose a sanction each on the person in charge of the unit with competent accountability and other persons with competent accountability in accordance with law.Conclusions rendered by a member of the bid evaluation committee who is selected or replaced illegally shall be invalid，and the evaluation shall be carried out anew in accordance with law.

Where a State staff member illegally interferes in the selection of the members of a bid evaluation committee through any means，he shall be investigated for legal liability in accordance with Article 81 of these Regulations.

Article　71　Where a member of the bid evaluation committee commits any of the following acts，the relevant administrative supervision department shall order the said member to make corrections; if the circumstances are serious，he shall be prohibited from participating in the evaluation of bids for projects that legally require the invitation of bids for a set period of time.If the circumstances are particularly serious，his qualifications to serve as a member of a bid evaluation committee shall be cancelled.

(1)He should recuse himself but fails to do so;

(2)He leaves his post without authorization;

(3)He fails to evaluate the bids based on criteria and methods specified in the bid invitation documents;

(4)He privately contacts a bidder;

(5)He asks the bid inviter its preference with respect to the winning bidder，or accepts an express or implied request made by any unit or individual favoring or precluding a specific bidder;

(6)He fails to veto a bid that should have been rejected in accordance with law;

(7)He implicitly asks or induces a bidder to provide a clarification or explanation，or accepts a clarification or explanation offered by a bidder of its own volition; or

(8)He commits other acts whereby he performs his duties in a non-objective and impartial manner.

Article　72　Where a member of the bid evaluation committee accepts things of value or other benefits from a bidder，such things of value or benefits shall be confiscated and he shall be fined not less than 3，000 yuan but not more than 50，000 yuan，his qualifications to serve as a member of a bid evaluation committee shall be cancelled，and he shall no longer be allowed to participate in the evaluation of bids for projects that legally require the invitation of bids.If a crime is constituted，criminal liability shall be investigated for in accordance with law.

Article　73　Where the bid inviter for a project that legally requires the invitation of bids commits any of the following acts，the relevant administrative supervision department shall order it to make corrections，and may impose on it a fine of not more than 10‰of the value of the project based on the accepted bid; if a third party incurs losses as a result of such act，the bid inviter shall be liable for compensation in accordance with law.The person in charge of the unit with competent accountability or other persons with competent accountabilityshall each be given a sanction in accordance with law:

(1)Failing to issue a winning bid notice without a legitimate reason;

(2)Failing to determine the winning bidder in accordance with provisions;

(3)Changing the result of the determination of the winning bidder without a legitimate reason after issuing a winning bid notice;

(4)Failing to enter into a contract with the winning bidder without a legitimate reason; or

(5)Imposing additional conditions on the winning bidder at the time of entering into the contract.

Article　74　Where the winning bidder fails to enter into a contract with the bid inviter without a legitimate reason，proposes additional conditions to the bid inviter at the time of entering into the contract，or fails to provide a performance bond as required in the bid invitation documents，the said bidder's qualifications as the winning bidder shall be cancelled and its bid deposits shall not be refunded.For projects that legally require the invitation of bids，the relevant administrative supervision department shall order the winning bidder to make corrections and may impose on the bidder a fine of not more than 10‰of the value of the project based on the accepted bid.

Article　75　Where the bid inviter and the bid winner enter into a contract that runs counter to the bid invitation documents and the winning bidder's bidding documents，or the main terms of the contract are inconsistent with the content of the bid invitation documents or the winning bidder's bidding documents，or the bid inviter and the winning bidder enter into an agreement that runs counter to the substantive provisions of the contract，the relevant administrative supervision department shall order the said parties to make corrections and may impose on them a fine of not less than 5‰but not more than 10‰of the value of the project based on the accepted bid.

Article　76　Where a winning bidder transfers the project that it has won to a third party，breaks up the project into parts and subsequently transfers the parts to third parties，subcontracts out some of the major or crucial parts of the project that it has won to a third party in violation of the Bid Invitation and Bidding Law and these Regulations，or the subcontractor further subcontracts its obligations，such transfer or subcontract shall be invalid and a fine of not less than 5‰but not more than 10‰of the value transferred or subcontracted shall be imposed; the illegal income shall be confiscated if any; and it may be ordered to suspend its business for rectification; if the circumstances are serious，the administrative department for industry and commerce shall revoke its business license.

Article　77　Where a bidder or other interested party fabricates facts，forges information or obtains materials of proof through illegal means in order and files a complaint，causing losses to a third party，the bidder or interested party shall be liable for compensation in accordance with law.

Where a bid inviter fails to respond to an objection in accordance with provisions and proceeds with the activities of bid invitation and submission，the relevant administrative supervision department shall order it to make corrections; if it refuses or fails to make corrections，thereby affecting the result of the determination of the winning bidder，the matter shall be dealt with in accordance with Article 82 of these Regulations.

Article　78　Where a professional with professional bid invitation qualifications engages in bid invitation in violation of relevant provisions of the State，the said professional shall be ordered to make corrections and shall be given a warning; if the circumstances are serious，he shall be ordered to cease engaging in bid invitation for a set period of time; if the circumstances are particularly serious，his professional bid invitation qualification shall be cancelled.

Article　79　The State shall establish a bid invitation and submission credibility system.The relevant administrative supervision departments shall，in accordance with law，announce the administrative decisions it makes in handling of the illegal acts by bid inviters，bid invitation agencies，bidders，members of bid evaluation committees and other parties.

Article　80　Where a department for examining，approving or verifying a project fails to examine，approve or verify the scope，manner and organizational form of the bid invitation for a project in accordance with law，the person in charge of the unit with competent accountability and other persons with competent accountability shall each be given a sanction in accordance with law.

Where a relevant administrative supervision department fails to fulfill its duties in accordance with law，fails to investigate and handle violations of the Bid Invitation and Bidding Law and these Regulations in accordance with law，fails to handle a complaint in accordance with provisions or fails to announce the administrative decisions it makes in handling of the illegal acts by a party involved in a bid invitation and submission in accordance with law，the person in charge of the unit with competent accountability or other persons with competent accountability shall each be given a sanction in accordance with law.

Where a staff member of the department for examining，approving or verifying a project or of the relevant administrative supervision department commits illegalities for personal gain，abuses his power or neglects his duties，and a crime is constituted，criminal liability shall be investigated for in accordance with law.

Article　81　Where a State staff member takes advantage of his post to illegally interfere with the activities of bid invitation and submission by any means，whether direct or indirect，or express or implied，which falls under any of the following circumstances，he shall be given a sanction of recording of a demerit or a serious demerit; if the circumstances are serious，he shall be given a sanction of demotion or removal from office; if the circumstances are particularly serious，he shall be given a sanction of discharge from employment; if a crime is constituted，criminal liability shall be investigated for in accordance with law.

(1)Requesting that no invitation for bids be carried out for a project that legally requires the invitation of bids，or requesting that a non-open invitation of bids be carried out for a project that legally requires an open invitation of bids;

(2)Requesting that a member of the bid evaluation committee or the bid inviter select the bidder designated by him as a candidate to be the winning bidder，or otherwise illegally interfering with the bid evaluation activities，thereby influencing the result of the determination of the winning bidder; or

(3)Otherwise illegally interfering with the activities of bid invitation and submission.

Article　82　Where the activities of bid invitation and submission for a project that legally requires the invitation of bids violate the Bid Invitation and Bidding Law and these Regulations，materially affecting the result of the determination of the winning bidder and the effect thereof cannot be rectified by remedial measures，the bid invitation，bids and the winning bid itself shall be invalid and bids shall be invited or evaluated anew in accordance with law.

ChapterⅦ　Supplementary Provisions

Article　83　Bid invitation and submission associations shall carry out their activities and strengthen industry self-regulation and service in accordance with their charters as formulated in accordance with law.

Article　84　Where laws or administrative regulations concerning the invitation and submission of bids for government procurement of goods or services provide otherwise，such provisions shall apply.

Article　85　These Regulations shall be effective as of February 1，2012.