Implementing Regulations on the Tendering and Bidding Law of the People's Republic of China (Revised in 2017)

Order of the State Council of the People's Republic of China No.676

March 1, 2017

(Promulgated by the Order of the State Council of the People's Republic of China No.613 on December 20, 2011; and revised by the Decision of the State Council on Revising and Repealing Certain Administrative Regulations on March 1, 2017)

Chapter I General Principles

Articles 1 For the purpose of regulating the bid invitation and bidding related activities and in accordance with the Bid Invitation and Bidding Law of the People's Republic of China (the "Bid Invitation and Bidding Law"), these Regulations are enacted.

Article 2 The engineering construction projects mentioned in Article 3 of the Bid Invitation and Bidding Law refer to the construction works and goods and service relating to the construction works.
The works mentioned in above paragraph refers to construction works, including, without limitation, the new construction, reconstruction and expansion of buildings and structures and relevant improvement, removal, and renovation; The goods relating to engineering construction refer to the equipment and materials and other articles necessary for realization of basic function of projects and constituting integral parts of the construction projects; The service relating to the construction projects refers to the survey, design, supervision and other service necessary for completion of engineering constructions.

Article 3 The scope and scale of the engineering construction projects that must be subject to bid invitation in accordance with the law (the "Project Subject to Bid Invitation") shall be determined by the development and reform authority of the State Council together with other relevant authorities of the State Council, which may be put into implementation after approved by the State Council.

Article 4 The development and reform authority of the State Council shall be responsible for the guidance and coordination of national tending and bidding activities and will implement supervision and examination of the bid invitation and bidding activities for the material construction projects in the whole country. The Ministry of Industry and Information Technology, the Ministry of Housing and Urban-rural Development, the Ministry of Transport, the Ministry of Railway, the Ministry of Water Resources, the Ministry of Commerce and other authorities of the State Council shall carry out supervision on relevant bid invitation and bidding activities based upon the division of duties and authorities.
The development and reform authorities of the people's government above county level shall provide guidance and coordinate the bid invitation and bidding activities in their respective jurisdiction. The relevant authorities of the people's government above county level shall carry out supervision on the bid invitation and bidding activities and discover and investigate any illegal conducts occurred in the bid invitation and bidding activities based upon their respective duties and authorities. In the event that any additional provisions are made by the people's government above county level on the supervision related duties and authorization of their affiliated authorities, then such additional provisions shall prevail.
The authorities of finance shall carry out supervision on the budget performance and the implementation of governmental purchase policies of any governmental purchase engineering construction projects subject to the bid invitation and bidding in accordance with the law.
The supervision and inspection authorities shall carry out supervision and inspection on any parties participated in relevant bid invitation and bidding activities in accordance with the law.

Article 5 The local people's governments above city level and establishing districts may, as the case may be, establish uniform bid invitation and bidding trading market to provide service for bid invitation and bidding activities. The bid invitation and bidding trading market shall not be administratively subordinated to the administrative and supervision authorities and shall not be for profitmaking purpose.
It is encouraged to carry out electronic bid invitation and bidding activities via information network.

Article 6 All public servants are prohibited to interfere with the bid invitation and bidding activities by any illegal means.

Chapter II Bid invitation Article

Article 7 For any projects that are subject to approval and review procedures and must be undergone the bid invitation and bidding procedures in accordance with the law, the scope, means, and organization types of bid invitation shall be reported to relevant project review and approval authorities for review and approval. The project review and approval authorities shall, in timely manner, notify relevant administrative supervision authorities of the reviewed and approved scope, means, and organization types of bid invitation.

Article 8 For any projects that the state-owned funds are in controlling or dominant positions, public bid invitation shall be carried out; however, private bid invitation may be carried out in the event of any one of the following situations:
1. The projects are technically complex and with special requirements or are subject to the limitation of natural environment, and only few potential bidders are available;
2. The costs of the project by means of open tendering take up much too large a proportion in the contract value of the project.
The projects that are under the situation listed above Item (2) and are subject to the provisions of Article 7 hereto shall be recognized by the project review and approval authorities upon review and approval of the projects; other projects shall be recognized by relevant administrative supervision authorities with the application by the bid inviters.

Article 9 In addition to the special situations that public bid invitation may not be carried out as set forth in Article 66 of the Bid Invitation and Bidding Law, public bid invitation may also not be carried out in the event of any one of following events:
1. Irreplaceable patents or know-how are required;
2. Purchaser can construct, produce or provider the project or goods or service in accordance with the law;
3. The investors of franchised operating projects selected by means of bid invitation can construct, produce or provide the project, goods or service;
4. It is required to purchase works, goods or service from original bidder, otherwise the construction or functional supporting requirements will be affected;
5. Other special situations set forth in any applicable laws and regulations.
Any bid inviter who practices fraud to cause the application of above paragraph is in violation of the evasion of bid invitation as set forth in Article 4 of the Bid Invitation and Bidding Law.

Article 10 The provisions under Article 12.2 of the Bid Invitation and Bidding Law that Bid inviters who has the capacity to prepare bid invitation documents and organize bid evaluations refer to that Bid inviters who has the professional staff in the fields of technology and commerce compatible to the scale and complexity of the projects under bid invitation.

Article 11 The qualification of bid invitation agencies is subject to the accreditation by relevant authorities in accordance with the law and the regulations of the State Council.
The Ministry of Housing and Urban-Rural Development, the Ministry of Commerce, the National Development and Reform Commission, the Ministry of Industry and Information Technology and other authorities of the State Council shall, based upon their respective duties and authorization, carry out supervision and administration on bid invitation agencies.

Article 12 Bid invitation agencies shall have proper professional staff who have abilities to prepare tendering documents or organize the bid evaluation and other corresponding abilities.

Article 13 Bid invitation agencies shall carry out bid invitation agency business within the scope of their respective qualification and the scope of authorization by their respective bid inviters and no organization or individual may interfere with such business illegally.
Bid invitation agencies shall, upon carrying out bid invitation agency business, observe the provisions of Bid Invitation and Bidding Law and these Regulations. The bid invitation agency shall not bid for themselves or on behalf of other bidders in the projects with bid invitation carried out by them, nor provide advice for the bidder of such projects.
Bid invitation agencies shall not alter, rent, lease or transfer their qualification certificates.

Article 14 Bid inviters shall execute written agency contracts with their bid invitation agencies, and the charging standards under which shall be satisfactory to the provisions of relevant laws and regulations.

Article 15 For any projects under public bid invitation, bid invitation notice and bid invitation documents shall be prepared and issued in accordance with the Bid Invitation and Bidding Law and these Regulations.
Bid inviters who carry out qualification examination for potential bidders with the methods of pre-qualification shall release the pre-qualification notices and prepare prequalification documents.
Prequalification notices and bid invitation notices of projects subject to bid invitation procedures shall be released in the mediums designated by the development and reform authority of the State Council in accordance with the law. The prequalification notices and bid invitation notices of same project but released in different mediums shall be kept the same concerning their contents. The designated mediums shall not charge any fees for the release of prequalification notices and bid invitation notices of the projects subject to the bid invitation.
The prequalification documents and bid invitation documents shall be prepared in accordance with the standard texts prepared by the development and reform authority of the State Council together with other administrative supervision authorities.

Article 16 Bid inviters shall sell prequalification documents or bid invitation documents as per the time and place set forth in prequalification notice, bid invitation notice and bid invitation. Prequalification documents or bid invitation documents shall be available for sale at least 5 days.
Bid inviters shall charge only such fees for the sale of prequalification or bid invitation documents as costs for compensation for the printing and mailing of such documents and shall not do so for profitmaking purpose.

Article 17 Bid inviters shall affirm a reasonable deadline for submission of prequalification application documents. Such deadline shall be at least 5 days from the day of stopping sale of the prequalification documents.

Article 18 The prequalification shall be done in accordance with the standards and methods as stated in the prequalification documents.
For any project subject to bid invitation that the state-owned funds are under controlling or dominant positions, bid inviter of such project shall establish a qualification review committee to be responsible for the review of the prequalification application documents. The qualification review committee and its members shall observe the provisions of the Bid Invitation and Bidding Law and these Regulations on qualification review committees and their members.

Article 19 After completion of prequalification, bid inviters shall, in timely manner, deliver the notice of the results of qualification review to the applicants for qualification review. Those applicants failing the qualification review are disqualified for bidding.
If less than 3 applicants passing the qualification review, new bid invitation shall be held.

Article 20 If bid inviters review the qualification with the method of postqualification, then the qualification of the bidders shall be reviewed by the bid evaluation committee in accordance with the standards and methods as stated in the bid invitation documents after the opening of the bids.

Article 21 Bid inviters may make necessary clarification or amendments to the prequalification or bid invitation documents released. If the clarification or amendments may cause influence on the preparation of prequalification or bid invitation documents, Bid inviters shall, at least 3 days prior to the deadline of the submission of the qualification review documents, or at least 15 days prior to the deadline of submission of bids, notify in writing form all potential bidders obtaining the prequalification or bid invitation documents of such clarification or amendments; In the event of failing to do so for such 3 days or 15 days term, Bid inviters shall extend the such deadline accordingly.

Article 22 Any potential bidders or other stakeholders who have any objections to the prequalification documents shall raise their opinions 2 days prior to the deadline of submission of prequalification application documents and if they have any objections to the bid invitation documents, then their opinions shall be raised 10 days prior to the deadline of submission of bids. Bid inviters shall response within 3 days of receiving such objection and shall suspend the bid invitation or bidding activities before doing so.

Article 23 If any prequalification documents or bid invitation documents are in violation of the mandatory provisions of relevant laws and regulations, or the principles of transparency, fairness, equality and good faith, or may affect the results of qualification review or submission of bids by potential bidders, then Bid inviters shall carry out a new bid invitation after amending the prequalification documents or bid invitation documents.

Article 24 If any bid inviter divides the project subject to bid invitation into different bidding parts, Bid inviters shall observe relevant provisions of the Bid Invitation and Bidding Law and shall not try to restrict or exclude any potential bidders by taking advantage of division of bidding parts. Any bid inviter shall not try to evade the bid invitation and bidding by dividing the projects into different bidding parts.

Article 25 Bid inviters shall state the effective term of submission of bids in the bid invitation documents. The effective term for submission of bids shall commence from the deadline of submission of bids.

Article 26 If a bid bond is required by Bid inviters in the bid invitation documents, the bid bond shall not exceed 2% of the estimated price of the project. The effective term of the bid bond shall be the same as that of the submission of bids.
Domestic bidders shall transfer from their basic accounts the bid bonds provided in cash or cheque.
No bid inviter shall embezzle any bid bonds.

Article 27 Bid inviters may determine whether to prepare a base price at their own discretion. A project shall have only one base price. The base price shall be kept in confidentiality.
Any intermediaries who prepare the base price on behalf of bid inviters shall not participate in the bidding of the project with such base price, nor prepare bid documents or provide advice for the bidders of such project.
If any bid inviter establishes a maximum price for the bidding, then Bid inviters shall define such cap price or the calculation methods of such cap price in the bid invitation documents. Bid inviters shall not establish a minimum price for bidding.

Article 28 Any bid inviter shall not organize individual or partial potential bidders to survey the site of the relevant project.

Article 29 Bid inviters may apply EPC bid invitation for the whole or part of the works or the goods, service relating to the construction of works. If any works, goods or services included in the scope of EPC in the form of temporary pricing belong to the project that must be subject to bid invitation and reach the scale standards as provided for by the government, bid invitation shall be carried out in accordance with the law.
The temporary pricing mentioned in above paragraph refers to the price of the works, goods or service estimated by Bid inviters in the bid invitation documents for the reason of failing to ascertain the price of them.

Article 30 For projects with complex technique or with technical specifications unable to be determined accurately, Bid inviters may make bid invitation in two stages.
In the first stage, bidders shall submit technical advice without price as required in the bid invitation notice or bid invitation, and bid inviters shall determine the technical standards and requirements and prepare the bid invitation documents based upon the technical advice submitted by the bidders.
In the second stage, Bid inviters shall provide bid invitation documents for the bidders providing technical advice in the first stage, and the bidders shall, based upon the requirements as set forth in the bid invitation documents, submit the bid documents including the final technical schemes and price offered.
If bid inviters require to provide a bid bond, then Bid inviters shall do so in the second stage.

Article 31 Bid inviters shall, if terminating the bid invitation, give notice in timely manner, or inform in writing form the invited potential bidders or those potential bidders having obtained the qualification of prequalification or bid invitation documents. If prequalification documents, bid invitation documents have been sold out or bid bonds have been received, bid inviters shall refund in timely manner the fees having been charged for such documents or the bid bonds having been received with interests accrued thereon in the same period.

Article 32 Bid inviters shall not restrict or exclude potential bidders or bidders by imposing unreasonable conditions.
Bid inviters will be deemed as having restricted or excluded potential bidders or bidders by imposing unreasonable conditions in the event of any one of following situations:
1. Provide differential information for potential bidders or bidders in the same bid invitation activities;
2. Establish qualification, technical or commercial conditions that are incompatible with the characteristics and actual demands of the projects or are irrelevant with the implementation of the contracts;
3. Set the performance or awards in special jurisdictions or special industries as preferential conditions or bid winning conditions;
4. Apply different qualification review or bid evaluation standards for potential bidders or bidders;
5. Define or designate special patents, trademarks, brands, countries of origin or suppliers;
6. Define illegally the ownership forms or types of organizations of potential bidders or bidders;
7. Restrict or exclude potential bidders or bidders by other unreasonable conditions.

Chapter III Bidding

Article 33 Bidders' participation in the bidding for any projects will not be subject to the restriction of regions or authorities nor be interfered by any organizations or individuals.

Article 34 Legal entities, other organizations or individuals having stakes with bid inviters which may impact the fairness of the bid invitation activities shall not participate in the bidding.
Different organizations with same person in charge or with controlling or management relationship shall not participate in the bidding for same bid sections or the project without division of bid sections.
All bidding activities violating provisions of above two paragraphs shall be void and null.

Article 35 Bidders shall, if withdrawing the submitted bid documents, give writing notice to Bid inviters prior to the deadline of the submission of bids. Bid inviter shall, if having received bid bonds, refund the bid bonds to the bidders within 5 days of receiving the written notice of such bidders of withdrawal of their bids.
If any bidder withdraws its bid documents after the deadline of submission of bids, Bid inviters may not refund the bid bonds.

Article 36 Bid inviters shall not accept any bid documents submitted by the applicants failing to pass the prequalification or delivered after the deadline or not sealed as per the requirements as set forth in bid invitation documents.
Bid inviters shall record the service time and sealing conditions of the bidding documents accurately and keep them in archives for enquiry.

Article 37 Bid inviters shall state in the prequalification notices, bid invitation notices or bid invitations whether they accept bid consortium.
If bid inviters accepts bid consortium and carry out prequalification for the consortium, the consortium shall be formed prior to the submission of prequalification application documents. If the consortium adds, excludes or changes members after the prequalification, then the bidding made by it shall be null and void.
If any member of the consortium makes bidding in the same project independently in its own name or by participating in other consortiums, then the bidding made by such member shall be null and void.

Article 38 Any bidder who is under consolidation, split-up, bankruptcy and other material changes shall inform in writing form Bid inviters of such information in timely manner. If any bidder does not possess the qualification as set forth in the prequalification documents, bid invitation documents or its bidding impacts the fairness of the bid invitation activities, then the bidding made by such bidder shall be null and void.

Article 39 All bidders are prohibited to collude in the bidding.
Bidders are colluded in bidding in the event of any one of following situations:
1. Bidders negotiate the offers or other substantial contents of bidding documents;
2. Bidders make agreements on the winner of bids;
3. Bidders make agreements on the giving up of bidding or winning of the bidding by certain bidders;
4. Bidders belonging o same group, association, chamber of commerce or other organizations cooperate in the bidding as required by such organizations;
5. Bidders carry out other cooperative activities to seek the winning of bids or exclusion of certain bidder(s).

Article 40 Bidders will be deemed as having colluded in bidding in the event of any one of the following situations:
1. Bidding documents of different bidders are prepared by same organizations or individuals;
2. Different bidders retain same organizations or individuals to carry out the bidding activities;
3. Same persons are designated in the bidding documents of different bidders as the managerial members of the same project;
4. Bidding documents of different bidders are unusually the same or show regular difference in the offers;
5. Bidding documents of different bidders are mixed;
6. Bid bonds of different bidders are transferred from the account of same organizations or individuals.

Article 41 Bid inviters and bidders are prohibited to collude in bidding.
Bid inviters and bidders have colluded in bidding in the event of the any one of following situations:
1. Bid inviters open the bidding documents and discloses relevant information to other bidders prior to bid opening;
2. Bid inviters disclose bidders the base price, member of bid evaluation committee and other information directly or indirectly;
3. Bid inviters request expressly or impliedly bidders to lower or increase the offers of the bidding documents;
4. Bid inviters incite bidders to replace or amend bidding documents;
5. Bid inviters request expressly or impliedly bidders to provide convenience for certain bidder to win the bidding;
6. Bid inviters and bidders collude by other means to seek the winning of the bidding by certain bidder.

Article 42 Any bidding by any bidder by obtaining the qualification and qualification certificates by means of transfer or lease or other means is the bidding made in the name other parties as set forth in Article 33 of the Bid Invitation and Bidding Law.
Any bidder has committed the other acts of practicing fraud as set forth in Article 33 of the Bid Invitation and Bidding Law in the event that such bidder is under any one of following situations:
1. Use forged or modified license certificates;
2. Provide fraudulent financial positions or performance;
3. Provide fraudulent resume and labor relationship certificates of the persons in charge of the project or main technicians of the project;
4. Provide fraudulent credit status;
5. Practice other fraudulent acts.

Article 43 Applicants submitting prequalification application documents shall observe the provisions of the Bid Invitation and Bidding Law and these Regulations of bidders.

Chapter IV Bid opening, evaluation and winning

Article 44 Bid inviters shall open the bids in the time and place as set forth in bid invitation documents.
Bids shall not be opened in the event of less than 3 bidders and bid inviter shall carry out new bid invitation.
Bidders shall raise any objection to the opening of bids at the site of the opening and bid inviters shall respond immediately at the site and make records.

Article 45 Uniform classification standards and management measures will be applied for the experts of evaluation of bids. The detailed standards and measures are to be formulated by the development and reform authority of the State Council together with other authorities of the State Council.
The people's government of provincial level and relevant authorities of the State Council shall establish comprehensive bid evaluation expert bank.

Article 46 Except the projects subject to special bid invitation procedures as set forth in Article 37.3 of the Tending and Bidding Law, for any projects that must be subject to bid invitation in accordance with the law, the experts of evaluation of bids of such projects shall be determined by means of random selection from the list of experts of relevant fields in the bid evaluation expert bank. Any organization or individual shall not designate in express, implied or other means or in disguised means the experts to form the members of the bid evaluation committee.
Bid inviters shall not change the members of bid evaluation committee determined in accordance with the law, without due causes as set forth in the Bid Invitation and Bidding Law and these Regulations. The change of expert members of bid evaluation committee shall be made in accordance with the provisions of above paragraph.
Any member of the bid evaluation committee who has stakes with the bidders shall leave the bid evaluation committee actively.
Relevant administrative supervision authorities shall, based upon their duties or authorization assigned legally, carry out supervision on the determination of members of bid evaluation committee, selection of bid evaluation experts and bid evaluation activities. The staff of the administrative supervision authorities shall not act as members of the bid evaluation committees of the projects under their supervision.

Article 47 The projects subject to special bid invitation procedures mentioned in Article 37.3 of the Bid Invitation and Bidding Law refer to projects with complex technique, highly specialty or special requirements by governments that the bid evaluation and winning are hard to be determined by the experts selected randomly.

Article 48 Bid inviters shall provide all information necessary for the bid evaluation for the bid evaluation committee, but shall not request expressly or impliedly the bid evaluation committee to select or exclude certain bidders.
Bid inviter shall, based upon the scale and technical complexity and other factors of the project, determine the bid evaluation time reasonably. If more than one third of the members of the bid evaluation committee deems that the bid evaluation time is not enough, Bid inviters shall extend the time properly.
During the evaluation of bids, any members who are under avoidance situation, or absent without leave or are unable to carry out bid evaluation for the reason of health shall be replaced in timely manner. The conclusions made by the replaced members shall be null and void and the new members of the bid evaluation committee shall evaluate the bids newly.

Article 49 Bid evaluation committees shall, pursuant to the provisions of the Bid Invitation and Bidding Law and these Regulations and based upon the evaluation standards and methods as set forth in bid invitation documents, raise evaluation opinions on the bidding documents in objective and fair manner. The evaluation standards and methods not specified in the bid invitation documents shall not be used as the basis of bid evaluation.
Members of the bid evaluation committee shall not contact privately the bidders, receive properties or other benefits afforded by the bidders, nor enquire Bid inviters the intention of determination of winner of bidding, nor accept the requirements for selection or exclusion of certain bidders raised expressly or impliedly by any organization or individuals, nor commit any other subjective, unfair acts upon implementing duties.

Article 50 In the event of base price set for the project subject to bid invitation, bid inviter shall disclose such base price upon opening the bids. The base price shall be used as reference for bid evaluation and shall be used as winning conditions based upon whether the offers in the bids reach the base price, nor be used as a condition of rejection of certain bids based upon whether the offers in the bids exceed the scope of fluctuation.

Article 51 Bid evaluation committee shall reject bidding of any bidder in the event of any one of following situations:
1. Bidding documents are not sealed by the bidder or signed by the person in charge of the bidder;
2. Bid consortium does not submit joint bidding agreement;
3. The bidder does not comply with the qualification conditions required by the government or bid invitation documents;
4. The bidder submits more than two different bidding documents or bid offers, unless otherwise requires to do by the bid invitation documents so to provide standby bid;
5. Bid offer is lower than the costs or higher than the maximum bid price established in bid invitation documents;
6. Bidding documents do not respond to the substantial requirements and conditions set forth in bid invitation documents;
7. The bidder practices any illegal acts such as collusion in bidding, practice of fraud and bribery.

Article 52 If any bidding documents contain ambiguous contents, or obvious wording or calculation mistakes, and if the bid evaluation committee deems that clarification and illustration are required, the bid evaluation committee shall give writing notice to the bidder of doing so. The bidder shall make the clarification and illustration in writing form and the contents of the clarification and illustration shall not exceed the scope of bid invitation documents or change the substantial contents of bid invitation documents.
Bid evaluation committee shall not hint or induce any bidder to make clarification or illustration, nor accept the clarification or illustration made on bidder's own initiative.

Article 53 After completion of bid evaluation, bid evaluation committee shall submit to bid inviter a written evaluation report and the list of candidates of winner of bidding. Candidates of winner of bidding shall not be more than 3 and shall be marked with order of priority.
Bid evaluation report shall be signed by all members of the bid evaluation committee. Any member who has different opinions on the results of bid evaluation shall state his or her opinions and reasons in writing form, which shall be indicated in the bid evaluation report. If any member of the bid evaluation committee refuses to neither sign the bid evaluation report nor state his or her dissenting opinions and reasons, such member will be deemed as agree with the results of bid evaluation.

Article 54 Bid inviters shall, within 3 days of receiving the bid evaluation report, publicize the candidates of winner of bidding with a period of at least 3 days.
Any bidder or other stakeholder who has objection to the results of bid evaluation shall raise his or her objection within the period for publicizing the candidates of winner of bidding. Bid inviters shall make response within 3 days of receiving the objection or shall suspend bid invitation or bidding activities if failing to do so.

Article 55 For the projects where state-owned funds have controlling or dominant positions and which are subject to bid invitation, bid inviters shall select the candidate ranking first as the winner of bidding. If the candidate ranking first gives up the winning of bidding, fails to implement the contract for the reason of force majeure, fails to provide performance bond as required in the bid invitation documents, or is found under any violation of the law that causes impact on the results of winning of the bidding and therefore is disqualified for the winning conditions, bid inviter may select the candidates in turn as per the sequence of candidates of winners raised by the bid evaluation committee to be the winner of the bidding, or may carry out new bid invitation procedure.

Article 56 In the event that any candidate of winner of bidding encounters material change in its operation or financial position or violates any law and Bid inviters deems it may affect the ability of such candidate of performance of contract, such situation shall be reviewed by the original bid evaluation committee as per the standards and methods set forth in bid invitation documents prior to the issue of bid winning notice.

Article 57 Bid inviters and bid winners shall enter into written contract in accordance with the Bid Invitation and Bidding Law and these Regulations (the "Contract"), and the main provisions of such contract, including without limitation, subject matter of contract, price, quality, and deadline for performance, shall be in line with the contents set forth in bid invitation documents and bidding documents of the bid winner. Bid inviters and bid winners shall not enter into other agreement that is in conflict with the substantial contents of the Contract.
Bid inviters shall, at least within 5 days of entering into the written contract, refund to the failing bidders the bid bonds and the interests thereon for the corresponding period.

Article 58 If a bid winner is required to provide a performance bond as required in bid invitation documents, bid winner shall do so as required in the bid invitation documents. The performance bond shall not exceed 10% of the price of winning contract.

Article 59 Bid winner shall implement its obligations as per the Contract and complete the project. The bid winner shall not transfer the project to other parties, nor break down the project into subcontracts and transfer them to other parties.
Bid winner may, subject to the agreement under the Contract or with the consent of the bid inviter, subcontract the works not being the main body or key works of the project to other parties. The parties accepting the subcontracting shall possess corresponding qualification and shall not subcontract them.
Bid winner shall be liable to Bid inviters for the whole project and the subcontractors shall hold joint and several liability against the subcontracted works.

Chapter V Compliant and treatment

Article 60 Bidders may or other stakeholders may, if they deem that the bid invitation activities are not in compliance with the laws or regulations, lodge complaints to relevant administrative supervision authorities within 10 days upon which they know or should have known the same. The complaints shall be made with clear claims and necessary evidentiary materials.
For any compliant concerning the matters set forth in Article 22, 44, and 54 of these Regulations, objection shall be made firstly to the bid inviter, where the objection response period shall not be included in the period mentioned in above paragraph.

Article 61 If any complainant makes complaints concerning same matter to two competent administrative supervision authorities or more, then the authority receiving the compliant firstly shall be responsible for settlement of such compliant.
The administrative supervision authorities shall, within 3 working days of receiving the compliant, decide whether to accept the complaint and shall made written settlement decisions within 30 working days of accepting the complaint, with all the time necessary for inspection, testing, verification and expert review excluded from such period.
If any complainant makes complaints by fabricating information, forging materials or obtaining evidentiary materials through illegal means, the administrative supervision authorities shall overrule such complaints.

Article 62 The administrative supervision authorities shall, upon settling any complaint, have the right to consult and copy relevant documents, data, and carry out relevant investigations and the organizations and individuals concerned shall provide cooperation. If necessary, the administrative supervision authorities may order to suspend the bid invitation and bidding activities.
The staff of administrative supervision authorities shall keep confidential of any state secrets and trade secrets known during the supervision and inspection.

Chapter VI Legal liabilities

Article 63 Competent administrative supervision authorities shall, according to Article 51 of the Bid Invitation and Bidding Law, impose penalties on Bid inviters committing any one of following acts to restrict or exclude potential bidders:
1. Bid inviters does not release the prequalification notice or bid invitation notice in the designated medium in accordance with law for any project subject to public bid invitation;
2. The prequalification notice or bid invitation notice released in different medium for same project are different in their contents, which affect the application for prequalification or bidding by potential bidders.
If any bid inviters of a project subject to bid invitation does not release the prequalification notice or bid invitation notice in accordance and constitutes evasion of bid invitation, then penalties shall be imposed in accordance with Article 49 of the Bid Invitation and Bidding Law.

Article 64 Competent administrative supervision authorities shall issue correction order and may give a fine in the amount of CNY100, 000 or less if any bid inviter is under any one of following situations:
1. Bid inviters applies private bid invitation for any project that public bid invitation shall be applied;
2. The term of sale, clarification or amendment of the bid invitation documents, or prequalification documents, or the term confirmed for submission of prequalification documents or bidding documents are not in conformity with the provisions of the Bid Invitation and Bidding Law and these Regulations;
3. Bid inviters accept bidding by any organization or individual not passing the prequalification;
4. Bid inviters accept bidding documents that shall be refused.
If a bid inviter commits any one of the acts listed in above Item 1, Item 3 and Item 4, punishment shall be given to the person directly in charge of Bid inviters or other ultimate persons liable in accordance with the law.

Article 65 If any bid invitation agency submits bids for itself or on behalf of third parties for the acting project, or provides advice for bidders of such project, or accept the bidding by the intermediary preparing the base price of the project for the project with the base price or prepare bidding documents or provide advice for the bidders of such project

Article 66 If any bid inviter collects bid bonds or performance bonds above the proportion mentioned in these Regulations, or does not refund the bid bonds and interests thereon in accordance with these Regulations, competent administrative supervision authorities shall give correction order, and may impose a fine in the amount of CNY50, 000 or less; If any loss is caused to other parties, relevant compensation liabilities shall be borne by Bid inviters in accordance with the law.

Article 67 If any bidder colludes in bidding with other bidders or with bid inviter, or any bidder gives bribes to Bid inviters or bid evaluation committee to seek winning of the bidding, the winning of the bid by such bidder shall be null and void; If such bidder is suspected of committing a crime, criminal liability will be investigated; If such bidder's violation is not constituting a crime, then punishment shall be given in accordance with Article 53 of the Bid Invitation and Bidding Law. If such bidder does not win the bidding, a fine will be imposed on the organization of the bidder in the amount calculated as per the proportion set forth in the Bid Invitation and Bidding Law based upon the contract price of the project under bid invitation.
Competent administrative and supervision authorities shall cancel 1-2 years' qualification for bidding of any projects under bid invitation of any bidder who has any one of following acts, which are the gross violation as set forth in Article 53 of the Bid Invitation and Bidding Law:
1. Win the bidding by giving bribes;
2. Collude in bidding for more than 2 times within 3 years;
3. Cause CNY300,000 or more of direct economic loss for collusion in bidding and damaging the legitimate interests of the bid inviter, other bidders or the legitimate of the country, collective or other individuals;
4. Commit other gross violations with respect to collusion in bidding.
If any bidder commits any one of violations listed in Paragraph 2 of this Article again within 3 years from the day of expiration of the execution of the punishment as set forth in this paragraph, or collude with other parties in bidding or win the bidding by giving bribes, with gross violation, the competent industrial and commercial administrative authorities shall revoke the business license of such bidder.
If any law or regulation provides otherwise concerning the punishment on the collusion in bidding, then such law or regulation shall prevail.

Article 68 If any bidder wins the bidding by practicing fraud by means of bidding in the name of other parties or other means, then the winning by such bidder shall be null and void; If any crime is constituted, criminal liability shall be investigated; If any violation of such bidder does not constitute a crime, punishment shall be given in accordance with Article 54 of the Bid Invitation and Bidding Law. If such bidder does not win the bidding, then a fine may be imposed on the organization of such bidder in the amount calculated as per the proportion specified in the Bid Invitation and Bidding Law based upon the contract price of the project under bid invitation.
Competent administrative and supervision authorities shall cancel 1-3years' qualification for bidding of any projects under bid invitation of any bidder who has any one of following acts, which are the gross violations as set forth in Article 54 of the Bid Invitation and Bidding Law:
1. Forge or modify any qualification and competence certificates or other license certificates to win the bidding;
2. Make bidding in the name of other parities for more than 2 times within 3 years;
3. Practice fraud to win the bidding and cause CNY300,000 or more of direct economic loss to the bid inviter;
4. Practice other frauds of gross violations to win the bidding with gross violation
If any bidder commits any one of violations listed in Paragraph 2 of this Article again within 3 years from the day of expiration of the execution of the punishment as set forth in this paragraph, or collude with other parties in bidding or win the bidding by giving bribes, with gross violation, the competent industrial and commercial administrative authorities shall revoke the business license of such bidder.

Article 69 If any party transfers or lease qualification or competence certificates for bidders to make bidding, then administrative punishment shall be given to such party in accordance with the laws and regulations; If a crime is constituted, then relevant criminal liability shall be investigated in accordance with the law.

Article 70 If Bid inviters of a project subject to bid invitation in accordance with the law does not establish a bid evaluation committee, or determines or change the members of the bid evaluation committee in violation of the Bid Invitation and Bidding Law and these Regulations, competent administrative supervision authorities shall give correction order to, and may impose a fine in the amount of CNY100,0000 or less on such bid inviter, and give punishment on the person in charge of Bid inviters and other ultimate persons liable. The evaluation results of the members of the bid evaluation committee illegally determined or changed shall be null and void and a new bid evaluation shall be carried out.
If any public servant interferes with the selection of members of the bid evaluation committee by any illegal means, then legal liabilities shall be investigated in accordance with Article 81 of these Regulations.

Article 71 If any member of the bid evaluation committee has any one of following acts, competent administrative supervision authorities shall order such member to correct its act; If such act causes gross consequence, such member is prohibited to participate in the evaluation of bids within certain period; If such act causes extremely gross consequence, the qualification of such member to act as a member of bid evaluation committee shall be revoked:
1. Does not avoid the evaluation if such member shall do so;
2. Absent the evaluation without leave;
3. Does not carry out the evaluation of bids in accordance with the standards and methods set forth in bid invitation documents;
4. Contact the bidders privately;
5. Enquire Bid inviters about the information concerning the intention of the winner of the bidding, or raise requirements for restriction or exclusion of certain bidders according to the express or implied requirements of any organization or individual;
6. Does not raise the rejection opinions on any bids that shall be rejected in accordance with the law;
7. Hint or induce the bidders to make clarification or illustration or accept the clarification or illustration made by bidders on their own initiative;
8. Commit other acts of not implementing its duties objectively and equally.

Article 72 If any member of a bid evaluation committee accepts properties or other benefits from any bidders, then such properties shall be confiscated and a fine more than CNY3,000 and less than CNY50,000 shall be imposed on such member and the qualification of such member to act as a member of the bid evaluation committee shall be revoked and such member shall not participate in the bid evaluation of the any project subject to bid invitation; If any crime is constituted, then relevant criminal liabilities shall be investigated against such member.

Article 73 If any bid inviter of a project subject to bid invitation has any one of following acts, competent administrative supervision authorities shall order such bid inviter to correct its act and may impose a fine on such bid inviter in the amount of 10‰ of the price of the project; Any loss thus caused to other parties shall be indemnified by such bid inviter and punishment shall be given to the person directly in charge of the organization of Bid inviters or other ultimate persons liable in accordance with the law:
1. Fail to release the notice of acceptance without due causes;
2. Fail to determine the winner of the bidding in accordance with relevant provisions;
3. Change the results of acceptance of bid without due causes after the release of notice of acceptance;
4. Refuse to enter into contract with the winner of bidding without due causes;
5. Raise additional conditions on the winner when entering into the contract.

Article 74 If winner of the bidding refuses to enter into the contract with the bid inviter, or raise additional conditions on Bid inviters when executing the contract; or fails to provide performance bond as required in the bid invitation documents, without due causes, the results of winning of the bidding of such winner shall be revoked, and the bid bond will not be refunded. Competent administrative supervision authorities shall give order to such winner to correct its act and may impose a fine on such winner in the amount of 10‰ of the winning price of the project or less.

Article 75 If bid inviter and winner of bidding do not enter into the Contract in accordance with the bid invitation documents or the bidding documents of winner, or the main provisions of the Contract are inconformity with those in the bid invitation documents and bidding documents of the winner, or Bid inviters and the winner of bidding enter into agreements deviating from the substantial contents of the Contract, competent administrative supervision authorities shall order them to correct their acts and may impose a fine on them in the amount of more than 5‰ and less than 10‰ of the winning price of the project.

Article 76 If winner of bidding transfers the won project to other parties, or breaks down the project and them subcontract it to other parties, or subcontracts the main body or key works of the project to other parties in violation of the Bid Invitation and Bidding Law and these Regulations, or the subcontractors subcontract the works, then such transfer or subcontracting shall be null and void, and a fine more than 5‰ and less than 10‰ of the price of the works transferred or subcontracted; If any legal benefits are thus obtained by the winner, such benefits shall be confiscated and the winner may be ordered to suspend its operation for correction. In the event of gross violation, the industrial and commercial administration authorities shall revoke the business license of such winner.

Article 77 If any bidder or other stakeholder makes complaints by fabricating information, forging materials or obtaining evidentiary materials by illegal means and causes loss to other parties, such bidder and stakeholder shall compensate for such loss in accordance with the law.
If bid inviter continues to carry out the bid invitation or bidding activities without giving response to any objection, competent administrative supervision authorities shall order Bid inviters to correct its acts; If Bid inviters refuses to make correction or is unlikely to make correction and affects the results of the bidding, the provisions of Article 82 of these Regulations shall prevail.

Article 78 A bid invitation and bidding credit system will be established and relevant administrative supervision authorities shall made administrative settlement decisions on the violations by the bid inviter, bid invitation agency, bidders and members of bid evaluation committee and other parties concerned.

Article 79 If any project reviews and approval authorities do not review or approve the scope, means, and organization types of bid invitation of the project, punishments shall be given on the person directly in charge of such authorities and other ultimate persons liable.
If any competent administrative supervision authorities do not implement their duties, do not investigate any illegal bid invitation or bidding activities or any other acts in violation of these Regulations, or do not settle the complaints, or do not announce the administrative settlement decisions on any violations of the parties concerning the bid invitation or bidding, in accordance with the law, punishments shall be given on the person directly in charge of such authorities and other ultimate persons liable.
If any staff of the project review and approval authorities or competent administrative supervision authorities engage in fraud, abuse of authorization, neglect of duty and constitute crimes, then relevant criminal liabilities shall be investigated.

Article 80 If any pubic servant has any one of following acts by taking advantage of its position, and interfering illegally with the bid invitation or bidding activities through direct or indirect, express or implied means, punishment of recording a demerit or a serious demerit will be given; In the event of gross violation, punishment of lowering position or dismissal will be given and in the event of extremely violation, punishment of removal of position will be given; In the event of committing a crime, criminal liabilities will be investigated:
1. Request the owner of any project subject to bid invitation not to carry out bid invitation, or request Bid inviters of any project subject to public bid invitation not to make public bid invitation;
2. Request the members of bid evaluation committee or bid inviter to select the bidder designated by it as the candidate of winner or the winner of the bidding, or interferes with the bid evaluation illegally by other means and cause impact on the results of bid evaluation;
3. Interfere with the bid invitation or bidding activities illegally by other means.

Article 81 If any bid invitation or bidding activities violate the provisions of the Bid Invitation and Bidding Law and these Regulations and cause material impact on the results of acceptance of bids and can't be corrected through remedy measures, the bid invitation, bidding, and winning of bidding shall be null, and new bid invitation or bidding or bid evaluation shall be carried out.

Chapter VII Miscellaneous

Article 82 Bid invitation and bidding association shall carry out relevant activities in accordance with its Articles of Association and strengthen autonomy and service.

Article 83 If any purchase related laws and regulations contain additional provisions on the goods and service purchased by governments, then such additional provisions shall prevail.

Article 84 These Regulations shall come into force on February 1, 2012.