Issuing a decree regulating costs in contractor selection

Việt NamViệt Nam01/03/2024

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The Government has just issued Decree No. 24/2024/ND-CP detailing a number of articles and measures to implement the Law on Bidding on contractor selection.

The Decree specifically stipulates costs in contractor selection. In particular, costs for preparing and appraising documents: Costs for preparing documents for expression of interest and documents for prequalification are calculated at 0.1% of the bid package price, but the minimum is VND 2 million and the maximum is VND 30 million; costs for appraising documents for expression of interest and documents for prequalification are calculated at 0.06% of the bid package price, but the minimum is VND 2 million and the maximum is VND 30 million.

The cost of preparing bidding documents and request documents is calculated at 0.2% of the bid package price, but the minimum is 3 million VND and the maximum is 60 million VND; the cost of evaluating bidding documents and request documents is calculated at 0.1% of the bid package price, but the minimum is 2 million VND and the maximum is 60 million VND.

The cost of evaluating the results of contractor selection, including the case where no contractor is selected, is calculated at 0.1% of the bid package price, but is at least 3 million VND and at most 60 million VND.

For bid packages with similar content belonging to the same project, procurement estimates of the same investor or bid packages requiring re-organization of contractor selection, the costs of: Preparing and appraising the invitation for expression of interest, invitation for pre-qualification documents; preparing and appraising the invitation for bid, request documents are calculated at a maximum of 50% of the prescribed cost level; in case of having to re-bid a part of the bid package (for split bid packages), the cost is calculated at a maximum of 50% of the cost level according to the estimated value of the re-bid part.

In case of reorganizing the contractor selection, the contractor selection cost must be calculated and added to the project and the procurement estimate must be consistent with the reality of the bidding package. In case of international bidding, the document translation cost must be calculated in accordance with the market price, ensuring the effectiveness of the bidding package.

The Decree also stipulates that the cost for the Advisory Council to resolve the contractor's recommendations on the results of contractor selection is calculated as a percentage of the bid price of the contractor with the recommendation: Bid price under 50 billion VND, rate 0.03% but minimum 5 million VND; bid price from 50 billion VND to under 100 billion VND, rate 0.025% but minimum 15 million VND; bid price from 100 billion VND to under 200 billion VND, rate 0.02% but minimum 25 million VND; bid price from 200 billion VND or more, rate 0.015% but minimum 40 million VND and maximum 60 million VND.

Regarding the refund of the cost of handling the petition: In case the petition of the contractor is concluded to be correct, the organizations and individuals involved are responsible for paying the contractor who submitted the petition an amount equal to the cost of handling the petition that the contractor has paid. In case the petition of the contractor is concluded to be incorrect, the contractor will not be refunded the cost of handling the petition.

TH (according to Vietnam+)

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