For package contracts, the contractor must calculate and allocate the contingency cost to the bid price; do not separate the part of the contingency cost that the contractor has allocated in the bid price for consideration and evaluation in the financial and commercial evaluation of the bid.

Ms. Kieu Nguyen Unit (in Phu Tho Province) is evaluating the bid for a project, the approved bidding package price is 10 VND billion (cost of items is VND 9.5 billion; contingency fee is VND 0.5 billion) . The bidder offered a bid of VND 9.9 billion (cost of items was VND 9.7 billion, provision was VND 0.2 billion).

Ms. Nguyen asked the authorities to answer, the bidding package price is still smaller than the approved bidding package price, but the bid value of the items is greater than the approved item value, other conditions, the contractor. is responsive; Is the bid price lowest, so is it considered winning the bid?

The Ministry of Planning and Investment responded to this issue as follows:

As stipulated by Point c, Clause 1, Article 62 of the Bidding Lawfor a simple package of consulting services, non-consulting services; package contracts of small commodity procurement, construction and installation, or mixed contracts must apply a package contract. Small-scale bidding package means a bidding package for the provision of non-consulting services and procurement of goods with a value of not exceeding VND 10 billion; construction, installation and mixed bidding packages with a value of not exceeding VND 20 billion (Article 63 of Decree No. 63/2014 / ND-CP).

For the issue stated in Ms. Nguyen's document, in case a construction and installation contract is applied with a package contract (small construction and installation bidding package has the price of 10 VND billion), the contractor must calculate and assign to add the contingency cost to the bid price according to the above provisions.

However, when preparing the bidding package price, the investor must ensure that the bidding package price is correctly calculated and fully charged all costs for the execution of the bidding package, including the contingency (cost of provision for price slippage, contingency fees incur the volume and contingency cost for provisional amounts, if any), fees, charges and taxes.

For bidding packages with a short contract performance period, without any risks or slippage, the contingency cost is zero. The contingency cost is determined by the investor according to the nature of each bidding package but must not exceed the maximum level prescribed by specialized law.