How are unused contingency costs allocated?
Sun, 31 Jan 2021 14:00:00 | Print | Email Share:
The unused contingency cost is allocated to the work in which one of the contractor selection forms is not applicable.
Ms. Ho Thi Dao Mai (in Hanoi) suggested the authorities to guide the handling of bidding situations as follows:
Project of buying goods imported from abroad, in the total investment, there is a provision for exchange rate fluctuation of 500 million dong. At the stage of estimation, exchange rate did not change, so the estimate still includes 500 million VND of the above provision.
At the stage of contractor selection plan, the exchange rate is expected to remain unchanged, so the bid solicitor decides not to include VND 500 million in the bidding package price.
Ms. Mai asked, which part in Table 5 is this VND 500 million (total value of work parts)?
Regarding language in appointing foreign contractors:
When implementing a contractor appointment package for a foreign contractor but this contractor is capable of understanding Vietnamese, the contractor does not need an English request dossier, only the request for Vietnamese language request. So, if only issuing Vietnamese language requirements is a violation of the Bidding Law?
The Ministry of Planning and Investment responded to this issue as follows:
Clause 2, Article 43 of the Bidding Law stipulates that a document for submission of a contractor selection plan includes the following contents:
- Part of the work performed, including work related to project preparation, pre-executed bidding packages with corresponding value and legal basis for implementation;
- The part of work that is not applicable to one of the contractor selection forms, including: Project management, site clearance compensation, commencement, inauguration, interest payment and other for other jobs not applicable to the form of contractor selection;
- The work part of the contractor selection plan, including the work content and the corresponding value forming the bidding packages, is performed according to one of the forms of contractor selection specified in Articles 20, 21, 22, 23, 24, 25, 26 and 27 of this Law. In this section, the basis for dividing the project, estimate of procurement into bidding packages must be clearly stated.
For each bidding package, it must ensure that it fully satisfies the contents specified in Article 35 of this Law. For bidding packages without open bidding, the reason for application of another form of selection must be clearly stated in the document for approval for the contractor selection plan;
- The work part is not eligible for the contractor selection plan (if any), which clearly states the content and value of this part of work;
- The part of summarizing the value of the work parts specified at Points a, b, c and d of this Clause. The total value of this portion must not exceed the total investment of the approved project or procurement estimate.
With regard to Ms. Mai's problem, the determination of the cost of the work parts in Table 5 Section VI Form of submission for approval for the contractor selection plan issued together with Circular No. 10/2015 / TT-BKHDT dated October 26, 2015 of the Ministry of Planning and Investment shall comply with the above provisions.
Accordingly, the unused contingency cost will be allocated to the part of the work that does not apply one of the contractor selection forms. However, the bidding package price is determined in accordance with Clause 2, Article 35 of the Bidding Law.
Regarding the language used in bidding, Article 9 of the Bidding Law stipulates that the language used in bidding is Vietnamese for domestic bidding; is English or Vietnamese and English for international bidding.
By: Online Newspaper of the Government / Translator: HaiYen-Bizic
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