How to use and manage subcontractors?

Wed, 03 Apr 2024 14:29:00  |  Print  |  Email   Share:

While participating in projects that utilize state capital, Ms. Nguyen Van Khanh (Hanoi) has noticed that the current legal regulations contain some unspecified provisions regarding subcontractors, which are necessary as legal basis for project implementation.

Ms. Khanh has requested the competent authority to clarify some specific points as follows:

What is the maximum value allocated to subcontractors as a percentage of the total contract value for consultancy packages?

In cases where the bidding documents propose subcontractors, according to the inviting party's regulations, there is no requirement to evaluate the capacity of subcontractors. However, is it mandatory to evaluate the subcontractors' capacity during the contract execution process?

In cases where the bidding documents do not propose subcontractors, but subcontractors are proposed in the contract negotiation minutes or in the contract itself, or during the contract execution process, is it mandatory to evaluate the subcontractors' capacity?

Does the investor need to specify the percentage of the subcontracted value in the invitation documents for consultancy bids?

Regarding this matter, the Ministry of Planning and Investment responds as follows:

For packages that have issued bidding documents before January 1, 2024, the selection of contractors is organized according to the provisions of the Bidding Law No. 43/2013/QH13 and Government Decree No. 63/2014/NĐ-CP.

According to the provisions of Point c, Clause 2, Article 128 of Decree No. 63/2014/NĐ-CP, the main contractor is responsible for selecting and utilizing subcontractors with the capacity and experience to meet the requirements of the assigned tasks. In cases where subcontractors are crucial as per the bidding documents, the evaluation of the capacity and experience of subcontractors is conducted as specified in the bidding documents.

According to the provisions of Item 26, Chapter I of the Model E-HSMT for consultancy services issued with Circular No. 08/2022/TT-BKHĐT dated May 31, 2022 by the Minister of Planning and Investment, the use of subcontractors does not alter the responsibilities of the main contractor. The main contractor is responsible for the volume, quality, progress, and other responsibilities regarding the work performed by subcontractors. The capacity and experience of subcontractors are not considered when evaluating the main contractor's E-HSDT. The main contractor must meet the criteria of capacity and experience independently (excluding subcontractors' capacity and experience).

In the E-HSDT, if the main contractor does not propose the use of subcontractors for a specific task or does not plan to use subcontractors, it is understood that the main contractor is responsible for performing all tasks within the package. The main contractor is only allowed to use subcontractors for tasks with a total value not exceeding the percentage (%) specified in the bidding documents.

Therefore, the use and management of subcontractors are carried out according to the aforementioned regulations, provisions in the E-HSMT, and proposals of the main contractor in the E-HSDT. The investor specifies whether subcontractors are "Applicable" or "Not applicable," and the percentage allocated to subcontractors in the E-HSMT.

In cases where the main contractor does not propose the use of subcontractors in the E-HSDT, it is understood that the main contractor will perform all tasks within the package.

 

By: Translator: LeAnh-Bizic

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