Issuing a decree regulating costs in contractor selection.

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The government has just issued Decree No. 24/2024/ND-CP detailing some provisions and measures for implementing the Law on Bidding regarding contractor selection.

The Decree specifies the costs involved in contractor selection. Specifically, the costs for preparing and evaluating documents are as follows: The cost of preparing the expression of interest documents and pre-qualification documents is calculated at 0.1% of the contract value, but with a minimum of 2 million VND and a maximum of 30 million VND; the cost of evaluating the expression of interest documents and pre-qualification documents is calculated at 0.06% of the contract value, but with a minimum of 2 million VND and a maximum of 30 million VND.

The cost of preparing tender documents and request for proposals is calculated at 0.2% of the contract value, but with a minimum of 3 million VND and a maximum of 60 million VND; the cost of evaluating tender documents and request for proposals is calculated at 0.1% of the contract value, but with a minimum of 2 million VND and a maximum of 60 million VND.

The cost of evaluating the results of the contractor selection process, including cases where no contractor is selected, is calculated at 0.1% of the bid package value, but with a minimum of 3 million VND and a maximum of 60 million VND.

For tenders with similar content within the same project, procurement budget of the same investor, or tenders requiring a re-organization of contractor selection, the costs for: preparing and evaluating expressions of interest and pre-qualification documents; preparing and evaluating tender documents and request for proposals shall be calculated at a maximum of 50% of the prescribed cost; in cases where a part of the tender must be re-tendered (for subdivided tenders), the cost shall be calculated at a maximum of 50% of the estimated cost of the part being re-tendered.

In cases where the contractor selection process is reorganized, the contractor selection costs must be calculated and added to the project and procurement budget in accordance with the actual costs of the tender package. In the case of international bidding, the cost of document translation shall be calculated in accordance with market prices, ensuring the effectiveness of the tender package.

The decree also stipulates that the fee for the Advisory Council to resolve contractor appeals regarding the results of contractor selection is calculated as a percentage of the bid price of the appealing contractor: for bid prices under 50 billion VND, the rate is 0.03% but a minimum of 5 million VND; for bid prices from 50 billion VND to under 100 billion VND, the rate is 0.025% but a minimum of 15 million VND; for bid prices from 100 billion VND to under 200 billion VND, the rate is 0.02% but a minimum of 25 million VND; for bid prices of 200 billion VND or more, the rate is 0.015% but a minimum of 40 million VND and a maximum of 60 million VND.

Regarding reimbursement of complaint resolution costs: If the contractor's complaint is found to be valid, the relevant organizations and individuals are responsible for reimbursing the contractor the amount equal to the complaint resolution costs that the contractor paid. If the contractor's complaint is found to be invalid, the contractor will not be reimbursed for the complaint resolution costs.

TH (according to Vietnam+)

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