[Precautionary tips] Construction enterprises shall conduct project review before bidding.
Some construction enterprises only pursue the results of undertaking projects, and do not pay due attention to the bidding process.
Negligent review of the authenticity and legality of the project, the qualification and financial strength of the construction unit, the internal conditions (such as geological environment, advance funds, sources of funds, construction application, etc.) and external influences (such as the policy factors of the project location, etc.) of the bidding project.
In May 2021, Company A had no choice but to file a lawsuit to terminate the contract and compensate for losses.
Later, the court heard that Zhou, Liao, Guo Moubo, Guo Moumiao and other four people were convicted of colluding in bidding, and they were sentenced to criminal penalties and fines; The illegal income from the sale of the bid winning project and the introduction fee charged by Party B Construction Group and other companies shall be confiscated and turned over to the national treasury.
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Project bidding activities in violation of laws and regulations.
Legal risks in the bidding process and prevention tips.
Lack of reasonable prediction, planning, control, accounting and analysis of project cost.
Understand and abide by the bidding laws and regulations, do not collude in bidding, do not bid in the name of others, do not practice fraud, do not transfer or subcontract the winning project, strictly perform the contract signed with the tenderee, do not bribe, etc.
In the past three years, Company A has repeatedly asked Company B to arrange the commencement of construction as soon as possible through telephone calls, letters, face-to-face reminders, etc., but Company B has refused for various reasons.
During the construction, Company B found that the market purchase price of the equipment involved in the project was much higher than the fixed price agreed in the contract.
There is a risk of being defrauded, or failing to perform due to the funds of the construction unit after winning the bid, resulting in failure to start work or stoppage in the middle of work after commencement, Or due to the lack of planning and construction permit, the project under construction is an illegal building and faces the risk of being demolished.
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Although the related losses were supported in the lawsuit, due to the performance ability of Company B, it was difficult to recover its early investment and fell into a passive situation where its rights and interests could not be guaranteed.
Zhou, Guo Moubo, Liao, Guo Moumiao and other four people jointly invited 92 companies, including B Construction Group, C Construction Company and Ding Jianye Company, to participate in the bidding of the project at the price of 20000 yuan to 20000 yuan per company.
Company B appealed to the court, stating that it only paid attention to the civil engineering price and did not consider the equipment purchase price when bidding, so it requested to change the overall project cost according to the market price, otherwise it requested to terminate the contract, and Company A insisted on pricing according to the bidding documents.
B Construction Group won the bid.
[Case] In March 2019, Company B won the bid for the river training project of Company A, and then both parties signed a construction contract.
Company A neglected to review before bidding.
After that, Party A made all preparations for commencement, but Party B delayed to notify Party A to enter the site for construction.
What are the legal risks in the operation of construction enterprises? Read this article to see in detail.
[Precautionary tips] Participate in bidding according to laws and regulations.
The two sides have a great dispute over this.
The bidding stage is the initial stage of the construction contract of the construction project, which plays a fundamental and critical role.
[Case] In March 2020, A Construction Company released the bidding announcement of a district’s industrial supporting service center project on the public resource trading website of a city in Jiangxi.
It mainly includes understanding and field investigation of the project from the relevant approval units, inquiring about the bidding record, retrieving relevant information from the official website of the housing construction department, and knowing whether the construction unit has business qualifications, whether it has obtained the business license and tax grade according to law, whether it has carried out annual inspection as required, whether the construction application procedures are complete, and whether the enterprise credit is good.
Bid solicitation, bid rigging, bid winning at low prices, settlement at high prices, fraud, bribery, etc.
[Precaution tips] Before bidding, professionals should carry out the project cost budget, fully consider various cost factors that affect the construction when bidding and signing the contract, and do not arbitrarily adopt the strategy of “winning the bid at a low price” in order to win the bid.
It was not until the court that it learned that the project involved in the case had already been “stopped” for some reason.
[Case] After the bidding process, Company A signed a construction contract with Company B, the construction unit, in November 2018.
for undertaking projects, which may lead to bearing civil liabilities such as invalid bid winning, compensation for the Tenderee’s losses, and non return of bid security and performance security; May be subject to administrative penalties such as warning, fine, revocation of business license, confiscation of illegal income, order to suspend business for rectification, disqualification from participating in bidding, etc; It may even bear criminal responsibility for collusion in bidding, contract fraud, bribery and other criminal acts.
When adopting the fixed price contract, the risk factors shall be fully considered, the lump sum price shall be treated with prudence, the construction requirements shall be understood and mastered by reference to the construction drawings, and the unclear parts in the drawings and construction instructions shall be required to be clearly indicated by the Tenderee through bid inquiry in a timely manner, and the quotation shall be carefully checked with the construction drawings.
After winning the bid, Liao sold the construction right of the project to Luo.
Among them, Zhou, Liao, Guo Miao and Guo Bo respectively earned millions of yuan.
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Inadequate credit review and project risk research and judgment of the Employer before bidding.
If the Tenderee, the Bid Evaluation Committee and other bidders are found to have any illegal act, they shall report it to the competent department in time to safeguard their legitimate rights and interests in the bidding process.
When adopting the fixed price contract, it does not pay attention to checking the drawings and construction requirements; When the bill of quantities pricing mode is adopted, the contents of the bill of quantities provided by the construction unit are ignored, the measurement of the quantities is inaccurate, the analysis and understanding of the project process are wrong, the description of the project characteristics is lacking, the list is lacking, and other problems lead to the discovery that the actual investment may be far beyond the budget after the construction, and only the project quality can be reduced, or the contract can be terminated.
The basic information of the project and the construction unit shall be objectively, comprehensively and carefully reviewed.
The accuracy of capital budget management is not enough, and the quotation is hasty.
When pricing with bill of quantities, carefully study the bidding documents such as bill of quantities, determine the overall quantities, do a good job in the overall expenditure budget, and finally determine a reasonable bid price through quality assurance, comprehensive adjustment, and reasonable pricing..
