Are Smart Home Appliance Products and Elevator Installations/Upgrades in Old Communities Subject to Mandatory Bidding?

Q&A 1

Consultation Content

According to the “Bidding Law of the People’s Republic of China” and the “Implementation Regulations of the Bidding Law of the People’s Republic of China”, all or part of the engineering construction projects that use state-owned funds or state financing must be subject to bidding. Engineering construction projects refer to engineering and goods and services related to engineering construction. Goods related to engineering construction are those that are inseparable components of the project and are necessary for achieving the basic functions of the project, such as equipment and materials.

May I ask: 1. Does the procurement of electrical products (such as air conditioners, kitchen appliances, lighting, door locks, furniture, etc.) for the purpose of achieving smart home functionality fall under the scope of mandatory bidding mentioned above? (Are these products inseparable from the engineering construction? Are they necessary equipment for achieving the basic functions of the project?) 2. For the procurement of elevators and elevator components for installation/upgrade in old communities, do they fall under the scope of mandatory bidding mentioned above? (Are these products inseparable from the engineering construction? Are they necessary equipment for achieving the basic functions of the project?)

Response Content

According to the “Bidding Law of the People’s Republic of China” and the “Implementation Regulations of the Bidding Law of the People’s Republic of China”: 1. Smart home appliance products (air conditioners, kitchen appliances, lighting, door locks, furniture, etc.)generally do not constitute inseparable parts of the project and are not necessary equipment for achieving basic functions, thus are usually not subject to mandatory bidding, except when the project design includes them as part of the basic functions. 2. Elevators, as core equipment of buildings, are inseparable components of the project and necessary equipment for achieving basic functions, involving public safety,therefore, the installation/upgrade of elevators in old communities must be subject to bidding.

Q&A 2

Consultation Content

1. Article 2 of the “Management Measures for the Separation of Evaluation and Bidding for Government Investment Engineering Construction Projects in Henan Province (Trial)” states that “the bidding activities for government investment engineering construction projects within the administrative region of this province apply to these measures”. Do projects funded by state-owned enterprises using self-raised funds fall within this scope? Are projects that do not meet the requirements for public bidding included in this scope? 2. Article 11 of the “Management Measures for the Separation of Evaluation and Bidding for Government Investment Engineering Construction Projects in Henan Province (Trial)” states that “the bid determination committee shall verify the candidates for the winning bid and organize a bid determination meeting, which may use random verification, voting, collective deliberation, or other methods for bid determination.” What does “other methods for bid determination” refer to? Do the methods of opening bids, evaluating bids, and determining winning bids in the “Bidding Law of the People’s Republic of China” fall under “other methods for bid determination”?

Response Content

1. Projects funded by state-owned enterprises using self-raised fundsare not yet includedin the “separation of evaluation” scope as stipulated in the “Management Measures for the Separation of Evaluation and Bidding for Government Investment Engineering Construction Projects in Henan Province (Trial)”.

2. Projects that do not meet the requirements for public biddingare not yet includedin the “separation of evaluation” scope as stipulated in the “Management Measures for the Separation of Evaluation and Bidding for Government Investment Engineering Construction Projects in Henan Province (Trial)”.

3. The bid determination methods mentioned in Article 11 of the “Management Measures for the Separation of Evaluation and Bidding for Government Investment Engineering Construction Projects in Henan Province (Trial)” all refer to the bid determination methods using “separation of evaluation”. The term “other methods for bid determination” in this clause is a catch-all expression; during the trial period of these measures, please choose from the three clearly defined bid determination methods.

Source: China Bidding

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