Circular 11/2016/TT-BKH on EPC Bidding Documents

Application of EPC bidding document form

According to Circular 11/2016, EPC is applicable to complicated projects that have technical requirements, high technology and strictly comply with the synchronism, consistency from the design stage to the equipment supply stage, construction, training, technology transfer, warranty and long-term maintenance.

EPC is not applicable in the cases that the bidding package are separated into separate bidding packages in order to create conditions for domestic businesses to participate in the bidding and execution of bidding package.

The bidding document form includes 3 parts: bidding procedure, requirement on the biding package and contract conditions. In the process of formulation, appraisal and approval of EPC bidding document in the form of public bidding, limited international bidding, Circular 11/2016 regulates that it is required to apply EPC bidding document form.

When applying the EPC bidding document form, the investor and the procuring entity need to amend and supplement the content of the chapter of the bidding document form in order to fit the nature and size of each bidding package and the time to organize the bidding.

For EPC bidding package that apply the form of public bidding and limited domestic bidding, the appointment of contractors should be based on the size and nature of the bidding package to edit the accordingly bidding document form.

The mixed bidding package includes design and supply of goods, design and installing, supply of goods and installing, project planning, design, supply of goods and installing (turnkey), based on the size and nature of the bidding package to edit accordingly.

For mixed bidding package that apply the two phases method, the investor can edit accordingly.

Contract

Circular 11/2016 stipulates that the bidding document must include contract agreement form, article and clause as a basis for the contractors to bid, and for the parties to negotiate, complete, sign and implement the agreement.

The contract signed between the investor and the contractor must comply with the contract agreement form, the contractual terms in the bidding documents, adjustments, supplements proposed by the contractor and approved by the investor but not contrary to the law on procurement and related legislation.

In addition, the contractor’s bid price must include all the necessary costs to implement the bidding package, which includes all taxes, charges and fees (if any).

Circular 11/2016/TT-BKH entered into force on October 1^st 2016.