Chapter I General Provisions

Article 1 These Regulations are formulated in accordance with the bidding law of the people's Republic of China (hereinafter referred to as the Bidding Law) for the purpose of regulating bidding activities.

Article 2 the term "engineering construction project" as mentioned in Article 3 of the Bidding Law refers to the project and the goods and services related to the project construction.

The term "projects" as mentioned in the preceding paragraph refers to construction projects, including the construction, reconstruction and expansion of buildings and structures and their related decoration, demolition and repair; The goods related to project construction refer to the equipment and materials that form an integral part of the project and are necessary to realize the basic functions of the project; The services related to project construction refer to the survey, design, supervision and other services required for the completion of the project.

Article 3 the specific scope and scale standards for construction projects subject to tender according to law shall be formulated by the development and Reform Department of the State Council in conjunction with the relevant departments of the State Council, and shall be promulgated and implemented after being submitted to and approved by the State Council.

Article 4 the development and Reform Department of the State Council shall guide and coordinate the nationwide bidding and tendering work, and supervise and inspect the bidding and tendering activities for major national construction projects. The departments of industry and information technology, housing and urban rural development, transportation, railways, water conservancy and commerce under the State Council shall, in accordance with the prescribed division of responsibilities, exercise supervision over relevant bidding activities.

The development and reform departments of the local people's governments at or above the county level shall guide and coordinate the bidding work in their respective administrative regions. The relevant departments of the local people's governments at or above the county level shall, in accordance with the prescribed division of responsibilities, supervise the bidding activities and investigate and deal with the illegal acts in the bidding activities according to law. Where the local people's governments at or above the county level have other provisions on the division of responsibilities of their subordinate departments for the supervision of bidding activities, such provisions shall prevail.

The financial department shall, in accordance with the law, supervise the implementation of the budget and the implementation of the government procurement policies of the government procurement engineering construction projects subject to bidding.

The supervisory organ shall, in accordance with the law, exercise supervision over the objects of supervision related to tendering and bidding activities.

Article 5 the local people's governments at or above the level of cities divided into districts may, according to actual needs, establish unified and standardized trading places for bidding and tendering to provide services for bidding and tendering activities. A trading place for bidding and tendering shall not have a subordination relationship with the administrative supervision department, and shall not be for the purpose of making profits.

The State encourages the use of information networks for electronic tendering and bidding.

Article 6 State functionaries are prohibited from illegally interfering in tender and bid activities in any way.

Chapter II bidding

Article 7 for projects subject to tender according to law that need to go through the formalities of examination and approval of projects in accordance with the relevant provisions of the state, the scope, method and organizational form of tender shall be submitted to the project examination and approval department for examination and approval. The project examination and approval department shall timely notify the relevant administrative supervision departments of the scope, method and organization form of the tender determined by examination and approval.

Article 8 public bidding shall be conducted for projects subject to bidding according to law for which state-owned funds occupy a controlling or dominant position; However, under any of the following circumstances, bidding may be invited:

（1） The technology is complex, there are special requirements or restricted by the natural environment, and only a few potential bidders can choose;

（2） The cost of public bidding accounts for too much of the project contract amount.

In case of any of the circumstances listed in Item 2 of the preceding paragraph and falling under the provisions of Article 7 of these regulations, the project examination and approval department shall make a determination when examining and approving the project; For other projects, the tenderee shall apply to the relevant administrative supervision department for confirmation.

Article 9 except for the special circumstances under which tender may not be conducted as provided for in Article 66 of the tender and bid law, tender may not be conducted under any of the following circumstances:

（1） It is necessary to adopt irreplaceable patents or proprietary technologies;

（2） The purchaser can build, produce or provide by itself according to law;

（3） The investors of the franchise project selected through bidding can build, produce or provide by themselves according to law;

（4） It is necessary to purchase engineering, goods or services from the original bid winner, otherwise it will affect the construction or functional supporting requirements;

（5） Other special circumstances stipulated by the state.

A tenderer who practices fraud for the purpose of applying the provisions of the preceding paragraph belongs to the evasion of bidding as stipulated in Article 4 of the bidding law.

Article 10 the term "a tenderer has the ability to compile tender documents and organize bid evaluation" as stipulated in paragraph 2 of Article 12 of the tender and bid law means that a tenderer has technical and economic professionals appropriate to the scale and complexity of the project subject to tender.

Article 11 the qualifications of a bid invitation agency shall be determined by the relevant departments in accordance with the law and the provisions of the State Council.

The departments of housing and urban rural development, commerce, development and reform, industry and information technology under the State Council shall, in accordance with the prescribed division of responsibilities, supervise and manage bidding agencies according to law.

Article 12 a bid invitation agency shall have a certain number of professionals who have obtained the professional qualification for bid invitation. The specific measures for obtaining the professional qualification for bidding shall be formulated by the human resources and Social Security Department of the State Council in conjunction with the development and Reform Department of the State Council.

Article 13 No unit or individual may illegally interfere with a bid invitation agency in carrying out bid invitation agency business within the scope of its qualifications and the authorization of the bid inviter.

A bid invitation agency acting as a bid invitation agent shall abide by the provisions of the bidding law and these Regulations on bid inviter. A bid invitation agency shall not bid in the bid invitation project it is acting for, or provide consultation for the bidders of the bid invitation project it is acting for.

The bidding agency shall not alter, lease, lend or transfer the qualification certificate.

Article 14 A tenderer shall sign a written entrustment contract with the entrusted bidding agency, and the charging standards agreed upon in the contract shall comply with the relevant provisions of the state.

Article 15 for a project subject to public tender, a tender announcement shall be issued and tender documents shall be prepared in accordance with the provisions of the tender and bid law and these regulations.

If the tenderee conducts qualification examination on potential bidders by means of prequalification, it shall issue prequalification announcement and prepare prequalification documents.

The prequalification announcement and tender announcement of projects subject to tender according to law shall be published in the media designated by the development and Reform Department of the State Council according to law. The contents of Prequalification announcement or bidding announcement of the same bidding project published in different media shall be consistent. The designated media shall not charge fees for publishing the pre qualification announcement and bidding announcement of projects subject to bidding according to law.

The pre qualification documents and tender documents for projects subject to tender according to law shall be prepared using the standard texts formulated by the development and Reform Department of the State Council in conjunction with the relevant administrative supervision departments.

Article 16 A tenderer shall sell the prequalification documents or tender documents at the time and place specified in the prequalification announcement, tender announcement or invitation for bids. The sales period of Prequalification documents or bidding documents shall not be less than 5 days.

The fees charged by a tenderer for selling prequalification documents and tender documents shall be limited to compensating the costs of printing and mailing, and shall not be for profit.

Article 17 A tenderer shall reasonably determine the time for submitting the application documents for prequalification. For projects subject to tender according to law, the time for submitting prequalification application documents shall not be less than 5 days from the date of suspension of the sale of Prequalification documents.

Article 18 prequalification shall be conducted in accordance with the standards and methods specified in the prequalification documents.

For projects subject to tender according to law where state-owned funds hold the controlling or dominant position, the tenderer shall establish a qualification examination committee to examine the prequalification application documents. The qualification examination committee and its members shall abide by the provisions of the bidding law and these Regulations on the bid evaluation committee and its members.

Article 19 after the pre qualification is completed, the tenderer shall promptly send the pre qualification result notice to the pre qualification applicant. Applicants who fail to pass the prequalification shall not be qualified for bidding.

If there are less than three applicants who have passed the prequalification, they shall invite bids again.

Article 20 If a tenderer adopts the method of post qualification examination to examine the qualifications of bidders, the bid evaluation committee shall examine the qualifications of bidders in accordance with the standards and methods specified in the bidding documents after bid opening.

Article 21 A tenderer may make necessary clarifications or amendments to the prequalification documents or tender documents already issued. If the contents clarified or modified may affect the preparation of Prequalification application documents or bidding documents, the tenderee shall notify all potential bidders who have obtained prequalification documents or bidding documents in writing at least 3 days before the deadline for submission of Prequalification application documents or at least 15 days before the deadline for submission of bids; If it is less than 3 or 15 days, the tenderee shall postpone the deadline for submission of Prequalification application documents or tender documents.

Article 22 If a potential bidder or other interested party has any objection to the prequalification documents, it shall raise it 2 days before the deadline for submission of the prequalification application documents; Any objection to the bidding documents shall be raised 10 days before the deadline for submission of bids. The tenderee shall make a reply within 3 days from the date of receiving the objection; Before making a reply, the bidding activities shall be suspended.

Article 23 Where the contents of the prequalification documents or tender documents prepared by a tenderer violate the mandatory provisions of laws and administrative regulations, and violate the principles of openness, fairness, impartiality and good faith, thus affecting the prequalification results or the bidding of potential bidders, the tenderer of a project subject to tender according to law shall re invite tenders after modifying the prequalification documents or tender documents.

Article 24 A tenderer who divides bid sections for a project subject to tender shall abide by the relevant provisions of the bidding law and may not use the division of bid sections to restrict or exclude potential bidders. A tenderer of a project subject to tender according to law may not evade tender by dividing bid sections.

Article 25 A tenderer shall specify the period of validity of bids in the tender documents. The bid validity period shall be calculated from the deadline for submission of bid documents.

Article 26 Where a tenderer requires a tenderer to submit a bid security in the tender documents, the bid security shall not exceed 2% of the estimated price of the project subject to tender. The validity period of the bid security shall be consistent with that of the bid.

The bid security submitted by a domestic bidder for a project subject to tender according to law in the form of cash or cheque shall be transferred out of its basic account.

The bid inviter shall not misappropriate the bid security.

Article 27 A tenderer may, on its own, decide whether to prepare a base bid price. A bidding project can only have one base bid price. The base bid price must be kept confidential.

The intermediary agency entrusted with the preparation of the base bid price shall not participate in the bidding of the project entrusted with the preparation of the base bid price, nor prepare the bidding documents or provide consultation for the bidders of the project.

Where a tenderer has a ceiling price, it shall specify the ceiling price or the calculation method of the ceiling price in the tender documents. The tenderee shall not set a minimum bid price limit.

Article 28 A tenderer may not organize a single or part of the potential bidders to survey the project site.

Article 29 A tenderer may, in accordance with the law, invite tenders for the project and the goods and services related to the project construction in whole or in part. If the projects, goods and services included in the general contracting scope in the form of provisional estimate fall within the scope of projects subject to bidding according to law and reach the scale standards stipulated by the state, bidding shall be conducted according to law.

The term "provisional estimate" as mentioned in the preceding paragraph refers to the amount of works, goods and services temporarily assessed by the tenderer in the tender documents when the price cannot be determined during the tender for general contracting.

Article 30 A tenderer may invite tenders in two stages for a project whose technology is complex or whose technical specifications cannot be accurately drawn up.

In the first stage, the bidder shall submit the technical proposal without quotation according to the requirements of the bidding announcement or invitation for bids, and the tenderee shall determine the technical standards and requirements according to the technical proposal submitted by the bidder and prepare the bidding documents.

In the second stage, the tenderee shall provide the bidding documents to the bidders who submit technical suggestions in the first stage, and the bidders shall submit the bidding documents including the final technical scheme and bid price in accordance with the requirements of the bidding documents.

If the tenderee requires a bidder to submit a bid security, it shall do so in the second stage.

Article 31 Where a tenderer terminates the tender, it shall make a public announcement in time, or notify in writing the invited or potential tenderers who have obtained the prequalification documents and tender documents. If the prequalification documents and bidding documents have been sold or the bid security has been collected, the tenderee shall timely refund the fees collected for the prequalification documents and bidding documents, as well as the bid security collected and the interest on bank deposits for the same period.

Article 32 A tenderer may not restrict or exclude potential bidders or bidders with unreasonable conditions.

If a tenderee commits any of the following acts, it shall be deemed to restrict or exclude potential bidders or bidders with unreasonable conditions:

（1） Provide different project information to potential bidders or bidders for the same bidding project;

（2） The set qualification, technical and commercial conditions do not adapt to the specific characteristics and actual needs of the bidding project or have nothing to do with the performance of the contract;

（3） For projects subject to tender according to law, the performance and awards of a specific administrative region or a specific industry shall be taken as the conditions for bonus points or winning the bid;

（4） Adopt different qualification examination or bid evaluation criteria for potential bidders or bidders;

（5） Defining or designating specific patents, trademarks, brands, places of origin or suppliers;

（6） Illegally restricting the ownership or organizational form of potential bidders or bidders for projects subject to bidding according to law;

（7） Restrict or exclude potential bidders or bidders with other unreasonable conditions.

Chapter III bidding

Article 33 bidders shall not be restricted by regions or departments to participate in the bidding of projects subject to tender according to law, and no unit or individual may illegally interfere.

Article 34 a legal person, other organization or individual that has an interest in a tenderer and may affect the impartiality of the tender may not participate in the tender.

If the person in charge of the unit is the same person or different units with holding or management relationship, they shall not participate in the bidding of the same bid section or the bidding of the same bidding project without bid section division.

In case of violation of the provisions of the preceding two paragraphs, the relevant bids shall be invalid.

Article 35 A tenderer who withdraws his tender documents submitted shall notify the tenderee in writing before the deadline for submission of tenders. If the bid security has been collected by the bid inviter, it shall be returned within 5 days from the date of receiving the written withdrawal notice from the bidder.

If a Bidder withdraws its bid after the deadline for submission of bids, the tenderee may not return the bid security.

Article 36 the tenderer shall reject the tender documents submitted by the applicants who fail to pass the prequalification, as well as the tender documents that are late in delivery or are not sealed in accordance with the requirements of the tender documents.

The tenderee shall truthfully record the delivery time and sealing of the tender documents, and keep them on file for future reference.

Article 37 A tenderer shall specify in the prequalification announcement, tender announcement or invitation for bids whether to accept a consortium bid.

If the tenderee accepts the consortium bid and conducts prequalification, the consortium shall be formed before submitting the prequalification application documents. If the consortium increases or decreases its members or changes its members after prequalification, its bid shall be invalid.

If each party of the consortium makes a separate bid in its own name in the same bidding project or participates in the bidding of other consortiums, the relevant bids shall be invalid.

Article 38 major changes such as merger, division and bankruptcy of the bidder