It was not until the court that it learned that the project involved in the case had been “suspended” for some reason.
The credit review of the construction unit and the research and judgment of project risks before bidding are insufficient, and the authenticity and legality of the project, the qualification of the construction unit, the financial strength, the internal conditions of the bidding project (such as geological environment, advance funds, capital sources, construction application, etc.) and external influences (such as the policy factors of the project location, etc.) are not reviewed, there is fraud, or the contract cannot be performed due to the funds of the construction unit after winning the bid, It leads to the risk of failure to start construction or stoppage in the middle of construction, or because of the lack of planning and construction permission, the construction project is an illegal building and faces the risk of demolition.
[precautionary tips] construction enterprises should do a good job of project review before bidding.
[case] in March 2020, a construction company released the bidding announcement of a district industrial supporting service center project on the public resources trading website of a city in Jiangxi.
[prevention tips] before bidding, professionals should carry out the project cost budget, fully consider various cost factors affecting the construction when bidding and signing the contract, and do not blindly adopt the strategy of “winning the bid at a low price” in order to win the bid.
Company a neglected to review before bidding.
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If the tenderee, bid evaluation committee and other bidders are found to have illegal acts, they shall report to the competent department in time to safeguard their legitimate rights and interests in the bidding process.
It mainly includes understanding and on-the-spot investigation of the project from the relevant examination and approval units, querying the bidding filing situation, retrieving the relevant information on the official website of the housing and construction department, and understanding whether the construction unit has the business qualification, whether it has obtained the business license and tax grade according to law, whether it has conducted the annual inspection according to the regulations, whether the construction application procedures are complete, and whether the enterprise credit is good.
In May 2021, company a had no choice but to file a lawsuit to terminate the contract and compensate for the losses.
After winning the bid, Liao sold the construction right of the project to Luo mougen.
Understand and abide by the legal norms of bidding, 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, and do not bribe, etc.
Illegal and illegal bidding activities such as bid encirclement, collusion, low price bid winning, high price settlement, fraud and bribery in order to undertake the project, which may lead to civil liabilities such as invalid bid winning, compensation for the losses of the tenderee, 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, and disqualification from participating in bidding; They may even bear criminal responsibility for collusive bidding, contract fraud, bribery and other criminal acts.
Company B appealed to the court and stated that when bidding, it only focused on the civil engineering price and did not consider the equipment purchase price, so it required to change the overall cost of the project according to the market price, otherwise it requested to terminate the contract, and company a insisted on pricing according to the bidding documents.
The project cost is lack of reasonable prediction, planning, control, accounting and analysis, and the accuracy of capital budget management preparation is not enough, and the quotation is hasty.
Over the past three years, company a has repeatedly requested to arrange the commencement as soon as possible through telephone, letter and face-to-face urging, but company B declined for various reasons.
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After hearing the case, the court ruled that Zhou, Liao, Guo and Miao committed the crime of collusion in bidding, and sentenced them to criminal punishment and a fine; The illegal gains from the sale of the winning project and the introduction fees collected by Party B Construction Group and other companies shall be confiscated and turned over to the state treasury.
Conduct an objective, comprehensive and detailed review of the basic situation of the project and the construction unit.
Although the relevant losses were supported in the lawsuit, due to the performance ability of company B, it was difficult to recover its early investment funds and fell into a passive situation of difficult protection of rights and interests.
When using the bill of quantities for pricing, carefully study the bidding documents such as the bill of quantities, determine the overall quantities, do a good job in the overall expenditure budget, and finally determine the reasonable bid price through quality assurance, comprehensive adjustment, and reasonable pricing..
[case] company a signed a construction contract with the construction unit company B in November 2018 after bidding procedures.
First, the legal risks and prevention tips in the bidding process.
Tips on the prevention of legal risks in the operation of construction enterprises under the current macroeconomic situation.
When adopting the fixed total price contract, fully consider the risk factors, treat the lump sum price carefully, understand and master the construction requirements according to the construction drawings, timely ask the tenderee for clarification of the unclear places in the drawings and construction instructions through the bid invitation, and carefully check the quotation with the construction drawings.
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.
Zhou, Liao, Guo Miao and Guo Bo made millions of yuan respectively.
Zhou, Guo, Liao and Guo Miao 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 20000-30000 yuan per company, and B Construction Group won the bid.
[precautionary tips] participate in bidding in accordance with laws and regulations.
Some construction enterprises only pursue the results of undertaking projects and do not pay due attention to the bidding process.
The two sides are extremely controversial about this.
[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.
After that, company a made all preparations for the commencement, but company B delayed notifying company a to enter the site for construction.
The bidding stage is the initial stage of the construction contract of the construction project, which plays a fundamental and key role.
Pay no attention to checking drawings and construction requirements when using fixed price contracts; When adopting the bill of quantities pricing mode, it ignores the contents of the bill of quantities provided by the construction unit, such problems as inaccurate measurement of quantities, incorrect analysis and understanding of project processes, lack of description of project characteristics, lack of items in the list, etc., which lead to the fact that the actual investment may be far beyond the budget after construction, which can only reduce the project quality, or terminate the contract.
