New Circular on guidance on bidding documents for Engineering – Procurement of goods – Construction

“Engineering, Procurement, and Construction” (EPC) is a particular form of contracting arrangement used in some industries where the EPC Contractor is responsible for all the activities from design, procurement, construction, to commissioning and handover of the project to the End-User or Owner. EPC is applicable to complex projects that have high requirement of technology and adhere to uniformity, consistency from design to sewing equipment supply, construction, training and technology transfer, warranty and long-term maintenance.

This type of contract is the favored form and bringing high returns for investors, especially EPC provides consistency in investment projects as investors have the project general contractor. However, due to the requirements on the management and performance of contracts, ECP projects highly demand all aspects of investors such as capacity, financial resources, human resources, …

In order to create more favorable conditions for this type of contract bidding, the Government recently issued Circular No. 11/2016 / TT-BKHDT of July 26, 2016 guiding the bidding documents for Engineering – Procurement of goods – Construction. The Circular gives instructions on the preparation of EPC bidding documents for bidding packages of projects within the scope of the project which is applying EPC forms prescribed by law. Sample bidding documents issued along with this Circular are applicable to open bidding tender package, limited international bidding by mode of one stage, two bags of records.

This Circular takes effect from the date of 01/10/2016.