To the Housing and Urban-Rural Development Departments of all provinces, autonomous regions, and municipalities directly under the central government; the Housing and Urban-Rural Construction (or Management) Commissions of municipalities directly under the central government; and the Housing and Urban-Rural Development Bureau of the Xinjiang Production and Construction Corps:

　　The engineering procurement and bidding system has played a vital role in safeguarding national and public interests, regulating construction market practices, enhancing investment efficiency, and promoting integrity-building efforts. However, currently, the principal responsibility of bidders remains insufficient in engineering procurement and bidding activities, while issues such as bid-rigging, fraudulent practices, and other illegal or non-compliant behaviors continue to be prominent. To thoroughly implement the "Opinions of the General Office of the State Council on Promoting the Sustainable and Healthy Development of the Construction Industry" (Guobanfa [2017] No. 19) and the "Notice from the General Office of the State Council Forwarding the Guiding Opinions of the Ministry of Housing and Urban-Rural Development on Improving the Quality Assurance System and Enhancing the Quality of Construction Projects" (Guobanhua [2019] No. 92), we will actively advance the reform of the bidding system for housing and municipal infrastructure projects, strengthen regulatory oversight of related procurement and bidding activities, rigorously crack down on illegal and non-compliant practices in the bidding process, and uphold the integrity of the construction market.

　　I. Strengthen the Rights and Responsibilities of Bidders

　　(1) Strengthen the primary responsibility of the tendering party. According to law, the tendering party is accountable for all activities related to project bidding and tendering. This includes independently deciding whether to initiate a tender, as well as autonomously selecting the agency responsible for project construction tendering, determining the qualification review process, appointing representatives from the tendering party, and choosing the evaluation method. At the same time, we must firmly establish the responsibilities of all parties involved in the bidding process. Party members and cadres are strictly prohibited from using their positions or leveraging their influence to interfere with bidding activities.

　　(2) Government-invested projects are encouraged to adopt a centralized construction management approach. Implement relatively centralized, specialized management by either establishing a dedicated construction agency or selecting competitive firms to act as project delivery agents. This approach ensures strict control over project investments, scientifically determines and rigorously enforces reasonable construction timelines, safeguards the quality and safety of projects, and facilitates seamless handover to the user organization upon completion and acceptance. Ultimately, this strategy enhances the professional management standards of government-invested projects.

　　2. Optimize the bidding and tendering process

　　(III) Narrow the scope of tendering. For housing construction projects with social investment, the project owner independently decides on the contracting method. For municipal infrastructure projects with social investment, the contracting method is determined in accordance with the law. Government-invested projects are encouraged to adopt full-process engineering consulting and engineering general contracting approaches, thereby reducing the number of tendering and bidding stages. According to contractual agreements or with the consent of the client, the general contractor may independently decide on specialized subcontracting arrangements—provided that the client does not designate specific subcontractors or split up the project into smaller parts.

　　(Four) Explore and promote the implementation of the evaluation-separation approach. The procuring entity should scientifically develop evaluation and award methods, establish an evaluation committee, and strengthen the review of bidders' creditworthiness and履约能力 through qualification screening. Emphasis should be placed on prioritizing evaluation factors such as innovation and sustainability, aligning with high-quality development goals. The evaluation committee will provide technical advisory recommendations on aspects like the bidder's ability to manage technical details, quality, safety, and project timelines, and will recommend qualified shortlisted candidates to the procuring entity. The procuring entity will then, guided by principles of scientific and democratic decision-making, establish robust internal control procedures and decision-making oversight mechanisms. Based on bid prices and technical advice, the entity will select the most suitable winner, ensuring a standardized, transparent bidding process and delivering legally sound, fair outcomes—while remaining fully compliant with applicable laws and regulations and subject to external oversight.

　　(5) Fully implement electronic tendering and bidding. Promote the full digitalization of the entire tendering and bidding process, including remote and geographically dispersed bid evaluations, while ensuring transparency by making tendering and bidding-related information publicly available. Actively explore innovative approaches to electronic administrative oversight. Tendering and bidding platforms should integrate seamlessly with local construction market regulatory systems, accelerating the interconnection and data sharing between transaction and regulatory platforms. Additionally, strengthen efforts to collect and share project data from the national construction market regulatory public service platform, enhancing collaboration across the industry.

　　(6) Promote the formation of market-based pricing mechanisms. Implement supply-side structural reforms in construction project cost management, encouraging local authorities to establish construction cost databases and introduce market-oriented cost index systems, thereby fostering contract prices that emerge through competitive market forces. Benchmark against international standards by developing a comprehensive engineering measurement and pricing framework, while enhancing mechanisms for the timely dissemination of market-driven price information related to materials, machinery, labor, and other cost components. Additionally, refine the methodology for setting maximum bid limits, strengthen the responsibility of bidders in controlling project costs, and promote full-process cost consulting services throughout project execution. Strengthen rigorous contract compliance management and engineering change procedures, while reinforcing the management of progress payments and final project settlements. Bidders must not use incomplete audits as grounds for delaying project settlements or withholding payment.

　　3. Strengthen Oversight of the Bidding and Tendering Process

　　(7) Strengthen oversight of bidding and tendering activities. Housing and urban-rural development authorities at all levels should intensify their efforts to investigate and address issues occurring during and after the bidding process, in line with the "double-random, one-public" inspection approach. They must firmly crack down on illegal and unethical practices such as bid rigging and fraudulent behavior, ensuring a well-regulated construction market. For cases involving severe offenses like bid-rigging or collusion, these will be subject to joint punitive measures for dishonesty—potentially leading to exclusion from the market altogether.

　　(8) Strengthen the supervision of bid evaluation experts. Housing and urban-rural development authorities at all levels should, based on actual conditions, refine and improve management systems for the dynamic monitoring and oversight of bid evaluation experts' selection process, ensuring strict fulfillment of their regulatory responsibilities. Establish performance evaluation and exit mechanisms for bid evaluation experts; those found to have engaged in illegal or non-compliant activities should have their expert qualifications revoked, with serious investigations and disciplinary actions taken in accordance with laws and regulations.

　　(9) Strengthen regulatory oversight of the market behavior of bidding agency organizations. Implement a voluntary information reporting system and an annual performance disclosure mechanism for bidding agencies, and enhance supervision over engineering consulting firms engaged in bidding activities throughout the entire process. Additionally, reinforce the assessment and evaluation of personnel working at bidding agencies, rigorously investigate and address any illegal or non-compliant actions by these professionals according to law. Credit evaluation information will be made publicly available, and a "blacklist" system for bidding agencies will be introduced, fostering mechanisms that reward trustworthy behavior while penalizing misconduct.

　　(10) Strengthen contract performance supervision. Enhance coordination between the "two sites"—the construction market and the construction site—and integrate contract compliance into credit evaluations. Bidders who win contracts must strictly adhere to the technical expertise and solutions outlined in their bid commitments. If a winning bidder refuses to fulfill its contractual obligations, such behavior will be recorded as a negative action in their credit history.

　　4. Optimize the Bidding and Tendering Market Environment

　　(11) Accelerate the implementation of the engineering guarantee system. Promote the use of bank guarantees, and where conditions permit, introduce guarantees issued by engineering guarantee companies as well as engineering performance insurance. If the tenderer requires the successful bidder to provide a performance bond, the tenderer must simultaneously offer the successful bidder a payment guarantee for project funds. For projects awarded based on the lowest bid, explore the implementation of high-amount performance bonds.

　　(12) Strengthen the transparency of information disclosure. Information on publicly tendered projects—including pre-qualification announcements, tender notices, evaluation committee reviews, lists of candidates failing qualification screening, bid evaluation results, shortlisted bidders, awarding methods, and contact details for handling complaints—must be publicly released on the service platforms and trading platforms where the tender announcements were originally posted, thereby inviting oversight from the general public.

　　(13) Enhance the credit evaluation mechanism in the construction market. Actively conduct credit assessments of market participants, including clients, bidders, bidding agencies, and relevant personnel, and establish comprehensive credit profiles for these entities. Further refine the tiered management system for credit information, impose penalties on market players with serious instances of dishonest behavior, and ensure that credit evaluation results are systematically applied in tendering and bidding activities. Strictly prohibit using credit evaluations as a pretext for local protectionism.

　　(Fourteen) Ensure smooth complaint channels and standardize complaint procedures. The regulatory body overseeing bidding and tendering must establish a robust, fair, and efficient complaint-handling mechanism, promptly accepting and legally addressing any complaints related to bidding and tendering while intensifying enforcement efforts. Complaints should be properly standardized: each complaint letter must include the names, addresses, and valid contact details of both the complainant and the party being complained against; a clear summary of the factual basis for the complaint; specific requests and claims; relevant leads and supporting documentation; and evidence confirming that an objection has already been raised. Any malicious or frivolous complaints will be subject to appropriate accountability.

　　5. Strengthening Guarantee Measures

　　(Fifteen) Strengthen organizational leadership. Housing and urban-rural development authorities in all regions should place high priority on construction market transaction activities, innovate engineering procurement and bidding oversight mechanisms, refine relevant supporting policies, and enhance guidance and support for these activities. Additionally, they should strengthen communication and coordination with related departments such as those responsible for development and reform, finance, and auditing, ensuring that practical challenges in bidding processes are effectively addressed.

　　(Sixteen) Promote demonstration and leadership. Housing and urban-rural development authorities in various regions should actively drive reforms in the bidding and tendering processes for engineering construction projects, select specific areas to launch pilot programs, promptly summarize the best practices from these pilots, and develop replicable and scalable experiences. Any challenges or suggestions arising during the pilot initiatives should be promptly reported to the Ministry of Housing and Urban-Rural Development.

　　(17) Strengthen publicity and guidance. Housing and urban-rural development authorities in all regions should promptly publicize and report on the measures and achievements of tendering and bidding reforms through various channels, enhance public opinion guidance, garner support from the general public and market players, address public concerns in a timely manner, and create a positive public atmosphere to ensure the smooth advancement of tendering and bidding reform efforts.

　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　Ministry of Housing and Urban-Rural Development of the People's Republic of China
　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　December 19, 2019

　　(This document is publicly released.)

　　 The Ministry of Housing and Urban-Rural Development has issued guiding opinions to strengthen the supervision of bidding and tendering processes for housing construction and municipal infrastructure projects.