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Vote passed! The Chongqing Municipal Regulations on Bidding and Tendering will take effect on August 1.
2025-06-17
Chongqing Daily Online
On the morning of May 29, the 16th session of the Standing Committee of Chongqing's Sixth People's Congress voted to adopt the "Chongqing Municipal Regulations on Bidding and Tendering" (hereinafter referred to as the Regulations), which will come into effect on August 1, 2025. The Regulations provide detailed regulations addressing pressing issues in the bidding and tendering sector, such as clarifying the procedures and requirements for setting up an alert threshold for abnormally low bids, listing 18 specific scenarios constituting "collusive bidding" along with corresponding legal liabilities, and mandating the establishment of a city-wide unified information management system for bidding agencies. During the post-session interpretation meeting on the new regulations, Li Yuan, Deputy Director of the Legal Work Committee of the Chongqing Municipal People's Congress Standing Committee, explained that this is the second revision of the "Chongqing Municipal Regulations on Bidding and Tendering" since its implementation in 2008. The Regulations remain firmly problem-oriented, tackling prominent contradictions and critical bottlenecks that have emerged in recent years in Chongqing's bidding activities. They also adapt to the practical application of emerging technologies, business models, and innovations like artificial intelligence, focusing on building a comprehensive, end-to-end regulatory framework for bidding and tendering while fostering systematic institutional reforms that highlight Chongqing's unique identity. The Regulations further strengthen the primary responsibility of bidders, stipulating that bidders must organize bidding activities in accordance with the law and fully assume their responsibilities. For projects not legally required to undergo bidding, the Regulations clarify that project entities can independently decide to use competitive selection methods, open price comparisons, random drawing, or competitive negotiation for project contracting. Additionally, the Regulations tighten the regulation of bidder behavior by outlining 18 specific scenarios of "collusive bidding," based on both legal frameworks and Chongqing's unique context. For instance, bidders who are members of the same group, association, chamber of commerce, or other organizations and collaborate on bidding as per the organization's guidelines are considered to be engaging in collusive bidding. Similarly, if electronic bid documents from different bidders are prepared, packaged, encrypted, or uploaded using the same electronic device, this is deemed as evidence of collusive bidding. To further standardize the conduct of bidding agents, the Regulations require the municipal development and reform department to establish a unified city-wide information management system for bidding agencies, collecting data on all agencies operating within the city and making this information publicly available. The Regulations also enhance the code of conduct for bidding agencies by introducing nine prohibited behaviors, accompanied by corresponding legal consequences. Ensuring that evaluation experts perform their duties independently and impartially is a cornerstone for maintaining the orderly progression of bidding activities and achieving fairness and transparency. To reinforce this, the Regulations dedicate an entire chapter to strengthening the management of evaluation experts in Chongqing. This includes establishing a city-wide, integrated pool of comprehensive evaluation experts and implementing a full-cycle management system covering expert selection, appointment, training, evaluation, assessment, and eventual removal from the pool. To prevent bidders from submitting maliciously low bids that disrupt market order, the Regulations have refined the evaluation methodology. Specifically, regarding the lowest-bid evaluation method, the Regulations emphasize the importance of closed-loop management, requiring comprehensive consideration of the industry’s average cost levels when setting an appropriate abnormal-low-bid alert threshold—ensuring that the threshold is set scientifically and reasonably. Furthermore, if a bid falls below the established abnormal-low-bid alert threshold, bidders are required to provide clear explanations in their bid documents regarding the reasonableness of their proposed prices, supported by relevant supporting documentation. To promote more robust, transparent, and open management throughout the entire bidding process, the Regulations include a dedicated chapter that mandates full public disclosure of key stakeholders—including bidders, contractors, and bidding agencies—as well as their respective legal representatives, thereby inviting broader societal oversight. Additionally, to strengthen the regulatory framework, the Regulations instruct the municipal development and reform department to collaborate with relevant industry authorities in establishing credit profiles for all entities involved in bidding and tendering activities. Finally, the Regulations encourage the adoption of digital tools to monitor and provide early warnings for anomalies such as unusually similar bid document content, irregularities in the flow of bid bond funds, and delays in contract performance.
On the morning of May 29, the 16th session of the Standing Committee of Chongqing’s Sixth People’s Congress voted to adopt the "Chongqing Municipality Tendering and Bidding Regulations" (hereinafter referred to as the Regulations), which will come into effect on August 1, 2025. The Regulations provide detailed rules addressing critical issues in the tendering and bidding sector, such as clarifying the procedures and requirements for setting up an alert threshold for abnormally low bids, outlining 18 specific scenarios constituting "collusive bidding" along with corresponding legal liabilities, and mandating the establishment of a city-wide unified information management system for tendering agencies.
At the post-meeting session on regulatory interpretation, Li Yuan, Deputy Director of the Legal Work Committee of the Chongqing Municipal People's Congress Standing Committee, explained that this is the second revision of the *Chongqing Municipality Tendering and Bidding Regulations* since its implementation in 2008. The regulations remain firmly focused on addressing specific issues, tackling the most pressing challenges and critical bottlenecks that have emerged in our city’s tendering and bidding activities over recent years. Additionally, they adapt to the practical application of new technologies, business models, and innovative practices—such as artificial intelligence—and aim to establish a comprehensive, end-to-end regulatory system for tendering and bidding. This initiative fosters systematic institutional innovation while clearly highlighting Chongqing’s unique identity and approach.
The regulations further strengthen the principal responsibility of the tendering party, stipulating that tenderers must organize bidding activities in accordance with the law and fully fulfill their obligations as the main entity responsible for the tender process. For projects not legally required to undergo tendering, the regulations clarify that project entities may independently decide to adopt alternative procurement methods such as competitive selection, open price comparison, random selection, or competitive negotiation.
The regulations further clarify bidder behavior by listing 18 specific scenarios of "collusive bidding," based on laws and regulations as well as Chongqing's unique circumstances. For instance, bidders who are members of the same group, association, chamber of commerce, or other such organizations and collaborate on bidding as required by these entities are considered to be engaging in mutual collusion. Similarly, if electronic bidding documents from different bidders are prepared, packaged, encrypted, or uploaded using the same electronic device, this is also regarded as evidence of collusive bidding.
The regulations further standardize the conduct of bidding agents by requiring the city’s development and reform department to establish a unified city-wide information management system for bidding agencies. This system will collect data on all bidding agencies operating within the city and make the information publicly available. Additionally, the regulations enhance the code of conduct for bidding agencies, introducing nine prohibited actions along with corresponding legal liabilities.
Ensuring that bid evaluation experts fulfill their duties independently and impartially is one of the core elements for maintaining the smooth progression of tendering activities and achieving the goals of fairness and transparency. The regulations strengthen the management of our city's bid evaluation experts through a dedicated chapter, outlining the establishment of a unified, city-wide comprehensive expert database. This includes implementing a full-cycle management system covering expert selection, appointment, training, evaluation, assessment, and eventual withdrawal from the system.
To prevent bidders from submitting maliciously low bids that win contracts and disrupt the order of the bidding market, the regulations further refine the evaluation methods. Specifically, regarding the lowest-bid evaluation method after review, the rules emphasize a closed-loop management system. Bidders are required to comprehensively consider the industry’s average project costs and scientifically and reasonably set an "abnormal low-price warning line." Additionally, if a bid is lower than this established warning line specified in the tender documents, bidders must provide a detailed explanation within their bid documents justifying the reasonableness of their offer, along with any necessary supporting documentation.
To further enhance transparent, full-process management, the regulations dedicate an entire chapter to publicly disclosing information about various entities involved in the bidding and tendering process—such as bidders, tenderers, successful bidders, and bidding agencies—as well as their respective legal representatives—thereby inviting public oversight. Meanwhile, to strengthen the regulatory framework even further, the regulations also stipulate that the city’s development and reform department, in collaboration with relevant industry authorities, should establish credit profiles for all parties associated with bidding and tendering activities. Additionally, the regulations aim to promote digitalized, end-to-end monitoring of the bidding process, bolstering efforts to detect and address anomalies such as unusually high similarity in bid documents, irregularities in the flow of bid bond funds, and delays in contract performance through advanced monitoring and early warning systems.
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