Nov 28,2007
Chapter Ⅴ Government Procurement Contract
Article 43 The Contract Law is applicable to government procurement contract. The rights and obligations of the procuring entity and the supplier, respectively shall, on the principle of equality and voluntariness, be agreed on in a contract.
The procuring entity may entrust a procuring agency with the conclusion, on its behalf, of a government procurement contract with the supplier. Where the contract is signed by the procuring agency in the name of the procuring entity, the entrustment document shall be submitted as an annex to the contract.
Article 44 The government procurement contract shall be made in written form.
Article 45 The department for supervision over government procurement under the State Council shall, in conjunction with the relevant departments under the State Council, specify the provisions essential to government procurement contracts.
Article 46 The procuring entity, the winner of the bid or the successful supplier shall, within 30 days from the date the notice informing the said winner or supplier of their acceptance is sent out, sign a government procurement contract pursuant to the particulars set in the procurement documents.
The notice informing the winner of a bid or the successful supplier of their acceptance shall be legally effective to both the procuring entity and the said winner or supplier. After the said notice is sent out, if the procuring entity alters the result regarding the winner of a bid or the successful supplier, or the said winner or supplier gives up the project for which it wins the bid, it shall bear legal responsibility in accordance with law.
Article 47 Within seven working days beginning from the date the contract for government procurement items is concluded, the procuring entity shall submit a copy of the contract to the department for supervision over government procurement at the same level and a copy to the relevant department for the record.
Article 48 Subject to consent of the procuring entity, the winner of the bid or the successful supplier may perform the contract by subcontract in accordance with law.
Where the government procurement contract is performed by subcontract, the winner of the bid or the successful supplier shall be responsible to the procuring entity for both the whole procurement project and its subcontracted parts, while the subcontractors shall be responsible for the subcontracted part.
Article 49 If, when the government procurement contract is being performed, the procuring entity needs to procure additional goods, construction or services of the same nature as those of the base government procurement contract, it may, on the premise that no change is made in the other clauses of the contract, conclude a supplementary contract with the supplier, provided that the total value of all the additional procurements does not exceed 10 percent of that of the principal contract.
Article 50 No parties to the government procurement contract may, without authorization, alter, suspend or terminate the contract.
Where continued performance of the government procurement contract is detrimental to the interests of the State or the public, the parties to the contract shall alter, suspend or terminate the contract. The party at fault shall bear the liability to pay compensation; where both parties to the contract are at each shall honor its own liability.
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