President Dr. Zhu Jianyuan Research on the Development Status of Chinas Tender Agent System.
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Transcript of President Dr. Zhu Jianyuan Research on the Development Status of Chinas Tender Agent System.
President Dr. Zhu Jianyuan
Research on the Development Status of China’s Tender Agent System
Dr. Zhu Jianyuan
Ⅰ• Summary of China
Tendering Market
Ⅱ• Status of China’s
Tender Agent System
Ⅲ • Suggestions
Table of Contents
Ⅰ. Introduction
China invested RMB 27 Trillion in fixed assets, 2010. Tendering and Bidding are the main channels of selecting suppliers
Feature—Huge Investment in Fixed AssetsFeature—Huge Investment in Fixed Assets
Source: National Bureau of Statistics
Ⅰ. Summary of China Tendering Market
Ⅰ. Summary of China Tendering Market
Ⅰ Summary of China Tendering Market
Ⅰ. Summary of China Tendering Market
Ⅰ. Summary of China Tendering Market
In 1984, Ministry of Commerce (MOC) issued Certificate of Procurement Agent, required in participating in international bidding to procure electronic equipments and machines, to CNTIC because of the WB financing programs. In 1980s, there were already four companies engaged in procurement agent.
In 2000,China Bidding Law was issued , some new tender agency apeared and developed such as Guoxin Tender Group.
Development of Tender agency
Ⅱ. Status of China’s Tender Agent System
Till now, There are over 5,000 tender agency in China. Some of them own multi qualifications of different areas, industries and central level.
According to data from MOHURD in Aug 23, 2012, the amont of Engineering project tender enterprises reached at 5113, among which, corporates and privates 93%, playing the main role.
数据来源:www.chinbaidding.com.cn
Structure of Tender Agency Structure of Tender Agency
Ⅱ. Status of China’s Tender Agent System
Proffessional Service
Guarantees the Investment Efficiency
Popularizationof Tender System
The Positive Role China Tender Agency
Playing
Decrease of Supervision Cost of the
Government
Ⅱ. Status of China’s Tender Agent System
Tender Agency
• Tender Agency is a intermediary service institute
between EA and bidders, carrying out tendering
within authority area on behalf of EA
• Tender Agency has special site and professional
team.
• Tender Agency serve EA from different
industries, have rich tender practise
experience, more proffessional and standard.
Comparation Between Tender Agency Model and Self-tendering ModelComparation Between Tender Agency Model and Self-tendering Model
Ⅱ. Status of China’s Tender Agent System
Comparation Between Tender Agency Model and Self-tendering ModelComparation Between Tender Agency Model and Self-tendering Model
Ⅱ. Status of China’s Tender Agent System
Self-tendering
• EA conducts project tender directly. EA lacks special site nor professional team.
• EA lacks experience, positivity and
proffession.
Tender Agency
• Tender Agency is less than EA with
concentration of personnel relatively easy
for government supervision.
• Tender Agency focuses more on
Proffessional ethics and reputation.
• Terder Agency deal with a great amount of
documents and are responsible for logistics
whose tech level is very low.自主招标
Ⅱ. Status of China’s Tender Agent System
Comparation Between Tender Agency Model and Self-tendering ModelComparation Between Tender Agency Model and Self-tendering Model
自主招标
Ⅱ. Status of China’s Tender Agent System
Comparation Between Tender Agency Model and Self-tendering ModelComparation Between Tender Agency Model and Self-tendering Model
Self-tendering
• EA are more than tender agency, which
is not easy for governtment supervision.
• EA focus more on project management
and others.
• EA must deals with proffessional
documents and make proffesional tech
standard.
Tender Agency
• Tender document is jointly compiled by
several agencies..
• Tender Agency could organize
comprehensive bid assessment expert tank
in the request of BTL and government.
• Small intervention scope. Tender Agency
only intervenes for the management from
opening bid to signing contract .
Comparation Between Tender Agency Model and Self-tendering ModelComparation Between Tender Agency Model and Self-tendering Model
Ⅱ. Status of China’s Tender Agent System
Comparation Between Tender Agency Model and Self-tendering ModelComparation Between Tender Agency Model and Self-tendering Model
• EA must compile tender documents
themselves.
• EA can build tender assess,ment expert tank.
• Large intervention scope.EA is responsible for
all stages of a project.
Ⅱ. Status of China’s Tender Agent System
Self-tendering
Comparation Between Tender Agency Model and Self-tendering ModelComparation Between Tender Agency Model and Self-tendering Model
• EA must compile tender documents
themselves.
• EA can build tender assess,ment expert
tank.
• Large intervention scope.EA is responsible
for all stages of a project.
Ⅱ. Status of China’s Tender Agent System
Self-tendering
Tender Agency
• Tender agency must serve both EA and
bidders , supervised by bidding
authoritative department.
• The pricing of tender agency service is
based on cost evaluation and the bid
winning price of the project, goods and
service required by the bidding projects.
Comparative Research on Tender Agency Model and Self-tendering 0neComparative Research on Tender Agency Model and Self-tendering 0ne
Self-tendering
Ⅱ. Status of China’s Tender Agent System
Comparative Research on Tender Agency Model and Self-tendering 0neComparative Research on Tender Agency Model and Self-tendering 0ne
Self-tendering
• EA could make its self-decision with regard to
the result of tender. However, EA must also be
under supervision by government bodies.
• No need to set service fee. However the human
and material input and the cost of raw materials
must be recognized.
Ⅱ. Status of China’s Tender Agent System
Advantages
1. Strong service capability in tender agency , with professional team and rich cross-industry
2. Tender agency has certain capability of anti-corruption as an intermediary ser-
vice institute between EA and bidders
3.Tender agency, with few members, could also be selected to perform the supervi-
sion function, which is beneficial for government to reduce its workload.
4. The competition between tender agency is beneficial for EA to gain high-quality
service and low tendering cost
5. It is easier and more rational to calculate the tender agency cost based on the
percent of bidding winners cost.
Advantages and Disadvantages of China Tender AgencyAdvantages and Disadvantages of China Tender Agency
Ⅱ. Status of China’s Tender Agent System
Advantages and Disadvantages of China Tender AgencyAdvantages and Disadvantages of China Tender Agency
Ⅱ. Status of China’s Tender Agent System
Advantages
6.Supervised through certificate approval mechanism;more formal and easier.
7. The management of the tender documents is formal and concentrated. Easy for to get a
large amount of tender documents from few tender agency for easy examination by estab-
lishing tender documents archive system
8. Feasible to expand tender supervision to personal behavior of the practitioners by estab-
lishing certificate admission mechanism and personal credit evaluation mechanism, which
avoid corruption in the tender process .
Disadvantages
1. Tendering according to standard procedure , it will produce bad effects such as low-efficiency, time-
consuming and high cost if adding procedures or remporary changes appear in overall demand.
2. If the operation capability for PA is poor, it will delay the process.
3.Tender agency must strike a balance between EA requirements and government laws and regulations,
which is easy to transfer the attention paid by government from the violation of tender laws to PA,
making PA coordination room relatively narrow.
The Advantages and Disadvantages of tender agency system The Advantages and Disadvantages of tender agency system
Ⅱ. Status of China Tender Agency System
Disadvantages
4. The experience of tender agency in compiling technical part and EA in business part will not
increase.
5. Low-cost competition among tender agency would lead to interior service quality. If high-
quality tender agency compromises in the price competition, it will bring bad effect to normal
tender service result.
6. Different industry identification standards and tender agency identification process make the
procedure very complex and reduce the efficiency. Also it increases the cost of EA and gov-
ernment, consuming much more time.
The Advantages and Disadvantages of Tender Agency System The Advantages and Disadvantages of Tender Agency System
Ⅱ. Status of China Tender Agency System
Legal Status of Tender AgencyLegal Status of Tender Agency
The legal status of tender agency is said first in China Bidding Law issued in 1st, Jan 2000. It is stated in the 13th articles: Tender Agency is a social intermediary organization established in accordance with the law and engages in tender agent business.
Ⅲ . The Role and Legal Status of Tender Agency
ㅋ
Function of CoordinationFunction of Coordination
Decision Making and Consultation Service
Decision Making and Consultation Service
ServiceServiceSupervision Supervision
FunctionsFunctions
Structure of KONEPS
Functions of Tender AgencyFunctions of Tender Agency
Ⅱ. Status of China Tender System
• Personnels working in China Tender Agency are over 0.8 million, amoung which, personnels on project tender are over 0.4 million.
Ⅱ. Status of China Tender System
2009-2011年招标师考试通过情况数据来源:中国招标师在线(www.zbsonline.com)
Ⅱ. Status of China Tender System
Till now, tender exam has been hold nationally for three years. 23,000 staff get tenderee professional level certificate and finish tenderee registration.
中国招标代理机构从业人员资质管理中国招标代理机构从业人员资质管理
2009-2011年招标师考试通过情况数据来源:中国招标师在线(www.zbsonline.com)
Ⅱ. Status of China Tender System
Fees of China Tender AgencyFees of China Tender Agency
Bid Winning Price(in Mil-lion RMB Terms)
Tender of Goods
Tender of Sser-vice
Tender of Engineer-ing Projects
Less than 1 Million RMB 1.5% 1.5% 1.0%
1-5 Million 1.1% 0.8% 0.7%
5-10 Million 0.8% 0.45% 0.55%
10-50 Million 0.5% 0.25% 0.35%
50-100 Million 0.25% 0.1% 0.2%
100-1000 Million 0.05% 0.05% 0.05%
More than 1000 Million 0.01% 0.01% 0.01%
招标代理 PA 服务的费率
The purpose of the Asian Development Bank (ADB) is: to help developing countries in their efforts to reduce poverty, raise people’s living standards thus realizing the ultimate goal of poverty-free Asia-Pacific (AP). As a re-gional financial institute in AP, ADB boasts remarkably advanced and valuable experience in the operation and supervision of bidding and ten-dering and the coordination of economic development policies. As a third information-service party which provides services to China’s bidding and tendering market, Chinabiding.net is always dedicating itself in promoting cooperation and interaction among related parties and pushing the progress of China’s tendering course. We are always ready to cooperate with parties concerned and increase interaction and consultation with ADB in our effort to promote China’s experience in bidding agency and contribute to the bidding system formation and economic development for all Asian coun-tries.
Ⅲ. Suggestions
Specifically speaking, we would recommend China Association of Bid-ding and Tendering (CABT) being at the head of organizing senior experts in China tendering agencies, with the extensive participation of Chinabid-ding.net, to establish joint promotion agencies. Hopefully these agencies would be ideal platforms for China to introduce valuable experience and systems with regard to tendering agency to countries in Asia and the pa-cific region. While at the same time, it is also expected that we could learn from the internationally advanced tendering management model and man-ner, thus promoting the common economic development in Asia at large.
Ⅲ. Suggestions