Hello. This is Attorney Lee Young-kyung from Cheongchul Law Firm.
Today, we will take a detailed look at bid announcements for public institutions and corporate bidding officials.
[Question]
What is a bid announcement, and what are the checklists for reviewing it?
[Answer]
Concept of Bidding
Bidding is the act of inviting multiple parties who wish to become a contract partner to submit necessary items for the contract, such as price. Bidding is conducted through the procedures outlined below, and the winning bidder is selected and a contract is formed according to the method of determining the winning bidder presented in the bid announcement.
Procedure Steps | Main Contents | Remarks |
Step 1 | Bid Announcement | Use of electronic procurement system |
Step 2 | Site Explanation | If it is construction (optional/mandatory) |
Step 3 | Submission of Bid Participation Application | By the deadline |
Step 4 | Submission of Bids | Principle of electronic bidding |
Overview of Bid Announcements
When a bid is to be put out, it must be announced using the electronic procurement system (Enforcement Decree of the National Contract Act Article 33, Enforcement Decree of the Local Contract Act Article 33). As an additional posting method, bids of the national contract can be published in daily newspapers, while local contracts can be posted on their own internet homepage.
However, if confidentiality needs to be maintained, bid announcements can be omitted, and the announcement contents can be directly notified to qualified bidders for them to apply for participation in the bid.
Essential Items to be Included in the Bid Announcement
The bid announcement must include the following items (Enforcement Decree of the National Contract Act Article 36, Enforcement Decree of the Local Contract Act Article 36):
Category | Required Items | Legal Basis |
Basic Items | - Items subject to bidding - Place and date of bidding or bid opening - Bid participant qualification requirements - Bid registration and bidding-related document items | Enforcement Decree of the National/Local Contract Act Article 36 |
Construction/Negotiation Related | - Place, date, participant qualifications, and mandatory participation status of the site explanation for construction bidding - Matters related to the explanation of the request for proposals for negotiation contracts | Enforcement Decree of the Local Contract Act Article 36 |
Guarantee/Contract Related | - Matters related to bid bonds and government fund forfeiture - Start and completion dates of the contract - Location of contract conditions publication | Enforcement Decree of the National/Local Contract Act Article 36 |
Bidding Method Related | - Procedures and methods for electronic bidding - If mail bidding is permitted, its intent and address - Matters related to joint contracts if permitted | Enforcement Decree of the National/Local Contract Act Article 36 |
Other Matters | - Matters related to bid invalidation - Matters related to reporting bid-related corruption - Places and costs of reading and providing bidding documents | Enforcement Decree of the National/Local Contract Act Article 36 |
Timing of Bid Announcements
Bid announcements must be made starting from the day before the deadline for bid submission, and must be announced as follows:
Category | Announcement Period | Starting Point | Legal Basis |
General Principle | 7 days | The day before the deadline for submission of bids | Enforcement Decree of the National/Local Contract Act Article 35 |
Construction with Site Explanation | 7 days | The day before the site explanation | 〃 |
Bidding with Pre-qualification for Participants | 30 days | The day before the site explanation | 〃 |
Construction Estimated Cost Between 1 Billion and 5 Billion Won | 15 days | The day before the deadline for submission of bids | 〃 |
Construction Estimated Cost Over 5 Billion Won | 40 days | The day before the deadline for submission of bids | 〃 |
Emergency Announcement | 5 days | The day before the deadline for submission of bids | 〃 |
※ Emergency announcements are possible in cases such as re-bidding, early execution, linkage with other national projects, or urgent events/disaster prevention/recovery.
Changes to Bid Announcements and Precautions
If errors or violations of laws are found in the announcement content and it is necessary to correct the announcement details, the remaining announcement period must be extended by 5 days for the announcement.
Major interpretations related to this are as follows:
"The ordering institution cannot modify the announcement content without making a correction announcement." (Ministry of Economy and Finance Accounting System Division-940, '10.6.18.)
"In cases where the bid announcement includes conditions for the submission of the technical usage agreement, if the person determined as the winning bidder fails to submit it without justifiable reason, they will be subject to restrictions on bid participation qualifications." (Ministry of Economy and Finance Inquiry Response, Reference 41301-795, '02.6.18.)
"It is not appropriate to require that joint contractors participate as a condition for bidding on building comprehensive management services by local government investee organizations." (Ministry of the Interior and Safety Accounting System Division-395, '17.1.19.)
Bid Announcement Checklist
Ordering institutions must verify the following items when making a bid announcement:
Check Item | Main Verification Items | Verification Standard |
Validity of Laws | - Current validity of laws and regulations - Confirmation of amendments to related laws | As of the announcement date |
Appropriateness of Qualification Requirements | - Whether there are excessive restrictions - Appropriateness of the requirements for limited competition | Basic qualification requirements under the law |
Compliance with Announcement Period | - Compliance with the statutory announcement period - Whether it falls under an emergency announcement | Statutory period by contract |
Inclusion of Essential Items | - Whether the legally mandated essential announcement contents are included - Bid-related corruption reporting items, etc. | Legally required items |
Content Consistency | - Whether there are contradictions in the announcement content - Whether there are favorable conditions for specific companies | Standards of fairness/equity |
Precautions Related to Electronic Bidding
When electronic bidding is conducted, the following matters must be strictly adhered to:
Ensure a minimum of 48 hours from the start to the deadline for bid submissions
Set the submission deadline from 10 AM to 5 PM on business days
If the content posted in the electronic procurement system differs from the attached file, the content of the bid announcement prevails (however, the announcement date is prioritized over the posting date in the electronic procurement system)
Cheongchul Law Firm has extensive experience and expertise in cases related to bidding, public procurement, and restrictions on bidding participation (punishment of dishonest entities). If you are facing any issues related to these matters, please feel free to contact us.
Cheongchul Law Firm will be your reliable legal partner. If you need to consult with a lawyer, please contact us right away.
