Research on the Remedy System in China’s Government Procurement Contract Awarding Phase

Fu-Guo Cao

doi:10.11648/j.jim.20180702.13

Abstract

Government procurement regulations require efficient implementation and remedy systems to achieve the goals of public procurement and protect the suppliers’ business opportunities. In the phase of awarding public procurement contracts, the establishment of a more independent and professional organization will increase the authority, credibility, and efficiency of dispute resolution in complaint processing. In order to protect the rights and interests of the participants, the public procurement suspension procedures should be further improved; the application of the Alternative Dispute Resolution (ADR) system such as mediation, arbitration, etc, should be encouraged. When a supplier claims damages for losses due to illegal activities, it should use a more diversified dispute resolution mechanism. The remedy system in the awarding phase of public procurement contracts can enable China’s public procurement system to better meet the needs of the Government Procurement Agreement (GPA) and enable Chinese companies to participate in international competition fairly and effectively. China should establish professional and independent complaints resolving institutions. Improve the suspension procedures for the dispute settlement in the Public Procurement contract awarding phase.

Highlights

Public procurement involves multiple parties, including government Procurer, procurement agencies, unspecified suppliers, procurement supervision agencies, and the public, which makes the diversity of legal relationships in public procurement and the complexity of the dispute remedy.The bidding, tendering and reviewing of disputes during the award phase of the government procurement contract, the design of the challenge complaint system, is the key to the sound development of the government procurement system
Based on the above two models, This paper has summarized the challenge and complaint procedure of the public procurement contract about the typical countries or regions
In most countries or regions, regardless of the model of review adopted during the award stage of the public procurement contract, a special public procurement review body will be set up to manage the review process and allow relevant experts to participate in public procurement dispute resolution

Summary

Introduction

Public procurement involves multiple parties, including government Procurer, procurement agencies, unspecified suppliers, procurement supervision agencies, and the public, which makes the diversity of legal relationships in public procurement and the complexity of the dispute remedy. The bidding, tendering and reviewing of disputes during the award phase of the government procurement contract, the design of the challenge complaint system, is the key to the sound development of the government procurement system. The government is the largest procurement entity, and the competition among suppliers who participate in government procurement is intense fierce This has led to high frequency of disputes in the procurement’s tendering and awarding phases. The works, goods, services procured by the government are closely related to the national economy and the people’s livelihood [3]. They are complex and have a wide range of impacts. Remedy to the damages of suppliers by government procurement will minimize the damage of suppliers, and realize value for money for government procurement effectively

Two models of the Public Procurement Challenge and Complaint Mechanism

17 Public Procurement Chambers

The Practice of Government Procurement Challenges and Complaints in China

The Analysis of Judicial Cases in the Challenge and Complaint Procedure

Conclusion